South Korean cosmetics giant Amorepacific has kick-started a lavish company event under the lead of Chairman Suh Kyung-bae from Thursday, with the participation of some 600 employees, according to industry sources.

Executives and rank-and-file members of the company are participating in the three-day event that includes hiking in Pyeongchang, Gangwon Province, with a budget of some 1 billion won ($940,000), according to one source.

The five-hour hiking program was Suh’s idea to help awaken employees and keep them alert.

Amorepacific has been bracing for a business recovery since improved diplomatic ties between South Korea and China after suffering a year of trade fallout concerning Beijing’s retaliation against Seoul’s hosting of a US anti-missile system.

In the fourth quarter of 2017, Amorepacific’s performance continued to suffer from the fallout by recording 1.342 trillion won in sales, down 5.4 percent from the previous quarter.

Prospects, however, have turned more positive, with a report from NH Investment and Securities suggesting demand will recover for Amorepacific’s main cosmetics lines in China, including Sulwhasoo, Inisfree and Etude. Completion of restructuring at overseas operations such as those in the US and France will also boost profitability, the report added.

Earlier this year, Suh vowed to prioritize “drastically transforming the business environment into big opportunities,” by shifting from a market of quantity to those of quality through technology.

Amorepacific has often held training trips for some 1,000 employees, such as a three-day program held in 2010 on Jeju Island that also included hiking.

By Kim Da-sol (ddd@heraldcorp.com)