Aekyung Industrial Begins Supplying Kerasys to Walmart in the U.S., to Complete Taekwang Group Acquisition by Month-End

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Aekyung Industrial has begun supplying Kerasys to Walmart in the United States, expanding its hair care business, while also seeking to broaden distribution channels for K-beauty products through home shopping and T-Commerce channels after its acquisition by Taekwang Group.

Expansion of U.S. Walmart distribution and Kerasys entry. On July 2, 2024, local time, Aekyung Industrial began supplying its premium hair care brand Kerasys to Walmart, the largest retail chain in the United States. Following the existing placement of its body care brands LUVSCENT and SHOWERMATE, the company has now expanded into hair care and is moving more aggressively into the U.S. market. Aekyung Industrial has placed Kerasys in about 390 Walmart offline stores across 35 U.S. states as well as on the retailer's online mall, and plans to gradually increase the number of stores carrying the brand to widen consumer access.

Response to import sanctions risk and export diversification strategy. Aekyung Industrial recently faced a four-month-and-15-day suspension of import operations for the affected product, along with a three-month suspension of all import operations, from the Ministry of Food and Drug Safety after triclosan, an unapproved ingredient, was detected in toothpaste imported from China. In response to this unexpected setback, the company is pursuing an export diversification strategy targeting global markets, including the United States. Noh Min-jun, who is in charge of Aekyung Industrial's overseas sales team, said the company will continue expanding distribution channels in the U.S. and carrying out marketing activities, starting with its Walmart entry, to steadily diversify its global market presence.

Taekwang Group acquisition and distribution synergy plan. Taekwang Group plans to complete its acquisition of Aekyung Industrial within this month. The two sides have finalized the detailed terms of the share transfer agreement, and the final sale price is reported to be around 447.5 billion won. Aekyung Industrial will keep its corporate name after the acquisition. Taekwang Group intends to use its home shopping and T-Commerce channels to secure additional distribution outlets for Aekyung Industrial's K-beauty products and maximize synergy between the two companies.

This content was prepared by MaeKyung Biz Content Planning Team based on official announcements and press releases.