Kolmar Korea selected for government AI factory initiative

Manufacturing is in progress inside Kolmar Korea's plant in Sejong in this undated photo. Courtesy of Kolmar Korea

Original development manufacturer (ODM) Kolmar Korea has been selected by the government to develop an artificial intelligence (AI) manufacturing system for beauty products to maximize productivity and further diversify offerings for global cosmetic brands.

The global ODM firm said Monday it will implement the new AI system at its existing manufacturing bases in Sejong, as well as in the United States, Canada and China. Kolmar Group’s other subsidiaries in health supplements, pharmaceuticals and cosmetic packaging will also implement the system.

The AI system represents an advancement of the company’s current smart factory production, which centers on automation. According to the company, the AI factory will be able to initiate or halt production on its own based on real-time data, optimizing efficiency and reducing manufacturing costs.

Kolmar Korea said the project follows its selection by the Ministry of Trade, Industry and Resources for the government’s AI Factory Alliance initiative. The initiative aims to transition the country’s manufacturing bases across key industries to AI-driven plants, making Korea a global manufacturing hub.

Some 100 domestic firms with AI capabilities are leading the so-called M.AX alliance — focused on AI transformation in manufacturing — including Kolmar Korea, Samsung Electronics, Hyundai Motor Company, LG Electronics, POSCO and SK.

Kolmar Korea is part of the AI Bio category, one of the initiative’s 10 AI categories, and plans to complete the AI factory system by the end of 2029.

The company said the AI factory will operate modularly throughout the entire production process and raise manufacturing precision to over 95 percent — the highest in the global ODM beauty industry. This will reduce defects and save costs associated with reprocessing.

The AI factory will also enable the production of small-size products across various cosmetic types, allowing Kolmar Korea to meet diverse demands from clients worldwide.

The company’s move comes amid speculation that transitioning to AI factories is essential for establishing K-beauty as a global standard. Despite growing automation, some processes still rely on human labor, limiting full automation.

A Kolmar Korea official said the company is “the country’s only beauty firm selected for the government’s AI Factory Alliance,” and that the AI-based autonomous manufacturing system will enhance K-beauty’s global competitiveness and advance Korea’s manufacturing capacity for beauty products.

Kolmar Korea introduced a complete smart factory pipeline in 2019 to generate raw data from client firms, reducing defect rates by 42 percent.