'Pharmacy Platform' Barofarm to List on KOSDAQ on Nov. 11, Expand into K-Beauty Hub

First-half revenue of KRW 69 billion and operating profit of KRW 2.2 billion... returns to profitability
Pharmacy cosmetics emerge as a new growth driver... own brands set to expand overseas

Barofarm, an integrated platform for pharmacies, said on Nov. 9 that it is set to list on the KOSDAQ market on Nov. 11. The company plans to build on the data accumulated through its platform and become a "pharmacy-led K-beauty hub."

A PDRN-based product from Baropharm's in-house brand Levicle/Photo by Baropharm

Barofarm posted revenue of KRW 69 billion and operating profit of KRW 2.2 billion in the first half of 2026, returning to profitability for the first time in a year. Revenue rose 56.2% from a year earlier, while selling, general and administrative expenses fell from KRW 11.4 billion to KRW 10.7 billion over the same period, allowing revenue growth to translate directly into profit. SG&A expenses as a share of revenue declined from 82% in 2023 to 16% in the first half of this year.

By business segment, the platform and the company's own brands generated operating profits of KRW 1.66 billion and KRW 1.17 billion, respectively. The partnership business, which operates on a direct-purchase model, narrowed its losses as its gross profit margin rose from 5.1% last year to 9.9% in the first half of this year. "The costs of building the platform infrastructure and acquiring customers were already reflected in the previous three years," said Barofarm CEO Kim Seulgi.

The company has set its medium- to long-term targets at KRW 226.2 billion in revenue and KRW 18.5 billion in operating profit in 2027, and KRW 281.2 billion in revenue and KRW 30.2 billion in operating profit in 2028. Its plan is to grow revenue at an annual average rate of 43% over the three years from 2025 and raise its operating margin to 10.7%.

Pharmacy cosmetics are a new driver of growth. As functional ingredients such as PDRN and niacinamide, previously used in dermatology clinics, have spread to cosmetics, more consumers are seeking out pharmacies where pharmacists can explain the ingredients directly.

Barofarm is establishing itself as a place pharmacies turn to when stocking shelves to meet demand. Revenue from its partnership business, which purchases products directly from pharmaceutical and beauty companies and supplies them to pharmacies, tripled from KRW 23.2 billion in 2024 to KRW 69.6 billion last year, and is expected to reach KRW 127.5 billion this year. The "Pharmacy Beauty Zone," a dedicated K-beauty display inside pharmacies, launched in July and expanded to more than 200 locations in just two months. With the opening of a new dedicated dermocosmetics section this year, advertising revenue is also expected to more than double, rising from KRW 1.6 billion last year to KRW 3.8 billion this year.

The company is also planning to expand overseas with its own brands. "PDRN EGF Cream," the first product from Levicle, a cosmeceutical brand for pharmacies owned by its subsidiary CHD Pharmaceutical, was supplied to 2,193 pharmacies within six months of its launch in January. The company expects cosmetics revenue to grow fivefold, from KRW 5.7 billion this year to KRW 28.6 billion in 2028.

Revenue from the company's own brands, which include health functional foods and over-the-counter medicines, is expected to increase more than sevenfold, from KRW 4.1 billion in 2023 to KRW 29.2 billion this year. In Japan, after entering about 80 Ainz & Tulpe beauty and drugstore select shops, the company will begin selling its products in 250 to 300 locations of Matsumoto Kiyoshi, Japan's largest drugstore chain, at the end of this month. It plans to expand the number of Matsumoto Kiyoshi locations carrying its products to more than 500. In the United States, the company has completed its entry into the Amazon K-Beauty Store brand store and integration with its logistics system, and will officially launch there in December.

The foundation for growth is its pharmacy ordering infrastructure. Founded in 2019 by CEO Kim, a former pharmacist, Barofarm changed the previous system, in which pharmacies had to log in to each wholesaler separately to check inventory and prices, enabling them to compare and place orders on a single screen. As of June 2026, the platform had 16,357 monthly active pharmacies, and the value of pharmacy orders connected through Barofarm last year totaled KRW 2.0265 trillion. Transaction value on Barofarm Mall has more than doubled in two years to KRW 341.7 billion.

Barofarm plans to use the KRW 29.2 billion it expects to raise through its share offering to enhance its AI-based pharmacy services, market its brands and expand overseas, and expand its subsidiaries' production facilities. Its strategy is to establish a model in which it uses pharmacy ordering data to identify products with proven demand, develops and manufactures them directly, validates them first in domestic pharmacies, and then takes them to overseas markets.

Collaboration with KB Financial Group will also continue. The company has launched pharmacy payment promotions with KB Kookmin Card and dedicated natural disaster insurance for pharmacies with KB Insurance. KB Financial Group plans to continue working with Barofarm after its listing by connecting it with the group's affiliate network. "The listing is a starting point for Barofarm to enter a larger market," a KB Financial Group representative said. "We will continue to expand collaboration and support across the group, from financial services for pharmacy customers to growing the pharmacy beauty market."

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