Global investors boost bets on S Korea's beauty sector

Global private equity firms are boosting investments in South Korea’s beauty sector as international demand for K-beauty grows.

KKR acquired Samhwa, a Seoul-based maker of plastic containers and pumps for cosmetics, for 733 billion won (US$528 million) from TPG Capital Asia.

Samhwa’s clients include L’Oreal, Estee Lauder, Chanel, and LVMH, with around 60% of sales coming from multinational brands.

Blackstone also agreed to invest in Juno Hair, Korea’s largest hair salon chain with over 180 locations in Korea, Singapore, Vietnam, and the Philippines.

In December 2024, L’Oreal bought Gowoonsesang Cosmetics, operator of skincare brand Dr.G, for around 255 billion won (US$183.6 million.

Korea’s cosmetics exports hit a record US$5.5 billion in the first half of 2025, up 14.8% year-on-year, according to the Ministry of Food and Drug Safety.

🔗 Source: The Korea Times

🧠 Food for thought

Implications, context, and why it matters.

K-beauty investments shift from risky brand bets to stable supply chain plays

Private equity firms are moving away from volatile brand acquisitions toward more predictable supply chain companies that serve multiple clients.
KKR’s $527.5 million acquisition of Samhwa, a cosmetics packaging manufacturer, demonstrates this shift. The company generates 60% of its revenue from established multinational clients like L’Oreal, Estee Lauder, Chanel, and LVMH1.
This contrasts sharply with earlier brand-focused deals like Bain Capital and Goldman Sachs’ 2016 acquisition of Carver Korea for $263.5 million, which, while highly successful, carried significantly more market risk2.
Supply chain companies like Samhwa offer more predictable cash flows because they serve as essential infrastructure for multiple beauty brands rather than depending on the success of a single consumer-facing product line.
Blackstone’s investment in Juno Hair, Korea’s largest salon franchise with over 180 locations, follows this same pattern of targeting service infrastructure rather than product brands1.

Previous K-beauty PE deals delivered exceptional returns that may be difficult to replicate

The 2016-2017 Carver Korea transaction set an extraordinarily high bar for K-beauty private equity returns that current market conditions make unlikely to repeat.
Bain Capital and Goldman Sachs acquired Carver Korea for approximately $263.5 million in 2016 and sold it to Unilever just one year later for $1.6 billion, generating over six times their investment in 12 months2.
This deal was recognized as the most profitable private equity acquisition in South Korea’s history, analyzed against 42 other deals valued above $100 million since 20092.
Today’s K-beauty market shows signs of maturation, with Korean cosmetics exports reaching $10.2 billion in 20243, but the explosive growth rates that enabled such exceptional returns appear to be moderating as the sector becomes more established.
Current valuations reflect this maturation. Samhwa’s acquisition at $527.5 million represents a more typical multiple of its $134 million revenue and $22.4 million operating profit, suggesting more normalized returns going forward1.