[Feature] Amorepacific Rebounds on Derma Cosmetics, Global Rebalancing St...

The headquarters building of Amorepacific Group. Photo = Amorepacific Group.

| NewsWatch= Reporter Myung Kyung-min | Amorepacific Group, which had experienced a prolonged decline due to changes in the global geopolitical environment and other external factors, is drawing attention after successfully rebounding in earnings through diversification of its growth strategy. Leveraging its strength in derma cosmetics brands, the group has expanded its business foundation into global markets including the United States, Europe, and Japan, moving away from its previous heavy dependence on Greater China.

According to industry sources on May 11, Amorepacific Group posted consolidated sales of KRW 1.2227 trillion and operating profit of KRW 137.8 billion in the first quarter of this year, up 6.9% year-on-year respectively. Sales in the first quarter of last year stood at KRW 1.1648 trillion. The group’s key affiliate, Amorepacific, also maintained an upward trend, recording first-quarter sales of KRW 1.1358 trillion, up 6% from a year earlier, and operating profit of KRW 126.7 billion, up 8%.

Looking at the group’s annual performance over the past five years, sales declined from KRW 5.3261 trillion in 2021 to KRW 4.495 trillion in 2022 and KRW 4.0213 trillion in 2023, before rebounding to KRW 4.2599 trillion in 2024 and KRW 4.6232 trillion in 2025. Operating profit also fell from KRW 356.2 billion in 2021 to KRW 271.9 billion and KRW 152 billion in 2023, but later recovered to KRW 249.3 billion in 2024 and KRW 368 billion in 2025.

Photo =Amorepacific Group,  Graph = ChatGPT

The company’s recovery is interpreted as the result of its mid- to long-term vision, “Create New Beauty,” beginning to bear fruit. Among the five major tasks outlined under the strategy, the strengthening of integrated beauty solutions centered on derma cosmetics brands and the focused development of key global markets have shown tangible results both domestically and overseas. Derma cosmetics, a compound term combining dermatology and cosmetics, refer to functional skincare products developed through research in biotechnology and dermatological science to enhance skin-improving effects.

Previously, the core of Amorepacific’s portfolio had been the premium herbal beauty brand Sulwhasoo. Launched in 1997, the brand gained immense popularity among Chinese consumers with its ginseng-based herbal concept and expanded rapidly through Korean duty-free shops and Chinese department stores. In 2015, Sulwhasoo became the first Korean beauty brand to surpass KRW 1 trillion in annual sales, serving as a key growth driver for the group.

However, the THAAD-related tensions between Korea and China, combined with the COVID-19 pandemic and sluggish Chinese consumption that weakened duty-free sales, caused the group’s sales to decline for two consecutive years beginning in 2022. Sales fell to KRW 4.495 trillion and KRW 4.0213 trillion in 2022 and 2023, while operating profit dropped to KRW 271.9 billion and KRW 152 billion, respectively.

At the 2024 Investor Day held at Amorepacific headquarters in Yongsan, Seoul, in 2024, CEO Kim Seung-hwan (left) and North America Division Head Giovanni Valentini present the company’s strategy. Photo = Amorepacific.

In response, Amorepacific announced a mid- to long-term strategy in 2024 focused on strengthening brand competitiveness and accelerating global rebalancing. Through portfolio diversification, the company aimed to reinforce brand competitiveness while nurturing the United States, Europe, and Japan as key strategic markets in overseas business, particularly in regions showing strong growth momentum. The move was widely seen as an effort to reduce dependence on the Chinese market and diversify its business structure.

The following year, the company accelerated its push into the U.S. market by adding major derma brands such as Aestura and Hanyul to the shelves of Sephora, following the existing presence of Sulwhasoo and Laneige. In Europe, it officially entered markets through partnerships with local retail chains, while in Japan it expanded distribution of Hera into major department stores after entering the market in 2023. At the same time, the company focused on restructuring operations by streamlining underperforming offline stores in Greater China.

The impact of the global rebalancing and “Create New Beauty” strategies has become evident in earnings. Overseas sales reached KRW 1.6789 trillion in 2024, up 20.6% year-on-year, while operating profit turned positive at KRW 104.2 billion. Notably, sales in the Americas surpassed those in Greater China for the first time ever. In 2025, overseas sales further increased 15% to KRW 1.9091 trillion, while operating profit more than doubled to KRW 209.9 billion.

Lim Woon-seob, who was appointed as a new inside director following the shareholders’ meeting in March. Photo = Captured from the Amorepacific website

The company’s focus on derma brands is also reflected in its executive appointments. In March, Amorepacific appointed Lim Woon-seob as a new inside director during its shareholders’ meeting. Lim is regarded as a derma specialist who joined the former Pacific Pharma, predecessor of Aestura, in the early 2000s and later served in leadership roles including head of the Aestura Division and head of the Derma Beauty Unit.

The derma business also drove growth in the first quarter of 2026. Major derma brands such as Aestura and COSRX continued to achieve strong growth in both domestic and overseas markets, while the company also improved sales and profitability in Korea.

An official from Amorepacific said, “The company has diversified its growth strategy based on a wide-ranging brand portfolio.” The official added, “Alongside luxury brands such as Sulwhasoo and Hera, functional and derma brands including Aestura have secured competitiveness across different customer groups and distribution channels, enabling balanced business growth.”

Reporter Myung Kyung-min newswatch@newswatch.kr