K-Beauty Boom Drives Record Medical-Tourism Spending, Yet Sector Valuations Languish at Historic Lows

Fuelled by the K-beauty wave, foreign medical-tourism spending in Korea has broken all previous records — yet the share valuations of leading aesthetic-medicine companies such as Classys, Hugel, and Pharma Research remain near their lowest-ever levels.

In an industry report published on the 15th, Kiwoom Securities stated that foreign medical-tourism expenditure in May 2026 reached 251.2 billion won (year-on-year: +74.6%), an all-time high. Restricted to dermatology alone, the figure came to 145.2 billion won (YoY: +85.5%; month-on-month: +3.1%).

The number of unique foreign patients treated (excluding repeat visits) in 2025 reached 1.98 million, up 73.8% year-on-year — a growth rate exceeding 70% for four consecutive years. Should a similar pace continue in 2026, annual patient numbers are expected to surpass 3 million.

The average medical cost per dermatological procedure for foreign patients also climbed to 1,446,515 won as of May 2026, a rise of 37.2% year-on-year.

Export Data Equally Robust

Export figures from the Korea Customs Service (May 2026 final data) reinforce the picture of broad-based demand:

Category | Export Value | YoY Growth

Dermal fillers | USD 336.32 million | +40.1%

Botulinum toxin | USD 48.70 million | +45.0%

Wound-dressing patches | USD 11.34 million | +120.3%

Energy-based devices (EBD) | USD 95.31 million | +13.9%

Contact lenses | USD 16.35 million | +9.4%

Valuations at Historical Lows

Against this backdrop of record demand, listed companies in the sector trade at strikingly depressed multiples. Consensus-based 12-month forward price-to-earnings ratios are as follows: Classys at 14.1x, Hugel at 15.2x, Pharma Research at 14.0x, Interojo at 8.0x, and T&L (티앤엘) at 8.5x.

The contrast with each company's historical average PER since listing is stark:

Company | Historical Average PER | Current Forward PER

Classys | ~27x | 14.1x

Hugel | ~25x | 15.2x

Pharma Research | ~25x | 14.0x

Interojo | ~13x | 8.0x

T&L | ~11x | 8.5x

Sector Outlook: Overweight

Kiwoom Securities maintained its Overweight rating on the aesthetic-medicine sector. The brokerage's view is that K-beauty demand has become a structural, recurring phenomenon rather than a transient trend, making a sustained reversal in the sector's growth trajectory unlikely.