Hyundai Department Store Group decided Tuesday to acquire SK Bioland, a cosmetics firm under SK Group, expanding its beauty and health care business.

According to the group, its affiliate Hyundai HCN, a cable channel provider, held a board meeting to decide on purchasing 29.7 percent of SK Bioland’s share with 120.5 billion won ($101.7 million).

“We made the final decision for acquisition, finding that SK Bioland’s major businesses have a high potential for growth and has a flexible business structure for expansion,” a Hyundai Department Store Group official said.

SK Bioland leads the natural ingredient market for cosmetics products here. In 2019, the company recorded sales of 106.3 billion won and an operating profit of 14.5 billion won.

Established in 1995 and becoming a part of SK Group in 2015, SK Bioland currently runs five production factories in South Korea, and has two overseas corporate bodies in China.

Hyundai Department Store Group announced its entrance into the cosmetics market in May, acquiring 51 percent of shares of Cleangen Cosmeceuticals, a local cosmetics company.

“Hyundai Department Store’s acquisition of SK Bioland Co. is a suitable and timely merger and acquisition with the rising global trend of ingredients in dietary supplement, food and beauty being combined and showing synergy,“ Lisa Hong, a senior analyst at Euromonitor International Korea said.

”Hyundai Department Store is projected to launch their own brand and products as well as develop new business area that may offset currently declining retail business sales.”

By Jo He-rim (herim@heraldcorp.com)