Korean Beauty Trends & Industry News: 25-06-24

CBD Ruled as Narcotic: Supreme Court Bans Cosmetic Imports Using Hemp-Derived Cannabidiol

    South Korea’s Supreme Court has ruled that cannabidiol (CBD), a compound extracted from the stalk of the cannabis plant, is still considered marijuana under the Narcotics Control Act. This decision confirms the legality of banning CBD imports for use in cosmetics, posing a significant impact on the domestic beauty industry.

The ruling stems from a case in which a cosmetics ingredient importer, Company A, requested a Standard Customs Clearance Report from the Korea Pharmaceutical Traders Association to import CBD for cosmetic use. The association rejected the application, citing CBD as a cannabis-derived substance. Company A filed a lawsuit seeking cancellation of the rejection.

Lower courts had initially sided with the company. The first and second instances concluded that since the Narcotics Control Act excludes cannabis seeds, roots, and stalks from its definition of marijuana, CBD extracted from stalk resin should not be regulated. The court noted that if the resin is derived solely from the stalk, it must be exempted from control.

However, the Supreme Court overturned those decisions. It emphasized that CBD is one of the primary active components of cannabis and should be classified as a controlled substance regardless of the part of the plant from which it is extracted. “Exempting CBD simply because it comes from the stalk contradicts the intent of the Narcotics Control Act,” the court stated.

This landmark decision sets a clear legal precedent in South Korea, reaffirming strict regulatory boundaries for the use of CBD in cosmetics. While other countries are embracing CBD for its anti-inflammatory, calming, and skin-soothing benefits, this ruling may curb local innovation and product diversification. Domestic beauty companies planning to develop or import CBD-based products must now reconsider raw material strategies or explore alternative compounds.

Fake K-Beauty Products Flood Market, Undermining Trust in Korean Brands

    As global demand for K-beauty continues to rise, counterfeit versions of popular Korean cosmetics are increasingly being distributed, damaging brand reputations and deceiving consumers.

One major case involves APR’s Medicube brand, which recently published a consumer alert warning about counterfeit products. These fake items are sold through open-market platforms disguised as legitimate storefronts. Sellers often copy product images and descriptions from Medicube’s official website, tricking consumers into purchasing fake goods.

Although the packaging and logo appear nearly identical to authentic products, differences emerge upon closer inspection—such as mismatched textures, misspelled product names, and incorrect measurements. For example, a counterfeit “Collagen Night Wrapping Mask” was labeled as “Golragen” and incorrectly marked its volume as “mi” instead of “ml.”

Other brands like Medipeel have also suffered from counterfeiting. Their best-selling “Red Lacto Collagen Wrapping Mask” has been widely copied and sold online. While the replicas look similar on the surface, they often lack brand labels, show blurry print quality, or use generic barcodes, revealing key inconsistencies.

Notably, this issue extends to many other renowned K-beauty labels such as Anua, Beauty of Joseon, TIRTIR, and Biodance, all of which have reported similar problems. These fake items are sold at prices nearly equal to or just slightly lower than genuine products, making it difficult for consumers to detect deception.

The bigger concern lies in the potential health risks. Counterfeits are often manufactured in unhygienic environments with unknown ingredients, posing dangers such as skin irritation or allergic reactions. On social platforms like TikTok, users have posted videos showing severe skin troubles caused by these knock-offs.

Industry insiders point to several factors driving the proliferation of counterfeits: the low barrier to entry in cosmetics manufacturing, the complexity of distribution channels including direct import and parallel imports, and the rise of e-commerce and social selling platforms that lack thorough oversight.

While some brands are responding with authentication systems and public awareness campaigns, many argue that stronger regulatory enforcement and cross-border cooperation are urgently needed to safeguard both consumers and the credibility of K-beauty worldwide.

APR Overtakes LG Household & Health Care in Market Cap – A Shift in Korea’s Beauty Industry Hierarchy

    A major reshuffling is taking place in Korea’s publicly listed beauty companies. APR, known for its synergy between skincare and beauty devices, has surpassed LG Household & Health Care (LG H&H) in market capitalization. On June 23, APR closed at a valuation of KRW 5.38 trillion, edging past LG H&H at KRW 5.34 trillion, making APR the second-largest beauty stock in Korea after Amorepacific (KRW 8.31 trillion).

When APR went public in February 2023, its initial market cap was KRW 1.89 trillion, meaning the company has grown 2.8 times in just 16 months. This meteoric rise is attributed to its flagship brand Medicube and its integrated portfolio that balances cosmetics and home-use beauty devices.

Approximately 60% of APR’s revenue comes from skincare products, with another 35% driven by beauty devices. This dual strategy has proven highly effective, particularly in international markets. In Q1 2025, APR recorded KRW 266 billion in revenue and KRW 54.6 billion in operating profit—representing 79% and 97% year-over-year growth, respectively.

A major differentiator is APR’s diversified global revenue: the U.S. contributes 27%, Japan 11%, Greater China 11%, and Europe & the Middle East 23%. This balanced global footprint minimizes regional risk and has become a model for scalable K-beauty success.

In contrast, LG H&H posted Q1 sales of KRW 1.69 trillion and operating profit of KRW 142.4 billion, reflecting a modest decline of 1.8% and 5.7% year-over-year. While still a heavyweight in the market, LG H&H’s growth has stagnated amid rising competition and shifting consumer dynamics.

LG H&H Responds with Pra.L Acquisition and New Beauty Device Launch

    Facing mounting competition from new players like APR, LG H&H is making strategic moves to reclaim momentum. The company recently acquired the premium beauty tech brand "Pra.L" from LG Electronics and introduced a new device—the “LG Pra.L Superform Galvanic Booster.”

The new product is a compact, lipstick-sized beauty tool measuring 9.5 cm in length and weighing just 47 grams, designed for portability and ease of use. Priced in the 100,000 KRW range, it is positioned as an accessible entry into high-performance beauty tech.

The device features galvanic microcurrent technology that enhances skin absorption of active ingredients, using a precise output of 250 μA. It also integrates a 630 nm wavelength LED to stimulate collagen production and offers 8,500 vibrations per minute for firming facial massage effects.

Alongside the device, LG H&H launched a dedicated skincare line called “GLASSLIKE,” tailored for use with beauty tech. The line includes three products addressing concerns like wrinkles, lip dryness, pigmentation, and sagging skin. Key ingredients like Vitamin C and bakuchiol are ionized for optimal compatibility with the device’s electrical delivery system.

With this launch, LG H&H aims to accelerate its push into “beauty intelligence,” combining cosmetics, devices, and artificial intelligence into a smart skincare ecosystem. By leveraging its deep R&D expertise in cosmetics and integrating cutting-edge technology, the company hopes to offer at-home solutions rivaling professional treatments.

An LG H&H spokesperson commented, “The new Pra.L will redefine beauty devices as the new normal, blending advanced technology with cosmetic efficacy. Our goal is to deliver professional-level skincare results at home, creating distinct value for consumers.”

This strategic pivot marks LG H&H’s response to APR’s rapid ascent and reflects the evolving landscape of Korea’s beauty sector—where innovation, agility, and technological integration are key to staying ahead.