Core Insights - The South Korean beauty market is undergoing significant changes, with the rapid rise of new players like APR, which has seen its stock price soar by 200% this year, surpassing established giants like LG Household & Health Care and Amorepacific in market capitalization [1][3][4] - Traditional beauty companies such as LG Household & Health Care and Aekyung are facing severe challenges, including declining profits and the need to sell assets or repay debts [3][4][10] - The overall competitive landscape in the Korean beauty industry is shifting, with new entrants gaining market share while established companies struggle [4][44] Group 1: Performance of Established Companies - LG Household & Health Care's beauty segment has seen a dramatic profit drop of 70%, with overall revenue down by 5.3% year-on-year [10][12][13] - Aekyung's revenue decreased by 5.9%, with a nearly 50% drop in operating profit, indicating a significant decline in performance [13][23] - Amorepacific reported a 5.2% increase in domestic sales, contrasting with APR's 7.5% decline in the same market [9][16] Group 2: Performance of New Entrants - APR's revenue from cosmetics and beauty surged by 186.1%, with a notable increase in operating profit by 149.4% year-on-year [18][19] - APR's market capitalization has reached approximately 87501.33 billion KRW (about 452.64 billion RMB), making it the top company in the Korean beauty sector [1][4] - The company has also reported significant growth in international markets, with sales in North America and Japan increasing by 236.3% and 280.9%, respectively [5][37] Group 3: Market Trends and Challenges - The Korean beauty market is experiencing a shift, with established brands losing ground to smaller, innovative companies that are gaining traction [44] - Despite challenges in the domestic market, some companies like Amorepacific are seeing growth in international markets, particularly in North America and Japan [37][40] - The overall export of Korean beauty products to China has declined by 10.8%, highlighting the need for strategic adjustments in overseas markets [34][33] Group 4: Strategic Adjustments - Companies are adjusting their strategies in response to market conditions, with Amorepacific focusing on e-commerce and reducing physical store presence in China [31][29] - LG Household & Health Care and Aekyung are also exploring online channels to boost sales, indicating a broader trend towards digital transformation in the industry [31][33] - The competitive landscape is expected to continue evolving, with new entrants likely to challenge established players further [44]