AK Holdings Joins Taekwang Group... Cosmetic Sales to Exceed 50% in Major Business Transformation

Strengthening Total Beauty with Skincare and Color Cosmetics
Accelerating Global Market Diversification
Organizational Specialization and Infrastructure Investment in Parallel
Full-Scale Synergy with Taekwang Group

AK Holdings, which was incorporated into the Taekwang Group as an affiliate, is set to transform itself into a global total beauty company through business restructuring and investment. The core of this strategy is to increase the proportion of cosmetics sales, which stood at 32% last year, to over 50% by 2028 and to diversify its overseas markets. To achieve this, the company plans to strengthen its portfolio by combining skincare and color cosmetics brands and accelerate its push into the global market.

On March 26, AK Holdings unveiled a blueprint to focus on expanding its skincare segment, centering on the “Cignic” and “One Thing” brands. Cignic was launched with the U.S. market in mind and has recently been expanding its sales channels domestically. The company plans to further enhance its total beauty competitiveness by adding its existing color cosmetics brands “AGE20’S” and “Luna.”

In the household goods business, the focus is on growing existing brands rather than launching new ones. The company aims to develop “Kerasys,” “Shower Mate,” and “Love Scent” into influential brands in the global market. At the same time, it will increase the proportion of overseas sales to reduce its dependence on China and strengthen its presence in North America and Europe.

The company will also reorganize its organizational structure to implement these business strategies. The existing cosmetics and household goods business model will be subdivided into divisions such as makeup, skincare, personal beauty, and home & dental care, granting each business unit authority and responsibility to speed up decision-making. In addition, a separate digital marketing organization will be operated to support strategies tailored to each country and sales channel.

The company will simultaneously invest in infrastructure such as research and development, production, and logistics, while also securing external professional talent. Furthermore, it will utilize Taekwang Group’s home shopping and T-commerce channels to strengthen its distribution competitiveness and will seek to discover new media-based distribution models.

The company is also looking forward to the synergy created by combining Taekwang Group’s material competitiveness with AK Holdings’ manufacturing technology. Through this, it aims to establish a collaborative system spanning from raw materials to finished products and accelerate the expansion of its global business.

Kim Sangjun, CEO of AK Holdings, stated, “Our new beginning as a Taekwang Group affiliate will be a major turning point for qualitative change,” adding, “We will continue to challenge ourselves and innovate to become a leading total beauty company representing K-beauty.”

Meanwhile, in order to maintain brand awareness, AK Holdings has decided to retain its current company name. The existing risks related to the “humidifier disinfectant” issue will continue to be handled by AK Group, and Taekwang Group and AK Holdings have agreed to work together to reduce business uncertainty.

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