Press Release

■ KFDA grants approval of the remarkable product that is “advantageous for skincare when taken orally”

■ Secured a base for the growth of the functional health food business launched last year

■ Distribution channels for functional health foods to be expanded to department stores and home shopping beginning in July

LG H&H announced that it has developed L-SKINCARE, Korea’s first individually approved functional health food for skincare.

Developed after two years of product design research, material discovery and efficacy testing, L-SKINCARE has been approved by the KFDA as Korea’s first functional health food substance for skincare through clinical tests carried out by the College of Pharmacy at Chungbuk National University and the College of Medicine at Chonnam National University.

The approval officially recognizes that when L-SKINCARE is taken orally, it restores skin damaged by sunlight and UV rays and helps keep it healthy. It is significant that L-SKINCARE is Korea’s first individual functional health food certified to be beneficial for skin care since the enactment of the Health Functional Food Act in 2002.

The product is scheduled for launch in October.

The recent development of a KFDA-approved functional health food may be compared to the development of a new medicine in pharmaceuticals. It can serve as an opportunity to increase LG H&H’s competitiveness in the functional health food market as it can distinguish itself with the power of an indigenous product and advertisements publicizing its functional effectiveness.

L-SKINCARE is a compound of pycnogenol (an extract from the bark of maritime pines in France’s coastal regions), vitamins C and E, and evening primrose seed oil blended in an optimal ratio. As an antioxidant, pycnogenol is known to be very effective at preventing skin aging.

In addition, beginning in July, LG H&H will undertake the phased expansion of distribution channels for functional health foods, which has so far been limited to the current cosmetic door-to-door sales channel, to include department stores and home shopping in order to augment its business.

Cheongyunjin, a major LG H&H functional health food brand, has been developed by applying Oriental medicine to Western medicine. Since its launch one year ago, Cheongyunjin has achieved 10 billion won in sales.

This year, its products have been diversified to include 18 varieties in order to better meet consumers’ needs, and as a result sales have been rising an impressive 30% per month. By the end of this year, sales are expected to reach 30 billion won.

Sang-beom Kim, the brand manager for Cheongyunjin, said, “Cosmetics and beauty foods are very closely related. We plan to strive to boost the functional health food business as a new growth engine of LG H&H.”