'10 Trillion Won Export Boom' K-Beauty IPOs Surge, But Bar for Listing Gets Higher

Eight K-Beauty Companies Await IPOs
Gudai Global and Binau Eyeing KOSPI Listing
ODM and Distribution Firms Also Lining Up
L&P Cosmetic and Torriden Among Future Candidates

Riding the Korean beauty (K-beauty) wave, a series of cosmetics companies are knocking on the doors of the stock market. The types of companies seeking to go public have also broadened, now encompassing not only brand companies but also original development manufacturing (ODM), distribution, and platforms. However, it is widely regarded that the threshold for going public has been raised compared to before. Today, not only revenue growth, but also profitability and international business competitiveness have become the core criteria for company valuation.

According to investment banks (IB) and the cosmetics industry on July 16, the companies currently pursuing an initial public offering (IPO) are Gudai Global (cosmetics brand investment and distribution), Binau (cosmetics brand), Grace (cosmetics distribution), BNB Korea and Re:Born Cosmetics (cosmetics ODM), 2020 (overseas cosmetics online sales), and Ignis (health functional foods)—a total of seven firms. Additionally, Jincostech (hydrogel cosmetics ODM), which is currently listed on the KONEX market, is seeking to transfer its listing to KOSDAQ.

Foreign customers are selecting cosmetics at a cosmetics shopping mall in Myeongdong, Seoul. Photo by Younghan Heo

Gudai Global and Binau Preparing for KOSPI Listing

Gudai Global is considered the most prominent candidate in the current IPO market. The company has selected Mirae Asset Securities as its lead underwriter and NH Investment & Securities as joint underwriter to prepare for its KOSPI listing. Citigroup Global Markets and Morgan Stanley have also joined as overseas joint underwriters.

Gudai Global has grown by acquiring K-beauty brands with high growth potential. Starting with “Joseon Beauty” in 2019, it has added brands such as “Tirtir,” “Skin 1004,” “Round Lab,” and “Skinfood,” while expanding its distribution network in the United States, Japan, and Southeast Asia. Last year, the company received investments totaling 800 billion won from domestic private equity funds, earning a corporate valuation of roughly 4 trillion won.

The company has also seen extraordinary growth in performance. On a consolidated basis, Gudai Global’s revenue jumped from 139.4 billion won in 2023 to 373.1 billion won in 2024—a more than threefold increase—then made a quantum leap to 1.4718 trillion won last year. Revenue in the last year increased 294.5% compared to the previous year, and operating income nearly doubled from 137.8 billion won to 273.4 billion won, a rise of 98.4%. An official from Gudai Global stated, “We are preparing for a listing next year,” adding, “We are proceeding with the necessary steps by comprehensively considering market conditions and company evaluation.”

Binau is also seeking a KOSPI listing. The company has grown as a brand with products such as “fwee” and “Numbers In,” mainly in the U.S. and Japanese markets. Last year’s revenue reached 324.9 billion won, up 22% from the previous year, and operating profit reached 67.1 billion won. The company’s operating margin exceeded 20%. After attracting investment from CJ OnStyle last year, Binau was recognized with a corporate valuation of about 900 billion won and aims to go public within this year.

In the KOSDAQ market, several ODM companies are waiting in line. Last month, BNB Korea, an ODM company specializing in basic cosmetics with clients such as APR and Dalba Global, applied for preliminary listing review at the Korea Exchange. Last year, the company’s revenue soared 75.8% to 141.2 billion won, and operating profit rose 57.8% to 26.2 billion won. However, a challenge remains as about 73% of total revenue comes from just two key clients, leading to high client dependency.

Jincostech, an ODM company specializing in hydrogel mask packs, is also pushing for a KOSDAQ transfer listing. Last year, the company posted revenue of 48.6 billion won and operating profit of 4.8 billion won, maintaining profitability. The company held a board meeting on July 6 and decided on the transfer listing, filing a preliminary review application with the Korea Exchange the same day. The lead underwriter is Hana Securities. The company stated that it is seeking the transfer listing to enhance corporate value and expand its capital-raising capability.

Distribution companies have also joined the race to go public. Grace, which operates domestic and overseas distribution businesses through health and beauty (H&B) channels, plans to apply for preliminary listing review next month. Its revenue last year grew 43.5% to 194.5 billion won, while operating profit was recorded at 12.9 billion won.

Record-Breaking Exports Heat Up the IPO Market

The ongoing spate of IPOs among cosmetics companies is underpinned by a boom in K-beauty exports. Last year, cosmetics exports amounted to a record high of USD 11.4 billion (16.9597 trillion won). Export values have consistently increased every year: USD 8 billion (11.9016 trillion won) in 2022, USD 8.5 billion (12.6437 trillion won) in 2023, and USD 10.2 billion (15.1725 trillion won) in 2024. In the first half of this year, Korea’s cosmetics exports reached USD 7 billion (10.4125 trillion won), a 27.3% increase compared to the same period last year.

With rising overseas demand—especially from the U.S. and Japan—not only brands but also ODM and distribution companies have improved their performance. There is a growing demand to use capital secured through IPOs to expand production facilities and invest in research and development (R&D) and overseas marketing.

Recent performance of newly listed companies has also helped energize the IPO market. APR, when it went public on KOSPI in 2024, set its final offering price at 250,000 won, 25% higher than the upper end of the expected price band. As of July 14, APR’s market value had soared from 1.8961 trillion won at its listing to 14.0393 trillion won—more than a sevenfold increase. On a consolidated basis, APR’s revenue last year reached 1.5273 trillion won, up 111.3% from the previous year, while operating profit jumped 197% to 365.5 billion won.

Industry insiders believe that the wave of IPOs will continue for the time being. The next potential candidates include L&P Cosmetic, operator of “Mediheal,” as well as Dr. Elsia, Torriden, and Olive International (Milk Touch). These companies maintain annual revenue of around 100 billion won and are expanding their overseas businesses.

However, investor evaluation standards have become noticeably stricter. While in the past, high premiums were generally given simply for being part of the K-beauty sector, investors now pay closer attention to international sales ratios, profitability, cash flow generation, and customer diversification. A source from the investment banking industry commented, “After the successful listings of APR and Dalba Global, cosmetics companies are increasingly pursuing IPOs, but investor expectations have also risen accordingly. From now on, company valuations will be determined more by each firm’s financial performance and growth potential, rather than by any industry-wide K-beauty premium.”

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