L’Oréal Acquires Korean Skincare Brand Dr.G to Accelerate Global Expansion of K-Beauty

L'ORÉAL

On December 23, L’Oréal Group has announced an agreement to acquire Gowoonsesang Cosmetics Co., Ltd., a subsidiary of Swiss retail group Migros, which includes the South Korean skincare brand Dr.G. Founded in 2003 by dermatologist Dr. Gun Young Ahn and headquartered in Seoul, Dr.G is well-regarded for its scientifically developed skincare solutions.

This represents L’Oréal’s second acquisition of a South Korean brand, following its 2018 purchase of Stylenanda, which included the 3CE makeup line. Dr.G will join L’Oréal’s Consumer Products Division (CPD), enhancing the company’s presence in the K-beauty market and contributing to its global expansion.

Proven Track Record and Growth Potential

Dr.G has established itself as one of South Korea’s leading skincare brands, particularly known for its ingredient-focused product lines such as the best-selling R.E.D Blemish Clear Soothing Cream. According to an October 2024 survey by Kantar Korea, Dr.G consistently ranks among the top three mass-market and dermocosmetic skincare brands in South Korea. Its products are available through prominent online and offline retailers, and the brand is expanding its reach across Asia, with significant potential for global growth.

Alexis Perakis-Valat, Global President of L’Oréal’s Consumer Products Division, commented, “Created by a dermatologist and offering high-performing solutions suitable for even the most sensitive skins, Dr.G perfectly complements our existing skincare portfolio.” She continued, “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, staying true to our mission to democratize and premiumize beauty by bringing the best of Korean skincare to consumers everywhere.”

Samuel du Retail, President of L’Oréal Korea,  added: “Having Dr.G brand and Gowoonsesang talented teams with us will further strengthen L’Oréal engagement with the Korean beauty ecosystem and allow us to expand the reach of K-Beauty globally.”

Dr. Gun Young Ahn, the founder of Dr.G, expressed optimism about the acquisition:
“Our mission has always been to provide healthy and radiant skin through advanced research. We believe that becoming part of L’Oréal will serve as a significant turning point in the global realization of our mission.”

The Context of Korean Brand Acquisitions

K-beauty has become synonymous with innovative skincare and makeup solutions, gaining global recognition for products such as BB creams and cushion foundations. Recently, the rise of K-beauty-specific stores in cities like New York and Paris, along with viral trends on platforms like TikTok, has further amplified the appeal of Korean beauty products. Against this backdrop, L’Oréal aims to strengthen its connection to the Korean beauty ecosystem and further accelerate the global expansion of K-beauty through the acquisition of Dr.G.

The transaction is expected to close within the next few months, pending regulatory approvals and customary conditions.