1、 Employed by a non-US affiliate of BofAS and is not registered/qualified as a research analyst under the FINRA rules.Refer to Other Important Disclosures for information on certain BofA Securities entities that take responsibility for the information herein in particular jurisdictions.BofA Securitie

2、s does and seeks to do business with issuers covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.Investors should consider this report as only a single factor in making their investment d

3、ecision.Refer to important disclosures on page 38 to 41.Analyst Certification on page 35.Price Objective Basis/Risk on page 35.12847003 Consumer-Korea Korea Beauty:Brand aspiration,beyond a trend Price Objective Change Korea Beautys global expansion a secular story We expect Korean beauty exports to

4、 enjoy a multi-year growth,driven by market share gains and addressable market expansion.Korean beauty brands have been gaining share in the global export market against leading exporters such as France,the US and Japan.We forecast Koreas global export market share(by value)to rise from 3.4%in 2024

5、to 4.5%by 2027.The beauty companies proactive diversification across brands,products,and regional portfolios is expected to lead ex-China beauty export growth to a three-year CAGR of 22%.From solid production to trend-setting consumers The Korean beauty industry benefits from a fully integrated ecos

6、ystem that makes it one of the most competitive globally,including:1)a strong R&D and manufacturing backbone(ODM/OEM);2)an ideal domestic consumer base serving as a good test bed for beauty products.Korean consumers are very receptive to new products/technologies,sensitive to trends,demanding with f