Let me take this opportunity to mention how deeply impressed I was by last month’s AI contest held at our global headquarters. At a time when technology is transforming human life, this contest was an opportunity to reflect on how we can steer our combined efforts towards success. I welcome and applaud the novel challenges and attempts being undertaken by everyone in their respective roles. Through similar continued efforts, Team AMORE can evolve to match the times.

Looking back, the 1990s saw the emergence of personal computers (PCs) and laptops, transforming the way everyone worked. PCs significantly improved productivity, allowing for revolutionary business development. Amorepacific was among the early adopters of Enterprise Resource Planning (ERP) systems. Initially, there were complaints about its unfamiliarity and inconvenience, but ultimately, ERP played a crucial role in supporting our workflow and contributing to business growth.

In the 2010s, the advent of smartphones redefined communication. Information accessibility improved dramatically, and e-commerce experienced explosive growth. The digital revolution transformed what companies once believed were their core competencies into core rigidities that hindered change. In recent years, we have become complacent with our success in China, failing to respond swiftly to the shifting environment. Although we have belatedly recognized this inherent rigidity and are expanding into e-commerce and multi-brand shops, there is still much to do and a long way to go.

“The New Game Changer, Generative AI"

Amorepacific is now facing another game changer. AI technology, in the form of the Generative AI epitomized by Chat GPT, is becoming deeply ingrained in a wide range of areas ranging from industrial sites to individual daily lives. Once considered a talking point in specific industries like IT, AI has now become a mandatory agenda item for all businesses.

With just a single idea, anyone can now create original content through Generative AI without restriction. This allows for faster and more diverse content production, enabling swifter responses to market trends. By incorporating these developments into the beauty industry, we can spur innovation in customer experiences once again and discover unprecedented business opportunities.

We can also make tasks that were previously performed in a mechanical fashion more efficient, investing more of our time in productive activities. For companies like ours, which have been in business a long time and boast significant scale, Generative AI will be enormously beneficial in redefining various business processes across the value chain, thereby increasing work efficiency and speed.

The importance of Generative AI stems from the prediction that future business success will be dependent upon speed. The anticipated benefits, such as swifter responses to shifting trends, cost savings, and enhanced creativity, offer an equal playing field to everyone. That being said, how quickly we can adopt and incorporate it into our workflow will be crucial in gaining a competitive edge.

“K Culture Evolving into a Universal Global Unifier”

We now find ourselves at an important turning point from a civilizational perspective. Just as Ukiyo-e woodblock prints from Japan’s Edo period played a significant role in the rise of Japonism in Europe during the Age of Exploration, Korean culture is now similarly emerging on the center stage of world civilization. K-pop and Korean dramas, as well as the beauty industry, symbolize Korea’s spirit of innovation. Outstanding depictions of human psychology, rich and nuanced emotions, a new perspective on beauty, and novel authenticity are significant factors that differentiate Korean culture.

Amorepacific has been beautifying the world for a long time and inaugurated the K-beauty trend. We started in Korea but have consistently expanded across Asia, inclusive of China, and believe it is now time to extend our reach further to truly global markets such as the United States, Japan, Europe, and India. Let us juxtapose the distinctive elements of Korean culture against the backdrop of digital technology. Generative AI, as it takes its rightful place as a respected colleague at our side, will play a key role in accelerating our response to emergent challenges, turning ideas and efforts into tangible results.

Moving forward, let us demonstrate our dynamic capabilities. We must wholeheartedly embrace the technologies the new era offers, boldly integrating them into our business processes and individual work styles. To stay ahead of the shifting winds of change, our individual efforts must coalesce into a collective force. Amidst fierce competition at home and abroad, we must focus all our efforts and succeed together. Today's struggles are the seeds of tomorrow's success for Team AMORE. To that end, let us once again refocus our efforts on our shared goal and Grow Together!