[Exclusive] Sulwhasoo to Open Large-Scale Multi-Purpose Cultural Space in Bukchon Next Year as "Overseas Expansion Base"

Sulwhasoo to Open Multi-purpose Cultural Space in Bukchon Next September
Spanning Two Basement to Two Above-ground Floors, Covering 500 Pyeong
Located Adjacent to the Existing "Sulwhasoo House"

Amorepacific's beauty brand Sulwhasoo is set to open a new multi-purpose cultural space in Bukchon, Jongno-gu, Seoul, around September next year. The company aims to leverage this location, which has become increasingly popular among foreign tourists visiting Korea, to expand customer experiences that connect online and offline channels, such as beauty device trials and beauty classes. This initiative is intended to lay the groundwork for further expansion into overseas markets.

According to the beauty industry on November 18, Amorepacific has been carrying out construction since March to establish the Sulwhasoo multi-purpose cultural space in Bukchon. The construction is scheduled for completion by the end of August next year. The space will be located at 43 Bukchon-ro, Jongno-gu, Seoul, adjacent to the existing second flagship store, "Sulwhasoo House."

The facility will span from two basement levels to two floors above ground, covering a total area of 1,648.22 square meters (approximately 500 pyeong). Through the creation of this multi-purpose cultural space, Sulwhasoo is expected to offer a wider variety of exhibitions and experience programs than those previously held at its flagship stores.

Exterior view of Bukchon Sulwhasoo House. Provided by Amorepacific

Sulwhasoo plans to use this new cultural space to expand the K-beauty brand experience. The company expects this strategy to help restore Sulwhasoo's share of domestic sales, which declined from 36% in 2022 to 28% in the third quarter of this year. To strengthen customer engagement both online and offline, Sulwhasoo has launched marketing campaigns such as last year's ginseng-themed pop-up store and this month's pop-up store featuring Jaumsaeng Cream.

This type of experiential space is also expected to serve as a catalyst for targeting overseas markets. Bukchon, where the new space will be located, is a representative tourist district in Seoul, known for its blend of tradition and modernity and its high volume of foreign visitors.

Sulwhasoo, as a brand that values traditional Korean aesthetics, considers Bukchon an ideal location to communicate its brand identity. In fact, the proportion of foreign visitors at the nearby "Sulwhasoo House" flagship store has reached 70%, and as of October, sales have increased by more than 10% year-on-year.

Sulwhasoo Yunjo Essence image. Provided by Amorepacific

Amorepacific expects that the experiences foreign tourists have in Korea will translate into overseas market growth. In the third quarter of this year, Amorepacific reported consolidated sales of 1.1082 trillion won and operating profit of 104.3 billion won, up 3.8% and 39% year-on-year, respectively. Notably, overseas business sales rose by 3%, while operating profit surged by 73%, driving the company's overall performance.

In a speech marking the 80th anniversary of Amorepacific Group, Chairman Suh Kyungbae stated, "Over the next 10 years, Amorepacific will emerge as a leading global beauty and wellness company with annual sales of 15 trillion won," adding, "We will raise the proportion of global sales from the current 50% to 70% and become one of the global top three in the premium skincare market."

Launched in 1997, Sulwhasoo is Amorepacific's flagship brand that led the golden age of herbal cosmetics. In the mid-2010s, it became the first domestic cosmetics brand to surpass 1 trillion won in annual sales, enjoying explosive popularity among Chinese consumers, particularly at duty-free shops. Although performance slowed in 2017 due to the THAAD (Terminal High Altitude Area Defense) dispute and the resulting ban on Korean cultural imports in China, Sulwhasoo continues to drive Amorepacific's overall sales growth. Its signature products include Yunjo Essence and Jaumsaeng Cream.