CJ Olive Young targets US K-beauty growth with ₩12 trillion sales goal

CJ Olive Young is reinforcing its North American investments, with its targets set to ₩12 trillion (US$8.5 billion) by 2028. The plan focuses on the beauty business, positioning it as a new growth pillar as K-beauty sustains its booming global momentum. 

The South Korean beauty retail chain, owned by CJ Group, opened its first brick-and-mortar store in the US in Pasadena, California, this May. Three months after the store’s inauguration, the group has announced its North American investment plan at Olive Young Fest, Los Angeles, California, US (August 14–16).

“K-culture is now expanding beyond content into life itself — what you eat and what you apply,” CJ Corporation CEO Heo Min-hoi said at the event’s briefing, reported Chosun Biz.

According to the South Korean economy news source, Kim Jin-sik, CEO of CJ America, says, “Food and beauty are growing rapidly, and beauty in particular is growing fast.” He states that the K-beauty’s US export volume is approximately US$2 billion, approaching the same figures as food.

Bustling business

The Pasadena store has been attracting sizable interest from US consumers. Consumers started queueing up in front of the store the day before its doors officially opened in May, forming a line of hundreds.

CJ Olive Young is accelerating its expansion across North America.The store averages 1,500 visitors a day. The 803 square meter store features 400 brands, carrying approximately 5,000 products. Asia Business Daily reports that over 90% of the brands are South Korean.

United Press International, translating Asia Today, reports that the prices at the Pasadena store are typically 10% to 15% higher than those at domestic Olive Young locations. The price hike is attributed to expenses such as tariffs and import logistics.

Yet, the average transaction value at the US store is reportedly over double that of the retailer’s stores in South Korea. Olive Young says that the store is outperforming its internal benchmarks.

The location also offers personalized services such as skin scans, scalp analysis, and a “Beauty Lab” for skin care lessons.

US retail giant Sephora is located in the same area as Olive Young’s Pasadena store. Chosun Biz reports that Olive Young is differentiating itself through its skin care targeted positioning in contrast with Sephora’s cosmetics focus.

While the two retailers are positioned on the same high street, their relationship is not adversarial. In early 2026, Sephora and Olive Young announced a strategic partnership to bring K-beauty to Sephora consumers globally. Beginning August 20, an assortment of 19 Olive Young-curated K-beauty brands will launch in over 500 Sephora stores in the US and online. The move marks the partnership’s first market activation.

“By combining Olive Young’s merchandising expertise and trend-driven curation with Sephora’s global retail platform and client experience, this partnership will make the very best of Korean beauty more accessible than ever before,” says Do-young Kim, EVP of US Merchandising at CJ Olive Young.

CJ Olive Young’s investment announcement comes as the South Korean government is bolstering K-beauty as an export priority, following an almost 20% surge in cosmetics exports in Q1 2026.

The government’s commitment comes on the heels of export figures that underscore the industry’s ascent. According to data from the Ministry of Food and Drug Safety, South Korea’s cosmetics exports reached US$3.1 billion in Q1 2026.