Korean fashion and beauty companies are rushing back into China as political winds shift and consumer sentiment improves.
Once viewed as a “graveyard for Korean firms” after years of diplomatic chill, China is regaining its allure as friendlier bilateral ties spark renewed demand for Korean products.
Cosmetic manufacturer Cosmecca Korea Co. said on Monday that it has relocated the R&D center of its Chinese subsidiary, Cosmecca China, from Pinghu in Zhejiang Province to Shanghai, the epicenter of China’s beauty industry, where both global groups and local indie brands cluster.
The new base will focus on new product design and development, local skin-type and trend research, clinical testing and regulatory compliance with China’s National Medical Products Administration (NMPA), it said.
GROWING CONFIDENCE IN K-BEAUTY MANUFACTURING
The move reflects rising confidence among Chinese brands in Korean manufacturing.
“Chinese beauty, or C-beauty, labels are going global with vivid colors and social-media marketing, but concerns about safety and toxic ingredients remain,” said an industry official in Seoul. “Chinese brands increasingly turn to Korean ODM firms to ensure quality and reduce risk.”
Cosmax Inc., another leading Korean cosmetics contract manufacturer, has also seen business rebound.
Its China sales rose 22% on-year to 140 billion won ($96.3 million) in the third quarter, marking a clear recovery.
Cosmax said it plans to open a new integrated R&D, production and marketing complex in Shanghai next year to capture further growth.
MUSINSA, MARITHE FRANCOIS GIRBAUD
Fashion companies are following suit.
Musinsa, Korea’s largest online fashion platform, which is set to go public on Korea’s main stock market, is opening its first overseas store next month on Huaihai Road, one of Shanghai’s prime luxury retail streets.
The Korean fashion unicorn backed by global investment firm KKR Co. plans to feature its in-house label Musinsa Standard as well as showcase young Korean designers at the Shanghai flagship store.
Meanwhile, Marithe Francois Girbaud Korea, which rebranded the classic French label under a K-fashion identity, opened its first store in Shanghai’s Xintiandi, an affluent car-free shopping, eating and entertainment district, in July.
WARMER TIES, POLICY INCENTIVES
Korean consumer brands had struggled in China since the 2016 THAAD missile dispute, which triggered nationalist boycotts and forced major K-beauty groups such as Amorepacific Corp. to restructure.
According to Korea Customs Service data, exports of Korean cosmetics to China fell for the third straight year to $2.49 billion in 2024.
However, sentiment is shifting.
A wave of optimism has followed the summit meeting between Korean President Lee Jae Myung and Chinese President Xi Jinping on the sidelines of the APEC leaders’ meeting in the Korean city of Gyeongju last month, raising hopes for a diplomatic reset and closer trade ties.
At the Lee-Xi summit, the Chinese president responded positively to a proposal for a large-scale K-pop concert in Beijing, according to a Korean lawmaker familiar with the matter.
The gesture, analysts said, is a sign that has rekindled hopes of a long-awaited thaw in the “Korean wave” ban.
Shanghai, with its cosmopolitan population and openness to foreign brands, has become the key gateway for Korean entrants.
The municipal government has even pledged to grant 1 million yuan ($140,400) in subsidies to overseas brands opening their first flagship stores in the city.
The recovery in Chinese consumer confidence after years of pandemic slump is adding further momentum.
“As the K-wave is taking hold again in China, K-beauty and K-fashion companies are well placed to benefit,” said a cosmetics industry executive in Seoul.
