Amorepacific is looking to turn around the performance of its flagship acquisition, COSRX, as the once high-flying derma skincare brand struggles to maintain momentum in a fiercely competitive global K-beauty market.
Amorepacific invested more than 900 billion won to secure a majority stake in COSRX in 2023, making it the largest brand purchase in the company’s history. Founded in Korea in 2013, COSRX built a global reputation with cult-favorite products such as the “Original Clear Pad,” “Acne Patch,” and “Good Morning Gel Cleanser,” and today has a presence in around 150 countries. It is particularly well-established in the U.S., where it is cited as the K-beauty brand with the most consumer touchpoints online and offline.
Despite this strong foundation, COSRX’s financial performance has softened. In the second quarter of this year, it posted sales of 96.7 billion won and operating profit of 24.2 billion won, down 0.3% and 17%, respectively, year-over-year. The first quarter was more severe, with sales falling 35% and operating profit plunging 56% from a year earlier. The decline has persisted since the latter half of 2024, reflecting intensifying competition in major export markets, particularly the U.S., where new indie skincare brands have eroded COSRX’s edge.
In response, COSRX has cut product prices across online channels to reduce inventory. However, the move has pressured margins. Analysts note that while price stabilization continues in North America and Southeast Asia, weakness in Europe remains due to shrinking B2B accounts.
Seeking fresh growth, COSRX has entered the hair care segment. In July, it launched the “Peptide-132 Ultra Perfect Hair Bonding” treatment, formulated with a patent-pending peptide designed to repair damaged hair. The product quickly rose to the top of Amazon’s U.S. “deep conditioner” category among new launches, signaling potential for the new line. Analysts expect the brand’s sales and profitability to gradually recover as COSRX shifts toward higher-functionality products and expands beyond low-priced skincare staples.
The stakes are high for Amorepacific. Once the top beauty company in Korea by market capitalization, it slipped to second place last month after being overtaken by APR, with LG H&H also falling behind. As of late September, Amorepacific’s market cap stood at 7.335 trillion won, about 800 billion won less than APR’s 8.141 trillion won.
