Tuesday, October 28, 2025

Shinsegae Food Invests $36 Million to Enter Cosmetics Boom

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Shinsegae Food investment in C&C International marks a bold move into South Korea’s cosmetics market. The company is investing 50 billion won ($36 million) without taking direct control of operations. This investment signals a shift toward diversifying revenue streams beyond food. Analysts say such financial plays often open doors to future collaborations. Shinsegae Food continues to emphasize its core food business while exploring high-growth sectors.

The company will acquire a 36.9 percent limited-partner stake in Beauty Synergy 2025, a private equity fund managed by Ascent Equity Partners. Earlier, Ascent bought 41.22 percent of C&C International for about 285 billion won. This deal positions Shinsegae Food strategically within the cosmetics supply chain. The company highlights that it seeks financial returns, not management control. Investors view the move as a careful diversification strategy.

However, the Shinsegae Food investment focuses on strengthening earnings stability and creating new revenue sources. A company spokesperson said, “This is a financial investment intended to diversify revenue streams and stabilize our earnings base.” The company also remains dedicated to expanding its food operations efficiently. Portfolio restructuring continues to be a key priority for the firm. By balancing core operations and selective investments, the company maintains long-term growth potential.

The investment follows other portfolio adjustments. Shinsegae Food recently sold its catering unit to Korean food service giant Ourhome for roughly 120 billion won. This decision streamlines operations and allows the company to focus on profitable segments. Analysts note that strategic financial moves like this can strengthen Shinsegae Food’s market position. Such steps also prepare the company to respond to competitive pressures effectively.

C&C International plays a critical role in Korea’s global beauty supply chain. Therefore, the company formulates and produces products for domestic and international brands. Last year, revenue rose 28 percent to 282.9 billion won, although operating profit fell nearly 10 percent to 29 billion won. Experts say Shinsegae Food investment in this firm demonstrates careful revenue diversification. The company is positioning itself to benefit from growing global demand for Korean cosmetics.

Overall, by blending focus on food operations with selective financial ventures, Shinsegae Food investment could generate both financial returns and strategic opportunities. The move shows how traditional food companies can explore high-potential markets. Analysts suggest such investments may lead to collaborations in product development or global distribution. The company continues to balance risk with targeted growth. This approach reinforces Shinsegae Food’s long-term stability and competitiveness.

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