OLIVE YOUNG Gyeongju Hwangnam CJ OLIVE YOUNG is stepping up region-specific investments outside the Seoul metropolitan area to stimulate local economies and create job opportunities for young people. OLIVE YOUNG announced on October 9 that it will invest KRW 123.8 billion in 2026 in new store openings, store renovations and logistics infrastructure outside the Seoul metropolitan area. The investment is more than three times the amount in 2023, when the retail sector was entering the post-pandemic recovery phase. Investment in store development, which has a particularly strong impact on local economic activity and job creation, will increase 36% year over year. The investment aims to drive both the qualitative growth of regional commercial districts and job creation for local youth. OLIVE YOUNG will focus its spending on upgrading stores in regional markets, strengthening their role as anchor tenants that attract foot traffic and support surrounding businesses. The company also plans to expand and optimize operations at its Gyeongsan distribution center and regional micro-fulfillment centers (MFCs), helping strengthen local consumer ecosystems. Expanding the role of anchor tenants to revitalize local commercial districts Of the 78 large-format stores measuring approximately 330 square meters scheduled to open or undergo renovations this year, 43 will be located outside the Seoul metropolitan area. By combining distinctive designs that reflect local characteristics with interactive experiences, OLIVE YOUNG aims to establish K-beauty landmarks across the country that attract both local shoppers and international visitors. The company plans to introduce globally focused stores in major tourism destinations such as Busan, Jeju and Gyeongju, while establishing large-format flagship stores in established downtown districts and newer urban centers across the Gyeongsang, Jeolla and Chungcheong regions. OLIVE YOUNG has also increased investment in logistics facilities at its Gyeongsan distribution center to strengthen delivery within 24 hours across Daegu and North Gyeongsang Province. In addition, it is developing a faster delivery service tailored to residents of Jeju Island, with the goal of making shopping more convenient for customers in regional markets. The increase in visitors drawn to these anchor stores is also driving greater consumer activity in surrounding commercial districts. In Daejeon, Seomyeon in Busan and Gangneung, where OLIVE YOUNG opened town-format stores last year, visitor numbers rose by an average of 25% in the six months following opening compared with the same period immediately before, helping generate additional foot traffic for nearby businesses. These effects are extending beyond traditional tourism hubs into a wider range of regions. Year-over-year sales to international customers increased by more than 120% in South Gyeongsang Province, North Chungcheong Province and Ulsan, indicating that visitor spending is spreading beyond its previous concentration in a limited number of destinations. Creating local career opportunities and fostering K-beauty professionals OLIVE YOUNG's regional investments are also expected to expand employment opportunities for young people. The company plans to hire approximately 600 new employees outside the Seoul metropolitan area in 2026. Each town-format store employs an average of around 55 people, making these locations significant local employment hubs rather than simply retail outlets. Beyond recruitment, OLIVE YOUNG is building career pathways that help young employees develop into beauty and wellness professionals. As of 2025, more than 90% of employees transitioning to regular full-time positions from store roles had previous experience working as part-time crew members, reflecting the company's approach of turning frontline experience into long-term career opportunities. OLIVE YOUNG also supports employee development through a self-directed Career Development Plan (CDP) framework, enabling employees to define and pursue their own career goals. Through the company's Talent Management System (TMS), employees can record their preferred roles and career paths, while the internal Job Posting program provides ongoing opportunities to explore transfers to different positions and locations. This approach has already helped employees broaden their career horizons. One employee who began their career at a regional store now contributes to developing service manuals for the company's U.S. subsidiary and store operations. Another employee with a strong interest in wellness transferred to the first OLIVE BETTER store. The company is also expanding pathways into specialized roles. In January 2026, OLIVE YOUNG introduced the beauty consultant position, selecting employees through a voluntary application process for those aspiring to become beauty professionals. Selected employees received hands-on training focused on customer service and product knowledge to strengthen their practical expertise. The initiative aims to create new career opportunities for young people interested in beauty and service. Beauty consultants are now providing personalized beauty consultations at major stores. OLIVE YOUNG plans to expand specialized training programs to systematically develop these professionals and secure skilled talent to support the K-beauty industry. The company also intends to extend this talent development framework to regional stores, creating quality employment opportunities for local youth while continuously strengthening their professional capabilities. “Expanding our investment outside the Seoul metropolitan area is about strengthening the self-sustaining potential of local economies while creating opportunities for young people to grow into K-beauty professionals,” an OLIVE YOUNG representative said. “We will continue to build a robust ecosystem in which regional communities, young talent and small and emerging brands can grow together.”