Blackstone and KKR have made their first moves into South Korea’s fast-growing cosmetics and personal care sector, adding momentum to a record run of K-beauty private equity deals, according to a report by the Business Times.

KKR announced this month that it will acquire cosmetics packaging leader Samhwa from TPG for about $528m. Two days earlier, Blackstone revealed a majority investment in premium haircare chain Juno in a deal valuing the business at around 800bn won ($739m).

Together with four earlier transactions, these deals bring 2025’s K-beauty M&A total to $1.41bn, already 85% of last year’s record $1.65bn, according to Korean advisory firm MMP.

Domestic players are also active, with Goodai Global partnering Hahm Partners to acquire Skinfood for $108m.

Eugene Cook, head of Korea at Blackstone Private Equity, said: “There is a strong recognition that consumers, regardless of age group, are demanding or seeking K-beauty as part of their skincare and beauty regimen, whether that’s colour cosmetics, skincare and now increasingly haircare as well.”

KKR’s Hong Hi-joo added: “The K-beauty ecosystem has established itself as a global trendsetter, with innovative products appealing to diverse consumers worldwide. Packaging has emerged as a critical differentiator for premium brands, with companies like Samhwa providing the technological innovation that helps these brands tell their stories more effectively.”

South Korea became the world’s third-largest cosmetics exporter in 2024, with exports rising 20% to $10.2bn. Analysts forecast the global K-beauty market will expand at an annual rate of nearly 9% to reach $31.8bn by 2033.

Valuations are climbing as investor interest accelerates. Blackstone’s Juno investment reportedly priced above 20x EBITDA, versus a global sector average of 13.5x, while TPG more than doubled its investment in Samhwa since 2023. Despite concerns over overheating, investors point to strong fundamentals, global demand, and the sector’s ability to scale as justification for continued activity.

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