K-beauty boom draws Musinsa into South Korea’s beauty retail race

K-beauty’s seemingly insatiable global demand and sustained growth momentum are attracting competition for the South Korean cosmetic retail front-runner, Olive Young. South Korean retailer Musinsa may be making moves to carve out its space in the booming industry against Olive Young’s established market dominance.

Musinsa inaugurated its first standalone multi-brand beauty flagship this month. The South Korean fashion retailer’s beauty venture arrives Musinsa is pursuing an initial public offering at a targeted valuation of more than ₩10 trillion (US$7.2 billion). 

According to The Korea Herald, Musinsa’s case to investors that it is worth 10 trillion won (US$7.2 billion) hinges on its ability to secure a beauty foothold.

Meanwhile, South Korean discount retailer Asung Daiso, is appealing to budget-friendly and accessible K-beauty demands as it approaches ₩ 5 trillion (US$3.7 billion) in annual sales and maintains consistent beauty product sales growth.

The Korea Bizwire reports that in H1 of 2026, ₩ 2.94 trillion (US$2.1 billion) out of ₩ 13.72 trillion (US$10 billion) in the K-beauty market flowed through Olive Young, capturing 21.5% of the market. While Olive Young, owned by CJ Group, reigns as the go-to name in K-beauty, competitors may be coming for its crown.

As interest in K-beauty maintains its fervor, the K-beauty market is becoming increasingly saturated with industry competitors, from the products that hit the market to the retailers that distribute them.

Growing competition

With over 16 million customers in its fashion division, Musinsa boasts an extensive consumer base that it is leveraging as it branches into beauty.

According to The Korea Herald, Musinsa has moved to differentiate itself with a pharmacy-grade concept targeting medical tourists in the market for post-procedure care in the stand-alone beauty store. Following its launch, the store reportedly generated ₩ 250 million (~US$182.000) in sales within three days of opening, with foreign customers accounting for almost 60% of buyers on the third day.

Since the launch of its beauty division in 2021, the company reports that over eight in 10 beauty buyers were existing fashion customers, indicating potential differentiation for the established fashion retailer through “a cross-buying effect.”

“These figures show that the customer base Musinsa secured in its existing fashion category is naturally expanding into beauty,” Seoul Economic Daily quotes a Musinsa official. “Being able to connect the 16.4 million fashion customers Musinsa holds to beauty is the differentiated competitiveness of Musinsa Beauty.”

According to the news source, the retailer’s beauty business gained traction in 2021 when it opened a dedicated beauty section on its online platform, followed by the launch of its private brands. Musinsa has also attracted global luxury brands, such as Maison Margiela, MAC, NARS, and Miu Miu Beauty.

Seoul Economic Daily reporting states that the number of brands in the platform’s portfolio grew more than threefold between 2021 and 2026. In that timespan, its offerings increased from around 800 to approximately 2,500, and beauty transaction volume in 2025 rose 1,340% from 2021.

“There’s room for Musinsa to break in, since it caters to a different crowd, even if Olive Young’s grip isn’t loosening soon,” The Korea Herald cites an industry official.

K-beauty drives Daiso growth

The Korea Herald reports that Daiso’s sales have almost doubled in four years, and the number of beauty brands sold at its shops went from seven to 170 in the same time frame. Daiso’s year-on-year growth rate of beauty product sales reached 70% in 2025, 144% in 2024, 85% in 2023, and 50% in 2022, according to news source.

The retailer follows a business model that keeps its product costs to approximately ₩ 5,000 (US$3.6) or less, appealing to lower disposable income and quick consumption models. Last month, Daiso opened its first beauty-dedicated store near Konkuk University in Seoul.

Similarly, UK-based K-beauty retailer Puresoul partnered with Primark to launch an exclusive K-Beauty Mini Mart across 22 UK stores, extending affordable Korean beauty into the fast-fashion retailer’s market network. The collaboration leverages Primark’s fast fashion format to meet accessible K-beauty demands.

The moves together indicate that as demand for premium K-beauty at accessible price points grows, industry players are increasingly exploring fast-fashion-like avenues.