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The premium Korean skincare brand, Sulwhasoo, announced today (October 12) the company's decision to use Hong Kong as the strategic base to strengthen its global presence. Korean conglomerate AmorePacific Corporation officially celebrated the first retail outlet for Sulwhasoo products outside of Korea at Seibu, Pacific Place today. Another image centre was opened in Central on September 23.

After offering the products exclusively for the Korean market for more than 31 years, AmorePacific has chosen Hong Kong as the first overseas market to launch the brand. The Vice President of AmorePacific Corporation, Mr Lee Sang-Woo, explained why the company chose Hong Kong as the first overseas market over the US, Japan and France. He pointed out that Hong Kong consumers are highly receptive to new products and new concepts, and the regulatory environment is open and supportive to new market entries.

"We realise the increasing importance of the Hong Kong market to our overall business development in Asia. Hong Kong is clearly the best 'showcase' in Asia for international brands like ours. The success of Laneige in Hong Kong has had a 'halo effect' on other Asian markets like China, Singapore and Taiwan." After its introduction in Hong Kong, the brand will be launched in Japan next year.

Speaking about the expansion plan of AmorePacific in Hong Kong, Mr Lee said that the company is committed to long-term development in Hong Kong. The company has planned to open eight to ten more retail outlets for the two brands - Sulwhasoo and Laneige - in next three years, with total investment estimated to around $40 million. The expansion will cover retail, marketing support, and system and operation development. The company expects to create more than 100 new jobs for both frontline outlets and management office.

The Sulwhasoo brand is operated under Laneige (Hong Kong) Co Ltd, a joint venture established by AmorePacific following the successful launching of the Laneige brand in Hong Kong. Mr Lee pointed out that the partnership and the launch of its most premium flagship brand Sulwhasoo were also important indications of the company's determination and confidence on the long-term development in Hong Kong.

Associate Director-General of Investment Promotion at Invest Hong Kong, Mark Michelson, officially welcomed the investment decision of the leading Korean skincare conglomerate in Hong Kong. "We are very pleased that AmorePacific has chosen Hong Kong as the showcase for its premium brand to the rest of the world. We welcome international brands to Hong Kong - not only because they enrich Hong Kong's competitiveness as the retail capital in Asia - but also for the economic benefits they bring related to employment, tourism and other areas. We look forward to the successful expansion of Sulwhasoo in Hong Kong and in elsewhere in Asia from its base here."

As Korea's first Oriental herbal cosmetic line, Sulwhasoo won the Korea Marketing Best Awards in 2001 and was selected in 2002 as a World-Class Next-Generation Product by the Ministry of Commerce, Industry and Energy in Korea. Total sales of the brand in Korea reached US$65 million in 2003.

Founded in 1945, AmorePacific Corporation is the leading skincare and cosmetic conglomerate in Korea, with a 33% share of the skincare and cosmetics market in 2003. The company ranks 26th in beauty industry globally and is growing rapidly. As a blue-chipped company of the Korea Stock Market Index, AmorePacific Corporation is recognised as one of the best-performing consumer-products companies in Korea.

Invest Hong Kong is the Hong Kong Special Administrative Region Government department charged with encouraging and facilitating foreign investment into the city by providing all the support needed to establish a business presence here.

Ends/Tuesday, October 12, 2004

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