Kolmar Korea Selected for Government-Led 'AI Factory' Initiative -- Driving Innovation in K-Beauty Manufacturing

• The only cosmetics company chosen by the Ministry of Trade, Industry and Resources for the "AI Factory" project
• Enables agile, small-batch, multi-product production to meet diverse client needs in real time

SEOUL, South Korea, Oct. 27, 2025 /PRNewswire/ -- Kolmar Korea announced that it has been selected as the sole cosmetics company to lead a government-funded AI Factory Alliance project organized by South Korea's Ministry of Trade, Industry and Resources (MOTIR). Through this initiative, the company aims to move beyond smart factory automation toward AI-driven manufacturing autonomy, enhancing the global competitiveness of the K-beauty industry.

Under the project, Kolmar Korea will develop an AI autonomous manufacturing system that integrates all cosmetic production processes—from planning and formulation to quality control, filling, and packaging. Unlike traditional smart factories, which operate based on pre-set human inputs, AI factories use artificial intelligence to analyze data in real time and autonomously optimize production operations.

The Ministry of Trade, Industry and Resources (MOTIR) is South Korea's central government agency overseeing industrial technology, R&D, commerce, and trade. Under its national vision of becoming the "World's Leading Manufacturing Power by 2030," the ministry launched the AI Factory M.AX (AI Transformation) Alliance, selecting leading companies from each sector to drive AI innovation in manufacturing. Kolmar Korea was chosen as the sole cosmetics company to lead the initiative, recognized for its technological excellence and manufacturing capabilities that have positioned it at the forefront of the K-beauty industry.

Kolmar Korea plans to modularize each manufacturing stage and apply advanced AI models to achieve over 95% process accuracy, one of the highest standards in the industry. This will significantly reduce rework caused by defects and maximize production efficiency. The transition to an AI factory will also enable high-mix, low-volume production, allowing rapid response to diverse customer demands.

The project will run for four years and four months, from September 2025 to December 2029. As the lead company in the Bio Division of the AI Factory Alliance, Kolmar Korea will spearhead the AI Transformation (AX) of the cosmetics manufacturing sector. Key initiatives include:

• Building an integrated data platform that connects all cosmetic production processes
• Developing autonomous process-control AI models to enhance product quality and precision

With the global cosmetics market increasingly emphasizing personalization and speed, AI-driven manufacturing has become essential to sustaining K-beauty's global leadership. Many production processes in the industry still rely heavily on manual labor, especially for customized product designs and packaging. Kolmar Korea intends to share best practices from its AI Factory implementation to accelerate digital innovation across Korea's cosmetic manufacturing ecosystem.

Kolmar Korea has already laid the groundwork for AI-based manufacturing through its smart factory system, established in 2019, which reduced defect rates by 42%. The new AI Factory will build on that success, creating a next-generation manufacturing system optimized for flexible, small-batch production.

A Kolmar Korea official stated, "Being selected as the only cosmetics company for the government's AI Factory project recognizes our technological leadership in AI-driven manufacturing. We will leverage our autonomous AI systems to advance Korea's cosmetic manufacturing standards and strengthen K-beauty's global competitiveness."

Kolmar Korea operates manufacturing bases in Korea, the United States, Canada, and China, and plans to roll out the new AI systems across all global production sites. The company also intends to expand the application of AI Factory technology to other Kolmar Group affiliates, including Kolmar BNH (health supplements), HK inno.N (pharmaceuticals), and Yonwoo (cosmetic packaging).

Media Contact
Kolmar Holdings
Jang-Woo Lee
jay.lee@kolmar.co.kr

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