Kolmar Korea Selected for South Korean Government's AI Factory Initiative to Innovate Beauty Production
On October 27, 2025, Kolmar Korea announced its selection as the only cosmetics manufacturer to spearhead a groundbreaking project under the South Korean government’s "AI Factory" initiative. This project, managed by the Ministry of Trade, Industry and Energy (MOTIR), aims to revolutionize the production of beauty products through advanced artificial intelligence technologies.
The initiative reflects a strategic move towards enhancing the competitiveness of South Korea's beauty sector on a global scale. With the increasing demand for personalized and efficient solutions, Kolmar Korea is committed to leveraging AI to achieve substantial improvements in production efficiency and product quality. The project is set to last for four years and four months, from September 2025 to December 2029. It will shepherd the company through a period of transformative growth, focusing on creating agile, intelligent production processes capable of rapidly adapting to changing consumer needs.
At the heart of this initiative is the development of a fully autonomous production system that integrates every aspect of the cosmetic manufacturing process—from planning and formulation to quality control, filling, and packaging. Unlike traditional smart factories that still rely heavily on preset human inputs, Kolmar Korea's AI factories will utilize real-time data analysis powered by artificial intelligence to autonomously optimize production operations.
This underscores a significant transition in production methodology, aiming for a process accuracy exceeding 95%, which is a benchmark that could greatly reduce rework due to defects. The shift to AI-driven production methods will also facilitate high-mix, low-volume manufacturing—essential for swiftly responding to diverse client demands. As such, Kolmar Korea is not just enhancing its operational capabilities but setting the stage for a new era of production standards in the K-beauty landscape.
Recognizing the growing global market trends, the ministry launched the AI Factory M.AX Alliance. Kolmar Korea's selection within this initiative underscores its leadership in embracing cutting-edge technology and innovative practices within the beauty industry. The ministry's vision of becoming the "world's leading manufacturing power by 2030" relies heavily on industrial players like Kolmar Korea innovating through AI.
As the leader of the Bio Division in this initiative, Kolmar Korea aims to establish an integrated data platform connecting all cosmetic production processes, and develop autonomous AI models to enhance quality and precision throughout the manufacturing stages.
The company's past implementations of smart factory technologies have already laid the groundwork for success in AI-driven production, with their systems helping to reduce defect rates by an impressive 42% since their introduction in 2019. This sophisticated AI Factory system will build upon that success, promising flexible, small-batch production capabilities.
A spokesperson for Kolmar Korea noted, "Being selected as the sole cosmetics company for the government’s AI Factory project is a testament to our technological leadership in AI-driven manufacturing. We will harness our autonomous AI systems to elevate the standards of Korean cosmetic production and strengthen K-beauty’s global competitiveness."
The company operates manufacturing facilities across South Korea, the United States, Canada, and China, and it seeks to implement these new AI systems across all global production sites. Furthermore, Kolmar Korea plans to extend the application of AI Factory technology to its affiliates, such as Kolmar BNH in health supplements, HK inno.N for pharmaceuticals, and Yonwoo for packaging solutions. With its focus on innovation, Kolmar Korea is poised to redefine production in the beauty industry, establishing itself as a leader in AI-enhanced manufacturing practices.
The initiative reflects a strategic move towards enhancing the competitiveness of South Korea's beauty sector on a global scale. With the increasing demand for personalized and efficient solutions, Kolmar Korea is committed to leveraging AI to achieve substantial improvements in production efficiency and product quality. The project is set to last for four years and four months, from September 2025 to December 2029. It will shepherd the company through a period of transformative growth, focusing on creating agile, intelligent production processes capable of rapidly adapting to changing consumer needs.
At the heart of this initiative is the development of a fully autonomous production system that integrates every aspect of the cosmetic manufacturing process—from planning and formulation to quality control, filling, and packaging. Unlike traditional smart factories that still rely heavily on preset human inputs, Kolmar Korea's AI factories will utilize real-time data analysis powered by artificial intelligence to autonomously optimize production operations.
This underscores a significant transition in production methodology, aiming for a process accuracy exceeding 95%, which is a benchmark that could greatly reduce rework due to defects. The shift to AI-driven production methods will also facilitate high-mix, low-volume manufacturing—essential for swiftly responding to diverse client demands. As such, Kolmar Korea is not just enhancing its operational capabilities but setting the stage for a new era of production standards in the K-beauty landscape.
Recognizing the growing global market trends, the ministry launched the AI Factory M.AX Alliance. Kolmar Korea's selection within this initiative underscores its leadership in embracing cutting-edge technology and innovative practices within the beauty industry. The ministry's vision of becoming the "world's leading manufacturing power by 2030" relies heavily on industrial players like Kolmar Korea innovating through AI.
As the leader of the Bio Division in this initiative, Kolmar Korea aims to establish an integrated data platform connecting all cosmetic production processes, and develop autonomous AI models to enhance quality and precision throughout the manufacturing stages.
The company's past implementations of smart factory technologies have already laid the groundwork for success in AI-driven production, with their systems helping to reduce defect rates by an impressive 42% since their introduction in 2019. This sophisticated AI Factory system will build upon that success, promising flexible, small-batch production capabilities.
A spokesperson for Kolmar Korea noted, "Being selected as the sole cosmetics company for the government’s AI Factory project is a testament to our technological leadership in AI-driven manufacturing. We will harness our autonomous AI systems to elevate the standards of Korean cosmetic production and strengthen K-beauty’s global competitiveness."
The company operates manufacturing facilities across South Korea, the United States, Canada, and China, and it seeks to implement these new AI systems across all global production sites. Furthermore, Kolmar Korea plans to extend the application of AI Factory technology to its affiliates, such as Kolmar BNH in health supplements, HK inno.N for pharmaceuticals, and Yonwoo for packaging solutions. With its focus on innovation, Kolmar Korea is poised to redefine production in the beauty industry, establishing itself as a leader in AI-enhanced manufacturing practices.
Topics Consumer Products & Retail）
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