Hallyu and the K-Beauty Industry

Summary

Podcast Summary: Hallyu and the K-Beauty Industry

Podcast: Down to Business English
Hosts: Skip Montreux (B), Dez Morgan (C)
Date: March 14, 2026

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Main Theme

This episode examines the explosive growth of the South Korean cosmetics industry—K-Beauty—within the broader context of “Hallyu,” or the Korean Wave. Skip and Dez discuss how global fascination with Korean culture has driven the international success of K-Beauty, highlighting business strategies, market data, and unique product innovations. The episode also delves into the business vocabulary that arises from these trends.

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Key Discussion Points & Insights

1. Introduction: Personal Updates & Transition to Topic

• Brief personal catch-up, highlighting differing experiences of living in various climates (00:20–01:36).
• Segue into the theme of appearance and looking good as a business (01:38–02:29).

Notable Quote:

• Skip (B): “Speaking of looking good, today's report takes us into a business built around that exact idea.” (01:38)

2. Defining Hallyu and Its Global Influence

• Hallyu defined as the “Korean Wave,” the surge of global popularity for South Korean culture since the early 2000s (03:14).
• Reference to seminal K-dramas (“Winter Sonata”), the rise of K-pop (Blackpink, BTS), and Korean films (“Parasite”) as pivotal points (03:42–05:14).
• Interconnected growth of Korean media, fashion, and entertainment as a unified wave rather than isolated trends.

Notable Quote:

• Skip (B): “Hallyu means Korean wave, and it refers to the global surge in popularity of South Korean culture over the past 20 years.” (03:14)

3. K-Beauty’s Emergence as a Global Powerhouse

• South Korea is the second-largest exporter of beauty products (11.6% of global export market), surpassing the U.S. but behind France (05:25–06:06).
• Widespread availability of K-Beauty in global markets: observed in Japanese department stores and UK homes (06:10–07:07).

Insight:

• Social media and influencer marketing are key to K-Beauty’s international reach and engagement, especially among young consumers (07:15–07:43).

Notable Quote:

• Skip (B): “If you spend any time in the cosmetics section of a department store, you would see Korean brands like Hannah and Laneige with entire counters dedicated to their products.” (06:10)

4. K-Beauty’s Strengths: Innovation & Unique Ingredients

• Vital business strategies:
  • Relentless innovation: Rapid product development (08:09).
  • Use of Original Development Manufacturers (ODMs) to enable speed—products go from conception to market in less than six months (08:52–09:40).
• K-Beauty is characterized by unusual and bold ingredients (snail mucus, salmon sperm) and complex skincare routines (ten-step regimen) that differentiate Korean products (10:02–10:41).

Notable Quotes:

• Skip (B): “K Beauty has two key strengths in that area. Relentless innovation and some very unique ingredients.” (07:59)
• Dez (C): “Did you say 30,000 brands? How is that even possible?” (08:28)
• Skip (B): “A product cycle can go from inception to being on the shelves in less than six months.” (09:32)

5. Market Leaders & Business Tactics

• Major players: Amor Pacific (about half the market) and LG Household & Health Care (11:14–11:52).
• Amor Pacific's 2025 revenue: 4 trillion won (~US$3.2 billion), a 9.5% increase from 2024 (11:37–11:49).
• Business strategy: Monitoring innovative smaller brands and quickly responding to market trends, adapting products to regional consumer preferences (12:12–12:37).

Notable Quotes:

• Skip (B): “They keep their eye on what the smaller, more innovative brands are doing and then respond quickly to consumer demand from the home market.” (11:53)
• Skip (B): “In Japan, Korea and China, flawless skin is important. While the European market puts more emphasis on fragrance. In the US, consumer interest leans more towards cosmetics or makeup.” (12:12)

6. International Validation & Major Acquisitions

• L’Oreal acquired Gowoonsang Cosmetics (Dr. G) for 400 billion Korean won (~$375 million) in March 2025—seen as a major endorsement of K-Beauty’s global importance (12:51–13:08).

Notable Quote:

• Dez (C): “Ah, not an insignificant amount.” (13:05)

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Important Timestamps

• 01:38 - Transition to topic: business of looking good
• 03:14 - Definition of Hallyu (Korean Wave)
• 05:25 - K-Beauty export stats and the global market
• 07:15 - Key business strategies: influencer marketing
• 08:09 - K-Beauty strengths: innovation, unique ingredients
• 08:52–09:40 - ODM model and speed of product launch
• 10:09 - Highlighting unique (even “gross”) ingredients
• 11:14 - Introduction to major companies: Amor Pacific & LG
• 11:37 - Amor Pacific revenue and growth
• 12:51 - L’Oreal’s acquisition of a major K-Beauty brand

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Notable Quotes & Memorable Moments

• On Innovation:
  • Skip (B): “Relentless innovation and some very unique ingredients.” (07:59)
• On Product Development:
  • Skip (B): “There are roughly 30,000 brands to choose from.” (08:15)
• On Unique Ingredients:
  • Skip (B): “How does snail mucus sound to you, Des?” (10:02)
  • Dez (C): “Ah, that sounds gross. But I'm guessing a lot of people around the World have a very different opinion to me.” (10:15)
• On Market Adaptation:
  • Skip (B): “It's important to have an idea of what each market is interested in...” (12:12)
• On Major Deals:
  • Dez (C): “Ah, not an insignificant amount.” (13:05)

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Business Vocabulary Breakdown (13:29–19:33)

The hosts review major vocabulary from the episode, with clear business context:

• Acclimatize: To adjust to new conditions (13:29–14:33)
• Phenomenon: A notable or widely observed event/trend (15:05–16:37)
• Up to Scratch: Meeting an expected standard (16:48–17:46)
• Insignificant: Small, unimportant, or having little effect (18:14–19:33)

Each word is explained with examples relevant to both business and the episode topic.

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Tone & Language

• The conversation remains light, witty, and accessible, with Dez and Skip engaging in playful banter even when discussing complex business concepts.
• The show is attentive to language learners, carefully defining terms and providing relatable, professional examples.

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Conclusion

The episode closes with appreciation for Skip’s report and mild skepticism about ten-step skincare routines, as well as promotional info about bonus vocabulary content for D2B members and Apple Podcast subscribers.

Memorable Closing Exchange:

• Dez (C): “I’m not sure I would ever have time for a 10-step skincare routine before bed, but I’ll certainly be on the lookout for some snail mucus skin cream.” (20:06)
• Skip (B): “Well, if you try some, let me know how it works.” (20:24)

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Summary

This episode offers a comprehensive yet lively look at how K-Beauty has become a global business phenomenon, propelled by South Korea’s cultural exports and adaptive, innovative business models. It’s rich in vocabulary and useful business context, particularly for ESL/EFL professionals interested in international markets and trends.

Transcript

[A]

From Tokyo, Japan and Changsha, China, this is down to business English with your hosts, Skip Montreux and Des Morgan.

[B]

Des Morgan.

[C]

Hi, Skip.

[B]

Good to have you back after your somewhat extended holiday in Scotland.

[C]

I was gone for quite a while, wasn't I? But it wasn't all holiday. No, some of it was, but I also did a lot of work for my university.

[B]

But you did manage to take some time off, didn't you?

[C]

Yeah, and it was great to spend some time with friends and family.

[B]

So what did you get up to?

[C]

Ah, not much really, as it was mostly cold. On the few days when it actually warmed up a bit, it was wet.

[B]

Oh, dear. That doesn't sound like too much fun.

[C]

You know, I think I've forgotten how to live in Scotland. I've been spoiled by the warmer winters here in Southern China.

[B]

Yeah, I hear what you're saying. I know for a fact that I would struggle to acclimatize or re. Acclimatize to a Canadian winter after all of these years living in Tokyo.

[C]

I concur with that sentiment.

[B]

By any chance, have you lost a little bit of weight? You look a little slimmer than the last time I saw you online.

[C]

I have. As a matter of fact, I decided to take a leaf out of your book and try to live a bit more healthily.

[B]

Mmm. Live healthy, look healthy. That's a good plan, Des.

[C]

I think so, too.

[B]

Well, speaking of looking good, today's report takes us into a business built around that exact idea.

[C]

A business built around looking good. You wouldn't be talking about cosmetic surgery, would you?

[B]

No, nothing as drastic as that, though. Incidentally, the country at the center of my report is the world's capital for plastic surgery with 13.5 procedures per 1,000 inhabitants. The U.S. no, actually, the United States is way down the list, in sixth place. The country I'm talking about is much closer to home for both of us.

[C]

Somewhere in Asia, then.

[B]

Yes, somewhere in Asia.

[C]

That's a no brainer then. South Korea.

[B]

Correct. And today I will be reporting on the Korean cosmetics industry, or the K Beauty industry, and how many of its beauty products have gone viral over the past few months.

[C]

Then let's do it.

[B]

Yes, let's do it. Let's get D2B down to business with Hal Yu. How the K Beauty cosmetics industry is now benefiting from this global phenomenon.

[C]

Sorry, what was that word you just used? Hal? You. What's that?

[B]

Hmm? Hallyu means Korean wave, and it refers to the global surge in popularity of South Korean culture over the past 20 years.

[C]

Or so I see. There's no doubt South Korean entertainment has taken the world by storm recently. What was the name of that Korean TV drama in the early 2000s that was so popular? You know the one with the actor with the long hair?

[B]

You're talking about Winter Sonata?

[C]

Yeah, I remember it being quite the hit in Japan around that time.

[B]

It was indeed a major hit. It was released in 2002 in South Korea and the following year in Japan.

[C]

Yeah, that sounds about right. So is that what prompted Hallyu or this Korean wave?

[B]

Not entirely, but it certainly played a pretty big role in it. And Winter Sonata set off fashion trends in Japan and across East Asia.

[C]

Would it be accurate to say that Hallyu started with Korean dramas, was followed by K Pop and then Korean movies?

[B]

It's called the Korean Wave. Des. Not waves, plural. Each sector didn't happen in isolation. The force kind of built up together. In 2002, it was the winter sonata in the early 2000s, it was K Pop that ascended with bands like Blackpink

[C]

and BTS later on.

[B]

That's right. And TV programs continue to gain popularity internationally with shows like Squid Game.

[C]

Yeah, I haven't seen it, but I know it was a huge hit on Netflix.

[B]

And then in 2020, the Korean movie Parasite won four Academy Awards including Best Picture and Best Director, the first non English language film to win Best Picture.

[C]

And all of this popularity of Korean entertainment is known as Hallyu.

[B]

That's right.

[C]

And this is connected to the cosmetics industry somehow?

[B]

Well, the South Korean cosmetic industry, also referred to as the K Beauty, is very much part of the Hallyu trend. Let's start out with some figures. The number one exporter of beauty products in 2024 was France. They had 16.4% of the total export market worldwide.

[C]

That doesn't surprise me.

[B]

South Korea came in at a solid second place with 11.6% of the market, followed by the US with 8.3% of the export market.

[C]

South Korea exports more cosmetics than the

[B]

US by almost 4 points.

[C]

That is a surprise.

[B]

Well, if you spend any time in the cosmetics section of a department store, you would see Korean brands like Hannah and laneige with entire counters dedicated to their products.

[C]

So do you spend much time in the cosmetics department?

[B]

Not typically. But since I was reporting on this story, I thought I would do some boots on the ground legwork. Last week I took a walk through the cosmetics department of Takeshimaya in Shinjuku, and I can definitely report that there is a large selection of K Beauty products on display. I can also report that the Hannah line of beauty products by Hince, another big name in K Beauty, are even available in Japanese convenience stores.

[C]

Well, judging by my daughter's shelves in the bathroom, the Korean wave in cosmetics has certainly hit the UK too.

[B]

I don't doubt that.

[C]

So how did South Korea manage to become the second largest exporter in the world?

[B]

That's a good question. First off, Korean brands have been highly effective at using social media to promote their products. They employ armies of online influencers, not only in South Korea, but in the markets they are exporting to here in

[C]

China, social media has a massive influence over the products young people buy. So I'm sure it's much the same in South Korea and indeed beyond.

[B]

I think it's fair to say that the K Beauty companies are very well positioned on Instagram and TikTok.

[C]

But even with great promotion, you can't be a successful brand if the underlying product is not up to scratch, especially in terms of quality.

[B]

K Beauty has two key strengths in that area. Relentless innovation and some very unique ingredients.

[C]

Relentless innovation? You make face cream sound like consumer electronics.

[B]

Well, like the electronics sector, there is certainly no lack of competitors in the beauty industry. In South Korea, there are roughly 30,000 brands to choose from.

[C]

Did you say 30,000 brands? How is that even possible?

[B]

It is an amazing number, isn't it? South Korea has developed a highly developed and sophisticated ecosystem of original development manufacturers, or ODMs for short.

[C]

ODM? Not OEM, the original equipment manufacturer?

[B]

No, ODM. An ODM is a company that specifically produces cosmetic products at scale, according to a buyer's specifications. They do this by changing products they have already put through their own research and development process, or R and D.

[C]

So you're saying brands can outsource not only the manufacture, but the development of new products to an ODM and not need to do their own R and D or set up a production line?

[B]

That is precisely what ODMs do.

[C]

And I'm guessing that really speeds up development and manufacturing time.

[B]

It certainly does. A product cycle can go from inception to being on the shelves in less than six months.

[C]

Wow, that is fast.

[B]

Perhaps, unsurprisingly, South Korean ODMs have become so proficient that they now develop products for cosmetic companies in China, the US and across Southeast Asia.

[C]

Impressive. And you mentioned something about unique ingredients. What's that all about?

[B]

How does snail mucus sound to you, Des? Phew.

[C]

Not very appealing.

[B]

Okay. Or would you like some salmon sperm in your cosmetics?

[C]

Ah, that sounds gross. But I'm guessing a lot of people around the World have a very different opinion to me.

[B]

I guess they do, because those are just two of the somewhat unusual additives used by the K beauty industry. Another innovation is highly complex skin care regimes like a ten step routine before going to bed.

[C]

Ten steps? I'm lucky if I managed to wash my face well.

[B]

No one said beauty was easy, Des.

[C]

So who are the big players in the market?

[B]

There are two giants in the market. Amor Pacific, which accounts for around half of the market, and LG Household and Health care also being a major player. Although as you can tell from the name, it has more diversified holdings than just beauty products.

[C]

What can you tell me about Amor Pacific?

[B]

Amor Pacific is South Korea's largest beauty and health company. They have a very diversified lineup of products from high end brands like and excuse my pronunciation of this, XLHasu, to more cost effective brands like Laneige.

[C]

Just how big are they?

[B]

In 2025, they had revenues of 4 trillion won, around US$3.2 billion. And that was a 9.5% increase over the previous year.

[C]

That is huge. And how do they stay ahead of the competition?

[B]

According to a spokesperson for Amor Pacific, they keep their eye on what the smaller, more innovative brands are doing and then respond quickly to consumer demand from the home market.

[C]

And how about internationally? I'm assuming they have a strong presence?

[B]

They do. The spokesperson also added that it's important to have an idea of what each market is interested in. In Japan, Korea and China, flawless skin is important. While the European market puts more emphasis on fragrance. In the us, consumer interest leans more towards cosmetics or makeup.

[C]

This is all very interesting how the K beauty industry has benefited from this larger Korean wave trend.

[B]

Well, the French giant l' Oreal seemed to think so as well.

[C]

What do you mean?

[B]

They acquired Gowoonsang Cosmetics, the company behind the Dr. G skincare brand, in March of last year for 400 billion Korean won, which is about $375 million.

[C]

Ah, not an insignificant amount.

[B]

Not insignificant in the least.

[C]

And on that note, I think it's time for us to get D2V down to vocabulary.

[B]

Alright, let's get started with today's down to vocabulary. The first word on our list is the verb acclimatize. To acclimatize means to gradually get used to a new environment, a new climate, or a new set of conditions.

[C]

We often use this word when talking about weather, but it can also be used more broadly to talk about adjusting to any new situation or indeed way of working.

[B]

In today's episode, though, we did use it in the context of Weather. In the introduction, I said that I would probably struggle to acclimatize or re acclimatize to a Canadian winter after spending so many years living in Japan.

[C]

In other words, Skip was saying that after living in a milder climate for so long, it would be hard for him to get used to that cold again.

[B]

Yeah, I think it would be almost impossible for me to cope with temperatures of minus 30 degrees.

[C]

I don't blame you.

[B]

Could you give us an example in a business context?

[C]

Sure. After a company adopts a new CRM or Customer Relationship Management System, it might take salespeople a few months to acclimatize to the new way of tracking and reporting their sales activity.

[B]

That's a fantastic example, Des. Businesses are always asking employees to adjust to new systems, new teams or new markets. What's next on our list?

[C]

The next word on our list is phenomenon. A phenomenon is something that happens or exists. Especially something notable, unusual or widely observed.

[B]

We use phenomenon to refer to a trend or development that attracts a lot of attention. So in business, media or culture, a phenomenon is usually something bigger than just a short lived trend.

[C]

When Skip introduced today's topic, he referred to how K Beauty benefited from the global phenomenon of Hallyu or the Korean wave.

[B]

I was saying that Korean beauty products have been helped by the global rise of Korean entertainment, fashion and culture.

[C]

What would be another business related example using phenomenon?

[B]

Hmm. Well, the sudden popularity of AI meeting assistant tools has become a major phenomenon in recent years. It seems like you you cannot take part in any type of online meeting these days without an AI assistant like Fireflies or Otter joining the meeting to record everything. Then after the meeting, you receive an AI summary and next step action plans.

[C]

Good example. When those AI assistants first started to become popular, you know, I was a little uncomfortable with them. Now, however, I find their summaries and transcripts a great resource.

[B]

At this point, I can't live without my AI meeting assistant. Moving on, let's look at the expression up to scratch.

[C]

Good choice. This is a very useful business expression.

[B]

It is. When we say something is up to scratch, we are saying it is good enough and meets the required standard. We can use it when talking about coin quality, performance or readiness.

[C]

And if something is not up to scratch, then it's simply not good enough.

[B]

In today's report, DES said that a brand cannot succeed if the underlying product is not up to scratch in terms of quality. In other words, he was saying that the marketing might be able to help attract attention, but if the product itself is poor, customers will not Keep buying it.

[C]

A flashy image can only take you so far, but if the actual product or service fails to deliver, then it's not going to win. At the end of the day, quality still matters.

[B]

Can you give us another business related example? Using up to Scratch?

[C]

You might hear a comment like this in an internal meeting between salespeople and product product engineers. The product looked promising, but the final version still isn't up to scratch. For the client. We need to add a few more features before we show it to them.

[B]

That's a very realistic example. Des, what's our next word?

[C]

The final item on our D2V list for today is the adjective insignificant. If something is insignificant, it's very small, unimportant, or not large enough to have much effect.

[B]

It is the opposite of significant.

[C]

Precisely near the end of the report, skip said that L' Oreal bought Gowoonsang Cosmetics for 400 billion Korean won. I commented that that was not an insignificant amount.

[B]

DEs are saying that 400 billion won was a very substantial amount of money.

[C]

Definitely not small or minor.

[B]

Let me ask you this des. Why did you say that it was not an insignificant amount? Why not say it was a significant amount?

[C]

That's a great question, Skip. Of course both versions have the same meaning, but by saying a negative statement not insignificant. The tone of my comment was less direct and more understated.

[B]

Hmm, I wonder if it is a British speaking device.

[C]

I don't think so. I think it's just a natural way of softening your comment.

[B]

I don't disagree with that.

[A]

Would you like to help down to Business English Reach more people wanting to improve their Business English skills? Follow down to Business English on Apple Podcasts, YouTube, Music, Spotify, or any place podcasts are found. Leave a rating and a review and tell everyone how much you enjoy the show.

[C]

Thanks for that report on Hallyu and the Korean beauty industry, Skip. I'm not sure I would ever have time for a 10 step skincare routine before bed, but I'll certainly be on the lookout for some snail mucus skin cream.

[B]

Well, if you try some, let me know how it works.

[C]

I will be sure to do that. D2B members and Apple Podcast subscribers. The bonus down to Vocabulary episode for today's report will be released within the next few days. In that bonus episode, we'll break down five additional vocabulary items that Skip and I used in today's report.

[B]

Those words and phrases A leaf out of someone's book. Take something by storm. Isolation. Relentless. Sophisticated and diversified.

[C]

Lots of great business vocabulary on that list.

[B]

If you are a D2B member, make sure you have copied your Members only podcast feed URL from your account page on the D2B website and pasted it into the podcast app of your choice. That way you will not miss that bonus DTV episode when it drops.

[C]

And Apple Podcast subscribers, you don't need to do anything. The bonus DTV episode will show up automatically in your feed as soon as as it's released.

[B]

And if you are not yet a DTB member or an Apple Podcast subscriber, but you benefit from what we are doing here on down to Business English, do consider becoming a member or subscribing through Apple Podcasts to support the show. To become a D2B member, just visit D2B english.com membership and sign up today.

[C]

That's D the number 2B english.com membership.

[B]

Thanks for listening everyone. See you next time. Bye bye.

[A]

Down to Business English Business News to improve your Business English.