Recently, reports revealed that a “K-beauty brand battle” is unfolding in the United States. As Olive Young, South Korea’s largest health and beauty retailer, prepares to open its first U.S. store, global beauty giants Sephora and Ulta Beauty have moved quickly to secure exclusive offline distribution rights for several popular Korean brands, with agreements lasting at least two years.
According to the report, Sephora has signed exclusive deals with Beauty of Joseon (by startup Goodai Global), Hanyul (owned by Amorepacific), and Aestura; while Ulta Beauty has secured exclusive rights for Medicube (by Korean home beauty device company APR) and Anua (by The Founders).
Traditionally, most Korean beauty brands have relied on online channels in the U.S., but surging demand is now driving them to expand offline—turning them into new growth engines for major retailers. Traditional retail giants such as Target and Walmart are also expanding their K-beauty offerings. Meanwhile, Olive Young, having lost distribution rights for top brands like Beauty of Joseon, is adjusting its strategy to focus on niche Korean labels and emerging U.S. indie brands in pursuit of differentiation.
Public data shows that in the first half of 2025, South Korea’s cosmetics exports reached $5.5 billion, marking a five-year high. By destination, China was the largest export market with $1.08 billion, followed closely by the United States at $1.02 billion.
Notably, the popular K-beauty brands mentioned above have performed strongly in international markets. For example, Aestura’s Atobarrier365 Cream, commonly known as the “Capsule Cream,” has become the brand’s flagship product, with cumulative sales surpassing 7 million units, topping Olive Young’s best-selling cream list, reportedly selling one unit every seven seconds.
Meanwhile, Medicube’s parent company APR Co. has surpassed Amorepacific to become South Korea’s highest-valued beauty company. During Amazon Prime Day in July, the company’s sales reached KRW 30 billion (USD 21.5 million), six times higher than last year.
