[Edaily Reporter KIM EUNG-TAE ] Korean home appliance and beauty companies that proactively entered global markets are setting new record earnings. This success stems from either adapting business models that have proven successful domestically to overseas markets or captivating international customers with products featuring differentiated technology amid the Hallyu wave. As the domestic market shrinks due to population decline, these companies plan to focus on expanding their sales channels to secure a broader customer base.

According to the Financial Supervisory Service on the 8th, COWAY(021240)’s consolidated revenue for the third quarter of this year was provisionally estimated at 1.4261 trillion won, a 13.7% increase year-over-year. Operating profit rose 7.3% year-over-year to 260.8 billion won. Both revenue and operating profit set new records for the third quarter.

Overseas subsidiaries drove this growth. Revenue from overseas subsidiaries reached 591.8 billion won, a 26.2% increase year-over-year. Compared to the 2% increase in domestic business revenue during the same period, the performance overseas was particularly notable. Overseas subsidiaries accounted for 41.5% of total revenue, up 4.1 percentage points from the same period last year. The total number of rental units overseas reached 4.65 million, a 12.7% increase from the previous year. Among the overseas subsidiaries, the Malaysian subsidiary recorded the highest revenue. Its revenue totaled 428 billion won, a 21.5% increase year-over-year. The U.S. subsidiary saw the strongest revenue growth, recording 83.9 billion won—a 45.8% increase from the previous year. In addition, the Thai subsidiary (57.7 billion won, 38.0%) and the Indonesian subsidiary (16.0 billion won, 21.8%) also posted double-digit revenue growth rates.

The combination of door-to-door sales expertise accumulated in Korea and localization strategies is cited as the primary driver of this performance growth. COWAY introduced the “KODI Co.,LTD.” system—a network of water purifier service technicians—to overseas markets where such a system did not previously exist, while also launching products specifically tailored for those markets. Notable examples include obtaining Halal certification in Malaysia and introducing locally customized products capable of operating even under low-pressure conditions to target the Southeast Asian market. Furthermore, the expansion of its rental business to include new products such as air conditioners, following water purifiers and air purifiers, also served as a positive factor.

As COWAY actively targets the global market, the performance gap with its competitors is widening. As of the first half of this year, COWAY’s overseas subsidiary revenue reached 1.1245 trillion won, while its competitors, CUCKOO HOMESYS and SK Intellix, recorded export revenues of 36.4 billion won and 196.9 billion won, respectively—a significant disparity.

KOLMAR KOREA(161890), a cosmetics original design manufacturer (ODM), also posted its best-ever third-quarter results, driven by the K-Beauty boom. On a consolidated basis, third-quarter revenue this year reached 828.2 billion won, a 21.3% increase year-over-year. Operating profit for the same period rose 40.5% to 81.9 billion won.

Analysts attribute this notable earnings growth to domestic indie brands expanding their orders for skincare and suncare products as they enter the global market. In fact, KOLMAR KOREA’s revenue from its domestic cosmetics business, on a non-consolidated basis, reached 433.7 billion won, a 34.7% increase year-over-year.

Revenue from overseas subsidiaries also rose 15.1% year-over-year to 56.5 billion won. Revenue from the U.S. subsidiary reached 18 billion won, marking 122% year-over-year growth. This growth is attributed to the addition of global multinational corporation (MNC) color cosmetics brands to its top client list. In contrast, the Canadian subsidiary recorded revenue of 8.1 billion won, a 12.1% year-over-year decline. The Chinese subsidiary also recorded sales of 30.4 billion won, a 5% decrease from the previous year. The company explained that while fixed costs increased for the Chinese subsidiary due to makeup client orders falling short of expectations, sales are expected to return to year-over-year growth as production for new clients ramps up in the fourth quarter.

KOLMAR KOREA’s strategy is to apply the business achievements and know-how gained in the U.S. to its Canadian operations and establish a foundation for overseas sales growth through synergies between the two subsidiaries. A KOLMAR KOREA official stated, “Demand from local clients overseas is gradually expanding,” adding, “Through collaboration, our U.S. and Canadian subsidiaries will generate synergies in shortening lead times, streamlining inventory management, and addressing local regulations, thereby improving performance and profitability through enhanced sales and production efficiency.”