CTK Strengthens Core Businesses Including Beauty Platform and Biodegradable Plastics

Sale of 'CTK Investment' Secures 20 Billion KRW in Cash... Expanding Investment in Core Businesses
Enhancing IT Infrastructure for Beauty Platform Advancement, Expanding Biodegradable Plastic Material Production Facilities

[Asia Economy Reporter Kwangho Lee] Cosmetics platform company CTK announced on the 14th that it will carry out the sale and restructuring of affiliates to strengthen its core businesses, including the B2B beauty platform ‘CTKCLIP’ and biodegradable plastic materials.

CTK will transfer 97.56% of the shares and management rights of its subsidiary CTK Investment to SCL Healthcare and Mirae Company for 20 billion KRW. The cash assets secured through the sale will be focused on expanding IT infrastructure, such as enlarging the IT organization to advance the CTKCLIP platform and strengthening cooperation with external partners, as well as investing in the expansion of the biodegradable plastic business carried out by its granddaughter company CTK Bio Canada.

CTKCLIP is a B2B beauty platform designed to allow online requests for cosmetics development and production. It enables users to check and compare the latest raw materials, formulas, and packaging information from over 200 carefully selected partner companies by CTK to plan and develop new products. Throughout next year, efforts will continue to add various functions and reorganize the platform to become a true B2B platform that connects partner companies directly providing product information and communicating with global clients to carry out projects.

In line with the parent company CTK’s advancement of its beauty platform, the business structure of affiliates will be reorganized to create synergy. Subsidiary Completion Korea will focus on brand consulting services linked with the CTKCLIP platform, and the US subsidiary CTK USA, which operates a fulfillment center, plans to actively expand global fulfillment service sales. Additionally, CTK eVision, which operates the cross-border e-commerce solution ‘Popinborder,’ will collaborate with CTKCLIP to activate the entry of overseas brand companies into the domestic e-commerce market, and cosmetic packaging made from biodegradable plastics developed by CTK Bio Canada will also be introduced on the CTKCLIP platform.

Furthermore, CTK plans to expand investment in biodegradable plastic materials, which recently began operation at its first production plant. As the next-generation biodegradable plastic material business developed by CTK Bio Canada is progressing positively in supply contract negotiations with several global companies, it is expected that expansion of mass production facilities will be necessary.

Jinyong Jeong, CEO of CTK, said, “The sale and restructuring of affiliates is part of a strategy to focus on and expand investment in two core businesses that have received enthusiastic responses from clients.” He added, “CTKCLIP has already attracted over 6,000 platform members because when introduced at overseas exhibitions or client meetings, clients immediately sign up on the platform to request samples and production.”

He continued, “Regarding biodegradable plastics, sample requests and product development orders from global companies with strong demand for eco-friendly materials are continuously coming to CTK Bio Canada, which led to the decision to expand investment.”

CTK expects that its B2B beauty platform business and biodegradable plastic material business, which have completed basic infrastructure setup, will get on track next year and produce tangible results.