Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
LG Electronics to enter cosmetics business
A model uses the LG Electronics Pra.L / Courtesy of LG Electronics
By Kim Hyun-bin
By Kim Hyun-bin
LG Electronics announced Tuesday that it will add cosmetics as a new business sector during its regular shareholders' meetings set for March 27.
However, there are worries the expansion could overlap with LG Household & Health Care (LG H&H), which focuses mainly on cosmetics and household goods, according to industry officials.
The company aims to increase synergy and cosmetics sales with Pra.L, a beauty device brand of LG Electronics, and sell cosmetics that can be used in combination with beauty and medical devices.
“The addition of the cosmetics sales business reflects the recent market trend in which products combine beauty and medical devices with cosmetics, and is aimed at broadening customer experiences,” an LG Electronics official said.
LG Electronics continues to release beauty and medical devices such as elasticity devices, cleansing devices and absorption accelerators through Pra.L. It also recently introduced Dermthera, a beauty device for managing facial lines.
“The company is expected to create synergy in cosmetics sales and collaborative sales with LG H&H and in-house brands including Pra.L,” an industry official familiar with the matter said. “Rather than a competitive structure, there is a possibility of collaboration between the two subsidiaries.”
LG Electronics is also seeking to recruit outside experts for new businesses. Through last year's personnel reshuffle, the company recruited Nam Hye-seong as its home beauty director.
Nam is a cosmetics expert who was in charge of Sulwhasoo at Amorepacific and the Cosmetic Performance Unit at Samyang Corp. Nam is known to be in charge of developing cosmetics to be sold by LG Electronics along with the Pra.L series.