South Korea's cosmetics industry posted record export figures in 2024, driven by the global K-beauty wave, with ODM giants Cosmax and Kolmar both reporting strong Q1 2025 results. As the two firms resolve governance uncertainties, they are accelerating transitions to second-generation leadership, signaling stability and growth potential for overseas buyers and distributors sourcing from Korea.
Record exports and ODM growth
According to the Ministry of Food and Drug Safety, South Korea's cosmetics exports reached $11.4 billion in 2024, up 11.8% year-on-year, while imports fell 2.3% to $1.29 billion. The trade surplus hit $10.1 billion. Korea now ranks as the world's second-largest cosmetics exporter after France. This export surge has directly boosted ODM firms: Cosmax posted Q1 2025 revenue of KRW 682 billion (up 16% YoY) and operating profit of KRW 53 billion (up 3%), while Kolmar reported KRW 728 billion in revenue (up 11.5%) and KRW 78.9 billion in operating profit (up 31.6%).
Cosmax: governance shift and regional divergence
CosmaxBTI, the holding company, disclosed that its largest shareholder changed from founder Seo Seong-seok (74) to his eldest son Lee Byung-man (48), vice chairman of Cosmax. The founder sold stakes to two sons' personal firms, reducing his holding from 22.61% to 13.83%. Lee Byung-man now holds 19.95%, while younger son Lee Byung-joo (47) also secured a similar stake. The brothers lead Cosmax (operating company) and CosmaxBTI (holding company) respectively, marking the formal start of second-generation management. However, overseas performance varied: Thailand subsidiary revenue grew modestly to KRW 24.3 billion, while Indonesia saw a 23% drop to KRW 22.7 billion due to political uncertainty and weak consumption. Cosmax plans to diversify client portfolios and expand exports to India and neighboring markets.
Kolmar: legal dispute resolved, but challenges remain
Kolmar Group ended a long-running ownership dispute between founder Yoon Dong-han (79) and his son Yoon Sang-hyun (52), vice chairman. The father withdrew a lawsuit seeking return of shares, and both parties agreed to settle. Yoon Sang-hyun now holds 30.25% of Kolmar Holdings, solidifying his control. Industry observers say this stabilizes the group's single-leadership structure. Yet challenges persist: Kolmar B&H, the health functional foods unit, swung to a net loss of KRW 22.6 billion in 2024, though Q1 2025 showed recovery. North American operations remain under pressure—Kolmar's US subsidiary posted Q1 revenue of KRW 13.4 billion (down 38.4% YoY) and an operating loss of KRW 3.7 billion, while the Canadian unit also stays in the red.
What buyers should watch
For overseas importers and distributors, the leadership transitions at Cosmax and Kolmar signal enhanced strategic focus and governance stability, which can improve supply reliability and innovation pipelines. Cosmax's push into India and client diversification may open new sourcing opportunities, while Kolmar's North American struggles could lead to competitive pricing or restructuring. Both firms are expected to maintain strong domestic growth, especially in sun care, which is entering peak season. Analysts forecast Cosmax's Q2 consolidated revenue to rise 19% YoY, with operating profit up 12% to KRW 68.1 billion, while Kolmar's domestic revenue may grow 20% to KRW 400 billion. Buyers should monitor regional performance shifts and potential capacity expansions.
Source: Read the original report | Published: June 10, 2026