Amorepacific, LG H&H Boost Mexico Despite 25% Tariffs
Amorepacific and LG H&H lead a push into Latin America's second-largest beauty market, projected to reach $22.36 billion by 2031, even as import duties rise.
Korean Beauty Companies Target Mexico Amid Tariff Hikes
South Korean beauty firms, including Amorepacific and LG H&H, are prioritizing Mexico as a key growth market in Latin America. This expansion occurs despite increased trade barriers. Mexico, the region's second-largest beauty market after Brazil, is projected by Mordor Intelligence to grow from $17.64 billion this year to $22.36 billion by 2031.
This year, Mexico raised import duties on goods from countries without a free trade agreement, including South Korea. Cosmetics now face tariffs of approximately 25%, marking an increase of about 10 percentage points.
The 2026 K-Expo Mexico in Mexico City, held from Thursday through Sunday, highlighted this strategic focus and was attended by South Korean President Yoon Suk-yeol.
Amorepacific, LG H&H Detail Growth Plans
During the K-Expo, Amorepacific CEO Kim Seung-hwan informed President Yoon Suk-yeol of the company's goal for "more than tenfold growth within five years" in Mexico. Amorepacific showcased an AI-powered skin diagnostic device at its booth.
LG H&H also reported strong performance, with its North American sales reaching 205.8 billion won ($151.6 million) in the second quarter, a 47% year-on-year increase. This figure surpassed its China sales of 176 billion won for the first time.
An LG H&H official stated Mexico is a "key strategic hub" for its Latin American operations, with plans to expand into other major markets like Brazil and enhance its presence on Mercado Libre. Other Korean firms like Silicon2 have also ramped up operations, with its Mexican subsidiary running at full capacity since June. Amorepacific and APR stock their products at retailers such as Sephora and Ulta Beauty.
South Korea Pursues Trade Agreement to Ease Duty Burden
The increased tariffs represent a shared cost burden for the K-beauty industry, though companies are currently not passing these costs to consumers through price increases. Amorepacific CEO Kim Seung-hwan directly addressed the tariff issue with President Yoon Suk-yeol at the K-Expo.
Subsequently, at a business forum in Mexico, President Yoon emphasized that a bilateral trade agreement could significantly advance economic cooperation between the two nations, given their complementary industrial and economic structures.
Both South Korea and Mexico have agreed to initiate a joint feasibility study to explore such an agreement, laying the groundwork for future trade discussions.
Implications for Korean Beauty Exports
The launch of a joint feasibility study for a trade agreement between South Korea and Mexico signals a direct path toward potentially alleviating the 25% import tariffs on Korean cosmetics.
If successful, this study and subsequent negotiations could lead to a reduction or elimination of these duties, lowering operational costs for South Korean beauty exporters like Amorepacific and LG H&H. This concrete action could accelerate market penetration and competitive positioning for South Korean brands in Mexico and the broader Latin American market, with initial impacts anticipated from 2027 onwards, pending the pace of the study and trade talks.
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