As Korean food and beauty products ride a wave of enduring global demand, Samyang Foods Co. has overtaken Japan’s Toyo Suisan Kaisha Ltd., the dominant player in the US ramen market, in market value after its shares surged 90% this year.
APR Co., a fast-growing South Korean cosmetics company, is also closing in on Shiseido, after surpassing the country’s long-time industry leader AmorePacific Corp. in market capitalization.
Its shares skyrocketed over 300% this year, compared with a 7.4% decline in those of its Japanese rival over the same period.
The two South Korean companies are emblematic of the global ascent of Korean food and beauty products, whetting appetites with fiery flavors and delivering high-quality skincare at affordable prices.
According to Hankyung Aicel, an alternative data provider, South Korea’s cosmetics exports rose 17.1% on-year to $935.2 million in July. Compared with the same period of two years before, the exports soared 49.9%.
Shipments of at-home aesthetic medical devices climbed 31.6% on-year to $11.5 million in July.
RAMEN EXPORTS
Korean food exports have also been rising at a double-digit rate, driven by instant noodles — ramen, or ramyun. Ramen exports have shot up 20.2% on-year to $131.2 million so far this year.
Samyang Foods, better known for its tongue-numbing spicy ramen Buldak Bokkeum Myeon, led the charge.
Its market value reached 10.96 trillion won ($7.9 billion) as of Aug. 8., exceeding Toyo Suisan Kaisha Ltd.’s 1.1 trillion yen ($6.8 billion).
Samyang Foods’ operating profit in the second quarter is estimated at 129.2 billion won, a 44.4% year-on-year jump.
In 2024, the Korean food company posted its highest-ever annual operating profit of 344.2 billion won.
EARNINGS OF BEAUTY COMPANIES
In the first half of this year, exports of Korean cosmetics came in at $5.3 billion, according to Hankyung Aicel. The figure exceeds that of the previous half-year, though detailed comparative data are not immediately available.
APR reported 84.6 billion won in operating profit for the second quarter, up 202% from a year earlier. Overseas sales account for 80% of its revenue.
Its share price has skyrocketed 356.4% this year as of Friday’s close, boosting its market value to 8.75 trillion won ($6.3 billion). The gains dwarfed AmorePacific’s 22.44% increase over the same period, which brings its marekt value to 7.4 trillion won.
In comparison, Shiseido’s market capitalization stands at 1.03 trillion yen ($7.0 billion) following a 7.4% drop in its share price this year.
PharmaResearch Co., an aesthetic medical and cosmetics company known for its skin booster Rejuran, saw its operating profit rise 82.7% on-year to 55.9 billion won in the second quartert.
That lifted its market capitalization 146.4% this year to 6.90 trillion won, the highest among Kosdaq-listed beauty companies.
“Exports of K-beauty products to major European countries have been growing at a record-setting pace in recent months,” said Park Jong-dae, an analyst at Meritz Securities.
“Exports to the US have also reached all-time highs, easing concerns that American tariff policies might drag down their earnings,” he added.
MEDICAL TOURISM
Buoyed by the global popularity of K-beauty, medical tourism has been growing rapidly.
According to the Korea Tourism Association, foreign visitors spent a total of 94.5 billion won at South Korean dermatology clinics in June, up a 81.2% on-year.
By Tae-Ho Lee
thlee@hankyung.com
Yeonhee Kim edited this article.
