South Korea's beauty industry employment structure is undergoing a rapid transformation, with traditional conglomerates shedding hundreds of jobs while ODM manufacturers and beauty tech companies aggressively hire. This shift signals a fundamental change in the supply chain, where contract development and manufacturing organizations (CDMOs) and device-focused firms are becoming the primary growth engines, offering new opportunities for overseas buyers seeking agile production partners and innovative beauty devices.
Employment data reveals clear divergence
According to an analysis of National Pension Service data by Electronic Times, employment trends among major Korean beauty companies diverged sharply between March 2025 and March 2026. Traditional giants LG Household & Health Care and Amorepacific saw their combined workforce shrink by 578 jobs, while ODM firms Kolmar Korea and Cosmax, along with beauty tech company APR, added 356 employees. LG Household & Health Care's employee count dropped 9.2% from 4,354 to 3,953, while Amorepacific fell 3.9% from 4,518 to 4,341. In contrast, APR surged 19.3% to 661 workers, Kolmar Korea grew 16.6% to 1,413, and Cosmax increased 3.1% to 1,552.
ODM sector benefits from indie brand boom
The rise of hundreds of indie beauty brands, leveraging new retail channels like Olive Young and Daiso, has driven increased orders for Kolmar Korea and Cosmax. Kolmar Korea reported an 8.1% year-over-year increase in R&D hiring last year, reflecting the need to support diverse client demands. A Kolmar Korea official stated, "We need to expand our research workforce to strengthen global competitiveness and develop innovative products that reflect the diverse needs of our clients."
Beauty device maker APR leads tech-driven hiring
APR, known for its beauty devices, has expanded its workforce as it broadens consumer reach in overseas markets, particularly North America. The company's proactive hiring ahead of market expansion signals strong future growth potential. An APR representative said, "We are upgrading our organizational system and internal capabilities in line with rapid growth, strengthening professional talent across the entire value chain—from R&D to production, marketing, and operations—to build a foundation for mid- to long-term growth."
Financial performance mirrors hiring trends
The employment shift reflects structural changes tied to financial performance. Kolmar Korea, Cosmax, and APR all posted record results in the first quarter of 2026, with sunscreen and export expansion driving growth for the ODM firms. APR's revenue and operating profit surged 123% and 174% year-over-year, respectively, hitting all-time highs.
What buyers should watch
For overseas importers and distributors, this trend underscores the growing capacity and specialization of Korean ODM firms in product development and manufacturing. Beauty device buyers should monitor APR's expansion as a signal of increased production and innovation capacity. The shift also suggests that smaller, agile suppliers may offer more responsive partnerships compared to traditional large brand manufacturers.
Source: Read the original report | Published: June 17, 2026