South Korea’s Beauty Surge Built on Contract Manufacturing, Mirroring Chip Industry Playbook

South Korean cosmetics industry’s division of labor helps produce hits at unparalleled speed

ODM firms like Kolmar focus exclusively on research, development, and contract manufacturing, without owning their own brands. (Kolmar)

NAMI MATSUURA and NA KIYOUNG

SEOUL – South Korea’s cosmetics sector has become the world’s second‑largest exporter of beauty products, powered by a specialized network of contract manufacturers. These ODMs accelerate product development and bring new items to market quickly, much like Taiwan Semiconductor Manufacturing Co. does for semiconductors. By concentrating on R&D, manufacturing, and scale while brand owners handle design and marketing, the industry achieves a rapid, efficient pipeline that underpins its global expansion.

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