November 24, 2024

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[THE INVESTOR] LG Household & Health Care has injected 30 billion won (US$26.58 million) in its subsidiary Ginza Stefany to expand its presence in Japan, according to industry sources on Nov. 20.

The company will reportedly buy 60,000 newly issued shares of Ginza Stefany to fund the investment.

“Although we have been focusing mainly on functional food in Japan, we are now trying to expand our cosmetics business,” an LG H&H spokesperson told The Investor.

The Korean company has been trying to expand its presence in Japan after acquiring Evermere Holdings, which owns a cosmetics manufacturing plant near Tokyo, for 15 billion won. In April, Ginza Stefany also acquired the entire stake in cosmetics firm Avon Products for 105 billion won.

Avon Products ranked 21st in terms of cosmetics sales in Japan, beating popular foreign brands like Lancome and Estee Lauder, according to a 2016 Euromonitor report.

LG Household & Health Care acquired 70 percent stake in Ginza Stefany in 2012 for 131.7 billion won and now owns the entire stake. The Japanese unit’s sales reached 220 billion won as of the third quarter.

By Song Seung-hyun (ssh@heraldcorp.com)