GS Caltex signs MOU with Japan's Summit Cosmetics on skin moisturizing compound

The Korean chemical firm signed an agreement with Summit Cosmetics of Japan on the sale of 2,3-Butanediol to the Japanese company.

Head of GS Caltex's R&D Center Kwon Young-woon, left, and Summit Cosmetics President and CEO Koh Akiyama pose for a photo after signing a memorandum of understanding to cooperate on 2,3-Butanediol sales at the Japanese firm's headquarters in Tokyo on Wednesday. [GS CALTEX]

Korean chemical firm GS Caltex signed a preliminary agreement with Summit Cosmetics to provide the Japanese beauty company with sustainable cosmetic ingredients in a push to bolster its overseas footing in the segment.

Under the memorandum of understanding signed on Wednesday, GS Caltex will supply 2,3-Butanediol — branded as GreenDiol — to Summit Cosmetics, an affiliate of trading firm Sumitomo.

The Korean company said it will utilize Summit Cosmetics’ sales networks in the United States, Europe and Latin America to expand its market while also strengthening its presence in the Japanese market. Summit Cosmetics will also pursue safety regulation approval from Japan’s health ministry. Once passed, this will allow GreenDiol to be used as an ingredient in more kinds of cosmetics sold in Japan including brightening and anti-aging products.

The organic compound 2,3-Butanediol, which can be found anywhere in nature including in living organisms and fermented food, is used mostly for its moisturizing effects but also has preservative-boosting and dispersing effects, according to GS Caltex. It is labeled as odor-free, vegan and colorant-free.

GS Caltex produces 300 tons of 2,3-Butanediol annually by fermenting cassava and sugar cane at its plant in Gunsan, Gyeonggi.

The company supplies the ingredient to a number of cosmetics companies in Korea, the United States and Europe, with a client list that includes major domestic firms Amorepacific and LG Household & Healthcare, a spokesperson told the Korea JoongAng Daily. It is used in around 800 brands such as Hanyul, The Saem and Bourjois.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]