Korea’s Biggest Beauty Retailer Just Got Sued... and Lost

August 06, 2025

Korea’s Biggest Beauty Retailer Just Got Sued... and Lost

From lawsuits and mass brand closures to global expansions and lip product fails - on episode 271 of the Korean Beauty Show, we're breaking down what’s really happening in the Korean beauty industry in July 2025.

By Lauren Lee, Host of The Korean Beauty Show Podcast

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K-BEAUTY NEWS HEADLINES

Olive Young Loses Major Infringement Lawsuit

In a rare legal defeat for a Korean retail giant, Olive Young has been ordered by the Seoul court to cease production, stop sales and destroy stock of one of its in house brand's lifting masks.

A Korean court recently ruled in favor of a small cosmetics company that had filed an injunction against CJ Olive Young, alleging that the retailer copied its lifting mask pack product.

The plaintiff developed the product over 3 years and began sales in April 2023. The mask featured a built-in lifting band designed to pull the skin from the chin to the upper face, an innovation it claimed set it apart in the market.

In 2024, the company discovered that Olive Young had released a nearly identical product but was selling it at a much lower price.

The court found the two products to be “substantially identical” in shape and function, concluding it was reasonable to consider that Olive Young had copied the product.

The court ordered CJ Olive Young to cease production, sales and export of the mask.

Unfortunately for the original brand, they already experienced a sharp drop in sales from ₩12.8 billion (USD 9.2 million) in early 2023 to ₩1.6 billion (USD 1.15 million) over the same four-month period in 2024.

CJ Olive Young has stated that while it respects the ruling, "it did not intend to copy the product". The company halted production in May and ended sales on July 2.

Source: Cosmetics Design Asia

Wave of K-Beauty Brand Closures in 2024

According to the Ministry of Food and Drug Safety, 8,831 Korean cosmetics brands shut down last year. That’s nearly 10 times more than in 2019.

And it's not because the industry is dying. In fact, we're hitting record highs, with production just reaching ₩17.5 trillion (≈ $13.5 billion) and exports sitting at $10.2 billion.

So why is this happening?

Because cosmetics is not a get-rich-quick scheme.

Low entry barriers and ODM manufacturing may have made it easy to launch in Korea but many skipped the essentials: R&D, innovation, differentiation and long-term brand value.

The result? A market flooded with uninspiring brands using a recycled playbook, followed by a wave of closures.

Sustainable growth in beauty still comes down to strategy and as the K-Beauty industry matures, the bar is rising.

Source: Naver News

Kolmar Korea Opens Huge US Factory to Avoid Tariffs

Korea’s leading ODM, Kolmar, has launched a new 17,800㎡ factory in Pennsylvania, boosting its North American capacity to 470 million units annually. It is now the largest Korean cosmetics manufacturer operating in the U.S.

The facility serves as a “tariff-safe zone,” offering local manufacturing options to K-Beauty brands. With FDA OTC-certification, expect a rise in US-made K-sunscreens.

Source: PR Newswire

Aestura Expands to Sephora in Australia and Canada

Amorepacific’s so-called "Derma cosmetics" skincare line Aestura is continuing its international expansion this August, launching at Sephora stores in both Australia and Canada.

The debut lineup includes the bestselling Atobarrier 365 collection. I personally will be interested to see how they price the products because even by Korean standards Aestura is on the higher side.

Personal pick: The Atobarrier Cream Mist – a standout in the line for its lightweight hydration and sensitive-skin-friendly formula.

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Question of the Week: Best Chemical Exfoliants for Dry, Sensitive Skin

Q: “Any suggestions for a chemical exfoliant that works for dry, sensitive skin?” – Barbara

A: As a fellow dry, sensitive skinned girl I understand the struggle to find the right exfoliants.

I personally do not use chemical exfoliants because I find they work slower than manual exfoliants, which makes it harder to tell if they are doing anything. If you're not sure if the product is working you can sometimes overdo it without realizing, which leads to over-exfoliation.

However, that said if you are keen to try a chemical solution, I would recommend sticking to something like PHAs (like gluconolactone) and low-strength lactic acid. They’re more hydrating and less irritating than glycolic or salicylic acid. If you’re just getting started with chemical exfoliants, PHA toner pads are another entry point.

The reason I prefer customizable physical exfoliants like Jelly Ko’s Cinnamon Toast Sugar Scrub Foam is because you are 100% in control of both the intensity and the results. Plus, you can see whether they are working straight away so there's no guess work.

Cinnamon Toast Sugar Scrub Foam in Women's Health

One Must, One Meh, One Miss: Lip Product Reviews

One Must: Colorgram Fruity Glass Gloss

Glassy, pigmented, comfortable and more affordable than high-end tints. A new staple.

One Meh: Hera Sensual Nude Gloss

Lovely packaging and colour, but it feels heavy. Even after properly conditioning my lips with a hydrating lip mask, I felt it settled down dry. Doesn’t justify the price tag.

One Miss: Amuse Lip Smudger

The product broke in the packaging, the colour didn’t suit, and the texture was patchy. Try Banila Co’s smudger instead - it’s award-winning for a reason.

Watch Recommendation: Dear Hongrang (Netflix Korea)

Set during the late Joseon Dynasty, this historical melodrama explores secret royal lineages, forbidden love, and deeply layered betrayals. It’s a slow-burn story that rewards patient viewers.

What to know:

Slow pacing and moody cinematography
Controversial sibling-like romance dynamic (not for everyone)
Mixed reception in Korea, but strong international fanbase