The U.S. cosmetics industry has faced growing competition from the Korean cosmetics market since 2020, as the Asian country’s products have grown in popularity.
As Korean product sales have risen, certain American beauty companies have battled economic issues, in some cases filing for bankruptcy protection.
A U.S.-based company marketing Korean cosmetics products, Pine Cosmetic Inc., is even having difficulties, leading it to bankruptcy court.
New York-based cosmetics and beauty company Pine Cosmetic Inc., which specializes in high-quality Korean skincare products, filed for Chapter 11 bankruptcy protection, according to PacerMonitor, with plans to reorganize its business.
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Pine Cosmetic files for bankruptcy
The debtor, which operates Pine Beauty Mall, LeBody USA, La Noubelle, Somisome, and the Daly Glow brands, filed its petition in the U.S. Bankruptcy Court for the Eastern District of New York on July 17, listing $100,000 to $500,000 in assets and $1 million to $10 million in debts.
The cosmetics company, which was incorporated in August 2013, plans to reorganize and restructure its debts, according to a person who answered the company’s phone on July 17. The company is operating as normal, the unidentified person said. No specific reason was given for filing the petition.
The company’s Pine Beauty Mall website is still operational as of July 17.
Pine Cosmetic’s largest unsecured creditors include Chase Bank, owed over $229,000; CESC-Covic EIDL Servicers, owed over $218,000; First Bank, owed $150,000; TD Bank, owed over $132,000; Forward Financing LLC, owed over $122,000; Lendistry, owed over $107,000; and PayPal, owed over $55,000, according to court documents.
Korean cosmetics gain popularity
The Korean cosmetics industry has skyrocketed in the U.S. since 2020, as exports almost tripled from $641 million in 2020 to $1.91 billion in 2024, according to Korean Economic Institute of America research. This rising trend was worldwide, as total Korean cosmetics exports rose from $7.57 billion in 2020 to $10.23 billion in 2024.
Korea’s largest cosmetics market, China, however, declined during that period from $3.81 billion in 2020 to $2.5 billion in 2024.
North America’s emerging frontier
“This striking reversal reflects deeper dynamics in global demand, where China once served as the single-largest growth engine for K-beauty, North America has now emerged as a principal frontier market particularly for skincare,” according to Korean Economic Institute of America.
Financial difficulties led Dallas-based Adwoa Beauty to file for Chapter 11 protection in October 2025 with a Subchapter V petition, seeking a reorganization to continue operating. Adwoa subsequently converted the bankruptcy to Chapter 7 liquidation in May 2026 after a financing agreement deteriorated and the company could no longer continue to operate.
Expensive litigation forced Miyoshi America Inc., a leader in surface-treated pigments and powders for major cosmetics brands, to file a prepackaged Chapter 11 plan of reorganization on April 27, 2026, seeking to resolve alleged talc- and asbestos-related liabilities asserted in lawsuits against the company and continue operating in a business-as-usual manner.
Under the plan of reorganization that needed court approval, the Dayville, Conn.-based debtor would create a $20 million trust to pay claims related to litigation, according to a declaration by Miyoshi Vice President Edward Houlihan.
Miyoshi would create a 524 (g) trust, funded by a $19 million cash contribution by the debtor and a $1 million promissory note.
The debtor listed 25 law firms in its petition with pending talc personal injury claims against the company.
Pine Cosmetic brands:
- Pine Beauty Mall
- LeBody USA
- La Noubelle
- Somisome
- Daly Glow
- Source: Petition
