Amorepacific, South Korea’s leading cosmetics company and a pioneer of many sustainability initiatives in the  region, is accelerating plans to establish manufacturing capabilities in the US.

The new US tariffs are raising questions about the company’s Asia-centric production model.

On April 14, Kim Seung-hwan, CEO of Amorepacific, revealed in an interview with Bloomberg TV that the company plans to invest in logistics and module manufacturing facilities in the US in the next few years. Kim stated, “We plan to invest in logistics and module manufacturing facilities in the U.S. within the next 3 to 5 years,” highlighting a proactive approach to adapting to recent changes and trends. He further added, “While we are considering establishing actual production facilities in 5 to 10 years, considering recent changes and trends, we might need to accelerate this process.”

The US recently imposed a 145% tariff on China and a 25% tariff on South Korea, with a 90-day grace period until July 8. Currently, South Korea faces a basic tariff of 10%. These tariffs could potentially impact Amorepacific’s operations, as the company runs factories in both South Korea and China. While products manufactured in China are primarily consumed domestically or exported to Southeast Asia, those produced in South Korea fall within the tariff range.

Amorepacific’s investment in logistics and module manufacturing facilities is seen as a move towards local production. By utilizing these facilities, it becomes possible for Amorepacific to complete products made 70-80% in South Korea within the US or import large volumes of cosmetics for repackaging and productization locally. This strategy not only aims to leverage tariff benefits offered to local manufacturers but also has potential economic benefits such as job creation.