As the popularity of K Beauty shows no sign of abating, the investors are lining up to take a slice of the pie, in turn creating a new wave of superrich CEOs and entrepreneurs.
According to a new report in the Korea Herald, international firms are capitalizing on the global demand for all things ‘Korean’ and are investing huge amounts of money into these brands.
Examples include L Capital’s – the subsidiary investment arm of LVMH – financing into South Korean brand CLIO. The investment company ploughed $50million into the brand and will hold a 10 per cent stake when the company goes public. And with the company reporting sales of 100 billion won in 2015, up from 43.2 billion won the previous year, founder Han Hyun-ok is reaping the benefits.
Lee Jin-wook of Dr.Jart is also earning a pretty penny thanks to founding the popular cosmetics brand that gives the impression of being a doctor-led brand. Coming from his role as a worker at an architectural firm, Jin-wook owns 66.7 per cent in stocks of the brand that sells millions of products and has just received investment from Estee Lauder.
Carver Cosmetics Chairman Lee Sang-rok also earned a pretty penny from his 60 percent share stake that he held until the Goldman Sachs consortium acquired 40 per cent this year. Sang-rok now owns a 20.2 percent stake, which at worth 10 billion won still packs a punch.
The company reported a huge sales surge from 27.3 billion won in 2013 to 156.5 billion won in 2015.