South Korean pharmaceutical companies are ramping up their efforts to penetrate the U.S. market with dermacosmetics at the forefront. Previously focused on online channels, these firms are now expanding into offline distribution networks, including Costco Wholesale Corporation and Olive Young stores in the U.S., as they seek to transform their cosmetics divisions into new growth engines.

Industry sources reported on Friday that the recently opened Olive Young flagship store in Pasadena, California, now features brands from several Korean pharmaceutical and biotech companies. These include HK inno.N's bewants, Hugel's Wellage, Pharma Research's Rejuran Cosmetic, and Chong Kun Dang Health's CKD.

Other companies making inroads into the U.S. market include D&Cosmetics, a subsidiary of Daewoong Pharmaceutical, with its Easydew brand, Dongkook Pharmaceutical's Centellian24, and Dong-A Pharmaceutical's inner beauty brand Ailo. These pharmaceutical firms are leveraging their technological expertise and competitive ingredients to actively court overseas consumers.

Dermacosmetics, a portmanteau of dermatology and cosmetics, refers to skincare products that focus on skin health and functional improvement. This niche emphasizes efficacy and ingredient quality more than conventional cosmetics, making it an ideal arena for pharmaceutical companies with robust research and development (R&D) capabilities.

Indeed, Korean pharmaceutical companies are extending their cosmetics businesses by applying technologies and ingredients developed during drug research. For instance, Easydew has grown by incorporating Daewoong Pharmaceutical's Epidermal Growth Factor (EGF) research technology.

Centellian24 has gained recognition by utilizing an ingredient derived from the wound-healing medication Madecassol. Similarly, Pharma Research's Rejuran Cosmetic has integrated PDRN technology from its core business into its cosmetics line.

The approach to international expansion is evolving. Historically, companies would establish brand recognition domestically before venturing into Chinese or Southeast Asian markets. Now, they're targeting the U.S. as a key market, first testing consumer response on online platforms before expanding into brick-and-mortar stores.

Case in point: Centellian24 has successfully entered Costco Wholesale Corporation in the U.S. after establishing a presence on Amazon. Easydew has also broadened its reach to American consumers through Amazon. This trend indicates that brands validated online are now extending their presence to physical retail channels.

Pharmaceutical companies are zeroing in on the U.S. market due to its substantial growth potential. Shinhan Investment Corp. estimates the U.S. cosmetics market at around 68 billion USD, with the beauty and personal care market reaching approximately 110 billion USD. In contrast, K-beauty's penetration in the U.S. market remains in single digits, suggesting significant room for expansion.

Notably, product categories where Korean brands excel, such as sunscreens, essences, toner pads, and cushion compacts, are experiencing rapid growth in the U.S. As more consumers discover and purchase new brands through social media, interest in dermacosmetics, which emphasize ingredients and functionality, is also surging.

The evolving distribution landscape is also favorable. Previously, brands had to navigate local distributors and department stores, but the recent proliferation of direct-to-consumer (DTC) channels like Amazon and TikTok Shop has lowered market entry barriers. Additionally, expansion into physical retail spaces like Costco Wholesale Corporation and Olive Young has broadened the sales base.

Industry experts believe this year marks a turning point for K-beauty as it expands its offline distribution networks in the U.S. Brands that have primarily grown through online channels are now extending their sales networks to physical stores, potentially accelerating their growth trajectory.

South Korean pharmaceutical companies are ramping up their efforts to penetrate the U.S. m …

K-Beauty Takes the U.S.: How Korean Derma-Cosmetics Are Expanding in 2026