Urbanica Ventures into Korean Cosmetics with $10.5 Million Investment

Urbanica, part of the Castro-HODIS group, is expanding beyond fashion into the Korean cosmetics market. The company has signed a principal agreement with Silicon2, a South Korean firm specializing in K-Beauty distribution and retail, to establish a joint venture in Israel under the brand Moida K-Beauty.

The initial investment for this venture is projected at approximately 60 million shekels, with Urbanica contributing about 42 million shekels. Urbanica will hold a 70% stake in the joint company, while Silicon2 will own 30%, with each party funding the operation proportionally to their share. The venture will focus on importing, marketing, distributing, and selling Korean cosmetic products sourced from Silicon2, alongside complementary lifestyle items.

The operation will feature multi-brand stores and online sales, with plans to launch in 2027. This move marks a new category for Castro-HODIS, as Urbanica has primarily focused on fashion and lifestyle until now. Yair Ohayon, Chairman of Urbanica and CEO of Castro-HODIS, expressed pride in bringing a unique concept offering leading Korean beauty brands to Israel, promising a novel shopping experience with multi-brand stores and e-commerce.

Silicon2, founded in 2002 and listed on the KOSDAQ exchange, distributes hundreds of K-Beauty brands and operates as both a wholesaler and a direct-to-consumer seller. Its Moida K-Beauty brand operates physical stores and online platforms across Asia, the US, and Europe. In the twelve months ending June 2026, Silicon2 reported revenues of approximately $958 million and a market valuation of about $2.2 billion.

Mariano Karp, CEO of Urbanica, stated that this initiative will provide Israeli consumers access to popular global beauty brands. He believes the synergy between Silicon2's international expertise and Urbanica's local knowledge will ensure the success of Israel's first K-Beauty platform. This expansion aligns with the growing global presence of Korean cosmetics, with South Korea being the world's second-largest cosmetics exporter and K-Beauty gaining traction in Western markets through online channels and social media.