Shinsegae International Inc. bolsters its cosmetics business

[Financial News] Shinsegae International Inc. is establishing an organization to oversee its cosmetics business and bolstering its beauty business. It plans to expand its management structure by appointing three CEOs to the cosmetics business, shift away from its fashion-centered business structure, and accelerate the expansion of its growing beauty business.
According to industry sources on the 2nd, Shinsegae International Inc.’s cosmetics business generated 253.5 billion won in revenue in the first half of this year, up 10.9% from the same period a year earlier. Cosmetics sales, which totaled 362.9 billion won in 2022 and accounted for just 23% of overall sales, rose to 455.2 billion won last year, making up 41%. Cosmetics accounted for 43% of sales in the first half of this year.
Shinsegae International Inc.’s recent organizational restructuring is also part of this push to expand its beauty business. In a recent regular executive reshuffle at Shinsegae Group, the company established a Cosmetic Division and appointed Heo Min-ho, former CEO of Cosmax BTI, as its division head (CEO). Kim Duk-joo, who had served as CEO overseeing both the Fashion Division and the company overall, will lead the Fashion Division and ensure business stability.
Shinsegae International Inc. is expected to accelerate its expansion based on a three-CEO structure for its cosmetics business. Heo Min-ho, CEO of the Cosmetic Division, will oversee the integrated management of Cosmetic Divisions 1 and 2, which handle imported cosmetics and the company’s own brands. The existing heads of the two divisions, Seo Min-seong and Lee Seung-min, have both retained their positions. The strategy is to further strengthen the company’s expertise in beauty through integrated management alongside accountability at the individual business-division level. Expectations are also growing for Heo, who is in charge of the overall cosmetics business. Drawing on his experience leading CJ Olive Young for 10 years from 2008 and growing its scale, he is expected to expand Shinsegae International Inc.’s influence in the cosmetics business.
Shinsegae International Inc. entered the cosmetics sector with its 2012 acquisition of color cosmetics brand VIDIVICI and has since expanded its business. It appointed Lee Seung-min, CEO of indie brand AMUSE, which it acquired in 2024, as head of Cosmetic Division 2, applying to its own brands the formula behind the rapid growth of its indie brands. Since August, Lee has also overseen CHICOR, a beauty select shop operated by Shinsegae Department Store, further strengthening synergies with the retail platform.
Fashion companies, including Shinsegae International Inc., are treating beauty as a new business area and stepping up their efforts in the sector. LF has set a target of reaching 100 billion won in sales by 2028, led by its vegan beauty brand ATHE. Handsome operates luxury skincare brand OERA. With the domestic market saturated and K-beauty growing in popularity, these companies are looking to beauty as a global growth driver.
An industry source said, “This organizational restructuring is expected to help Shinsegae International Inc. accelerate changes to its business structure,” adding, “As cosmetics account for a growing share of sales, the company will increase investment in its beauty business, including efforts to strengthen brand competitiveness and expand its distribution network.”
[email protected] Kang Myeong-yeon Reporter