[Report] Embracing the Latest 'K-Pharmacy' Trend... Musinsa Beauty’s Bold Move in Hongdae

Onnuri Pharmacy Opens in First Standalone Beauty Store

The "Pharmacy Beauty" Bet

Seventy Percent of Brands Are Indie Labels

Expanding Offline to Seongsu and Jeju

A striking pink building has appeared in the heart of Hongdae. Through its floor-to-ceiling windows, you can see rows of colorful cosmetics, much like any other beauty select shop, but things look different if you head down to the basement. A pharmacist in a white coat greets customers, and there is a dedicated space for dispensing medicine. Customers can fill prescriptions received from nearby hospitals. It's as if an entire pharmacy has been relocated into the basement of a cosmetics store.

This is the "Musinsa Beauty Hongdae" store, unveiled to the media on September 10. This is Musinsa's first standalone offline beauty outlet, after having grown as a fashion platform. The store officially opens on September 11. As a latecomer to the beauty industry, Musinsa's bold move to target the offline beauty market is its "pharmacy beauty" concept.

The first offline store of Musinsa Beauty, "Musinsa Beauty Hongdae," located in Hongdae, Seoul, on the 10th. Photo by Han Yeju

A Beauty Shop Embracing a Pharmacy...The 'Pharmacy Beauty' Strategy

The entire 176-square-meter (about 53 pyeong) basement floor has been turned into a "Beauty Onnuri Pharmacy." This goes beyond simply displaying derma cosmetics or high-functionality products in a beauty select shop; it means the pharmacy itself is actually situated inside the store. More than two licensed pharmacists are on-site, dispensing medicine, providing consultations about medication and products. Business hours are the same as the beauty store: 11 a.m. to 11 p.m.

The products in this pharmacy also set it apart from a typical neighborhood pharmacy. Of around 270 brands and over 2,000 products in stock, beauty-related products account for approximately 90%. In a typical pharmacy, the product mix is about 90% medication and 10% cosmetics, but this model essentially flips that ratio. Dedicated areas have been created for hair & scalp care and for high-demand categories like acne and skin troubles.

Musinsa Beauty Hongdae's entire basement level 1 space is occupied by 'Beauty Onnuri Pharmacy.' Photo by Yejoo Han

The reason Musinsa combined a pharmacy with its store is the changing way consumers buy cosmetics. Kim Yeonjin, Head of Musinsa Beauty Offline Team, explained, "In the past, people purchased by brand. Later, the focus shifted to specific products and ingredients. Now, customers seek out solutions tailored to their own concerns." Kim emphasized that "Even if the result appears the same, problem skin can have different underlying causes," highlighting pharmacist-led consultations as a key differentiator between traditional beauty retail and pharmacy beauty.

Indeed, the cosmetics market is also seeing rapid growth in functional and ingredient-driven purchasing, rather than brand loyalty. According to Euromonitor, the Korean derma skincare market posted average annual growth of 15.7% between 2020 and 2025. That is more than seven times the 2.1% growth rate of the overall skincare market for the same period.

However, Musinsa does not directly sell pharmaceuticals. The pharmacy is affiliated with Onnuri Pharmacy and operated by an independent pharmacist as a separate business entity. Musinsa is not involved in the selection, display, pricing, or sales of over-the-counter medicines. Payment is processed at a separate register. While the beauty store and pharmacy share the same building, the operation strictly complies with the Pharmaceutical Affairs Act, maintaining clear separation between the business entities.

An independent pharmacist affiliated with Onnuri Pharmacy operates Musinsa Beauty Hongdae as a separate business entity. Photo by Yeju Han

70% Indie Brands...Musinsa's Nurturing Strategy

The ground floors have been designed as a typical beauty store. The first floor features makeup and fragrance, while the second floor is dedicated to skincare, hair, body, men's, and dental care products. From basement level 1 up to the third floor, the shop spans 1,262 square meters (about 400 pyeong), offering around 12,000 products from more than 870 brands, including the pharmacy. There are also zones such as "Musinsa Beauty Ranking," which displays popular products based on sales data, and "Next Beauty," which introduces new brands and ingredients.

The shelves have been spaced relatively wide apart. Rather than prioritizing maximizing product displays, the emphasis is on letting customers try out products themselves. Kim explained, "It's all about giving customers a chance to personally experience the things they've been curious about or wanted to try. For beauty shoppers, this experience itself is a form of amusement."

An image of the 'Musinsa Beauty Ranking' zone showcasing popular products based on sales data. Photo by Hanyeju.

Brand selection is another way the store differentiates itself from existing large beauty select shops. Among the roughly 600 brands curated by Musinsa itself, approximately 70% are indie brands. The aim is to identify brands with high online potential, give customers the chance to experience them offline, and then link this experience to online purchases. Musinsa is bringing to beauty the same model it used in fashion: discovering and nurturing emerging brands.

Of course, being a late entrant meant attracting brands was no easy feat. Kim admitted that "brand sales were extremely challenging" and that it sometimes took seven to eight months to onboard certain skincare brands. Some popular brands—like Mediheal and VT Cosmetics—are currently missing from the store. Musinsa's strategy is to combine dedicated brand areas, online features, and offline exposure to expand its vendor lineup. Kim emphasized, "Our strength lies in fostering an organic branding cycle that moves from online to offline, and then back online."

Kim Yeonjin, Head of Musinsa Beauty Offline Team, is explaining about Musinsa Beauty Hongdae. Photo by Han Yeju

An Experiment in K-Beauty Showrooms in Hongdae...Expansion to Seongsu and Jeju

Choosing Hongdae for its first standalone store was also a strategic decision. According to Musinsa's own analysis, 67% of Hongdae's floating population are foreigners. The plan is to turn the store into a "K-beauty showroom," offering lesser-known Korean indie brands to tourists seeking the K-beauty products that have already gained global attention.

The company has already confirmed that offline experiences boost online sales. Nearly 500 brands featured in Musinsa Megastore Seongsu's Beauty Zone, which opened this April, saw a roughly 35% increase in average daily online transactions in the three weeks after opening. Of Musinsa Beauty's new customers between January and August this year, 83.1% had already made purchases in Musinsa's other categories, like fashion. The fact that its 16.4 million members can be shifted from fashion to beauty is a competitive advantage that sets Musinsa apart from existing beauty retailers.

Musinsa will open a second standalone beauty store in Seongsu this November, and plans to launch a store in Jeju combined with Musinsa Kicks. However, the company has not yet decided whether it will extend the pharmacy-in-store model to other locations.

A Musinsa representative stated, "Starting with Hongdae and expanding to Seongsu and Jeju, we aim to create new growth hubs for K-beauty, connecting domestic beauty brands—who grew online—with customers both at home and abroad and paving the way to the global market through more offline touchpoints."

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