K-beauty breaks boundaries to offer broader solutions

Beauty companies in Korea are increasingly expanding beyond their traditional businesses into beauty devices, energy-based devices and medical aesthetics as they seek to become comprehensive beauty solution providers.

APR, which operates the cosmetics brand Medicube and home beauty device label AGE-R, has begun expanding into medical devices.

“For the new medical device businesses, approval procedures for products and manufacturing facilities are currently underway, and the commercial launch date will be determined based on the acquisition of relevant approvals and the progress of commercialization preparations," the company said in its half-year report.

APR is preparing to launch new medical devices, including an energy-based device using focused ultrasound technology and a skin booster using polynucleotide. During a conference call in August, the company said the focused-ultrasound device had recently obtained domestic approval and could be launched as early as late this year.

The company’s polynucleotide-based skin booster has already received Class II medical device clearance and export approval from the Ministry of Food and Drug Safety. It began exporting the product in the second quarter and added Japan and the Middle East to its export destinations in the third quarter.

The company said it will launch the product here in 2028 after acquiring a Class IV clearance from the ministry, which is expected to take a year and half.

APR is also restructuring its domestic manufacturing operations to support the new businesses. Its Gasan plant in western Seoul will focus on energy-based devices, while two plants in Pyeongtaek, Gyeonggi Province, will specialize in home beauty devices and skin boosters, respectively.

Amorepacific, which operates 15 cosmetic brands, signed a memorandum of understanding with skin care device developer Viol Medical earlier this year to jointly develop new devices. It subsequently acquired a 49.5 percent stake in Viol Medical for 80 billion won ($60 million). In July, Amorepacific signed another partnership with Higher Corp., agreeing to combine its skin care analysis technology with Higher’s device development capabilities.

PharmaResearch, which operates skin booster brand Rejuran, currently plans to launch a new device by this year and offer broader solutions to aestheticians using fillers and botox. CEO Sohn Ji-hoon said he is looking to expand the company via merger or acquisition to grow the company to a total medical aesthetic firm.

Energy-based device developers like Wontech, which operates radio frequency device Oligio, and Classys have also begun expanding to home beauty devices, further blurring the boundaries between professional medical aesthetics and at-home beauty care.

“As interest in aging well grows due to rising incomes and longer life expectancy, K-beauty companies that have secured capital from strong exports and witnessed a surge in demand for aesthetic medical services by foreign tourists are expanding their businesses based on their independent capabilities and expertise,” an APR official said.

“Companies that successfully combine cosmetics, energy-based devices and medical devices will secure a leading position in the future beauty industry.”

There are, however, hurdles to expanding these business overseas.

Industry experts say the U.S. Food and Drug Administration and Europe's CE Medical Device Regulation have particularly high regulatory approval standards for medical devices.

Companies also need local distributors with established networks of medical clinics and the ability to provide after-sales service for devices, adding further costs and operational challenges.