SEOUL, July 25 South Korea's CLIO Cosmetics applied for preliminary exchange approval for an initial public offering (IPO), Korea Exchange said on Monday. The filing came after an investment arm of French luxury goods giant LVMH said on Friday it took a minority stake in the cosmetics firm, the latest bet by global investors on booming demand for Korean beauty products in major markets such as China. (Reporting by Hyunjoo Jin; Editing by Sherry Jacob-Phillips)
French companies think Korean beauty products are going to do well in China.
The statement seems to be implying that a French luxury company took a minority stake in a Korean cosmetics firm because of booming demand for Korean beauty products in China, but that may or may not actually be why they bought the stake. The system is probably thinking this implication is more concrete than I do. 