[Special Stock] Social Distancing 'Ends', Clio Soars 8%... Cosmetics Stocks Rally

[Asia Economy Reporter Minji Lee] As life returns to pre-COVID-19 normal, cosmetic stocks are showing strength.

As of 10:13 AM on the 18th, Clio was trading at 21,400 KRW, up 8.35% from the previous trading day. Other companies such as iFamilySC (6.01%), Amorepacific (5.57%), Cosmax (6.02%), and LG Household & Health Care (3.31%) are also maintaining an upward trend.

The market expects that with the lifting of social distancing regulations, the suppressed demand for cosmetics due to COVID-19 will revive. Although the mask-wearing mandate will remain for the time being, the government plans to monitor the infection situation for two weeks after lifting social distancing measures before reconsidering the removal of outdoor mask requirements, as the risk of infection outdoors is significantly lower compared to indoors.

Hyunjin Park, a researcher at Shinhan Financial Investment, stated, “With reopening, there will be more spaces worldwide where people can remove masks, leading to an increase in demand for cosmetics,” adding, “Among these, the demand for color cosmetics is expected to stand out.”