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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] According to an exclusive report by the Seoul Economic Daily, Amorepacific has initiated the sale of six real estate assets—including properties in the Seoul metropolitan area—as part of a broader effort to streamline its asset portfolio and strengthen financial flexibility. Successful transactions are expected to generate approximately KRW 150 billion in cash, which could be allocated to R&D, overseas expansion, and enhanced shareholder returns.
Industry sources told the Seoul Economic Daily on the 20th that Amorepacific is preparing to appoint a lead manager and is in active discussions with several advisors.
Assets slated for sale include regional office buildings in Busan Choryang, Daegu Dong-gu, Daejeon Seo-gu, and Gwangju Dong-gu, as well as logistics centers in Incheon Seo-gu and Gimhae, Gyeongnam.
The Busan Choryang building—serving as a key regional hub for the company—has a total floor area of 4,224 pyeong (13,964 m²) and is located on a major commercial road. The logistics centers in Gimhae and Incheon offer 3,168 pyeong (10,473 m²) and 3,284 pyeong (10,857 m²) of floor space, respectively.
Market estimates indicate that Amorepacific could secure around KRW 150 billion should all six assets be divested. Attention is now focused on whether the company will channel part of the proceeds toward shareholder return initiatives such as share buybacks, cancellations, or dividends—a growing trend in the beauty sector. Several peers, including APR and D’alba Global, have recently expanded mid-term dividend payouts.
The company may also scale up investment in cosmetics R&D and international expansion. In Q3 2024, Amorepacific reported KRW 1.0169 trillion in revenue (up 4% YoY) and KRW 91.9 billion in operating profit (up 41%). While overseas sales rose just 3% to KRW 440.8 billion, operating profit surged 73% to KRW 42.7 billion, reflecting sharply improved margins. Analysts expect the company to accelerate diversification of its global distribution channels, particularly in the U.S. market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
