L'Oreal Acquires Gowoonsesang Cosmetics

PARIS (Reuters) – French cosmetics giant L'Oreal announced on Monday that it has agreed to purchase Gowoonsesang Cosmetics, which includes the South Korean skincare brand Dr.G., from Swiss retailer Migros.

The Korean beauty market is predominantly led by local brands renowned for their innovation and rising popularity globally, as part of the 'K-Beauty' trend.

L'Oreal stated that acquiring Dr.G will help meet the increasing demand for K-Beauty products and effective, yet affordable skincare. The company emphasized that it is expanding its pan-Asian presence and sees global growth potential.

Alexis Perakis-Valat, global president of L'Oreal's consumer products division, expressed optimism, saying, "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."

Earlier reports indicated that L'Oreal and Migros were in final talks regarding the deal, which follows Migros's strategic review of its Mibelle cosmetics group aimed at finding a new owner for Gowoonsesang and other brands.

L'Oreal has not disclosed the financial valuation of the deal, which occurs against a backdrop of a slowdown in China, once a fast-growing beauty market. In 2018, L'Oreal acquired the South Korean makeup brand 3CE.