GIC, Morgan Stanley Bet Big on Surging K-Beauty Stocks

Industry Insights from Next Move Strategy Consulting

As global demand for innovative skincare solutions intensifies, major investors like Singapore’s GIC and Morgan Stanley are acquiring significant stakes in leading Korean beauty firms, signaling sustained momentum in the high-growth K-beauty sector.

Why are Investors Targeting K-Beauty Leaders?

Major financial players are increasing their holdings in key cosmetics companies, driven by robust performance and projections for continued expansion amid rising international interest in functional skincare products.
GIC's Strategic Move into Cosmax BTI

GIC acquired shares valued at 122.7 billion won in Cosmax BTI Inc. between September 16 and 17, elevating its ownership to 5.005% and positioning it as the third-largest shareholder behind the company and the National Pension Service. Cosmax Inc., the parent entity and South Korea’s premier cosmetics original development and design manufacturer, anticipates ongoing record revenue growth into 2025. This investment coincides with Cosmax BTI’s shares surging 112.72% year-to-date to 18,060 won by Thursday’s close, far exceeding the Kospi index’s 44.69% rise over the same timeframe.

Morgan Stanley Re-Enters APR Amid Bull Run

\Morgan Stanley has rebuilt its position in APR Co., the developer of the Medicube skincare line and AGE-R beauty devices, after earlier profit-taking. As of September 23, the firm holds a 5.03% stake, ranking it as the third-largest shareholder following the purchase of 36,038 shares worth about 8 billion won from September 18 to 23. 

APR’s stake had dipped below 5% from 5.13% at June’s end, reflecting gains on a stock up 337.38% year-to-date. In the first half of 2025, APR achieved its highest-ever half-year operating profit of 139.1 billion won, with revenue expected to nearly double in 2025 per FnGuide estimates. Three of seven covering brokerages have raised target prices, highlighting triple-digit sales increases in the US and Japan.

VIP Asset Management Bolsters d’Alba Global Stake

Seoul-based VIP Asset Management Co. raised its ownership in d’Alba Global Co. to 5.12% from 4.96% through purchases between September 12 and 29. d’Alba Global recorded its peak half-year revenue in the first half of 2025, underscoring its strengthening market presence.

Key Market Drivers Fueling K-Beauty Momentum: 

• Explosive stock gains, with APR at 337.38% and Cosmax BTI at 112.72% year-to-date, outpacing broader indices. 

• Record half-year financials across firms, including APR’s 139.1 billion won operating profit and d’Alba’s top revenue period. 

• Analyst optimism, with upward target revisions tied to US and Japan growth.

• Regulatory disclosures mandating reports for stakes over 5%, ensuring transparency in ownership shifts.

Export Surge Powers Global Reach

South Korea’s cosmetics exports rose 13.56% through August 2025 compared to the prior year, per Hankyung Aicel data. Preliminary figures show $605 million exported in the first 20 days of September, a 25.7% year-on-year increase, with Europe and the Middle East comprising 58% and 40% of shipments, respectively. 

Full-year 2025 projections indicate a 13.56% climb to $7.05 billion, according to KED Aicel. Analyst Kim Myung-joo of Korea Investment & Securities Co. notes seasonal peaks from late October to November, amplified by Black Friday promotions. Korean products maintain competitiveness through quality and functionality despite inflation, as highlighted by SK Securities’ Hyung Kwon-hoon, who links rising demand to global K-content appeal.

Broader Sector Strength in Aesthetics

Hugel Inc., the nation’s top botulinum toxin producer for muscle and wrinkle treatments, logged its best half-year sales in January-June 2025. Aesthetic device firms PharmaResearch Co. and Classys Inc. also hit record half-year revenues, reflecting vitality across skincare and related categories.

Investment Wave Reshapes Skincare Dynamics

These high-profile investments by GIC, Morgan Stanley, and VIP Asset Management underscore confidence in K-beauty’s trajectory, particularly as firms like Cosmax, APR, and d’Alba sustain revenue records and eye doubled growth. Analysts project further upside, fueled by export booms and regional expansions, positioning these stocks as outperformers in a resilient market.

Impact on the Global Skincare Product Market – NMSC Viewpoint

As a market research firm, Next Move Strategy Consulting observes that this influx of institutional capital into K-beauty leaders is accelerating innovation and supply chain efficiencies in the $150 billion-plus global skincare products sector. By validating high-growth ODMs and device makers, these moves are likely to intensify competition, lower entry barriers for functional products, and boost cross-border collaborations—ultimately driving 10-15% annual market expansion through 2030, with Asia-Pacific leading adoption of advanced formulations and devices.

Charting K-Beauty’s Ascent

With investor enthusiasm and export records aligning, the K-beauty surge is fortifying the skincare product market’s foundation for enduring global influence, where quality-driven brands continue to capture premium segments.

Source: The Korean Economic Daily

Prepared By: Next Move Strategy Consulting