L’Oréal Expands K-beauty Investments with Acquisition of Dr.G After 3CE
Germany’s ‘Yeppeuda’ and Finland’s ‘Hwarang’ Make Korean Language and Culture Their Brand Identity
“We aim to serve as a bridge that grows alongside K-beauty, sharing Korea’s beauty innovations with the world.”
This is the message posted on the official website by Rodrigo Alvaro Revelo Pizarro, CEO of L’Oréal Korea, the Korean subsidiary of the world’s largest cosmetics company, France’s L’Oréal Group. CEO Rodrigo Pizarro emphasized, “Through co-creation with Korea’s unique beauty ecosystem, we are focused on spreading K-beauty worldwide.” In other words, France’s flagship cosmetics company, which has long led the global beauty industry, is now seeking to bring beauty innovations born in Korea to the world.
L’Oréal Korea Official Website
Global cosmetics companies are increasingly seeking to leverage K-beauty as a growth engine for their expansion into global markets. Foreign companies are not only adopting Korean approaches to product development, ingredients, and manufacturing techniques, but some are even embracing the Korean language and culture as part of their brand identity.
According to the relevant industry on August 21, the shifting status of K-beauty is also evident in L’Oréal Korea’s documentary “People Living with Beauty,” released last month through its social media channels. One employee stated, “These days, global headquarters are taking inspiration from Korea when developing new products.” Another commented, “It feels like the city of Seoul itself has become a reference point.”
‘Cushion’ Learned by L’Oréal—Now Taking K-beauty Global
L’Oréal’s focus on Korean cosmetics is not a recent development. Previously, L’Oréal incorporated trendsetting Korean products such as BB creams and cushion compacts into its global offerings and, in 2018, established the Korea Innovation Center to research Korea’s rapidly evolving beauty trends and product development methodologies. What began as studying ideas born in Korea has now evolved into acquiring domestic brands and nurturing them for the global stage.
Their first major investment came in 2018, when L’Oréal acquired NANDA, the operator of the makeup brand 3CE, for approximately KRW 600 billion. In 2019, the following year, NANDA’s sales grew to KRW 269.5 billion, but momentum has since slowed. Sales dropped to KRW 218.4 billion in 2022 and were only KRW 224.8 billion in 2023. In 2024, L’Oréal merged NANDA into L’Oréal Korea. Park Yoonju, Manager of the 3CE Brand Division, said in the L’Oréal Korea documentary: “Many people wanted to revive the original edge,” adding, “So, to restore the brand’s core, we went back to the beginning.”
In addition to acquiring 3CE, L’Oréal also experimented with creating brands that incorporate Korean elements. L’Oréal, together with Hotel Shilla and Anchor Equity Partners, established the joint venture Loshian, and in 2022 launched the luxury skincare brand SHIHYO, inspired by Korea’s 24 solar terms and natural ingredients. However, after struggling to gain a foothold in the market, the brand was discontinued in February last year. In addition, L’Oréal Korea increased its stake in Loshian last year to 100% from 40%, but wrote down investment losses of KRW 9.24 billion.
Even with these setbacks, investment in K-beauty has continued. Last year, L’Oréal Korea acquired 100% of Gowoon Sesang Cosmetics, the company behind the dermacosmetic brand Dr.G, for KRW 668.2 billion. Following a KRW 600 billion investment in 3CE in 2018, this marks another investment of over KRW 600 billion in a Korean cosmetics brand after seven years. With the addition of Dr.G to 3CE, L’Oréal has secured Korean brands in both makeup and skincare categories.
Provided by Yeppeuda Official SNS.
‘Yeppeuda’ Made in Germany: ‘Korea’ in Name and Production
It’s not just established players like L’Oréal that are riding the K-beauty wave. Overseas, some cosmetics brands are making Korean language, culture, and manufacturing expertise central to their brand identity from the start.
The Berlin-based cosmetics brand Yeppeuda is a prime example. Launched in 2020, this brand uses the Korean word ‘Yeppeuda’ (meaning ‘pretty’) as its name, placing K-beauty at the forefront of its identity. Although a German company, its products are manufactured in Korea. Yeppeuda, which has grown its business primarily in Europe, opened its first permanent store in Asia this year in Seongsu-dong, Seoul, signaling a reverse expansion into the Korean market.
Other overseas companies are leveraging Korea’s culture and manufacturing technology. Finland-based skincare brand Hwarang draws its name from the elite youth of the ancient Silla dynasty, while America’s SeoulCeuticals directly incorporates ‘Seoul’ into its brand. Spain’s Ondo Beauty 36.5 and ‘Rini,’ launched by American actress Shay Mitchell, both manufacture their products in Korea. These examples show that foreign companies are now going beyond simply selling Korean cosmetics—instead, they are harnessing Korean names, culture, and manufacturing infrastructure as core sources of brand competitiveness.
Analysts say K-beauty’s competitiveness stems from both speed and price. Brands swiftly respond to consumer feedback and trends, and actively utilize new ingredients. Marketing through social media is also cited as a strength. In addition, Korea’s robust ODM (original design manufacturing) and OEM (original equipment manufacturing) ecosystem—led by companies like COSMAX and Korea Kolmar—enables brands to rapidly conceptualize and commercialize new products.
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An industry insider said, “K-beauty, which once simply referred to products made by Korean companies, has now become a global industry trend that even foreign companies refer to in terms of product planning, manufacturing, and brand strategy.”
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