As CJ Olive Young prepares to open its first brick-and-mortar store on the U.S. mainland, Korea's pharmaceutical sector is also moving to expand into overseas beauty markets through "derma cosmetics (functional cosmetics)." By applying skin regeneration and anti-inflammatory technologies accumulated during drug development to cosmetics, companies are beginning a full-fledged push into the United States, the world's largest beauty market.
According to the industry on the 26th, the "Olive Young Pasadena store," which will open on Colorado Boulevard in Pasadena, California, on the 29th (local time), is expected to house a host of derma brands from Korean drugmakers. As Olive Young's first offline store on the U.S. mainland, it will showcase about 5,000 products from roughly 400 beauty and wellness brands at launch.
Industry officials see Olive Young's entry into the U.S. mainland itself as a symbolic example of K-beauty's elevated status. According to the Ministery of Food and Drug Safety, Korea's cosmetics exports last year hit a record $11.4 billion, overtaking the United States to rank No. 2 globally after France, with Hanwha 17 trillion won in value.
Amid this trend, the derma cosmetics market, which emphasizes skin improvement effects and functionality, is growing rapidly. In fact, Olive Young said foreign buyers' share of sales of functional cosmetics at domestic offline stores rose about 90% from 2023 to 2025. To meet rising demand, Olive Young also created an "Advanced Derma" category in March, grouping Korean derma brands.
Derma cosmetics is a portmanteau of cosmetics and dermatology. In this product group, medical and bio experts participate in research and development (R&D) to enhance skin function improvement effects, placing greater emphasis on functionality and ingredient reliability than general cosmetics. The industry says drugmakers with drug development experience and raw material technologies can have a competitive edge.
Riding this wave, Korean pharmaceutical companies are accelerating their push into overseas derma markets by leveraging skin regeneration and anti-inflammatory technologies secured during drug development.
Easydew, a derma brand launched by Daewoong Pharmaceutical through its subsidiary DN Cosmetics, plans to roll out its flagship "Freckle Ampoule" line from the opening of Olive Young's U.S. store. Both syringe and bottle formats will be stocked.
The key ingredient is "DW-EGF," based on epidermal growth factor (EGF). This ingredient is used as a raw material in Daewoong Pharmaceutical's treatment for diabetic foot ulcers, "EGF External Solution," and is considered strong in skin regeneration technologies that aid collagen synthesis and angiogenesis. It is currently sold on Amazon in the United States.
As sales of the Freckle Ampoule and Freckle Cushion grow quickly, performance is also climbing steeply. DN Cosmetics posted 174.5 billion won in sales last year, about 2.6 times the previous year's roughly 67.2 billion won. Cumulative sales of the Easydew brand also surpassed 100 billion won as of July last year.
Dongkook Pharmaceutical's derma brand Centellian24 is also set to enter Olive Young's U.S. store. While the specific lineup has not yet been decided, the company is expected to target local consumers around its flagship "Madeca Cream."
Centellian24 is a leading pharma derma brand that grew by leveraging the active ingredient in the wound treatment "Madecassol." It is viewed as a success story of shifting from a business structure centered on over-the-counter drugs to one with a larger share of cosmetics. Dongkook Pharmaceutical has recently entered Amazon and Costco and is working to expand its global distribution network through overseas influencer marketing.
Centellian24 still gets more than 90% of its revenue at home, but its overseas growth is fast. Overseas sales last year were about 30 billion won, double the previous year, and the industry expects that figure to expand to more than 100 billion won this year.
Dong-A Socio Holdings' subsidiary Dong-A Pharmaceutical Co.'s derma brand "Fation" is also reviewing entry into Olive Young's U.S. store. Fation is rapidly raising its profile among younger consumers, including by ranking No. 1 in the skincare institutional sector at Olive Young in Korea.
The industry expects drugmakers' competitiveness to stand out further as the global cosmetics market is reshaped from a focus on simple beauty to an emphasis on functionality and ingredient reliability.
An industry official said, "Derma cosmetics are growing quickly as more consumers value skin improvement effects and safety beyond simple cosmetics," adding, "Drugmakers are securing differentiated competitiveness in global markets based on their research and development experience and raw material technologies."