AmorePacific's History Dates Back To 1932

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AmorePacific is a large corporation manufacturing health care products and equipment in the top 10 in Korea. It has a long history, with the first foundation dating back to 1932. This corporation currently owns 34 brands of cosmetics, personal care products, and health care products.

1. News from AmorePacific

In November 2023, Amorepacific Lipcure Beam device received a CES 2024 Innovation Award in the Digital Health category, marking the company’s fifth consecutive win at the influential technology event. CES 2024 (Consumer Electronics Show 2024) is held in Las Vegas, USA.

Lipcure Beam

The tail of the Lipcure Beam contains sensors capable of diagnosing the condition of the lips. The device instantly provides a moisture index when the user applies it to their lips. The body of the device has a structure similar to a lipstick and emits light. The working principle of the device is as follows:

On the top of the device’s body is a light-responsive substance developed at the Amorepacific R&I Center. When using the device, this substance reacts with the light emitted by the Lipcure Beam body, maximizing the reaction of riboflavin, which is vitamin B2. This reaction strengthens collagen fibers in the lips, forming a moisture barrier on the surface. Regular use of Lipcure Beam helps slow down the aging process of the lips.

Next news…

Amorepacific won 9 awards at the iF Design Awards 2023. On September 20, 2023 the group also won the ‘Market Trailblazer’ award at the RE100 Leadership Awards held on September 19 at the Climate Week NYC 2023.

Amorepacific’s export revenue currently constitutes approximately 25% of its total income. Driven by the ambitious goal of global market dominance, the company has devised a strategic plan with a primary focus on key regions such as China, Asia, and North America. Within the Asian market, Amorepacific is actively fortifying its presence in well-established markets like Singapore, Malaysia, Thailand, and Vietnam…

2. Amorepacific’s brands

Amorepacific’s brands strive to boldly transcend the traditional realm of beauty. We create next-generation beauty products with enhanced efficacy by adding technology innovation to creative ideas and propose solutions for healthy lives. We continue our journey toward beauty by communicating with our customers worldwide.

Cosmetics: Amorepacific, primera, Sulwhasoo, IOPE, LANEIGE, HANYUL, Mamonde, espoir, innisfree, ODYSSEY, ETUDE, BE READY, SIENU, CUSTOM.ME, HERA, HOLITUAL.
Perfume: Goutal
Beauty Device: makeon
Tea Cture: OSULLOC
Body Care: HAPPY BATH, illiyoon, Skin U.
Hair Care: Ryo, mise en scène, LABO-H, AYUNCHE, amos professional, Longtake.
Medical Beauty: AESTURA
Inner Beauty: VITAL BEAUTIE
Dental Care: MEDIAN

3. The development history of Amorepacific

3.1 Origin

In 1932, Mrs. Dokjeong Yun (the mother of founder Suh Sung-hwan) started producing and selling camellia hair oil at the Chang Sung store, located in Kaesong city, North Hwanghae province, south North Korea, near the border with South Korea.

Early stage

1945: SEO Seong-hwan founded the company “Taepyeongyang Chemical Industrial Co., Ltd.“.

Outstanding product

1948: Launch of Melody Cream.
1951: The launch of ABC Pomade was very popular.
1960: Launch of Coty Powder, taking hold of the Korean cosmetics market.

Achievement

Being the first unit to deploy and shape many new concepts in the Korean market, such as campaigns on makeup, foundation, and folk beauty products, and building a chain of designated stores.
Producing additional products such as toothpaste, soap, and green tea.

3.2 Expanding and Rebranding

1959: Changed name to “Taepyeongyang Chemical Industries” and technical association with Coty, France.
1964: Started exporting abroad under the “Oscar” brand and introduced the “Amore” brand.

3.3 International development and listing

1971: Construction of the An Yang factory in An Yang-eup, Gyeonggi Province (now An Yang City).
Opened the first representative offices in Tokyo, Japan, and New York, USA, in 1972.
Listed on the Korea Stock Exchange in April 1973,.
Established Taepyeongyang Development to enter the construction industry.

3.4 Expansion and innovation

Established “Jangwon Industries” (supplying cosmetic ingredients) in 1974 and acquired “Yuyoung Industries” (this is also a company specializing in providing cosmetic ingredients).
1979: opened Asia’s first cosmetics and accessories museum, the Taepyeongyang Museum.
Penetrating the financial industry: In 1982, Pacific Group acquired Dongbang Securities (Dong Phuong Securities Company) and entered the financial industry, developing into a large corporation with 21 branches.
1987: Changed the company name from “Taepyeongyang Chemical” to “Pacific Chemical.”.
1993: Changed name to Pacific.

3.5 Crisis and restructuring

Pacific has expanded its scale by participating in many other business fields besides cosmetics. As a result, debt increased. The problem became worse when imported cosmetics attacked the domestic market in the 1990s. There was also huge competition from domestic competitors such as Hankook Cosmetics, Nadry, Lucky, and Peerless. As a result, the group’s cosmetics business seriously declined.

1991: Reform begins under the leadership of SEO Kyungbae Suh, son of Sungwhan Suh.
2005: Merged Jangwon Industries (a company providing cosmetic ingredients) and Pacific Glass (a company specializing in manufacturing packaging and bottles). Then in 2007, it was split into a department specializing in producing glass bottles (Pacific glasses) and a green tea growing department (Jangwon).
2006: Separate food divisions (example: Osulloc), cosmetics, and consumer goods. These industries have used the name Amorepacific in their brand identities to date.
2010: Separate Taeshin Inpack, a company that produces and distributes plastic bottle packaging.
2011: Converted the old company Taepyeongyang into a holding company and took the name Amorepacific Group.
Sold the pharmaceutical business (Pacific Pharmaceuticals) to Handok Pharmaceuticals in 2013.

4. Amorepacific stock price history

From 2014 to 2015:

Growth:
- Revenue in 2014: 3,874 billion won, up 52% compared to 2013.
- Operating profit in 2014: 5,638 billion won, up 25% compared to 2013.
- The stock price doubled from 1,007,000 won (February 1, 2014) to 2,220,000 won (December 30, 2014).

The increase in the number of Chinese tourists and sales in the Chinese market are important factors leading to this positive result.

Stock split:
- Stock split at a 1:10 ratio after shareholders’ request (March 3, 2015)
- The stock price increased to 2,860,000 won (March 3, 2015).
- Reached 3,884,000 won (April 21, 2015) before suspending trading.
- After splitting:
  - The stock price reached 455,000 won (July 2, 2015).
  - Market capitalization reached 24 trillion won (July 2, 2015), ranking 5th on Kospi.
- Revenue in 2015: 5,645 billion won, an increase of 18% compared to 2014.
- Operating profit in 2015: 8,481 billion won, up 10% compared to 2014.

From 2016 to 2020:

Reduced:
- Due to the influence of THAAD and China’s ban.
- Revenue in 2017: 5,123 billion won, down 9% compared to 2016.
- Operating profit in 2017: 5,964 billion won, down 30% compared to 2016.
- Revenue in 2019: 5,580 billion won, up 6% compared to 2018.
- Operating profit in 2019: 4,278 billion won, down 11% compared to 2018.
Stock price drops:
- From 400,000 won (October 2016) to 270,000 won (April 2017).
- Continue to decrease to 150,000 won (November 2018).
- Reduced to 150,000 won (2020) due to the impact of COVID-19.

Currently (August 2023):

Market capitalization: about 6.8 trillion won.
Stock prices have continuously decreased. A competitor in the same industry, LG Household & Health Care, cannot avoid this trend.

Conclude:

The Amorepacific stock price has fluctuated widely in recent years.
Factors affecting:
- Chinese consumer demand.
- There are political relations between Korea and China.
- Covid-19 epidemic.

5. Founders and executives

5.1 Kyungbae Suh

Kyungbae Suh was born on January 14, 1963 in Korea. He received his bachelor’s degree in business administration from Yonsei University and his MBA from the Samuel Curtis Johnson Graduate School of Management at Cornell University.

Kyungbae Suh (source: Amorepacific)

Kyungbae Suh is a Korean billionaire businessman. He was appointed chief executive officer (CEO) of Amorepacific in 1997, and currently holds the position of president of the group. Continue to rely on the core values created by my grandmother and father. He continued to turn the group into an international entity, no longer simply representing Korea.

5.2 Sungwhan Suh

In 1945, almost 10 years after the mother produced and sold camellia oil, her son founded Amorepacific. Based on the desire to create beauty and health values based on technology and careful care, he established a product research and development (R&D) department.

Seo Sung Hwan (source: Amorepacific)

He led the Korean cosmetics industry by revolutionizing the distribution system. He began entering foreign markets in the 1960s, laying the foundation for the globalization of Korean cosmetics.

In addition, in the face of the disappearance of Korean tea culture, he bought wasteland on Jeju Island and turned the wasteland into lush tea fields, greatly contributing to the popularity of traditional green tea. This will also become the main raw material area of the group in the future.

In November 2023, the name Sungwhan Suh was inducted into the Korean Businessmen Hall of Fame. This is the full text of AMOREPACIFIC’s announcement:

We’re delighted to announce that our late Founder, Sungwhan Suh, was inducted into the Korea Entrepreneur Hall of Fame. Chairman Suh founded Amorepacific in 1945 and was central in the development of Korea’s cosmetics industry. He introduced our iconic Melody Cream in 1948 and made numerous industry innovations, from door-to-door sales and customer relationship management to branding and marketing communications. But even while he was setting the standard for business, founder Suh was going even further. He also established several scholarship foundations and supported a variety of important philanthropic causes. His remarkable contributions have left an enduring legacy on Korea’s economic and social development.

5.3 Dokjeong Yun

Amorepacific has a long history, originating with Mrs. Dokjeong Yun. The old lady produced hand-pressed pure camellia oil in the 1930s. Mrs. Yun was famous for being generous and always willing to share food and drink with strangers, customers, or friends.

Mrs Dokjeong Yun (source: Amorepacific)

She uses purely natural ingredients to make products that are simple in formula and store many nutrients. Yun believes in the importance of using the highest quality raw materials and has fairly high quality standards for each product sold. Her son, Suh Sungwhan, watched and learned from his mother’s independent, intelligent, generous, and compassionate spirit.

6. Key Moments

1945.09: Established Pacific Chemical Industries Co., Ltd., parent company of AMOREPACIFIC Co., Ltd., with the philosophy of “contributing to humanity by creating beauty.”.
1954.08: opened the first laboratory in the cosmetics industry in Hoam-dong, Seoul.
1959.09 introduced advanced technology for the first time in the Korean cosmetics industry through technical links with France.
1964.03: Technical alliance with Japan to advance technology.
1978.10: Established the Pacific Institute of Technology, continuing the historical values of the institute that has existed since 1954.
1979.12: Established Pacific Museum—the first model in Korea to archive the history of the beauty industry.
1983.04: Completed construction of the Doosun green tea processing factory in Cheju Island.
1992.08: Established and completed the construction of the Pacific Technology Research Institute in Yongin, Gyeonggi Province.
2002.03: Introducing the AMOREPACIFIC brand, occupying the leading position among the brands that AMOREPACIFIC Co., Ltd. owns.
2003.09: Opening of AMOREPACIFIC BEAUTY GALLERY & SPA in Soho, NY.
2003.09: Opened AMOREPACIFIC store at the high-end shopping center Bergdorf Goodman, New York.
2005.04 store opened at the Niagara Marcus shopping center in Washington, DC.
2006.08, a store opened at Shinjuku Isetan shopping mall in Tokyo, Japan.
2007 Amorepacific Malaysia builds a research and manufacturing complex in Johor Bahru.
2009.03 Opened a representative office in Nihonbashi Mitsukoshi, Tokyo, and opened additional stores in Takashimaya shopping district (Yokohama, JR Nagoya, Shinjuku, Osaka).
2012.04: Launched store at Nordstrom shopping center in the US.2012.09: Store opening at Canadian Cellular Store.
2014.10, the group opened the Beauty Campus Shanghai center, combining production, R&D, and logistics in China.
2014.11 AMOREPACIFIC brand store opened at Hong Kong Lane Crawford.
2015.06: Opened another store at Bloomingdale Shopping Center.
2015 Amorepacific entered Forbes’ list of the 100 most innovative companies.
2018 Amorepacific Group Construction of Global Headquarters.
2022.11 The Group becomes the first entity in Korea to sign a virtual power purchase agreement (VPPA) with Bukchon Seomo Wind Power, a wind power plant in Bukchon-ri, Jeju.
2022.12: Strategic partnership between Amorepacific and Johns Hopkins University to support a new research program, the New Beauty Research Initiative (NBRI).