Kwak Ki-sung, CEO of HONEST, Winner of the 33rd Gyeongbuk SME Award

“We aim to build a globally recognized company with strong competitiveness not only in K-beauty but also in the pharmaceutical sector,” said Kwak.

Despite ongoing economic uncertainty, the K-beauty industry continues to demonstrate steady growth. Korean cosmetics, recognized for both their functionality and strong brand awareness, are achieving solid results in overseas markets and strengthening their position as a high value-added industry.

HONEST, winner of the 33rd Gyeongbuk Small and Medium Enterprise Award, has established itself as a K-beauty company recognized on the global stage beyond its regional roots. Backed by accumulated technological expertise, the company has built an extensive supply network spanning more than 20 countries. CEO Kwak Ki-sung emphasized his commitment to strengthening the company’s fundamentals to create a “resilient enterprise” capable of long-term and sustainable growth.

◆ OBM Leader, Diversifying into the Pharmaceutical Sector

Headquartered in Gyeongsan, HONEST provides customized solutions across cosmetics, quasi-drugs, and medical devices. In particular, the company possesses strong capabilities in OBM (Original Brand Manufacturing), independently managing the entire process from R&D and manufacturing to distribution, sales, and branding. As its competitiveness has gained recognition, HONEST has evolved into a company actively sought out by major clients.

“While exports have traditionally accounted for a large portion of our business, last year we focused on strengthening our domestic presence through collaborations with leading Korean companies, including Megagen Implant,” said Kwak. “Years of dedication to technological development have significantly improved product quality and stability, resulting in a higher level of trust. We are now recognized as a partner that supports the entire process from development to commercialization.”

HONEST operates its research and production facilities within the Daegu-Gyeongbuk Advanced Medical Complex, generating strong synergy with regional companies. In October last year, the company signed an agreement with Astrogen, a developer of treatments for autism spectrum disorder, to jointly develop customized quasi-drugs and cosmetics for children.

“This collaboration is meaningful in that it combines Astrogen’s expertise in neurological disorder research with HONEST’s quasi-drug development technology, with the goal of creating products that support the emotional stability of children with autism,” Kwak explained.
“Our new product, tentatively named Bubble Gargle, goes beyond hygiene management to help safeguard the daily lives of children on the autism spectrum. It is designed as a customized product that takes sensitivity into account, and we plan to launch it within the year. We also hope to expand collaboration with local companies to contribute to solving broader social issues.”

◆ Region-Based Growth and IPO Vision

Founded in 2016, HONEST has grown as a youth-led startup. Support from Gyeongsangbuk-do Province and related institutions played a crucial role in helping the company establish itself in its early stages.

“We started as a youth-led enterprise,” said Kwak. “Through various programs offered by local governments and business support organizations, we were able to seize valuable opportunities. I wanted HONEST to become a successful example of a young company growing and taking off from a regional base. I also hope our journey encourages other young entrepreneurs to continue taking on new challenges.”

Kwak emphasized the untapped potential of companies clustered around Gyeongsan and the Advanced Medical Complex.
“The proximity of diverse companies, each with its own strengths, makes communication and collaboration much easier. We have experienced firsthand how this synergy can translate into tangible results. It is important to explore ways to enhance the added value of the regional beauty and medical industries.”

He added, “Gyeongbuk recognized the importance of the cosmetics industry early on and actively supported its development. The results of those efforts are now becoming visible. With a mid- to long-term perspective rather than a focus on short-term performance, I am confident that even greater outcomes can be achieved.”

While anticipating continued economic slowdown this year, Kwak plans to build a stable foundation for business expansion, prioritizing sustainable growth over short-term revenue increases.

“To address limitations in production capacity, we are pushing forward with a factory relocation to secure infrastructure capable of reliably handling increasing order volumes,” he said.
“At the same time, we are strengthening a diversified portfolio spanning cosmetics and quasi-drugs, expanding the scope of our B2B collaborations.”

In closing, Kwak stated,
“We have set a mid- to long-term goal of pursuing an IPO by 2030. Rather than pursuing excessive expansion, we are focusing on refining our organization and systems to meet the right conditions. With pride in representing our region, we will continue to enhance our competitiveness and become a company recognized on the global stage.”

Link to the Original Article: https://www.imaeil.com/page/view/2026010713291360603