By bizn_fun 
Even large conglomerates outsource some product lines, while smaller names depend heavily on ODMs to move quickly and keep costs down.
Cosmax, one of the largest manufacturers, supplies products to about 4,500 brands from factories across South Korea, China, the US and South East Asia.
In 2024, it accounted for just over a quarter of South Korea’s $10bn worth of cosmetics exports.
This allows products to move from being conceptualised to being sold in as little as six months – the process that can take one to three years for many Western brands.
Automation helps keep costs down. The BBC visited a sprawling Amorepacific factory outside South Korea’s capital Seoul, where a handful of workers oversaw fully automated production lines bottling Laneige’s Water Sleeping Mask and CosRX’s Vitamin C 23 Serum.
Speed, however, comes at a cost. Intense competition has contributed to thin profit margins and high rates of business failures. According to government data, more than 8,800 cosmetics brands have gone out of business in recent years.
“South Korea has great infrastructure that can help you create a brand quickly, but growing a successful brand is another story,” said Ms Yoo. “It comes down to your brand ethos, your identity, and how different your products are from anything else on the market.”
As competition intensifies, brands face growing pressure to be more transparent, and to focus on ingredients and the effectiveness of their products rather than celebrity endorsements.
“We’re not just buying from the big brands now. We’re actually talking about ingredients, where it’s sourced, what it does,” said Mia Chen, a prominent beauty influencer. “A lot of Korean skincare derives from natural ingredients, and we all want that on our skin without side effects.”