Lee So-young, minister of SMEs and startups, chose Kolmar Korea's (161890.KS) Sejong plant as her first visit to a private company since taking office. The trip was aimed at reviewing the production operations that support overseas expansion by small and independent Korean cosmetics brands and at discussing ways to strengthen the competitiveness of the K-beauty industry.
Kolmar Korea said on the 18th that the minister visited the Sejong plant in Jeonui-myeon on the 16th, touring major cosmetics production facilities and holding a meeting with industry officials. The visit was arranged to examine the role of original design manufacturing (ODM) companies that have grown by working with small cosmetics brands, and to explore policy support needed to expand K-beauty exports.
Attendees included the minister, Shim Jae-yoon, director general at the Ministry of SMEs and Startups, and Park Seung-rok, head of the Daejeon-Sejong Regional Office of SMEs and Startups. Kolmar Korea was represented by Chief Executive Choi Hyun-kyu, production division head Lee Young-joo and Sejong plant manager Kim Young-hyun, who discussed management issues facing the cosmetics industry and support measures to strengthen export competitiveness.
Kolmar Korea handles everything from cosmetics planning and research and development to manufacturing and quality control, supporting business expansion by domestic indie brands. The company provides a manufacturing base so that small brands without their own production facilities can focus on product development and marketing. The Sejong plant the minister visited is a core manufacturing site capable of producing 890 million cosmetics units a year. It produces sunscreen and basic skincare products, for which overseas demand has been rising recently, to meet global export volumes.
By product line, skincare accounts for 50% of Kolmar Korea's revenue and sun care 26%. Basic skincare products also accounted for $5.48 billion, or 74.7%, of South Korea's cosmetics exports in the first half of this year, reflecting strong overseas demand. Cosmetics exports by small and medium-sized enterprises reached $5.07 billion in the first half, up 30.7% from a year earlier, ranking first among SME export items.
Kolmar Korea is expanding its domestic production facilities in line with growing preference for Korean-made cosmetics in overseas markets. After closing its Beijing plant in China earlier this year, the company pushed ahead with an expansion of the Sejong plant and was designated a reshoring company. "We will do our best to help small and indie brands strengthen their competitiveness in overseas markets," Choi said. "We will continue to work closely with our clients and contribute to the growth of K-beauty."