Modamoda Signs Letter of Intent for Joint Venture with Chinese Pharmaceutical Group CGE... Full-Scale Entry into Chinese Market

Exterior view of the CGE Group headquarters in China.

[Asia Economy Reporter Jeon Jinyoung] Bio cosmetic company Modamoda announced on the 27th that it has signed a Letter of Intent (LOI) for a joint venture with China's CGE Group and will make a full-scale entry into the Chinese market. Modamoda and CGE Group have agreed to jointly invest in the joint venture company and plan to launch it as early as this year.

CGE Group is a large-scale company encompassing distribution, finance, and real estate centered on pharmaceuticals and healthcare. Through this joint venture, Modamoda is expected to establish offline channels throughout China. CGE Group has over 60,000 medical institutions worldwide as clients and operates four pharmaceutical and bio subsidiaries including Huadong Pharmaceutical, Yuanda Pharmaceutical, Lei Yunxiang Pharmaceutical, and Yuanda Biotech.

Baehyungjin, CEO of Modamoda, said, "China holds a 12% share of the global hair care product market. With its vast population entering the early stages of an aging era, the Chinese hair care market is expected to grow rapidly in the future," adding, "We also believe the potential of Modamoda's Galbyeon shampoo is very high."