Executives from major South Korean cosmetics companies are accompanying President Yoon Suk Yeol on his tour of three South American countries. This move is seen as an effort to secure distribution channels in the growing K-Beauty market in the region and to lay the groundwork for expanding local operations.
According to the Blue House, President Yoon will visit San Francisco, Brazil, Chile, and Argentina for 11 days starting on July 24 (local time). He will meet with global artificial intelligence companies and venture capital representatives in San Francisco on July 24-25, before making a state visit to Brazil at the invitation of President Luiz Inácio Lula da Silva from July 26-29.
On July 28, a Korea-Brazil business roundtable hosted by President Yoon in São Paulo will feature leaders from K-Beauty companies, including Lee Sang-mok of Amorepacific Holdings, Kim Byung-hoon of APR, Cheon Joo-hyuk of Gudai Global, and Kim Sung-woon of Silicon Two. They are expected to discuss strategies for entering the Brazilian market and expanding partnerships with local businesses and distributors.
The participation of K-Beauty executives in the Brazil visit is interpreted as a strategic move targeting the South American market. While the cosmetics market in South America is smaller than in North America and Europe, the export and local sales of Korean products have been rapidly increasing. Notably, Brazil, the largest cosmetics market in South America, has shown significant growth. According to the Korea Trade-Investment Promotion Agency, South Korea's cosmetics exports to Brazil rose from $9 million in 2022 to $32 million in 2024, reaching $54 million last year. This represents a 69% increase from the previous year and a sixfold growth over three years.
Individual company performances are also becoming evident. Skin1004, a skincare brand owned by Gudai Global, saw its sales in South America increase by 187% last year, with approximately 74% of its total South American sales coming from Argentina and Chile, the countries included in this tour.
Silicon Two, a global K-Beauty distribution platform, is also ramping up its efforts in South America. The company recently began full-scale operations in Mexico and is in the process of establishing a subsidiary in Brazil by the end of the year. The goal is to use the Mexico and Brazil subsidiaries as strategic hubs to expand its distribution network throughout South America.
Amorepacific has entered the Brazilian market with its hair care brands, Mise en Scène and Ryo, while APR, which derives 89% of its revenue from overseas, has identified South America as a new growth market and plans to expand its international operations. APR is currently present in local offline channels in Brazil, including Soneda and Pague Menos, as well as Pharmacity in Argentina.
This tour is expected to accelerate the efforts of South Korean cosmetics companies to penetrate the South American market. An industry insider stated, "The South American region is seeing a steady increase in K-Beauty exports, and future demand is expected to grow. We anticipate that K-Beauty companies will become more active in their expansion efforts going forward."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.