▲ Shoppers browse a local drug store in downtown Seoul on Jan. 11, 2026. (Yonhap)

 

SEOUL, March 12 (Yonhap) -- Shares of South Korean cosmetics companies, which fell sharply after the outbreak of a war involving the United States, Israel and Iran, are showing signs of a rapid recovery.

 

Market watchers attribute the rebound to the continued global popularity of K-beauty and the approach of the spring and summer seasons, when demand for cosmetics typically increases.

 

According to the Korea Exchange on Thursday, shares of APR fell from 312,500 won (US$234) on Feb. 27 to 285,500 won on March 3, shortly after the war broke out, but rebounded to 319,000 won the previous day, recovering to above their pre-conflict level.

 

Amorepacific also declined from 151,400 won on Feb. 27 to 138,600 won on March 3 and further to 125,400 won on March 4, but has risen for three consecutive sessions since Monday.

 

As of 11:17 a.m., shares of major original design manufacturing (ODM) cosmetics firms, including Cosmax and Kolmar Korea, were also gaining, showing signs of recovering losses incurred immediately after the conflict.

 

▲ Visitors look around exhibition booths at the "2025 K-Beauty Expo Korea" held at KINTEX Exhibition Center II in Goyang, north of Seoul, on Sept. 11, 2025. (Yonhap)

 

Brokerages expect the cosmetics industry to remain resilient despite uncertain market conditions.

 

The sector posted strong earnings last year and has continued to record steady export growth this year.

 

According to Shinhan Securities, the average fourth-quarter sales and operating profit of 15 major cosmetics companies rose 18.5 percent and 20.2 percent, respectively, from a year earlier.

 

Total cosmetics exports were provisionally estimated at US$840.5 million in January and $754 million in February, up 34.1 percent and 2 percent from the same months a year earlier.

 

Exports reached $255 million during the first 10 days of March, marking a 40.7 percent increase. Shipments rose across most regions, though exports to the Middle East fell 55.8 percent.

 

Experts said the Middle East conflict could disrupt air and maritime logistics in the region, but the overall impact on South Korea’s cosmetics industry is expected to remain limited.

 

Park Hyun-jin, a researcher at Shinhan Securities, said cosmetics exports to the United Arab Emirates currently total less than $300 million, representing only a small share.

 

"Demand from Western markets remains strong, so the industry outlook should stay favorable," Park said, maintaining an "overweight" investment rating for the cosmetics sector.

 

He added, however, that if the conflict drags on, rising shipping costs and increased currency volatility could weigh on the industry.

 

Lee Kyo-seok, a researcher at Shinyoung Securities, forecast that South Korea’s global cosmetics market share will exceed 5 percent next year on the back of growing exports.

 

"K-beauty is no longer a passing trend but a rational consumer choice," he said.

 

Lee maintained an "overweight" rating on the sector and named APR as his top pick.

 

He also noted that cosmetics stocks tend to follow a pattern of rising early in the year and declining later, adding that companies with strengths in the global cosmetics ODM market, such as Kolmar Korea, could draw attention as summer — the peak season for sunscreen products — approaches.

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