Cosmetics ODMs, KVIC launch ‘Global K-Beauty Fund’

[Photo by Yonhap]

Cosmetics ODM (Original Development Manufacturing) giants Cosmax and Kolmar Korea are set to launch the ‘Global K-Beauty Fund’ in partnership with Korea Venture Investment Corporation (KVIC).

The Ministry of SMEs and Startups and the Ministry of Food and Drug Safety announced the ‘Global Competitiveness Enhancement Plan for K-Beauty SMEs and Ventures’ on Wednesday at the headquarters of CJ Olive Young in Yongsan, Seoul. The Global K-Beauty Fund will focus on investing in K-beauty and beauty-tech companies with high potential for global market expansion. The fund, expected to be established in 2025, will see more than 70 percent of its capital jointly contributed by Cosmax, Kolmar Korea, and KVIC, with the remaining 30 percent sourced from private sector funds.

A separate new program will be created to identify and nurture K-beauty startups. Cosmax and Kolmar Korea will offer 1:1 feedback and consulting to K-beauty companies from a manufacturer’s perspective. CJ Olive Young and Amazon Korea will provide consulting on manufacturer matching and sales strategy development, while the government will support commercialization funds and consulting program operations via the Youth Entrepreneurship Academy.

The ‘Big Bang Program’ will also be launched within 2024 to foster K-beauty tech startups, which will tap global cosmetics company L’Oréal’s research infrastructure and technological prowess.