South Korea's top two cosmetics ODM (Original Design Manufacturer) firms, Kolmar Group and Cosmax Group, have resolved internal governance disputes, solidifying their leadership and signaling stability for the K-Beauty supply chain. For overseas buyers and distributors, this means reduced operational risk and sustained innovation capacity from these key partners.
Kolmar: Father-Son Conflict Ends
Kolmar Group founder Yoon Dong-han withdrew a lawsuit against his eldest son, Yoon Sang-hyun, vice chairman of Kolmar Holdings, on May 22, 2026. The suit, filed in 2025, sought the return of 2.3 million shares gifted in 2019. The withdrawal, finalized on May 26, ends a year-long family dispute over control of the group. Vice Chairman Yoon Sang-hyun was already designated as the group's sole head ("dong-il-in") in April 2026, when Kolmar was designated a large business group. The resolution cements his leadership and removes uncertainty for partners and investors.
Cosmax: Second-Generation Succession Advances
Cosmax Group's holding company, Cosmax BTI, announced on May 27, 2026, that its largest shareholder changed from founder Lee Kyung-soo's wife, Seo Seong-seok, to their eldest son, Vice Chairman Lee Byung-man. Seo sold part of her stake to Lee Byung-man's and his brother Lee Byung-joo's personal companies, reducing her holding from 22.61% to 13.83%.
Lee Byung-man now holds 19.95% of the holding company, becoming the largest shareholder. While the succession structure is not final—both brothers hold equal 24.34% stakes in the broader group—the move signals a clear step toward second-generation management.
K-Beauty Ecosystem Gains Momentum
The stable succession at both ODM giants is critical for K-Beauty's continued growth. Indie brands, a key driver of K-Beauty's global success, rely on ODM partners for rapid product development and production. This symbiotic relationship is reflected in export data. According to the Ministry of SMEs and Startups, South Korean small and medium-sized cosmetics exports surged 80% from $4.6 billion in 2022 to $8.3 billion in 2025, a record high. Their share of total cosmetics exports rose from 57% to 73% over the same period. Total Korean cosmetics exports reached $11.4 billion in 2025.
Financial Performance Confirms Strength
Kolmar Group posted record 2025 revenue of KRW 2.72 trillion and operating profit of KRW 239.6 billion. In Q1 2026, revenue hit KRW 728 billion and operating profit KRW 78.9 billion, both quarterly records. Cosmax Group also achieved record 2025 revenue of KRW 2.40 trillion and operating profit of KRW 195.8 billion. Q1 2026 revenue was KRW 682 billion with operating profit of KRW 53 billion, also a first-quarter record.
What Buyers Should Watch
For overseas importers and distributors, the resolution of governance issues at Kolmar and Cosmax reduces supply-chain disruption risk. Both firms are investing in new materials, expanding domestic and overseas production bases, and building AI-powered factories. This should lead to more consistent innovation, faster turnaround times, and greater capacity for custom formulations—key factors for buyers sourcing K-Beauty products. Buyers should monitor how the new leadership structures affect partnership terms, minimum order quantities, and lead times. The stable succession may also encourage both companies to pursue more aggressive global expansion, potentially opening new sourcing opportunities.
Source: Read the original report | Published: June 02, 2026