K-Beauty Tech Pioneer COSMAX Partners with Harvard and National University of Singapore to Conquer the Global Cosmetics Market
- COSMAX, the World's No. 1 Cosmetic ODM
- Aiming for a Second Leap Forward Through Strengthened Industry-Academia Cooperation

By Kim Yunju

▲ On December 31, 2024, Professor Sung Jae Kim (right) from the Department of Electrical and Computer Engineering at Seoul National University and Eun Jung Lee, a senior researcher at COSMAX, discuss cosmetic research at the "Technology Incubation Center" located in SNU's College of Engineering. / COSMAX

On December 31, 2024, six professors from Seoul National University (SNU) gathered in a research lab at the College of Engineering. Their fields of expertise ranged from mechanical engineering and chemistry to Agriculture, Forestry & Bioresources and design studies. While such diverse specialties rarely converge, these professors shared a common thread: their collaboration with COSMAX, the global No. 1 cosmetic ODM (Original Development Manufacturing) company that leads the K-Beauty industry.

COSMAX produces cosmetics for brands worldwide without having its own brand. However, the company does more than just manufacturing; It researches and develops its own technologies and makes suggestions to its clients. Starting with just three employees in 1992, COSMAX has maintained its position as the global No. 1 since 2015. Today, top executives from global cosmetic giants such as L’Oréal, Estée Lauder, and LVMH (Louis Vuitton Moët Hennessy) consider Kyungsoo Lee, the chairman of COSMAX, one of the most sought-after figures in the industry. This is why COSMAX has been called the “TSMC of the cosmetics industry,” in reference to Taiwan's TSMC, the world's No. 1 foundry (semiconductor contract manufacturing).


▲ Products being manufactured at a COSMAX production facility. / COSMAX

Having begun with a technical partnership with a Japanese company, COSMAX achieved independence within just two years, developing its own R&D capabilities. It is not easy for a small company to start R&D from the beginning due to investment costs and securing human resources. In an industry where the expectations of global clients are high and competitors’ technological capabilities are rapidly advancing, COSMAX is striving to maintain its top position through strategic collaborations with leading universities worldwide. These include not only domestic institutions such as SNU and POSTECH but also prestigious global universities like Harvard, Fudan University, and the National University of Singapore. COSMAX is effectively "borrowing the world’s brightest minds.“

COSMAX's industry-academia collaboration is notable because its research with universities is leading to actual technological innovation. Over the past four years, the company has invested 10.4 billion KRW (approximately $7.8 million USD) in such collaborations, which have resulted in an impressive 251 billion KRW (approximately $189 million USD) in revenue growth. It is not an traditional industry-academia collaboration that ends with the company donating to the university, but it is paying off even after thoroughly analyzing the ROI (Return on Investment).

◇ Researchers and Company Employees Collaborating in Labs

In 2019, COSMAX entered into a joint research agreement with SNU and established a "Technology Incubation Center" within the university’s engineering building. This initiative involves researchers from various disciplines, including the colleges of Natural Sciences, Engineering, Fine Arts, Agricultural and Life Sciences, and Medicine. Additionally, five to six COSMAX researchers with master's degrees or higher work in the same space, sharing ideas in real time. As a result, SNU’s revenue from this collaboration grew exponentially: from just 200 million KRW (approximately $150,000 USD) in 2021 to 2.6 billion KRW (approximately $2 million USD) in 2022, 13.5 billion KRW (approximately $10.2 million USD) in 2023, and 31.6 billion KRW (approximately $23.8 million USD) in 2024. According to a COSMAX representative, "Discussing product directions during the research stage creates significant synergy.“

For instance, the research conducted by SNU’s Department of Agriculture, Forestry & Bioresources generated over 20 billion KRW (approximately $15 million USD) in revenue. SNU researchers developed a compound that enhances moisturizing functions in cosmetics, which COSMAX then applied to products such as Company A's serum, Company B's sunscreen cushion, and Company C's cream. Meanwhile, a soothing cream incorporating a new material developed by Professor Sangwoo Seo's team from SNU’s Department of Chemical and Biological Engineering achieved 13.7 billion KRW (approximately $10.3 million USD) in sales from a single product.

◇ Win-Win Incentive Systems for Companies and Universities

To encourage researchers familiar with industry-academia collaborations, COSMAX has adopted a highly "corporate approach." Similar to a "running guarantee" system used in the entertainment industry, a portion of the revenue from high-performing products is given as bonuses to researchers. For example, recognizing the contribution of SNU’s Department of Agriculture, Forestry & Bioresources, COSMAX awarded 25 million KRW (approximately $18,800 USD), equivalent to 0.5% of cumulative sales. Professor Hye Jung Yoon, who led the research, stated, "The bonus is used for graduate students to attend international conferences. It’s also an excellent opportunity for students to understand potential issues and shifts in perspective when their technologies are mass-produced.“

◇ Developing Tailored Technologies for Over 100 Countries

COSMAX’s collaborations are not limited to SNU. The company maintains active partnerships with domestic institutions such as Kangwon National University, Gwangju Institute of Science and Technology, Dankook University, Sookmyung Women’s University, Soongsil University, POSTECH, and Hanyang University. COSMAX plans to invest an additional 6 billion KRW (approximately $4.5 million USD) in SNU over the next five years. “It's not an easy decision for COSMAX, which has annual sales of 2 trillion won, to invest this much money outside the company,” said a business circles insider.

COSMAX takes orders from global customers, and its academic partnerships are not limited to domestic universities. On December 14, the company signed an MOU with the National University of Singapore to collaborate with Professor Matthew Chang from the School of Medicine on strain improvement, cell design, and bio-synthesis. In the United States, COSMAX is conducting microbiome(microorganisms on a person's skin) research with Harvard Medical School (Massachusetts General Hospital). COSMAX entered microbiome research and commercialized its products in 2011, recognizing that research on various ethnicities and cultures is necessary to achieve results globally. A COSMAX representative noted, "We plan to develop technologies tailored to the local markets of over 100 countries where we currently export products.“


※ Source :  https://www.chosun.com/economy/market_trend/2025/01/15/U57DORRWGBBXHKXOQADOKSIOMU/