Korea Ginseng Corporation Provides Various Red Ginseng Experiences by Expanding from Health Care to Skin Care

KGC Begins Skin Care Business with Its Premium Red Ginseng Cosmetic Brand “Donginbi”

Korea Ginseng Corporation (KGC), began its effort to grow its cosmetics brand Donginbi to represent K-Beauty, like CheongKwanJang Red Ginseng that is at the forefront of K-Food phenomenon. In order to achieve this end, KGC is seeking to develop the brand’s premium image while looking at opportunities to expand to global markets.

KGC took over premium ginseng cosmetics brand Donginbi as its brand last September, from KGC Life Engine, which is its affiliate company. KGC intends to actively target the premium cosmetics product market by generating synergy effects with CheongKwanJang Brand.


The company will consistently push its multi-use cosmetic product brand Donginbi by collaborating with CheongKwanJang Red Ginseng brand, basing the new brand and the older one on “once source” strategy founded on KGC’s red ginseng produced under strict quality control methods. KGC plans to actively inject marketing and R&D resources to the new effort to nurture Donginbi, and the company has recently established Cosmetics Business Office to effectively launch the brand in the market in its early days. The cosmetics research organization within the company R&D center was also expanded in order to study and develop various skin care effects of red ginseng, with new experts being injected into the institution. In addition, KGC will enhance R&D and marketing efforts related to skin care effects of red ginseng in order to support the growth of Donginbi.

Vol.10_2Donginbi, created by CheongKwanJang’s superior research results on red ginseng, is a premium red ginseng skin care brand that includes products containing optimized active components of six-year-old ginseng. Donginbi products are based on red ginseng concentrate water, red ginseng, oil, and red ginseng juice, the three core ingredients that are obtained by steaming whole red ginseng in high pressure and gathering each drop of its essence. In the academic circle, red ginseng is widely known to reduce skin wrinkle formation caused by ultraviolet ray, in addition to various other effects beneficial to the skin. Red ginseng oil, a major component in Donginbi products, is recognized by the Korean Ministry of Food and Drug Safety for its wrinkle improvement effect.

Meanwhile, the company is also looking at duty free stores and door-to-door sale channels to widen its tangent with the consumer base. KGC’s mid-tolong-term goal is to expand into the Chinese market, a region that the global cosmetics product industry is eyeing, in order to strengthen global presence of Donginbi, alongside CheongKwanJang.

Chinese cosmetics product market was estimated to be $ 45.7 billion US dollar last year, with its premium skin care market estimated at $ 10.3 billion US dollar, which exceeds the size of Korean premium skin care market ($ 6.7 billion US dollar). KGC plans to compete with other brands in the Chinese premium cosmetics product market with its superior product power supported by red ginseng.

Vol.10_4In the first phase of Donginbi, KGC is opening independent Donginbi stores within duty free stores, which are separate from CheongKwanJang stores. Along with KDC Silla Duty Free location, which opened most recently, KGC completed the installation of independent Donginbi stores in all new downtown area duty free stores. The company also plans to execute the same scheme in overseas duty free stores.

In addition to the duty free store market, KGC will launch a two-front strategy by actively utilizing door-to-door sales, which is a method under which the most number of skin care products are sold. The company said that Donginbi, a red ginseng skin care product brand, has more than sufficient competitiveness in the premium cosmetics product market that is continuing to grow. KGC further stated that it will make its best efforts to reflect on the past success of CheongKwanJang Red Ginseng, which became the favorite child of the K-Food phenomenon, in order to make Donginbi skin care products represent K-Beauty, with its red ginseng ingredients.

Health Secret of an Olympic gold medalist

Vol.10_5PyeongChang Winter Olympic Games are only a year away. The first winter Olympic event in Korea, PyeongChang Winter Olympics will be hosted in the province of Gangwon-do in Korea, with high expectation from the Korean people as this is their first experience holding this international festival. Speed skating is a sport in which Korea has exceled at in past winter Olympic games; Lee Sang-hwa, a female speed skater, is going for her third Olympic gold after her wins in Vancouver in 2010 and Sochi in 2014. This Korean speed skating hero is known for her love of red ginseng.

As it requires sudden explosive power, speed skating is a sport that expends especially high amount of energy that necessitates quality recovery from fatigue. About red ginseng, Lee states: “Skating after taking red ginseng products for several days makes my body feel lighter, and I can sleep better. Especially while preparing for competitions, red ginseng seems to have no challenger in quick recovery from fatigue.”

In addition to Lee Sang-hwa, Lee Kyou-hyuk, a speed skater who has competed in the most number of Olympic games, enjoys red ginseng products. Athletes prefer red ginseng for largely three reasons: Saponin components contained in it is effective in restoring energy, red ginseng products come in various forms for easy consumption, and they are safe from sports drug testing.

Ginsenoside components, which is contained in large amounts in red ginseng, is known to help the body absorb nutrients and digest foods, while activating body metabolism, increasing energy, and restoring energy.

KGC supports the success of athletes who enjoy red ginseng in this coming Olympic games as well.