L&P Cosmetic Chairman Kwon Oh-sub speaks during an interview with The Korea Times at the firm's headquarters in Seoul, July 2. Korea Times photo by Shim Hyun-chul

L&P Cosmetic, one of Korea's top beauty product manufacturers, will decide whether to revive its efforts for an initial public offering (IPO) around the end of 2025, nearly a decade after halting its previous plan due to the unexpected "China shock," which was sparked by the proposed deployment of an American anti-missile system in Korea, according to its Chairman Kwon Oh-sub.

In 2016, the company was poised to go public due to its thriving mask pack business and impressive corporate earnings. However, it ultimately abandoned the plan as diplomatic relations between Korea and China deteriorated sharply over a political issue. At that time, Asia's largest economy threatened retaliatory measures against Korean products, resulting in the delay of L&P Cosmetic's IPO plan.

"We will confirm whether to go public sometime around the end of next year, and my thought is it is feasible in the near future, as we do not have a high debt ratio," Kwon said during an interview with The Korea Times at the firm's headquarters in Seoul, July 2.

L&P Cosmetic is best-known for its flagship high-end mask pack brand, Mediheal. Manyo Factory, a skin care cosmetics brand of L&P Cosmetic, also made headlines last year after going public on the secondary Kosdaq market.

"We expect to boost employee morale further after a possibly successful listing of L&P Cosmetic," Kwon said.

"One of the key purposes of the listing is to give more hope to our staff."

L&P Cosmetic's sales reached 281.7 billion won ($203.6 million) in 2023 and its operating profit also came in at 13.8 billion won during the same period, according to a regulatory filing to the Financial Supervisory Service.

The head of the company expected its sales to rise close to 500 billion won this year.

"Our short-term goal is to clinch a symbolic sales figure of 1 trillion won by 2028," he said.

L&P Cosmetic Chairman Kwon Oh-sub explains the firm's global strategy during an interview with The Korea Times at the firm's headquarters in Seoul, July 2. Korea Times photo by Shim Hyun-chul

Global vision

L&P Cosmetic's Mediheal is beloved by global customers, which has driven the rapid growth of the company over the past decade. Mediheal's mask packs are sold in about 40 countries around the globe.

Mediheal products are particularly generating a sensation in key Asian markets, such as Korea, China, Japan and Hong Kong. The brand's profile is also expanding gradually in the United States and Europe.

Kwon said the company aims to widen its presence with not just mask packs, but also mask pads in the U.S. and major European markets.

"Our products have been recognized in most Asian markets, but are still lesser-known in the U.S. and Europe," he said. "Once we create bigger success in the U.S., the next target is Europe."

L&P Cosmetic headquarters in Seoul / Courtesy of L&P Cosmetic

L&P Cosmetic adopts localization strategies for each region.

Mediheal's mask pad / Courtesy of Mediheal

"Skin types of American and European people differ a lot from Asians," he said. "Our premium mask packs were the stepping stone for our success in Asia, but they were not as popular as we expected in the U.S. due to their different skin types. But our mask pads created a bigger sensation there, as they were easier and more comfortable to use for them."

For instance, the Philippines is an island country, so cosmetics ingredients sold there should be different from ones used in inland areas, according to him.

"We are developing such differentiated products for each region," he said.

Kwon also identified India and Indonesia as the firm's next major growth areas due to their demographic potential.

"L&P Cosmetic is already doing business in India and Indonesia, and responses from the two countries remain solid," he said. "We expect the two countries to become our next major revenue areas, once we tighten our footing there further."

L&P Cosmetic Chairman Kwon Oh-sub speaks during an interview with The Korea Times at the firm's headquarters in Seoul, July 2. Korea Times photo by Shim Hyun-chul

CSR

Kwon underscored the importance of human resources for any firm's sustainable growth.

"All of our employees, including salespeople, are regular employees," he said.

"Our welfare system is the top level in the industry."

Kwon studied geology at Korea University. He engages in multiple donation campaigns for those in need. In 2016, he donated his personal wealth worth 12 billion won to the university on hopes for more students to focus on their studies under better circumstances.

Under Kwon's leadership, the company started running a special K-beauty scholarship program in 2021. A total of 11 students were the beneficiaries for its first scholarship program. The company aims to keep supporting students who study cosmetics, so they can continue contributing to the industry, according to Kwon.