AmorePacific increases stake in its Hong Kong affiliate

South Korea’s leading cosmetics maker, AmorePacific Corp, has taken majority control of its joint venture in Hong Kong, AmorePacific Hong Kong Ltd, by increasing its stake to 77% from 30%. The company established the Hong Kong venture in 2001 together with a group of local investors.

The move will allow AmorePacific to be more active managing the business in Hong Kong where the company expects business to grow for its Sulwhasoo, Laneige, Mamonde, Etude and Innisfree brands. The Hong Kong unit has 302 employees and currently operates 25 Laneige stores and seven Sulwhasoo stores, including a central flagship store that opened on Canton Road in Tsim Sha Tsui. Its sales last year in Hong Kong were Korean won KRW84.8bn.

The cosmetics market in Hong Kong is generally considered saturated, with all the major global brands vying for share. AmorePacific’s competitors include L’Oréal, Estée Lauder, Procter & Gamble and Shiseido.

According to a company spokesperson, the stake increase should help speed up the company’s globalisation. It is expected that overseas revenue will reach KRW800bn this year and account for over 20% of total sales.