In a remarkable debut on the Korea Exchange, APR, a South Korean beauty-device company, witnessed a 27% surge in its shares, propelling its valuation to an impressive 2.4 trillion won ($1.8 billion). This remarkable feat was fueled by an initial public offering (IPO) that garnered 94.8 billion won ($71 million) through the sale of 379,000 shares at 250,000 won apiece, surpassing the anticipated range of 147,000 won to 200,000 won per share. The shares closed at a remarkable 317,500 won on their first trading day.
APR intends to utilize the proceeds from this successful IPO to bolster its production capabilities, amplify overseas marketing efforts, particularly leveraging social media influencers in key markets like the U.S., Japan, and China, and invest in ongoing research and development endeavors. The company’s impressive growth trajectory has attracted notable investors, including CJ Onstyle, part of Korean billionaire Lee Jay-hyun’s CJ Group; SJ Investment Partners, a Korean venture capital firm; and the state-owned Industrial Bank of Korea. APR achieved unicorn status when CJ Onstyle invested in the company in June 2022, propelling it to new heights of success.
Founded in 2014 by Byunghoon Kim and Lee Ju-kwang, APR has established its headquarters in Seoul’s iconic Lotte World Tower, the tallest skyscraper in the country. Kim, known by his English name Victor, is the company’s CEO and largest shareholder, holding a significant 35% stake. APR has gained widespread recognition for its Medicube Age-R brand products, particularly the Booster Healer devices. These innovative devices harness electrical stimulation to enhance the skin’s absorption of skincare products. The brand received a significant boost when Hailey Bieber, a renowned model, entrepreneur, and wife of pop star Justin Bieber, endorsed the device in a TikTok video last year. APR’s remarkable success is evident in the impressive sales figures of its Medicube Age-R products, with over 1.6 million units sold domestically and internationally as of November 2023.
Beauty devices have emerged as the driving force behind APR’s remarkable growth, accounting for a substantial 82% of its 372 billion won (approximately $280 million) revenue in the first three quarters of 2023. This remarkable performance surpassed the company’s total revenue for the entire year of 2022. APR’s fashion unit, Nerdy, and photo booth business contributed the remaining revenue. The company’s net income for the period also witnessed a significant surge, rising from 30 billion won in fiscal 2022 to an impressive 57 billion won, primarily attributed to reduced expenses.
APR’s global presence continues to expand, with approximately 40% of its products sold outside South Korea. The company’s fastest-growing markets include mainland China, Hong Kong, Japan, Malaysia, Singapore, Taiwan, and the U.S. APR is poised to further expand its reach by entering new markets such as France, India, Qatar, Thailand, and the U.K.
CEO Kim attributes APR’s remarkable success to its technological edge and unwavering commitment to innovation. The company operates a dedicated corporate R&D center, ADC (APR Device Center), and holds approximately 70 patents related to beauty devices’ electricity technology. APR’s unwavering focus on cutting-edge technology has resulted in products that deliver exceptional efficiency and performance. In addition to ADC, APR has established the Global Dermatological Research Institute in Seoul and its own factory, further solidifying its commitment to innovation and quality.
Kim emphasizes APR’s commitment to continuous innovation, stating, “APR is not a company making one one-hit item and keep selling it over and over.” The company has already launched seven beauty devices, with the latest being the Booster Pro, which embodies the company’s accumulated know-how and experience. APR plans to introduce another skincare device in the first half of 2024 and three to four new devices by the end of the year, further diversifying its product portfolio.
To accommodate its growing product lineup, APR is constructing a second factory, scheduled for completion in the second quarter of 2024. Located in Pyeongtaek, south of Seoul, this new facility will significantly boost the company’s production capacity to eight million units annually.
The global market for at-home beauty devices is poised for remarkable growth, projected to reach $34.8 billion by 2030 from $5.5 billion in 2024. Kim attributes this growth to the impact of the COVID-19 pandemic, which prompted people to seek at-home beauty solutions due to reduced外出 and the closure of beauty clinics. He believes that customers are now faced with a choice between visiting a beauty clinic or using a device at home, rather than deciding between brands.
The beauty industry has proven to be a lucrative sector, creating substantial wealth globally. Francoise Bettencourt Meyers, the granddaughter of the founder of L’Oreal, is a shining example, holding the title of the world’s richest woman with a net worth of $98.6 billion. The Lauder family behind Estée Lauder also ranks among the wealthiest families in America, with a combined fortune of $25.9 billion. In South Korea, two beauty billionaires, Suh Kyung-bae of Amorepacific and Kim Jung-woong of GP Club, have made their mark among the country’s top 50 richest individuals.