Sustainable Products

Open innovation

Open innovation

Open innovation is part of our business management strategies, aimed at sharing technologies and knowledge with external stakeholders to facilitate technological innovation to expand the market. Removing boundaries is crucial to ease the sharing of knowledge between internal and external stakeholders of the company. To be specific, open innovation includes licensing (purchase of technology), joint research, establishing joint ventures, investment in or acquisition of a venture company, subsidiarization, technology solution contests, and the use of open sources. LG H&H also achieved performance in the fields of licensing and joint research by proactively conducting OI (open innovation) activities. In particular, we entered into a service partnership with Perfect Corp., a company specialized in video editing technology and face recognition security. Through this cooperative relationship, we applied API1) in our global digital catalogues. We also expanded licensing, which used to be limited in Korea, abroad in cooperation with SmartStudy. In 2020, we will boost innovation and expand the market using a wide range of methods, including licensing, joint research and technological solution contests.

1) API (Application Programming Interface): Language or message formats used in communication between the operating system and application programs.

Open innovation Process

LG H&H

Open Innovation Platform
(i-Connect, C&D)

  • Govern-
    ment-funded
    research
    institutes
  • Industry-
    academic
    cooperation
    foundations
  • Consumers
  • Corporate
    research
    institutes
  • Venture
    enterprises
  • Technology
    trade
    institutions

Main Performance of Open Innovation

Advanced Bio-engineered Cosmetics
OHUI THE FIRST

In 2009, we forged a strategic partnership with
CHA Bio & Diostech which possessed global-level
stemcell technology, so as to develop cosmetics
through the use of stem cell technology that
is emerging as a key regenerative
medicine technology.

Since then, a variety of new products
have been launched. Our collaboration
with the CHA Stem Cell Institute will
continue to use cutting-edge stem
cell technology in the R&D and
development of products and
to build competitiveness to lead
the bio-engineered cosmetics segment.

µÎ°³ÀÇ È­ÀåÇ° À̹ÌÁöÁß¿¡ ¿ÞÂÊÈ­ÀåÇ°Àº ÀÎüÁٱ⼼Æ÷ ¹è¾ç¾×À» ±×´ë·Î ´ãÀº - ´õÆÛ½ºÆ® Á¦³ÊÃò¾î Å©¸²½º, ¿À¸¥ÂÊ È­ÀåÇ°Àº Á¤Á¦¼ö ´ë½Å ÇǺΠ¿µ¾ç ¼¼Æ÷¹èÁö ¼ººÐÀ» 90.3% ÇÔÀ¯ÇÑ
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Antioxidant Cosmetics Brand
DAVI

LG H&H unveiled the new antioxidant cosmetics brand
DAVI in cooperation with the Mondavi family,
the world¡¯s bestquality wine provider.
In pursuit of antioxidant ingredients,
the fundamental solution to wrinkles and aging
skin, the company has taken notice of grapes
and wine, which are famous for their antioxidant
function, initiating joint research and
development of new antioxidant cosmetics
with the Mondavi family, the world-renowned
premium-quality wine provider,
and found ¡°Phyto-meritage,¡± the core ingredient with a superior antioxidant effect.

DAVI is a premium cosmetics brand boasting an enriched antioxidant effect,
enabled by the additional development of a variety of natural plant components with ¡°Phyto-meritage¡±, the core antioxidant component of DAVI. The premium skincare image has been secured through the realization of the world premium winery¡¯sphilosophy and story, and through the recognition of its value due to its scarcity; it is available only in the world¡¯s premium hotels and the first-class cabin.
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Professional Derma Cosmetics Brand
Dermalift

Dermalift is a professional derma cosmetics brand
aimed at ¡°derma lifting,¡±containing ingredients
cohered from both the beauty technology of LG H&H
and the biotechnology of LG Life Sciences
(hereinafter, ¡°LG LS¡±).

The major component is NecroXTM, developed
by LG LS for the first time in the world,
new component patented in the home country and
in the U.S. caring for damaged skin
and making it healthy by keeping down
the active oxygen, the major cause of aging.
While LG LS has performed clinical trials for
this component for medical purposes for around 10 years, through open innovation, the two companies¡¯ officers in charge of R&D jointly reviewed the possibility of using it as a raw material for cosmetics.

After that, LG H&H confirmed NecroXTM¡¯s safety and effectiveness on the skin and applied it to Dermalift, releasing the product in the steeply rising derma cosmetics market. The human test results confirmed its outstanding skin damage defense effect against external stimuli such as UV and SLS. Its excellent quality and specialty made this product differentiated and greatly well received by the consumers.

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Home esthetic beauty device brand
tuneage

In 2014, we found an excellent technology from
an external source related to beauty equipment,
applied our company¡¯s own design, and developed
a new type of cleansing equipment.

This new concept of cleansing equipment features
a spinning control system, which enables the automatic
switching of the direction of rotation in an upright internal
structure, which is the first of its kind in Korea.
The soft daily brush for deep cleansing of
dirt in pores and the white pearl brush for weekly
removal of dead skin cell enable speedy and effective cleansing.
Its compact design makes it easy and convenient to grab and use this beauty device.

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Apply the capsulizing technology to emulsion products
White Ginseng Collagen Pearl Capsule Cream

As a part of the ¡°K-Beauty Globalization¡± project led
by LG H&H, THE FACE SHOP provided support to KPT,
a medium-sized company, through the Chungbuk Creative
Economy Support Foundation,and conducted a
joint research project to release ¡°White Ginseng Collagen
Pearl Capsule Cream¡± and ¡°Nokyong (Deer Antlers)
Collagen Contour Lift Gold Capsule Cream.¡±
This was achieved by the synergy effect between
KPT¡¯s new technology for enriching active skin care
components in capsule form (7 mm or over in diameter)
for the first time in the world and THE FACE SHOP¡¯s capacity
for product planning, R&D, marketing, and sales.

Now these products are attracting consumers both at home and
abroad, recording over 62,000 products in sales as of 2015. Other joint R&D projects are in progress for Whoo and Isa-knox.

White Ginseng Collagen Pearl Capsule Cream
Outstanding process of uniformly coating non-woven fabric sheets
OHUI Miracle Moisture Ampoule
& Cream Mask

LG H&H founded the Chungbuk Center
for Creative Economy & Innovation in 2016
to select excellent technologies from local SMEs
in Chungcheongbuk-do, establish manufacturing facilities,
and support commercialization, thereby assisting
the development of new and promising products
that will lead K-Beauty trends. For example,
FanipinKorea was chosen in the New Technology
Proposal Meeting, a program for exploring
new technologies, for its outstanding process
of uniformly coating non-woven fabric sheets with clay,
cream, and gel. By combining LG H&H¡¯s paste-type cream formula and FanipinKorea¡¯s mask sheet coating technology, we launched the OHUI Miracle Moisture Ampoule & Cream Mask. The cream closely adheres to skin as it covers the face, delivering an excellent moisturizing effect.

OHUI Miracle Moisture Ampoule & Cream Mask
Localization of Expensive Imported Foaming Pumps
ON:THE BODY Rice Therapy
Bubble Foam Cleanser

LG H&H has set a common goal with suppliers
based on the Performance SharingProject
and developed products with enhanced
convenience in use. Since 2015,we have
cooperated with DARIN, a company producing
pumps for cosmetics and daily necessities
and set the common goal of localizing expensive
imported foaming pumps. Foaming pumps, which
are mostly used in hand wash products, are
highly difficult to produce, which was why
they were exclusively imported from a Japanese
company. LG H&H and DARIN began to jointly develop technology by drawing ideas, making a mold and providing support for technology and funds, and they finally succeeded in the mass production of a foaming pump to produce more delicate foam than the Japanese product. Through the performance sharing-project, both companies achieved win-win growth: DARIN secured new technology and sales and received a citation from the Prime Minister in 2016, while LG H&H raised its competitiveness in production cost.

ON:THE BODY Rice Therapy Bubble Foam Cleanser
Open innovation activation

In 2021, LG H&H actively carried out open innovation to promote joint research with domestic and foreign companies, institutions, and schools. In collaboration with the 'Donguibogam Research and Development Center,' we conducted research using a virtual human body system built based on 20 million papers on oriental medicine prescriptions, herbal medicines, and ingredients. Through this, we have succeeded in developing the 'Zaha Bichup Complex' ingredient, which is ten times stronger than the skin self-generating ingredient, by analyzing the interactions between oriental herbal ingredients with big data, which could not have been interpreted with existing research methods. We also developed and applied for a patent for an application that visualizes product efficacy data on the face using face tracking1) and AR technology together with 'Simboda,' which possesses the original facial landmark technology. Alongside, we signed an MOU with 'Urban Miner,' a start-up for upcycling activated carbon, and are preparing to launch a clean beauty product using coffee beans from the Cheonan plant by applying functional activated carbon manufacturing technology.

1) Face Tracking : A technology that automatically identifies the face of each people or facial feature points through digital images, and consistently discover feature points in real time.

Visualizing real-time skin condition data

Visualizing real-time skin condition data

  • Contour line
  • Mesh network
  • Density

R&D and product innovation

  • 2003~2005

    Trough ongoing open innovation activities, LG H&H does not simply apply the concept of Korean medicine but internalizes advanced Korean traditional medicine technology into its products.

    • 2003 Intensive Nutritive
      Cream
    • 2005 Hwanyujinaek Essence
      & Hwanyugo Cream
  • 2006~2016

    Since 2006, LG H&H has operated the Korean Medicine Research Society. We have developed dermatological theories that combine traditional Korean medicine and modern dermatology in cooperation with Korean colleges focused on traditioinal Korean medicine, relevant companies, and the Shanghai University of Traditional Chinese Medicine. As a result, we have improved the dermatological effects of our products and developed differentiated formulas containing traditional Korean medicinal features.

    • 2008 Self-Generating
      Anti-Aging Essence
    • 2010 Radiant Regeneration
      Cream
  • 2017

    In 2017, LG H&H conducted a survey and medical examination by Korean medicine doctors in cooperation with the Korean Medicine Research Society. Based on the survey result, we created the standards for distinguishing skin characteristics. We also established a management system for Korean medicine ingredients in collaboration with OBM Lab, a company specialized in ingredients for Korean medicine extracts, to handle the production process and analytical markers to identify Korean medicine content and boost the efficiency of extraction.

    • Ultimate Rejuvenating
      Emulsion
  • 2018

    In 2018, we cooperated with the Useful Plant Resources Center at the Korea National Arboretum to develop a technology to propagate Korean medicine raw materials that depend on imports in Korea. This technology development is expected to further increase the reliability of products by enabling domestic production of raw materials that depended on imports. We also established and donated R&D facilities worth KRW 200 million for in-depth technology development and cooperation with the Korea National Arboretum.

    • Whoo Bichup Moisture
      Anti-Aging Mask
  • 2019

    In 2019, we signed an agreement for R&D with the Cosmetics Research Center at Beijing Technology and Business University to explore beauty tips inherited from the Chinese imperial family and traditional Chinese dermatological theories. In addition, we cooperated with the Korean Medicine Research Society to expand the scope of research on theories about yin energy. We also discussed the research findings of the dermatological characteristics of people that lack yin energy and how to distinguish the types of customers at the conference of the Society of Cosmetic Scientists of Korea, and published a research paper in the journal.

    • Royal Privilege Cream
  • 2020

    In 2020, in collaboration with the Cosmetics Research Center at Beijing Technology and Business University, we analyzed ancient documents of the Tang Dynasty with its rich record of beauty tips of the Chinese imperial family, explored more than 800 Tang Dynasty imperial beauty tips, and established Chinese dermatological theories. To secure the base technology for the Whoo brand to leap forward as a global brand, we signed an agreement for R&D with European royal herb experts and discovered more than 80 Western royal beauty methods and tips.

    • Whoo Bichup Moisture
      Anti-Aging Essence
  • 2021
    Expanding the application of microbiome technology

    Expanding the application of microbiome technology The skin microbiome refers to the microbial ecosystem that coexists on the skin. When the skin microbiome loses its balance, abnormalities occur in the skin. LG H&H is strengthening its research capabilities to develop products with lasting and safe effects through the organic harmony of the skin microbiome. Utilizing our accumulated technical know-how, we are applying our anti-aging technology based on the skin microbiome from a total beauty perspective to various brands, such as 'Whoo Hwanyu Balancer Line', 'Su:m37¢ª Water-full Bluemune Essence', 'Elastine PropoliThera microbiome anti-aging care line', etc., ranging from basic cosmetics to hair and body products.

    • Whoo Hwanyu
      Balancer & Lotion
    • Su:m37¢ª Water-full
      Bluemune Essence
    • Elastine PropoliThera
      Microbiome Anti-Aging
      Care Line