While the rise of K-beauty has mirrored the global surge of South Korean culture, APR is part of a new wave of cosmetic exports. Unlike legacy brands that relied heavily on duty-free shops or China-focused lines, APR found its niche in TikTok-powered skincare campaigns and sleek devices that serve up beauty tech.
“K-beauty companies that are good at marketing on digital platforms tend to show faster growth in e-commerce,” said Eun-Jung Park, an analyst with Hana Securities in Seoul.
Hailey Bieber first posted about Medicube’s gel mask in late 2023.Credit: Evan Agostini/Invision/AP
China remains South Korea’s largest beauty export market – but just barely. While Chinese imports are slowing, the US is now growing faster and offers higher margins, thanks to its premium retail landscape. More than 70 per cent of APR’s revenue now comes from overseas markets – and the US is its biggest driver of growth outside South Korea.
The company is now preparing for its biggest retail push yet: in August, Medicube will be sold at cosmetics retailer chain Ulta Beauty stores across the US, expanding its presence beyond online platforms such as Amazon.com and its own e-commerce channels.
“APR is one of the strongest marketing players among K-beauty brands,” Park said. “Its Medicube is No.1 in sales [in the US] for a single K-beauty brand.”
APR’s current lines of skincare and devices focus on anti-ageing, moisturising and brightening, with the possibility of expanding into healthcare, the company said in an email.
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But it is not immune to global trade pressures. For now, APR pays a 10 per cent tariff on beauty goods imported to the US, which Shin calls “manageable”. But potential escalation in trade tensions, or US clampdowns on Asian imports, could disrupt its rapid growth.
On Monday, US President Donald Trump unveiled a tariff of 25 per cent on goods from South Korea from August 1. That effectively buys South Korea – and other affected nations – an extra three weeks to cut a deal with the White House.
Meanwhile, Shin expects the company’s sales to hit 1 trillion won ($US730 million) in annual revenue this year, a metric in which it is now lagging its peers.
As the business grows, founder-turned-billionaire Kim’s personal moves are making local headlines. He recently bought a penthouse in Seoul’s upscale Seongsu-dong neighbourhood for 29 billion won ($US21 million), the company confirmed, setting a new national record for the highest price per square metre. The luxury residence is also home to well-known movie stars and sports figures, signalling his arrival as one of the country’s most visible new billionaires.
Despite his new wealth, Kim, who serves as the company’s chief executive, remained intensely hands-on – coming into the office daily, closely tracking consumer trends and market reactions, and holding strategy meetings with top management even at weekends, Shin said. A few years ago, Kim shared a before-and-after video on social media showcasing the effects of APR’s facial gadget on his own skin.
But in recent years he’s largely stepped back online, keeping a lower profile as the company’s visibility has soared.
He declined Bloomberg News requests for an interview, but has in the past spoken about being influenced by the business models of Apple and Tesla.
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“If someone asks me what my career goal is, I’d say now I want to make a big company everyone knows,” Kim told local media around the time of his last Instagram post. “Like Apple, we want to introduce products that would make us the most innovative company in the beauty industry.”
Bloomberg
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