Cosmeca Korea Acquires Cheongju Factory for 64 Billion Won to Proactively Meet Demand

Enhancing OGM Competitiveness Through Securing a Domestic Production Base

Cosmeca Korea announced on June 5 that it has decided to acquire land and buildings of a factory located in Heungdeok-gu, Cheongju, Chungcheongbuk-do for 64 billion won. The acquisition amount accounts for 10.13% of its total consolidated assets as of the end of last year (631.8 billion won).

This acquisition is regarded as a strategic investment not only to expand production capacity (CAPA) but also to respond to the growing global demand for K-beauty manufacturing. As K-beauty's popularity continues to spread worldwide, the role of OGM partners—who can reliably handle the entire process from product development to production, quality control, and delivery—has become increasingly important.

Cosmax Korea acquires Cheongju factory for 64 billion won. Cosmax Korea

In particular, indie brands, which are showing remarkable growth in the global market, are focusing on rapid product launches and securing stable supply chains as key competitive advantages. As a result, the production capabilities of manufacturing partners are becoming a crucial factor in brand growth.

With the establishment of this new production base, Cosmeca Korea will be able to build a system that responds more quickly and reliably to the increasing volume of orders from both domestic and overseas clients. This is expected to have a positive effect not only on expanding orders from existing clients but also on attracting new brands.

The company’s strong earnings growth also supports the need to expand production capacity. Last year, Cosmeca Korea posted a record-high consolidated revenue of 640.9 billion won and operating profit of 83.4 billion won. In the first quarter of this year, its Korean entity recorded revenue of 142.2 billion won and operating profit of 17.8 billion won, up 91.3% and 120.8%, respectively, from the same period last year, setting a new quarterly record.

Currently, Cosmeca Korea’s annual production capacity is about 1.3 billion units. Through this factory acquisition, the company will expand its production capability and preemptively secure a foundation to meet rising global demand in the future. With the acquisition, Cosmeca Korea plans to accelerate category expansion by adding hydrogel masks, sun care, and premium hair & body care products to its existing skincare-focused manufacturing capabilities.

A Cosmeca Korea representative stated, "As the global growth of K-beauty brands continues, the core of cosmetics manufacturing competitiveness is being distilled into a stable production base and rapid supply response. Through this investment, we will respond more systematically to the expanding global customer demand and further strengthen our foundation for mid- to long-term growth."

This content was produced with the assistance of AI translation services.