Expanding Business in China
Aekyung Industrial Co., a major South Korean household and personal care products maker, announced on November 28 that it has established an affiliate in China as part of its plan to tap deeper into the world's No. 2 economy.
Aekyung Industrial held an opening ceremony of AK-Shanghai Trading Limited in Wanxiangcheong in Minhang District at the southwest of Shanghai on the 27th, starting operation in earnest.
Aekyung Industrial set up the new company in four years after it first entered the neighboring market with a liaison office in Guangzhou in July 2013. The opening ceremony was attended by Aekyung executives and employees, local buyers and officials from media and cosmetics companies as well as Aekyung Industrial CEO Lee Yun-kyu.
AK-Shanghai Trading Limited, a local subsidiary wholly owned by Aekyung Industrial, plans to raise its brand awareness in China and aggressively target online and offline channels based on its cosmetics brands such as AGE 20’s and LUNA.
An official from Aekyung Industrial said, “The company’s sales in China have shown a rapid growth trend, posting 42 percent increase in 2015 and 112 percent expansion in 2016. With the establishment of its local subsidiary, Aekyung Industrial is expected to boost sales further in the future by responding more flexibly in the Chinese market.”