[THE INVESTOR] Major South Korean cosmetics companies have increased prices of high-end brands at duty-free outlets, industry sources said Aug. 3.

LG Household & Health Care earlier this week raised the duty-free price tags on 10 products of “The History of Whoo,” an oriental-concept luxury cosmetic line. The change increased the duty-free products by US$2-5 from their current prices.

“We used to give 10 percent off the price on duty-free package products but halved the discount rate on them,” a LG official said, without elaborating.

AmorePacific, the nation’s No. 1 cosmetics brand, has recently adjusted the price of “Hera,” one of its top-tier brands.

The duty-free price of Hera’s UV Mist Cushion Long Stay, which contains an all-in-one formula of moisturizer, sun block and foundation, was raised from $33 to $37 after the brand renewal.

“We adjusted the price after upgrading the existing product,” an AmorePacific official said.

Market watchers said the price surge reflected in Korean companies‘ confidence in the brands, projecting an upbeat prospect for the luxury line-up in the overseas market.

AmorePacific and LG Household & Health Care both logged double-digit growth in the second quarter, helped by robust sales of luxury brands in China, its top export destination.

“High-end cosmetics posted robust growth in the second quarter on the back of expanded distribution channels via online and global duty-free outlets,” said Lee Seung-wook, a researcher at SK Securities.

“Korean cosmetic companies will continue to grow with the expansion of duty-free channels, as well as sales of high-end brands in the overseas market.”

(theinvestor@heraldcorp.com)