As the K-beauty industry enters a boom, corporations whose core business is far from cosmetics are adding cosmetics manufacturing and sales to their business purposes, seeking opportunities to expand into new lines. Analysts say the ODM (original design manufacturing) structure has lowered barriers to entry for outside corporations, and the industry's steep growth is accelerating moves by unrelated corporations to enter the beauty market.
According to the Financial Supervisory Service's Data Analysis, Retrieval and Transfer System (DART) on the 17th, internet streaming platform SOOP (formerly AfreecaTV) plans to add 11 new business purposes, including "manufacturing and sales of cosmetics and sales of related service products," through amendments to its articles at a regular shareholders meeting on the 27th. SOOP has a platform structure that combines creators, content and commerce. It is seen as keeping the door open for expansion into beauty product sales, in-house brand creation and live commerce.
Hyosung TNC, which produces functional fibers such as spandex and conducts steel and petrochemical product trading, also plans to add "manufacturing and sales of cosmetics, distribution, retail and e-commerce" to its business purposes at a regular shareholders meeting on the 19th of this month. Hyosung TNC has built a broad overseas sales network through years of material export operations. The cosmetics expansion likewise appears aimed at synergy with existing businesses and securing a new growth engine.
Industry officials cite the unique structure of the cosmetics sector as the backdrop that makes such diversification possible. Even without directly securing production facilities and raw material infrastructure, partnering with ODM firms allows quick market entry through product planning and branding alone.
In particular, Korea is home to strong manufacturing partners, including major ODMs such as COSMAX and Kolmar Korea, making it common for brands to outsource research and development and production while focusing solely on sales and marketing. A representative at an ODM firm said, "Today's ODMs are closer to planning partners than simple manufacturers," adding, "Because we proactively propose product concepts, formulations and packaging directions aligned with market trends, corporations without cosmetics experience can enter the market quickly."
In fact, in recent years, platform corporations once distant from cosmetics have jumped into beauty and produced results. Fashion-specialist platform Musinsa entered the space in 2021 with the beauty section "Musinsa Beauty," which now hosts some 2,000 brands. Musinsa also launched its private brand (PB) "Odd Type" in 2023, followed by Wizzy, Musinsa Standard Beauty and Notherup, expanding its brand business in sequence.
Transaction volume for Musinsa's four PB lines last year rose 120% from the year before. Musinsa Beauty plans to open its first permanent offline store in Seongsu-dong, Seoul, in the second quarter this year and broaden sales through overseas online and offline channels.
Kurly likewise launched "Beauty Kurly" in 2022, moving in earnest into a beauty vertical service. Recently, it filed six trademarks—Riti, Rovrin, Miroel, Lurion, Ludexa and Duera—as it prepares to launch beauty PB products. Kurly's beauty category is known to have grown to about 10% of total sales.
Industry watchers say that as K-beauty's growth continues, attempts by unrelated corporations to enter the cosmetics market will become more frequent. An industry source said, "Cosmetics allow relatively light market entry based on ODMs, and with overseas demand growing quickly of late, the market is plenty attractive for unrelated corporations."
As the cosmetics industry shows steep growth, there are also cases of existing players widening their stride beyond cosmetics. APR plans to add businesses such as development, manufacturing and sales of medical devices and consumables to its business purposes through a shareholders meeting on the 31st. The move is groundwork to enter the market for hospital and aesthetic beauty medical devices beyond home beauty devices.
APR is pursuing regulatory approvals to launch energy-based devices (EBD) and, as early as the second half of this year, plans to release related products. An APR representative said, "The future cash cow of the beauty industry is overcoming aging," adding, "We believe the medical device business will also help our existing cosmetics and device operations."