Private equity firms are piling into South Korea’s booming beauty sector, with KKR and Blackstone making their first acquisitions in the space. KKR agreed to buy cosmetics packaging firm Samhwa from TPG for about US$528 million, while Blackstone acquired a majority stake in premium haircare chain Juno, valuing it at around 800 billion won (US$739 million). Together with other transactions this year, total deal value in the sector has already hit US$1.41 billion — nearly matching 2024’s record of US$1.65 billion.
Domestic players are also active: Goodai Global and Hahm Partners purchased skincare brand Skinfood for US$108 million. The surge in activity is powered by strong global demand for K-beauty products, which have become a staple in skincare and haircare regimens worldwide, fueled by the cultural wave of Korean pop culture. South Korea is now the world’s third-largest cosmetics exporter, with exports rising 20% in 2024 to US$10.2 billion.
With growing foreign interest and reports of reverse pitches where buyers approach owners directly, industry experts warn valuations may be rising too quickly. Still, private equity leaders see opportunities to scale globally, with packaging innovation and brand strength at the center of K-beauty’s continued expansion.
Source: Business Times
