South Korean makers of beauty devices that promise healthier, radiant skin are riding a wave of investor demand, fueled by growing global enthusiasm for K-beauty amid the worldwide K-pop phenomenon, with expectations building for further growth.
On Monday, L&C BIO Co., which makes the skin booster Elravie Re20, surged 16% to end at 48,900 won ($35.24).
The stock has skyrocketed 61.9% over the five straight sessions and 90.8% year to date.
The company’s new skin booster, launched late last year, has been gaining popularity, stoking investor optimism.
Skin boosters are advanced collagen injections that rejuvenate skin and restore its inner structure.
Demand has also lifted PharmaResearch Co., maker of Korea’s best-selling skin booster brand Rejuran. Its shares jumped 7.1% on Monday.
Rejuran, made with PN – a chain of molecules derived from salmon DNA fragments said to promote healing and regeneration – has gained international renown.
In June, The Wall Street Journal reported that many American women were flying to Korea and paying high fees to receive the injections for smoother, youthful skin.
In the second quarter ended June, the company reported 55.9 billion won in operating profit, up 81.7% from the same month of last year, on sales of 140.6 billion won, up 69.2%.
Other beauty device makers also advanced.
Won Tech Co., which makes the Oligio laser lifting device using radiofrequency energy, jumped 10.9%.
CLASSYS Inc., known for its ultrasound-based Shurink (marketed globally as Ultraformer III) and RF-powered Volnewmer, added 4.7%.
MORE ROOM TO GROW
Market analysts expect the rally to extend, supported by rising demand from foreign medical tourists.
Foreign visitors’ medical spending in South Korea jumped 46.7% from January to 157.7 billion won in July, with cosmetic dermatology and plastic surgery accounting for nearly 79% of the total, according to data from the Korea Tourism Organization’s Tourism Data Lab.
Analysts expect foreign spending on K-beauty to climb further as arrivals of Chinese group tourists are projected to increase under the Korean government’s visa-free entry program for Chinese tour groups from Sept. 29 through June 30 next year.
“The Chinese visa waiver program combined with China’s National Day holiday this month could lift medical tourism spending to its highest level this year,” said Park Jong-hyun, an analyst at Daol Investment & Securities Co.
By Han-Gyeol Seon
always@hankyung.com
Sookyung Seo edited this article.
