Fashion platform Musinsa has submitted a preliminary review application for listing on the KOSPI market, drawing renewed interest in IPOs (initial public offerings) by other K-fashion and K-beauty companies. Goodai Global, a K-beauty firm, is also preparing for an IPO, raising expectations about what level of corporate valuation each company will receive during the offering process. Given that valuations around 10 trillion won are being discussed, the outcomes of their IPOs are expected to influence the valuation of fashion and beauty companies across the sector.
According to data from the Korea Exchange on the 8th, Musinsa submitted its preliminary review application for KOSPI listing on the previous day (the 7th). The lead underwriters are Korea Investment & Securities and Citigroup Global Markets Securities, with KB Securities and JPMorgan serving as co-managers. If the exchange's review proceeds smoothly, an IPO is expected later this year, followed by a listing in early next year.
Musinsa began as an online fan club in 2001 and grew into a fashion platform after launching Musinsa Store in 2009. The company has expanded its business scope through Musinsa Standard and 29CM (29 Centimeters), while accelerating efforts to open offline stores and expand overseas operations. Last year, revenue reached 1.4679 trillion won, with operating profit at 140.5 billion won, representing increases of 18.1% and 36.7%, respectively, compared to the previous year.
Market analysts are discussing Musinsa's corporate valuation in the range of 8 trillion to 10 trillion won. This represents a significant increase from its estimated valuation of around 3 trillion won during its 2023 investment round. In the over-the-counter market, recent secondary transactions have reportedly occurred at valuations near 4 trillion won. The key question now is how much premium Musinsa will receive in its IPO.
Musinsa's business structure also presents variables for valuation. With a combination of platform fees, PB (private brand) sales, brand distribution, and offline operations, the company's evaluation may vary depending on whether traditional fashion companies or e-commerce platforms are used as comparables. Expansion of overseas offline stores, including in Shanghai, China, along with strong global business performance, is seen as growth drivers that could support a higher corporate valuation.
In the K-beauty sector, Goodai Global is preparing for an IPO. Starting with Chosun Beauty, the company has secured brands such as TirTir and Skin1004, expanding its global operations and recently broadening its portfolio through brand acquisitions. Market discussions suggest a corporate valuation of around 10 trillion won, with the possibility of submitting a preliminary review application as early as this month.
A common factor for both companies is the need to demonstrate growth potential beyond the domestic market. Musinsa highlights global expansion of its fashion platform and offline operations, while Goodai Global points to increased overseas sales of K-beauty brands as key growth drivers.
The outcomes of their IPOs are expected to influence the corporate valuations of latecomer fashion and beauty companies as well.
If Musinsa receives a higher multiple than traditional fashion companies, it could signal greater growth premiums for firms combining platforms with brands. Similarly, if Goodai Global is highly valued for its global K-beauty operations, it could send positive signals to other beauty companies with high overseas revenue shares preparing for IPOs.
In the fashion industry, Highlight Brands is also moving forward with an IPO, targeting a listing in the first half of 2027. As more fashion and beauty companies prepare for listings alongside Musinsa and Goodai Global, market attention is focused on how investors will value growth potential and profitability during upcoming offerings.
An industry executive stated, "For fashion and beauty companies, it has become increasingly difficult to justify high corporate valuations based solely on domestic performance." The executive added, "The extent of revenue expansion in global markets and the ability to secure profitability will likely become key criteria in determining IPO valuations."
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