Press Release

LG Household & Healthcare Co. Ltd. (CEO Suk Yong Cha) starts its cosmetic and inner beauty business by taking over Everlife Co. Ltd. with KRW 330Billion.

With the takeover, LG Household & Healthcare will promote a business alliance between its local subsidiary, Ginza Stefany (it took over Ginza Stefany last February), and Everlife, in order to proactively target the Japanese cosmetic market.

Japan’s cosmetic market is six times larger than that of Korea, totaling KRW 41 trillion. The market is second largest in the world following the U.S., and transparent and stable with a relatively lower business risk. But, it has been extremely difficult for a Korean brand to move into the market and find success as world-famous brands such as Shiseido, kanebo, Kose, and Kao dominate it.

With Everlife and Ginza Stefany, LG Household & Healthcare expands its focus to inner beauty and has secured a way for LG Household & Healthcare products to advance into the Japanese market.

LG Household & Healthcare plans to stabilize the business and then introduce Everlife products in Korea and Asian countries including China, Vietnam, Taiwan, and Singapore through its local corporate bodies.

On the other hand, its fermentation cosmetic, ‘Sum’, was introduced at Japan’s Daimaru department store last November. In addition, its alliance with AEON, the largest retail channel, allows about 800 ”THEFACESHOP” stores to open in Japan, helping the company more actively pursue the market.

<Introduction>

"Everlife" was established in 1990, being headquartered in Fukuoka, Japan. In 2012, it posted KRW 308.3 billion in sales, becoming third in the inner beauty market following Suntory and DHC. When sales of Ginza Stefany are combined, Everlife becomes closer to the second position.

The popular products of Everlife include Huang Jun, alleviating arthrodynia including knee pain, Sea King Shark Liver, Huang Jun beauty and SoE (Sense of Eternity).

Among them, Huang Jun is the flagship product and was introduced in 2003. It contained hyaluronic acid to soothe arthrodynia including knee pain and has become well known among consumers through TV commercials.