"From a brand's perspective, Korean cosmetics consumers are like "a nightmare." They are always ready to switch if there is a similar but cheaper product. The reason K-beauty brands have recently succeeded in the global market is that they survived this market structure of extreme competition."
Vice Chairman and CEO Yun Sang-hyun of Kolmar Holdings said this as a presenter at the "Amazon Beauty in Seoul 2025" event held on the 19th at the COEX Grand Ballroom in Samseong-dong, Seoul.
Hosted by Amazon Global Selling Korea and sponsored by Kolmar Korea, the event was organized for industry stakeholders—including domestic cosmetics manufacturers, brands, distributors, influencers, and investors—to share strategies for entering global markets and seek collaboration opportunities. Vice Chairman Yun gave a lecture on the topic of "K-beauty success from the perspective of a cosmetics manufacturer."
Vice Chairman Yun said, "Kolmar Korea strictly adheres to two principles: we develop every formula in-house, and we provide only one formula to one company and do not share it with others." Kolmar Korea operates an original design manufacturing (ODM) business for basic and color cosmetics and collaborates with beauty brands at home and abroad.
He added, "We treat all clients fairly and do our best in production for each product, but only some brand products succeed. That happens when the brand has a sufficient understanding of the product and the industry."
He said, "Cosmetics are mass-produced goods where price and quality matter, and they also have the nature of food in that they have an expiration date and come into contact with the human body." He added, "They are also like pharmaceuticals that improve the condition of the body, while having a luxury aspect in the realm of identity and display. Like fashion, they are sensitive to trends."
He continued, "Unlike cars, cosmetics have a short consumption cycle. That is why it is important to encourage regular, repeated purchases and build a relationship of trust with consumers. Even products that initially had sluggish sales can, as generations go by and improved versions are released, gradually build market trust and become blockbusters."
Vice Chairman Yun also stressed that listening to the voice of the customer is essential to success. He said, "When I asked Ban Sung-yeon, CEO of d'Alba Global, which owns the K-beauty brand "d'Alba," about the secret to success, the answer was that they spend all day reading customer comments. That is how important customer feedback is, and it must be actively reflected in development and marketing."
Vice Chairman Yun also mentioned the importance of brand expansion. He said, "France's L'Oréal, which has become a company with annual sales of 63 trillion won led by 37 brands, originally had only two brands," and added, "If a single product succeeds in the market, it is important to use it to expand distribution channels and move into other fields. If necessary, actively consider acquiring other brands."
Meanwhile, this was the first time Vice Chairman Yun appeared at an official event since the Kolmar Group management rights dispute. The owner family of Kolmar Group, including Vice Chairman Yun, is in conflict over the reorganization of the board of Kolmar BNH, a health supplements subsidiary. Vice Chairman Yun, citing deteriorating results at Kolmar BNH that negatively affected Kolmar Holdings' share price, demanded that he and former CJ CheilJedang Executive Vice President Lee Seung-hwa be appointed as inside directors.
Vice Chairman Yun's father, Chairman Yun Dong-han of Kolmar Korea, and his younger sister, President Yun Yeo-won of Kolmar BNH, filed for an injunction to stop this, but the court ruled that an extraordinary shareholders' meeting for Kolmar BNH must be held by the 26th. While proceeding with the procedures to hold the extraordinary meeting, Kolmar BNH is also pursuing litigation to cancel the convocation.
After attending the event that day, Vice Chairman Yun met with reporters and, regarding the recent conflict, said, "We are trying to resolve it as amicably as possible before next week's shareholders' meeting is held."
He added, "To enhance shareholder value, we consistently believe that the value of corporations is important. We will try to resolve internal conflicts as amicably as possible."