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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, South Korea — Feb 5, 2026 — Kolmar Korea, a leading global cosmetics ODM (Original Development Manufacturing) company, has been officially certified as the first "U-turn" (reshoring) company of 2026. The company is set to embark on a large-scale domestic facility investment, a move seen as a symbolic effort to strengthen South Korea’s manufacturing base amid rising global demand for "Made in Korea" beauty products.
According to industry sources on February 5, Kolmar Korea plans to shut down its production facility in Beijing, China, and focus its resources on expanding its existing plant in Jeoni-myeon, Sejong City. The goal is to establish a massive, high-tech automated production hub to serve as the global command center for its basic skincare lines.
"With the rising global stature of K-Beauty, we are centralizing our production capabilities in Sejong City to proactively respond to international demand," a representative from Kolmar Korea stated. "Aligned with the government’s support policies for reshoring companies, we aim to enhance the competitiveness of Korean manufacturing and serve as a bridge for the sustainable growth of the entire industry."
As part of its strategic reorganization, Kolmar Korea will consolidate its Chinese operations into its Wuxi plant while transforming the Sejong facility into an AI-powered "Smart Factory." Industry analysts estimate the total investment for this expansion at approximately 100 billion KRW (approx. $75 million USD), with government subsidies expected to cover 30 billion to 40 billion KRW of the cost.
The Ministry of Trade, Industry and Energy officially designated Kolmar Korea as this year’s "No. 1 U-turn Company" last month. Under the government’s reshoring incentive program, eligible companies can receive subsidies covering up to 50% of the costs for relocating overseas equipment and expanding domestic facilities. Additional benefits include corporate tax exemptions, employment creation grants, and access to favorable policy financing.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
