[Market Focus] NFC Surges on Rising Expectations for K-Beauty Boom

As of 9:30 a.m. on June 18, NFC, a cosmetics ingredient and ODM/OEM company listed on the KOSDAQ market, was trading at 8,580 won, up 17.7% from the previous day's closing price. This appears to be due to growing expectations for the expansion of K-beauty.

NFC began its cosmetics ingredient business in 2007, based on the MLV (Multi-Lamellar Vesicle) stabilization technology developed by Chairman Yoo Wooyoung, a former executive at Kolmar Korea. This technology enables the stabilization of poorly soluble substances beneficial to the skin, making it possible to incorporate them into cosmetics and deliver superior efficacy. Subsequently, NFC also started supplying ODM/OEM products to well-known cosmetics companies. Based on last year's annual sales, the ingredient division accounted for 64% and the ODM/OEM division for 36%.

NFC's ingredient division counts major brands and ODM/OEM companies such as LG Household & Health Care, Cosmax, Kolmar Korea, Est?e Lauder, and Amorepacific among its clients. Finished products are supplied to LG Household & Health Care, CTK, Olive Young, Gudai Global (Joseon Beauty), Absolab (Cellimax), Boosters (Equalberry), and The Pure Lab (Dr. Althea), among others.

Cosmetics are made by combining base ingredients such as water, oil, and glycerin with additives like hyaluronic acid, niacinamide, retinol, vitamins, fragrances, colorants, and peptides. NFC possesses manufacturing know-how that ensures the combination of "primary ingredient + secondary ingredient + additives" does not become too thick or too soft, resulting in a premium texture and user experience.

NFC is particularly well-known for its cleansing products that remove makeup. Most of the bestselling cleansing balm brands on Amazon are reportedly associated with NFC. From 2018 to April this year, NFC produced approximately 27.7 million cleansing balms, which, based on consumer retail prices, amounts to about 600 billion won in sales.