K-aesthetics industry booms amid leadership shake-ups and expansion schemes

The Korean medical aesthetics industry is entering a new phase.

Major players, such as PharmaResearch, Hugel, and Classys, have posted record profits and are accelerating their global expansion. However, behind the rapid growth, the industry is also experiencing growing pains, including rumors of management rights’ sell-off, leadership changes, and business structure reorganization.

PharmaResearch to split aesthetic and non-aesthetic businesses

PharmaResearch, a company specializing in regenerative medicine, has been in the news recently for its business split. Last Wednesday, a media outlet reported that PharmaResearch is spinning off its entire healthcare business, including medical devices such as skin rejuvenation injectable Rezuran and hyaluronic acid arthritis treatment Conjuran, into a 100 percent-owned subsidiary.

PharmaResearch immediately denied the reports in an investor relations (IR) statement. 

“We have not considered any spin-off or relisting of our Rejuran business,” the company said. Instead, it explained that due to the rapid growth of the aesthetics segment, the company is considering establishing a subsidiary specializing in sales to manage the non-aesthetics segment efficiently.

The following day, the company announced its plans in a press release.The new subsidiary will distribute non-esthetic products, such as Conjuran, Zadaxin, and the oral contraceptive Le-An. PharmaResearch plans to focus on the aesthetics business, centered on Rizuran, to drive R&D and global market expansion.

Investors have closely watched PharmaResearch's move. Rumors of a 2 trillion won ($1.4 billion) sale surfaced, but the company denied them. Instead, European private equity fund CVC invested 200 billion won. In this situation, some analysts believe that there is still a possibility of a sale by the largest shareholder, including founder and chairman Jung Sang-soo, and analyze that the change in the shareholding structure of the new subsidiary should be monitored.

In terms of performance, PharmaResearch showed solid growth in 2024. According to preliminary results on a consolidated basis, the company generated revenue of 349.7 billion won (up 34.0 percent year-on-year) and operating income of 125.9 billion (up 36.5 percent). The net profit was 89 billion won, which is up 15.2 percent. In revenue structure, the medical device segment accounted for 193.5 billion won, or 55.3 percent of total revenue, followed by cosmetics with 77.3 billion won (22.1 percent), and pharmaceuticals with 64.5 billion won (18.5 percent). Growth in the medical device sector, including Rezuran, was particularly strong, and exports increased evenly across all segments.

In addition, PharmaResearch, which until recently operated under the separate CEOs of Kang Ki-seock and Kim Shin-kyu, announced on Friday that it would transition to a sole CEO system starting in March, appointing former Genuone Sciences CEO Sohn Ji-hoon as the new CEO. Sohn has been recognized for his global business capabilities by, for instance, leading the approval of botulinum toxin products in the U.S., Europe, and China and achieving record sales in consecutive years as Hugel's CEO. Kang will serve as a non-executive advisor, while Shin will serve as the CEO of the affiliated company CTCBIO.

Hugel's leadership change marks ‘inflection point’ amid record-high results

Botulinum toxin maker Hugel is also undergoing a leadership change. After operating under co-CEOs Moon Hyoung-jin and Han Seon-ho, the latter recently announced his intention to step down six months before his term expires. Last November, Hugel's HA filler subsidiary ACROSS also saw Han step down as CEO and Hugel CEO Moon was appointed as the new CEO.

Han’s potential departure was also signaled at the J.P. Morgan Healthcare Conference (JPM 2025) in January, where Han's name was removed from the executive team introductions during the company's presentation. Instead, Chairman Cha Suk-yong and CEO Moon were introduced, along with Chief Financial Officer Eva Hwang, Chief Human Resources Officer Park Cheol-min, Chief Production Officer Lee Sang-beom, and Head of Strategic Planning Jeon Hyo-jin.

Regarding Han's resignation, Hugel told Korea Biomedical Review, “CHO Park will take over overall operations of the company from Han.” but added, “We have not yet decided on the appointment of a successor CEO.” The composition of the management team is under discussion, including whether or not to retain the current separate representative system.

Amid this situation, Hugel posted record earnings last year. On Feb. 13, Hugel announced preliminary operating results for 2024 on a consolidated basis, reporting sales of 373 billion won and operating income of 166.3 billion won. This represents a year-on-year increase of 16.7 percent in sales and 41.2 percent in operating profit. The operating margin was 44.6 percent, significantly improving from 36.8 percent in the previous year.

Notably, its flagship botulinum toxin product, Botulax, grew 20.2 percent year-on-year, surpassing 200 billion won in annual sales for the first time, driven by a nearly 40 percent increase in overseas sales. HA fillers (THE CHAEUM and BYRYZN) generated annual sales of 127.6 billion won, while the derma cosmetics division posted 36.9 billion won, up 37.8 percent year-on-year. The company plans to launch botulinum toxin in the U.S. market in the first half of this year and aims to achieve a 10 percent market share within three years of entering the U.S. market.

On Feb. 10, Hugel issued its 12th clarification statement regarding the rumors that its largest shareholder, CBC Group, is considering delisting from the Korean stock market.

“We have confirmed with our largest shareholder, Aphrodite Acquisition Holdings, and our co-largest shareholders, CBC Group and Dione, that they were reviewing strategic options regarding governance, but nothing has been finalized yet,” the company said. A company spokesperson declined to comment further, saying that “the disclosure statement is all we have.”

Amid Classys' strong performance, rumors continue about Bain Capital's stake sell-off

Energy-based device (EBD) manufacturer Classys continues to face speculation that its largest shareholder, Bain Capital, could sell its 61.57 percent stake in the company. Bain Capital acquired the stake in 2021 for about 670 billion won, and the company's market capitalization is currently around 3.8 trillion won. Previous buyers have included Korean conglomerates, including GS, and global private equity firms Blackstone and EQT, with recent reports suggesting that Soulbrain Group has emerged as a new buyer.

Classys held an IR for institutional investors in Korea, Hong Kong, and Singapore from Monday to Wednesday last week. On Monday and Tuesday, the company held an NDR for domestic institutional investors hosted by Korea Investment & Securities. From Monday to Wednesday, the company participated in Citigroup's Citi 2025 Korea Corporate Day. The company also participated in the J.P. Morgan Korea Conference in Singapore last Thursday and Friday.

In 2024, Classys posted revenue of 242.9 billion won, and operating income of 125.5 billion won, up 34.8 percent and 36.6 percent year-on-year, respectively. In the fourth quarter, the first full quarter of the merged entity's results, the operating margin increased to 48.1 percent. Net income for the same period increased 31.4 percent to 97.6 billion won. At the recent J.P. Morgan Healthcare Conference, CEO Baek Seung-han outlined the company's goal of reaching $1 billion in revenue and an operating profit ratio of more than 50 percent by 2030.

Classys, which currently supplies more than 38,000 devices to more than 70 countries worldwide, is set to expand its global reach this year. In the fourth quarter of last year, the company launched Everesse (Volnewmer in Korean trademark) in the U.S. market. In the second quarter of this year, it plans to launch Ultraformer MPT (Shrink Universe in Korean name) and Everesse in the European market through CE MDR certification. In 2026, the company plans to enter the Chinese market.

At the J.P. Morgan Healthcare Conference, CEO Baek expressed confidence, saying, “Aesthetic EBD is a growth market, unlike lasers, which have entered a mature stage. We plan to lead the popularization of the procedure by raising awareness.”

These companies, representing Korea in the aesthetic industry, are accelerating their entry into the global market based on their record-breaking performance.

However, challenges remain, including leadership and governance changes, drawing attention from inside and outside the industry.