Amorepacific Acquires Additional Shares of COSRX... Subsidiary Integration

Exercise of Call Option... Securing New Growth Engine in Global Market

Amorepacific announced on the 31st that it has secured a new growth engine in the global market by acquiring additional shares of COSRX. With this additional share acquisition, COSRX will be incorporated as a subsidiary of Amorepacific.

The RX line of COSRX.
Photo by COSRX

Amorepacific disclosed on the same day that it will acquire the remaining 288,000 shares held by COSRX's largest shareholder and related parties for 755.1 billion KRW.

Previously, in September 2021, Amorepacific acquired a 38.4% stake in COSRX. At that time, it was granted a call option to purchase the remaining shares, and it has now decided to exercise this call option. As a result, Amorepacific will hold 93.2% of COSRX's shares.

Founded in 2013, COSRX is a low-irritant skincare brand for sensitive skin. Centered around the 'Snail Line' and 'THE RX Line,' it has recently experienced rapid growth, establishing itself as an emerging global skincare powerhouse. Over the past three years, it has shown an average annual sales growth rate of over 60%, recording sales of 204.4 billion KRW last year. This year, it continues its steep growth trajectory with sales of 190.2 billion KRW and operating profit of 71.7 billion KRW in the first half alone. Additionally, COSRX has expanded into more than 140 countries including North America, Southeast Asia, Europe, and Japan, with overseas sales accounting for over 90% of total revenue.

Since the equity investment in 2021, the two companies have jointly developed and launched products such as The RX's next-generation core line 'The Vitamin C 23 Serum' and 'The Retinol 0.1 Cream,' achieving success overseas.

Amorepacific plans to accelerate its global market penetration through multifaceted collaboration with COSRX, which possesses strong global competitiveness.

Seunghwan Kim, CEO of Amorepacific, said, "We are very pleased that COSRX, which is rapidly growing with differentiated products and marketing based on an excellent understanding of digital channels, has become part of our group. We intend to nurture it into an attractive brand loved by global customers by further maximizing COSRX's unique capabilities while combining Amorepacific's vision and business management know-how."