Chairman Jeong Ji-seon, Passionate About Cosmetics, to Acquire SK Bioland

Hyundai Department Store Group Invests in Korea's No.1 Natural Ingredient Company
Previously Acquired Firm with Manufacturing Patent Technology

[Asia Economy Reporter Seungjin Lee] Chung Ji-sun, chairman of Hyundai Department Store Group, has rolled up his sleeves to expand the cosmetics business. Following the acquisition of a company holding patented cosmetic manufacturing technology, the group has decided to invest in the country's leading natural raw material company as well.

According to the cosmetics industry on the 28th, Hyundai Department Store Group is pushing forward with the acquisition of SK Bioland, the number one domestic natural cosmetics raw material company. Hyundai Department Store Group has selected advisory firms and is conducting due diligence to acquire SK Bioland shares held by SKC.

Hyundai Department Store Group plans to acquire 27.9% of SK Bioland shares held by SKC. SK Bioland specializes in raw materials for cosmetics and health foods and is the leading company in the domestic natural cosmetics raw material market. Established in 1995, it became part of the SK group in 2016.

Hyundai Department Store Group expects significant synergy effects with Cleanzen, which it acquired earlier, once it brings in SK Bioland, a producer of cosmetic raw materials. The group added the cosmetics business as a new business at last year's shareholders' meeting. Within a year, it made its debut in the cosmetics market through Hansome, its fashion division.

On the 11th, Hansome acquired a 51% stake in Cleanzen Cosmeceutical, a functional cosmetics company. This marks the first time since its founding in 1987 that Hansome has ventured into a business outside fashion. Cleanzen was jointly established by Clean Dermatology in Cheongdam-dong, Gangnam-gu, Seoul, and Progen, a new drug development specialist company. It holds technology for developing high-functional cosmetics effective for whitening, wrinkles, and elasticity.

Hansome plans to embed the premium image it has built through operating fashion brands into its cosmetics brand as well. Hansome will launch a premium skincare brand early next year. The premium skincare brand will first be sold at major department stores including Hyundai Department Store Apgujeong Main Store, Trade Center Store, and Yeouido Store (tentative name). Sales channels will later expand to online and duty-free shops.

The entry into cosmetics aims to strengthen the group's three major growth pillars: distribution, living & interior, and fashion. The group has continuously expanded its portfolio in living & interior (Livart) and fashion businesses based on distribution.