Charmzone, Former K-Beauty Leader, Put Up for Sale

Once the undisputed top of South Korea's cosmetics industry, Charmzone is now waiting for a buyer.

According to an exclusive report by Korean financial media CHOSUNBIZ, Charmzone, once hailed as South Korea's No.1 women's cosmetics brand, has officially entered a court-supervised sale process after years of losses and filing for bankruptcy reorganization.

A Legend Falls

In 1966, pharmacist Kim Gwang-seok opened a skin-care pharmacy in Seoul. In 1984, he founded Charmzone, bringing a pharmaceutical foundation into beauty products and giving the brand a cosmeceutical DNA from the start.

It went on to rack up a series of firsts: Korea's first micellar water, first retinol cream, and first to secure in-flight duty-free listings on Korean Air and Asiana Airlines. In 1991, Charmzone obtained a sales license in Japan, becoming the first Korean beauty brand to enter that market. It later expanded to more than 20 countries, including China and the U.S., well before the global K-wave.

At its peak, Charmzone consistently ranked among the top three best-selling brands in South Korea. Its ginseng cleansing foam, praised for cleansing, soothing, and antioxidant benefits, became a cult favorite around 2010. In China, many consumers called it "the first facial cleanser of my life."

Now, this once-heralded industry leader has been put on the block, waiting for a buyer.

The turning point came from an aggressive expansion. In 2015, Charmzone submitted a bid exceeding 200 billion won for a duty-free contract at Incheon Airport but was forced to withdraw after failing to deposit the bond. That blow marked the beginning of its decline.

In November 2024, after five consecutive years of losses, Charmzone filed for bankruptcy reorganization with the Seoul Bankruptcy Court. Its 2024 audit report showed an operating loss of approximately 14.7 billion won ($11.1 million), with negative total equity of 26.8 billion won.

In June 2026, CHOSUNBIZ exclusively reported that three to four potential strategic investors have submitted letters of intent and completed preliminary due diligence. The court plans to issue a formal sale notice on June 19.

In China today, although some social media posts still recommend Charmzone products, and its official stores on Taobao and JD.com are still open, the brand no longer appears on top-seller, repurchase, or best-review rankings in its categories.

From first-brand status to a court-supervised fire sale — Charmzone's fall is a sobering case.

Korean Beauty Brands Retreat En Masse

Zoom out, and Charmzone's fate is just one example of a broader exodus of Korean beauty brands from China.

According to the China Association of Fragrance, Flavor and Cosmetic Industries, China's cosmetics market exceeded 1.1 trillion yuan ($152 billion) in total channel transaction value in 2025. Yet within this growing pie, the presence of Korean brands has been shrinking rapidly.

A report from South Korea's Ministry of Food and Drug Safety shows that K-beauty exports to China fell below 20% of total exports for the first time in the first half of 2025. By 2026 Q1, the share dropped to 15%, making China the second-largest export market for Korean beauty, down from first.

Behind the numbers is a wave of brand pullbacks:

• 2021: Etude House shut all offline stores; its Tmall flagship store closed in 2022.
• 2022: Hera, popularized by the drama "My Love from the Star," closed all offline counters and its WeChat store in China.
• 2023: The Face Shop and Papa Recipe scaled back operations.
• 2023: OHUI, under LG Household & Health Care, pulled out of many counters, marginalizing its China business.
• 2024: Laneige, a flagship brand of Amorepacific, withdrew from numerous counters.
• 2025: Innisfree, once famous for green tea skincare, closed its Tmall Global flagship store. Its store count plummeted from over 800 at its peak to just 140.
• April 2026: Mamonde, also under Amorepacific, announced it would close all online official sales channels in mainland China by June 30, ending 21 years of operation.

These once-darling brands — The Face Shop, Papa Recipe, Innisfree, Etude House — are now dismissed by Chinese consumers as "has-beens."

Even the big Korean conglomerates are struggling. In 2025, Amorepacific's Greater China sales stopped declining but only grew 0.5% year-over-year, with a 9.9% drop in Q4 — the only negative quarter among its five global regions. LG Household & Health Care's China revenue fell 8.7% YoY. Aekyung Group did not disclose exact China figures but noted "weak performance" in its 2025 earnings; industry sources estimate a 10-15% decline.

Chinese Brands Take the Lead

For years, the explosive spread of Korean pop culture fueled K-beauty's rise in China. But as that cultural tailwind fades, brands that relied heavily on marketing spillover without investing in product innovation or local adaptation find themselves exposed as Chinese competitors surge.

At the same time, rising cultural pride and savvier consumers have replaced the old "imported equals quality" mindset with a focus on efficacy and ingredients. Domestic brands have seized this shift, filling the gap.

According to the China Cosmetics Association, domestic brands' market share reached 57.37% in 2025, rising for the fifth consecutive year and becoming the dominant force. Online transaction volume exceeded 720 billion yuan ($99.6 billion), accounting for 65.36% of the total market.

However, as livestream and social commerce heat up and traditional shelf-based e-commerce matures, slow-moving Korean brands failed to keep pace with channel shifts, widening the gap with Chinese competitors.

Entering 2026, China's beauty market and domestic brands continue to show strong growth.

Take Proya: during the 618 shopping festival (China's second-largest e-commerce event) in 2026, it ranked No.1 in total beauty sales on Alibaba's Tmall with 618 million yuan, beating L'Oréal. On Douyin, the Chinese sibling of TikTok, it also surpassed Estée Lauder and Helena Rubinstein. Meanwhile, Proya acquired a controlling stake in color cosmetics brand Huazhixiao for 779 million yuan. Huazhixiao recorded 1.726 billion yuan in revenue in 2025 with a net profit margin above 20%.

Mao Geping represents another path for Chinese brands going premium. In 2025, it posted 5.05 billion yuan in revenue, up 30% YoY, and net profit of 1.205 billion yuan, up 36.8%, marking five consecutive years of double-digit growth. In March 2026, it completed full H-share circulation, becoming a benchmark for high-end Chinese beauty brands accessing capital markets.

Huaxi Biotech, adored by ingredient-conscious consumers, saw revenue fall 21.82% in 2025 but net profit jump 67.59%.

In mass-market segments, domestic brands' dominance is clear. But premium upgrades are also real. According to Qingyan Intelligence, 55% of the top 20 cosmetics brands on Douyin in 2025 were premium labels, including Chinese names like Mao Geping, Lin Qingxuan, and Kelanli.

This reversal is no accident. Chinese beauty companies have moved from imitation to leadership in ingredient R&D, supply chain integration, channel operations, and market insight, reshaping the industry at breakneck speed.

In functional skincare and ingredient innovation, from Huaxi Biotech to Botanee, from Proya to Marubi, Chinese companies are investing deeply in biotech and synthetic biology, proving that the first tier of Chinese beauty no longer plays a cheap substitute role. They are building brands, doing R&D, integrating capital, and even beginning to define what a good product is.

And the market has given Chinese brands an answer: those who take the time to repair their ships will eventually see the sails unfurl.