"Hydrogels require not just equipment but also formulation technology and extensive production experience to achieve consistent quality," said Kim Im-jun, CEO of JinCostec, during a press conference held on September 22 at the 63 Square in Yeouido, Seoul. He outlined the company's growth strategy following its planned transition to KOSDAQ. JinCostec aims to enhance its production capacity and secure global clients, leveraging 15 years of accumulated hydrogel formulation technology and production know-how to become a premium hydrogel ODM company.
Founded in 2010, JinCostec specializes in the development and production of hydrogel mask packs and eye patches. The company has established a production system capable of handling everything from product planning and formulation development to mass production and quality control, focusing on hydrogel research and development.
JinCostec highlights its competitive edge in the challenging production technology of hydrogels, which involves multiple processes such as raw material mixing, coating, cooling, molding, folding, and sealing. This requires advanced technology to manage yield and quality according to specific formulations and customer standards.
The growth of the K-beauty market is also driving increased demand for hydrogels. Kim noted, "The number of countries importing Korean cosmetics is expected to rise from 165 in 2023 to 202 by 2025," adding that the export market, once centered on China, is diversifying to include major markets like the United States.
JinCostec's financial performance reflects this growth. Revenue is projected to increase from 19.5 billion won in 2023 to 29.8 billion won in 2024, and 48.6 billion won in 2025. The company is expected to turn an operating profit of 1.1 billion won in 2024, following a loss in 2023, and expand it to 4.8 billion won the following year.
In the first half of this year, JinCostec reported revenue of 30.96 billion won and an operating profit of 3.46 billion won, marking increases of 33.5% and 33.9%, respectively, compared to the same period last year. The operating profit margin stood at 11.2%. The share of revenue from hydrogel masks and patches also rose from 86.34% in 2025 to 89.11% in the first half of this year.
Kim stated, "The increase in the proportion of high-value hydrogel products and improvements in cost ratios are driving both revenue growth and profitability." To meet rising demand, JinCostec is expanding its production capacity. In the first half of this year, the utilization rate of its hydrogel mask and patch production lines reached 98.61%. Currently, the company has an annual production capacity of approximately 47.28 million units, centered around its factories in Siheung and Ansan. Plans are underway to build a third factory on a 2,000-pyeong site in the Siheung Industrial Complex.
The new factory will add two production lines for water-soluble hydrogels, increasing production capacity by over 40%. Major equipment installation is expected to be completed by the end of this year, with trial production set to begin in April 2027. The total investment required is approximately 8 billion won.
Kim explained, "This expansion is not just about preemptively setting up facilities for anticipated demand; it is aimed at converting the already increasing demand into additional revenue. Based on current sales, this could translate to over 20 billion won in additional production capacity." The customer base has also expanded, with the number of trading clients increasing from 81 in 2020 to 249 by 2025, and reaching 279 in the first half of this year. As of the first half of this year, the largest customer accounted for 19.1% of sales, while the top two customers combined represented 29.7%.
JinCostec is also accelerating its expansion into overseas markets. In the first half of this year, overseas sales reached 8.2 billion won, accounting for 26.5% of total revenue. The company is currently operating in ten countries, including the United States, Japan, China, and Vietnam, with plans to expand into Spain, Mexico, Canada, Turkey, and the Philippines.
Kim remarked, "The overseas market is shifting from a North America focus to Europe, and Southeast Asia shows significant growth potential. We are also receiving inquiries from the Middle East and unexpected interest from China." The decision to transition from KONEX to KOSDAQ is driven by the desire to enhance corporate value. Kim stated, "The primary goal on KONEX was to increase the company's value. We felt disappointed that the company was undervalued despite having a value significantly higher than the current one, which led to the decision to move to KOSDAQ." JinCostec plans to offer a total of 852,000 shares in its upcoming IPO, with a target price set between 19,500 and 23,500 won, aiming to raise between 16.6 billion and 20 billion won. Demand forecasting for institutional investors will take place from September 16 to 22, with general subscription scheduled from October 2 to 6. Hana Securities is the lead underwriter for the offering.
The funds raised will be used for the construction of the third factory, securing raw materials in preparation for increased production, research and development of next-generation hydrogels, and recruitment of key personnel.
Kim emphasized, "This transition to KOSDAQ and the expansion of the third factory will allow us to proactively respond to growing global demand and further develop next-generation hydrogel formulations, positioning us as a leading premium hydrogel ODM company."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.