Gudae Global Sells Underperforming "Laka" Just One Year After Acquisition

Acquired for 42.5 Billion KRW, Sold for 53 Billion KRW
Laka's Growth Falls Short of TirTir's 50% Average Annual Rate
"We Will Continue M&A, No Plans to Sell Additional Brands"
Laka Reports Ninefold Sales Increase After Gudae Global Acquisition

Gudae Global, often referred to as the "Korean L'Oreal" for its rapid acquisition of K-beauty brands, is divesting its color cosmetics brand Laka just one year after acquiring it. The company is adjusting its brand portfolio through this sale, as Laka's growth rate failed to meet expectations.

Bulky Matte Lipstick. Provided by Laka.

According to the retail industry on August 21, Gudae Global is in the process of selling Laka for 53 billion KRW. This comes just one year after acquiring approximately 88% of Laka's shares for 42.5 billion KRW in June last year. The sale is expected to be completed by the end of this month. A Gudae Global representative stated, "It is difficult to disclose specific details about the buyer and the structure of the deal," and added, "There are no additional plans to sell other brands."

Gudae Global cites Laka's disappointing growth as the reason for the sale. While the company initially saw significant growth potential in Laka at the time of acquisition a year ago, the brand's performance ultimately fell short of expectations.

Laka's average annual growth rate from 2022 to 2025 is understood to be the lowest among the brands owned by Gudae Global. In comparison, Chosun Beauty recorded an average annual growth rate of 130%, Skin1004 achieved 110%, and TirTir reached around 50%.

Some observers criticize this decision as the result of pursuing mergers and acquisitions (M&A) without a clear strategy. They point out that Laka and TirTir, both color cosmetics brands, have overlapping business areas, which limits the expansion of distribution channels and regions. As a result, Gudae Global chose to sell Laka, which had a lower growth rate than TirTir.

However, a Gudae Global representative responded, "If there had been such concerns, we would not have acquired Laka in the first place," and added, "We will continue to actively pursue M&A for future growth."

Meanwhile, earlier this month, Laka opened a flagship store in Seongsu-dong, Seoul, and announced its ambition to actively enter overseas markets. At that time, Laka stated that its domestic sales had increased approximately ninefold since being acquired by Gudae Global.

This content was produced with the assistance of AI translation services.