L’Oréal Group signs an agreement with Swiss retail group Migros to acquire its subsidiary Gowoonsesang Cosmetics Co, Ltd, including Korean skincare brand Dr.G by dermatologist Dr. Gun Young Ahn. Dr.G will become part of L’Oréal Groupe’s Consumer Products Division, and meet the rising demand for K-Beauty and scientifically developed, effective yet low-priced skincare solutions.

L'Oréal Acquires Migro’s South Korean Subsidiary, Gowoonsesang Cosmetics

There’s a rising demand for K-Beauty

In February 2024, the Migros Group made an announcement about its intention to sell the Mibelle Group in order to focus on its core business. Based on the sales negotiations, Migros was confident that L’Oréal would offer the South Korean Mibelle subsidiary Gowoonsesang the best opportunities in the future.

In the past decade, Dr.G has been one of South Korea’s leading skincare brands with a strong pan-Asian presence. Its product portfolio includes ingredient-led skincare with targeted product lines such as its best-seller, R.E.D Blemish Clear Soothing Cream. With a diversified omni-channel sales mix in South Korea, Dr.G consistently ranks among the top three mass market and dermocosmetic skincare brands in the country.

“We are delighted to welcome Dr.G into the L’Oréal Groupe. Created by a dermatologist and offering high-performing solutions suitable for even the most sensitive skins, Dr.G perfectly complements our existing skincare portfolio,”said Alexis Perakis-Valat, Global President of L’Oréal’s Consumer Products Division. “We have been following the brand and its success for many years and we look forward to accelerating its growth in South Korea and the rest of the world, staying true to our mission to democratise and premiumise beauty.”

“We are thrilled that Gowoonsesang Cosmetics is joining L’Oréal”, said Dr. Gun Young Ahn, M.D., Ph.D. Dermatologist, Founder of Gowoonsesang Cosmetic. “Our mission has always been to provide healthy and radiant skin through advanced research. We believe that becoming part of L’Oréal will serve as a significant turning point in the global realisation of our mission”.

The transaction is expected to be completed in the next few months after regulatory approvals and other customary conditions. This acquisition marks the second time L’Oréal is acquiring a Korean beauty brand. In 2018, the conglomerate purchased Stylenanda, which included the 3CE makeup range. 

Increasing Global Demand For K-Beauty

South Korea has long been a hotbed of cutting-edge beauty, giving rise to beauty trends such as BB Cream and cushion-based foundation technology. Per Forbes: ‘In the global beauty industry, meanwhile, the latest sensation is K-beauty — a market last year tipped to hit US$18.32 billion in revenue by 2030 and a development K-brands are now working hard to monetise.’

The initial allure of K-beauty [an umbrella term referring to skincare products from South Korea] captivated global consumers with innovative skin care and affordable luxury, a decade back. Snail mucin, a staple in K-beauty skincare, is celebrated for its anti-inflammatory and collagen-boosting properties. Extracted from snail secretions, this ingredient is found in South Korean serums, creams, and masks. Popular for its ability to rejuvenate the skin, snail mucin promotes hydration, accelerates healing, and improves skin elasticity. Its natural composition, rich in glycoproteins, hyaluronic acid, and glycolic acid, helps reduce fine lines, soothe irritation, and achieve a radiant complexion.

There’s been a global resurgence of K-beauty. Per Vogue Scandinavia, ‘“The K-beauty category on Lyko has been around for years but hasn’t been as prominent in the main menu as it is today,” says Bella Säfvenberg, team lead of content at Lyko. Noticing a significant increase in sales and interest in K-beauty products in 2023, the category was elevated to the top of the website’s menu to make it easier for customers to find. For Cecilia Ortmark Söder, founder of the online K-beauty retailer GlowID, the interest was strong enough to warrant a physical store in Stockholm’s NK department store.’

TikTok and Instagram have become instrumental in propelling K-beauty to viral status, causing some products, such as Beauty of Joseon’s Relief Sun: Rice + Probiotics SPF 50+, to go viral. On TikTok, the short-form video format allows creators to showcase K-beauty products through tutorials, skincare routines, and transformation videos that grab attention. Viral challenges and trends, fueled by the hashtag culture on TikTok, encourage users to share their experiences with K-beauty products. For example, the “glass skin” trend—a hallmark of K-beauty—has gained immense popularity as creators demonstrate techniques and products in real time, driving curiosity and engagement.

Instagram’s emphasis on aesthetic visuals, combined with features like Reels, Stories, and shoppable posts, provides an ideal space for K-beauty brands to connect with global audiences. Influencers and beauty enthusiasts on Instagram play a significant role by sharing reviews, product recommendations, and tutorials, often using the platform’s interactive features like polls and Q&A sessions to engage followers. The integration of e-commerce tools on Instagram allows users to purchase featured products, converting interest into sales. Together, TikTok and Instagram amplify K-beauty’s appeal by turning skincare and beauty routines into shareable, aspirational content, making it accessible to audiences worldwide. 

L’Oréal Groupe

For 115 years, L’Oréal has devoted itself to fulfilling the beauty aspirations of consumers around the world. Its approach to beauty is to be essential, inclusive, ethical, generous and committed to social and environmental sustainability. With a broad portfolio of thirty-seven International brands and ambitious sustainability commitments, the conglomerate offers the best in quality, efficacy, sincerity and responsibility.

Loreal has an interesting history. In 1909, French chemist Eugène Paul Louis Schueller developed a hair dye formula named Oréale, which he sold to Parisian hairdressers. The vision of the brand, which later became The L’Oréal Group, was research and innovation in the field of beauty. In 1920, the company employed three chemists although it has evolved to an 88,000- strong team today. L’Oréal’s famous advertising slogan, “Because I’m worth it”, was created by a twenty-three year-old art director and introduced in 1973 by model and actress Joanne Dusseau. In the mid-2000s, it was replaced by “Because you’re worth it”. In 2009, it changed again to “Because we’re worth it” to create stronger consumer involvement. For L’Oréal Kids, the slogan is “Because we’re worth it too”.

Schueller provided financial support for French fascist-leaning and anti-communist group La Cagoule at L’Oréal headquarters. Its leader formed the political party Mouvement Social Révolutionnaire which in Occupied France supported the Vichy collaboration with the Germans. In the aftermath of WWII, L’Oréal hired several members of the group as executives such as Jacques Corrèze, who served as CEO of the US operation. L’Oréal currently markets over five hundred brands and thousands of individual products including hair color, permanents, hair styling, body and skincare, cleansers, makeup and fragrance.

Under the management of Lindsey Owen-Jones, the conglomerate became the leader in cosmetics through the worldwide presence of its brands and strategic acquisitions. L’Oréal has six research and development centres in France, U.S.A, Japan, China and India. The company acquired Synthélabo in 1973. Synthélabo merged with Sanofi in 1999 to become Sanofi-Synthélabo, which in turn merged with Aventis in 2004 to become Sanofi-Aventis. On 17 March 2006, L’Oréal purchased cosmetics company The Body Shop for reported £562 million.

In January 2014, it acquired Chinese beauty brand Magic Holdings for a reported $840 million. The following month, L’Oreal bought back eight per cent of its shares for a reported €3.4bn from Nestlé. Few know Nestlé owned a stake in L’Oreal since 1974 when it bought into the company at the request of Liliane Bettencourt, daughter of the founder of L’Oreal, who was trying to prevent French state intervention. In February 2014, Shiseido agreed to sell Carita and Decléor to L’Oréal for a reported €227.5 million. 

In June, L’Oréal acquired NYX Cosmetics. In September, it purchased Brazilian hair care company Niely Cosmeticos. The following month, it acquired multicultural brand Carol’s Daughter. In July 2016, L’Oréal acquired IT Cosmetics for a reported $1.2 billion. In March 2018, it acquired beauty augmented reality company ModiFace. The same year, L’Oréal announce a new beauty and fragrance partnership with Valentino.

With Jean-Paul Agon as Chairman and CEO, L’Oréal has a clear mission statement: Beauty for All. ‘What makes us unique? The passion for innovation transmitted by our founder, a researcher. We have an obsession with superior quality, efficacy, sincerity, and safety of our products. Respect for diversity with strong brands that meet all needs and desires’ he stated in a company release. In 2020, chief digital officer Lubomira Rochet reported the growing importance of e-commerce for the company, explaining that e-commerce accounted for twenty four per cent of their turnover in the third quarter.

With more than ninety thousand committed employees, a balanced geographical footprint and sales across all distribution networks, in 2023 the Group generated sales amounting to 41.18 billion euros. With twenty research centers across eleven countries and a dedicated Research and Innovation team of over 4,000 scientists and 6,400 Digital talents, L’Oréal is focused on inventing the future of beauty and becoming a Beauty Tech powerhouse.