K-Beauty giant Olive Young opening first US store in Pasadena

By Hyonhee Shin and Shirley Zhao | Bloomberg

South Korean beauty giant CJ Olive Young Corp. is set to open its first ever US store and partner with LVMH-owned Sephora as part of an ambitious push overseas to capture surging demand for K-beauty products.

The company will open its first overseas retail store in Pasadena on May 29 alongside a dedicated US online shop. Olive Young also plans to add four more California locations in coming months, including one at Los Angeles' Westfield Century City mall, Chief Operating Officer Jinhee Lee said in an interview.

"We will aggressively expand and increase our store count within California, and from there, we plan to scale our brick-and-mortar footprint across the US," Lee said.

The push marks a significant strengthening of the retailer's overseas strategy, which previously focused primarily on selling through online platforms. Olive Young is now investing in local warehouses, physical stores and distribution partnerships in the US as it seeks to generate as much as 90% of revenue from overseas customers within a decade, up from about 30% currently - including purchases by foreign tourists visiting Korea.

A key part of that strategy is its partnership with Sephora, announced in January. Olive Young-curated K-beauty sections featuring products from roughly 250 smaller Korean brands will begin rolling out in Sephora stores across 35 countries from August.

The partnership gives Olive Young access to Sephora's retail network as competition intensifies among Korean cosmetics companies seeking to capitalize on the global popularity of the country's pop culture and beauty trends. APR Corp., for example, plans to take its viral Medicube cosmetics line into big-box US retailers including Walmart Inc. and Costco Wholesale Corp. as it pushes to expand in the market.

Olive Young is also building out its own logistics network in the US. After opening its first warehouse in California, the company expects to sign a contract later this year for a second distribution hub on the East Coast, Lee said. It plans additional logistics centers to speed up nationwide delivery.

"We will fully localize our logistics infrastructure, delivery systems and all operational elements," Lee said.

Testing ground

The California stores will serve as a testing ground for a broader US retail rollout, offering trained beauty consultants and wider range of products tailored to more skin tones and types.

Internal data from Olive Young's online mall showed about 40% of overseas purchases over the past six years originated in the US, with more than 60% of those orders made by non-Korean shoppers, according to Lee.

The company's expansion coincides with growing uncertainty for global retailers as rising cost-of-living pressures weigh on consumer sentiment. Meanwhile, many foreign brands are now subject to US import tariffs and prolonged conflict in the Middle East is driving up raw material costs and disrupting shipping routes.

For Olive Young, there's also uncertainty around whether K-beauty's global hype can translate into long-term sustained business. While Korean beauty has surged in popularity, many brands are still relatively unknown in major Western markets - and many customers have already become used to buying items from third-party websites.

Hana Securities analyst Choi Chunguk said upfront investments tied to Olive Young's overseas expansion weighed on first-quarter profit margins, though continued growth in foreign tourist spending and online sales should support a rebound later this year.

While Olive Young is prioritizing physical retail in the US, it plans to maintain an online-first approach in Europe, Japan and Southeast Asia by improving localized payment and delivery systems. If the US expansion succeeds, the company will consider opening stores in other international markets, Lee said.

Olive Young also aims to position itself as a global platform for smaller beauty brands. Alongside Korean products, the Pasadena store will carry several US indie labels.

"We might discover and nurture a trendy American brand to stimulate the US market, and then bring it over to sell in Japan," Lee added. "Growing into such a global distribution platform within the next 10 years, we don't think it's an impossibly distant goal."

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This story was originally published May 20, 2026 at 2:14 AM.