29CM's Lifestyle Store Tops $360K Monthly Sales, Outpacing Muji

Key Issue Briefing

O4O Strategy: 29CM, the fashion and lifestyle platform operated by Musinsa, has expanded its online-verified K-lifestyle brands to key offline retail districts including Seongsu. Its flagship store "Iguhome Seongsu" now generates average monthly sales exceeding 500 million won ($360,000), surpassing Muji's average monthly sales of 400 million won per store. The curation strategy targeting millennial and Gen Z "digging consumption" with reasonable prices and distinctive designs has proven successful.

Global Localization: Amorepacific (090430) has begun co-developing makeup cushions and other products with Nykaa, India's leading beauty platform, advancing beyond simple distribution to sophisticated localization strategies. The company is positioning India's beauty market—projected to grow to $45 billion (66 trillion won) by 2030—as a key post-China growth axis, launching locally customized products under brands including Etude and Innisfree.

Global Index Inclusion: Samsung Epis Holdings (0126Z0) and ABL Bio (298380) are being discussed as potential additions to the MSCI Korea Index, raising expectations for foreign passive fund inflows and share price stabilization.

Startup News Highlights

1. 29CM's Iguhome Seongsu Exceeds 500 Million Won Monthly Sales

Iguhome Seongsu attracted 620,000 cumulative visitors within six months of opening, with over 80% being millennials and Gen Z consumers. The O4O (Online for Offline) model is delivering efficient results, with tenant brand Ttunu recording over 3 billion won in transactions through 29CM last year. The company plans to open a fourth location in the first half of this year.

2. Amorepacific Partners with India's Nykaa for Product Development

Laneige has begun joint product development with Nykaa, including makeup cushions. Etude launched India-exclusive products late last year featuring tint lineups reflecting local skin tones and climate. India's beauty and personal care market is expected to grow from $24 billion in 2024 to $45 billion by 2030 at an annual rate of 11.7%.

3. Samsung Epis Holdings Eyes MSCI Inclusion Three Months After Spin-off

Following its November spin-off from Samsung Biologics (207940), Samsung Epis Holdings has seen its foreign investor ratio drop to 5.97%, compared to Samsung Biologics' 12.66%. MSCI Korea Index inclusion would attract passive funds and reduce volatility. Currently, only six pharmaceutical and biotech stocks are included in the index.

4. K-Obesity Drug Development Faces Headwinds Amid Wegovy Pricing Pressure

The FDA has restricted mass sales of compounded medications using the same active ingredient as Wegovy, forcing Hims & Hers to halt its compounded semaglutide offerings. Novo Nordisk projects 5-13% declines in 2026 revenue and operating profit. Korean drugmakers developing generics face uncertain profitability prospects.

5. Korea's Welfare Spending Outpaces R&D Growth

Korea's public social welfare spending rose from 7.4% of GDP in 2010 to 15.3% in 2024, contrasting with gradual increases among OECD nations. Government R&D spending doubled from 16 trillion won in 2010 to 35.5 trillion won in 2026, but remained flat at 4.7-4.8% of total expenditure.

6. HD Hyundai Heavy Industries Targets Saudi Frigate Contract

HD Hyundai Heavy Industries (329180) will participate in the World Defense Show 2026 in Riyadh starting February 8, showcasing eight vessel types including the 6,000-ton HDF-6000 export frigate. The company is considering expanding local construction ratios at Saudi Arabia's IMI shipyard, a joint venture with Aramco.