Organic T Cosmetics Raises 13.5 Billion Won in Paid-in Capital Increase... "Plans to Expand Business in Indonesia"

Organic T Cosmetics announced on the 18th that it will raise funds through a paid-in capital increase worth 13.5 billion KRW and expand its presence in the Southeast Asian market.

Among the allottees of this paid-in capital increase is inside director Lim Guk-kang, who will invest approximately 5.3 billion KRW. In addition, partners who will support future business were selected as allottees. Most of the 13.5 billion KRW paid through the capital increase will be used for investments related to the expansion of the Southeast Asian market.

Simultaneously with the capital increase, the board of directors resolved to invest 15 million USD (approximately 20.7 billion KRW) to acquire a 20% stake in SOUTH STAR SPORTS GROUP HOLDINGS LTD. This company, established in 2016, operates through its Indonesian subsidiary Winbright, focusing on retail businesses such as shoes, fashion, and baby products on platforms like TIKTOK, SHOPEE, LAZADA, and TOKOPEDIA in Indonesia, with most products designed and produced in-house.

Organic T Cosmetics plans to outsource its ongoing shoe business to Winbright to expand its operations in Indonesia. This will not only improve production efficiency and reduce production costs but also strengthen its overseas business expansion.

According to market research firm Statista, Indonesia’s e-commerce market is expected to grow rapidly from 53 billion USD last year to 90 billion USD by 2027, driven by the rapid rise of a high-spending customer base.

Indonesia’s large and continuously growing middle-class population and young consumer base provide a vast market space. Organic T Cosmetics plans to replenish funds for its Indonesian subsidiary and consider additional investments in local high-quality companies to expand its business in Indonesia. The company aims to shift its focus to a market where it can demonstrate greater competitiveness than in the Chinese market, thereby securing business scalability.

Meanwhile, SOUTH STAR SPORTS GROUP HOLDINGS LTD is also planning an IPO on the U.S. stock market. Through this investment, Organic T Cosmetics expects not only business profits but also future capital market gains.

An official from Organic T Cosmetics stated, “The Southeast Asian business is an indispensable area for the company’s future growth,” and added, “Since the registered director actively participated in the paid-in capital increase, our confidence is high.”