Amorepacific: Two Sisters Battle for Beauty Empire Succession

Amorepacific stands as a titan in the global beauty industry, a name synonymous with the worldwide popularization of Korean beauty innovations. For decades, it has set benchmarks, influencing trends and elevating K-beauty to an international phenomenon.

Despite the emergence of agile, new-generation K-beauty brands, Chairman Suh Kyung-bae reinforced Amorepacific’s ambitious future at the company’s 80th-anniversary celebration last year. He declared a renewed focus on “new beauty,” charting a course for continued growth and innovation.

“As creators of beauty, we are committed to presenting a unique vision to the world, one that harmonizes body and mind, transcending age and time,” Chairman Suh articulated, outlining a formidable target of 15 trillion won ($10 billion) in annual revenue by 2035 — a significant leap from the company’s 2025 sales forecast of 4.6 trillion won.

Beneath this ambitious vision lies a compelling corporate succession narrative. For much of Amorepacific’s storied history, the eldest daughter was perceived as the clear heir apparent. However, recent developments suggest this long-held assumption may no longer hold true.

Suh Min-jeong, born in 1991, initially followed the traditional path expected of a chaebol heir. This included early share transfers, extensive overseas education, and a structured progression through various corporate roles within the family business.

Her journey began in 2006 when she received her initial shares from her father, later consolidating them into the holding company in exchange for preferred stock that subsequently converted to common shares. By 2016, she had become Amorepacific Holdings’ second-largest shareholder, boasting a 2.71 percent stake, second only to the chairman himself.

A distinguished Cornell graduate, Suh Min-jeong honed her business acumen at Bain & Company before officially joining Amorepacific in 2017 as a production management employee. After six months, she pursued a Master of Business Administration at China’s prestigious Cheung Kong Graduate School of Business, rejoining Amorepacific in 2019 within the beauty sales strategy team.

The following year, her marriage to Hong Jeong-hwan, eldest son of the Bokwang Investment chairman, was seen as a strategic alliance. Yet, the marriage dissolved in less than a year, coinciding with a perceived weakening of her position in the succession narrative.

In 2021, Chairman Suh reclaimed 100,000 holding company shares previously gifted to his former son-in-law. Concurrently, Suh Min-jeong’s stakes in key affiliates like Etude and Espoir were eliminated through capital reduction processes. Adding to the shift, in 2023, she relinquished approximately half of her Innisfree stake and commenced a leave of absence, which remains unresolved.

Further complexity arose from unverified reports in 2023 of a second marriage, never publicly confirmed, which some insiders believe strained the relationship between father and daughter, deepening the uncertainty around her role.

Nonetheless, some analysts advocate for a cautious interpretation. “While Min-jeong’s leave is for personal reasons, it’s premature to declare her entirely out of the succession race. Given Chairman Suh’s active leadership, it’s too early to definitively conclude that the younger daughter will assume control,” an industry observer noted.

As the elder sister’s public profile receded, the younger sister, Suh Ho-jeong, progressively moved into the spotlight.

Born in 1995, Suh Ho-jeong embarked on a more gradual and distinct career path, entering the Amorepacific group through Osulloc, its renowned tea subsidiary. Established in 1979, Osulloc remains integral to the group’s identity and its evolving commitment to beauty and wellness.

A Cornell graduate with a degree in hotel administration, she joined Osulloc’s product development team at an entry level in 2018, without prior formal work experience, emphasizing a hands-on learning approach.

“She is gaining practical experience just like any other new employee,” affirmed a company official, underscoring her foundational development within the organization.

For industry observers, her placement within Osulloc, far from being peripheral, appears to be a strategically significant move.

While accounting for just over 2 percent of Amorepacific’s total group revenue, the tea business has emerged as one of its most dynamic growth engines. Last year, Osulloc achieved double-digit growth, surpassing 110 billion won in annual sales. Its international momentum is also accelerating, particularly with successful inroads into the U.S. market via Amazon.

A more nuanced perspective suggests the family might ultimately divide responsibilities along specific business lines. In this scenario, core cosmetics could remain under Suh Min-jeong’s oversight, while the younger daughter, Suh Ho-jeong, steers newer, non-beauty ventures.

“Amorepacific is actively diversifying into tea, health supplements, and dental care, alongside its core cosmetics business,” an industry source highlighted. “The scaling and eventual division of these units between the two daughters represents a plausible scenario that cannot be dismissed.”

A significant development occurred in February when Chairman Suh transferred 190,000 common shares in Amorepacific, valued at approximately 30 billion won, to his younger daughter, Suh Ho-jeong.

Although the company clarified this transfer as a practical measure to assist her in covering gift taxes on shares previously received from her father, some industry pundits interpreted it as a preliminary step to narrow the ownership disparity between the two sisters.

To date, Suh Ho-jeong has successfully raised around 10.1 billion won through subsequent share sales to settle these tax obligations.

A substantial portion of the younger Suh’s current stake comprises preferred shares slated for conversion into common stock in 2029. This includes 1.73 million convertible preferred shares she was granted by her father in 2023, further solidifying her future ownership.

Upon conversion, the ownership gap between the sisters is projected to significantly close, with the elder sister holding a combined stake of 2.84 percent compared to 2.28 percent for the younger. Even after this adjustment, Chairman Suh would maintain control of over 50 percent of the holding company, ensuring the ultimate decision regarding succession remains firmly within his purview.

With the Amorepacific succession unresolved and multiple options still on the table, some industry officials believe it’s more accurate to view this period as one dedicated to providing both daughters with essential time and comprehensive managerial training.

Conversely, others caution that the absence of a clearly defined succession structure might hinder the company’s agility and responsiveness in a rapidly evolving market landscape.

Amorepacific maintains its official position that “nothing has been definitively decided,” leaving the future leadership of this K-beauty giant an unfolding story.