Shinsegae buys low-cost cosmetics brand Amuse from Naver Snow

South Korea's Shinsegae International Inc. announced on Friday that it will acquire 100% of Amuse Corp., a cosmetics brand, for 71.3 billion won ($52.6 million) to expand its cosmetics business beyond luxury products and boost its global presence.

Amuse's largest shareholder is Snow Corp., a photo-editing app operator under Naver Corp., with a 77.6% stake. Founded in 2018, Amuse has created a fandom from Generation Z at home and abroad.

It has established itself as a leading K-beauty brand with a series of hit products, including the Jel-fit Tint, known as the Jang Won-young tint, as well as Bebe Tint, Ceramic Skin Perfector Cushion, Dew Jelly Vegan Cushion and Dew Tint.

Jang Won-young is a K-pop singer of the girl group IVE.

Over the past five years, the company has achieved an average annual sales growth rate of 176%, with last year's sales reaching 36.8 billion won ($27.1 million).

Amuse is particularly popular in North America, Japan and Southeast Asia. Its flagship product, Dew Tint, ranked first in the Amazon's hot new release lip stains category.

With this acquisition, Shinsegae International aims to increase its market share in North America and Japan, the world's first and third-largest cosmetics markets, respectively, by attracting Gen Z customers.

"We aim to grow Amuse's sales to 200 billion won ($147 million) by 2028," said a Shinsegae International official.

In 2020, Shinsegae International acquired 100% of Swiss luxury skincare company Swiss Perfection.

It plans to expand its presence in the global luxury skincare market with Swiss Perfection, while targeting the young and budget beauty market with Amuse.

Write to Hyeong-Ju Oh at ohj@hankyung.com