1. Korean Cosmetics: Unpacking the H1 2025 Performance Decline

Korean Cosmetics recorded sales of KRW 39.6 billion (a 7.2% decrease year-on-year) and an operating loss of KRW 1.4 billion in the first half of 2025. This downturn is attributed to a triple whammy: intensifying competition in the domestic cosmetics market, weakened consumer sentiment, and high sales and administrative expenses. In particular, the high proportion of advertising and sales commissions necessitates urgent cost optimization.

2. Market Dynamics and Korean Cosmetics’ Business Strategy

Despite the K-Beauty boom, the domestic cosmetics market is experiencing a downturn. Korean Cosmetics is pursuing a positive strategy by strengthening its online channels, but it still faces the challenge of overcoming sluggish offline sales. Although there are some achievements in the Chinese market, uncertainties remain due to China’s economic slowdown and regulatory tightening.

3. Hidden Opportunities and Investment Strategies

Amidst these difficulties, Korean Cosmetics still has a beacon of hope: the funds secured through the disposal of treasury stock. By actively utilizing these funds for improving its financial structure and securing new growth engines, the company can create a foundation for recovery. Furthermore, developing new products reflecting the changing trends in the beauty market and expanding online channels will be key strategies for a brighter future.

4. Action Plan for Investors

Investors considering Korean Cosmetics should carefully review the company’s quarterly earnings announcements and business reports. Key indicators for investment decisions will be sales recovery, improvement in profitability, and the success of its new growth engine strategy.