Kolmar Group, a leading South Korean cosmetics ODM, has resolved a year-long family ownership dispute, secured a 5 trillion won asset base, and posted a record Q1 operating profit of 78.9 billion won. With a strengthened single-leadership structure and government-backed reshoring incentives, the group is now accelerating its North America production footprint and R&D-driven global expansion—key signals for overseas buyers seeking reliable, innovation-capable manufacturing partners.
Ownership dispute resolved, group enters top conglomerate tier
Kolmar Group has officially ended the legal battle between founder Yoon Dong-han and his son, Vice Chairman Yoon Sang-hyun, after the father withdrew a stock return lawsuit in late April. The dispute, which began in April 2023 over sibling management conflicts, was settled as the group was newly designated as a large business conglomerate by the Fair Trade Commission in April 2024, with total assets reaching 5.24 trillion won. The resolution solidifies Yoon Sang-hyun's single-leadership system and removes a key overhang for business partners.
Record Q1 performance driven by skincare and color cosmetics
Kolmar Korea reported Q1 2024 consolidated revenue of 728 billion won and operating profit of 78.9 billion won, up 12% and 32% year-on-year respectively—both all-time quarterly highs. Skincare (cleansing and moisturizing) contributed 328.3 billion won (45% of total revenue), while color cosmetics added 109.4 billion won (15%). The company attributes the growth to strong orders from key clients including Atomy, Gudai Global, CJ Olive Young, and The Founders, as well as rising demand for sun care and indie brand exports.
North America weakness remains a challenge
Despite overall strength, Kolmar's North American operations underperformed. The U.S. subsidiary posted Q1 revenue of approximately 13.4 billion won, down 38.4% year-on-year, and swung to an operating loss of 3.7 billion won due to reduced orders from its largest local client. The Canadian unit also recorded an operating loss of 1.7 billion won on revenue of 8.6 billion won. The company expects improvement as its second U.S. factory stabilizes and new customer acquisition ramps up.
Reshoring designation and R&D investment fuel global strategy
Kolmar Korea was named the country's first "reshoring" company in 2024, consolidating its China production to the Wuxi plant while expanding its Sejong factory in South Korea. This status unlocks up to 50% subsidies for new factory construction, corporate tax reductions, and employment incentives. The group operates 18 R&D centers globally, including facilities in Pennsylvania, New Jersey, and Ontario, and invests over 5% of revenue annually in R&D—1,553 billion won in 2023 alone. With 600 researchers and 565 cumulative patents, Kolmar is developing advanced technologies such as dual-encapsulation solubilization and microbiome-based skincare, positioning itself as a strategic partner for global brands seeking innovation and localized production in North America.
What buyers should watch
Overseas importers and distributors should monitor Kolmar's North American factory stabilization and new client wins, as the group aims to leverage its reshoring benefits and R&D pipeline to offer faster, more customized ODM services in the region. The resolution of ownership risk also strengthens long-term supply reliability for clinic and retail buyers sourcing from Kolmar's Korean and Chinese facilities.
Source: Read the original report | Published: June 04, 2026