The MOTIR is a central government agency overseeing industrial technology, R&D, commerce, and trade. Under its national vision of becoming the “world’s leading manufacturing power by 2030”, the ministry launched the AI Factory M.AX (AI Transformation) Alliance, selecting companies from each sector to push AI innovation.
Through this project, Kolmar Korea aims to move beyond smart factory automation.
The company will develop an autonomous AI manufacturing system that integrates all cosmetic production processes — from planning and formulation to quality control, filling, and packaging.
Unlike traditional smart factories, which operate based on pre-set human inputs, AI factories use AI to analyse data in real time and autonomously optimise production operations.
“Being selected as the only cosmetics company for the government’s AI Factory project is a recognition of our technological leadership in AI-driven manufacturing. We will leverage our autonomous AI systems to advance Korea’s cosmetic manufacturing standards and strengthen K-beauty’s global competitiveness,” the firm said.
Specifically, Kolmar Korea plans to modularise each manufacturing stage and apply advanced AI models to achieve over 95% process accuracy, one of the highest standards in the industry.
This will significantly reduce rework caused by defects and maximise production efficiency. The transition to an AI factory will also enable high-mix, low-volume production, allowing rapid responses to diverse customer demands.
“With the global cosmetics market increasingly emphasising personalisation and speed, AI-driven manufacturing has become essential to sustaining K-beauty’s global leadership. Many production processes in the industry still rely heavily on manual labour, especially for customised product designs and packaging.”
The project will run for over four years from September 2025 to December 2029.
Kolmar Korea intends to share best practices from its AI Factory implementation to accelerate digital innovation across Korea’s cosmetic manufacturing ecosystem.
Expanding applications across Group
As the lead company in the Bio Division of the AI Factory Alliance, Kolmar Korea will spearhead the AI transformation of the beauty industry’s manufacturing sector.
Its key initiatives include building an integrated data platform that connects all cosmetic production processes, and developing autonomous process-control AI models to enhance product quality and precision.
According to the company, it has already laid the groundwork for AI-based manufacturing through its smart factory system established in 2019, which is said to reduce defect rates by 42%.
“The new AI Factory will build on that success, creating a next-generation manufacturing system optimised for flexible, small-batch production.”
Currently, Kolmar Korea operates manufacturing bases in its domestic market, the US, Canada, and China, with plans to roll out the new AI systems across all global production sites.
In addition, the company intends to expand the application of AI Factory technology to other Kolmar Group affiliates, including Kolmar BNH (health supplements), HK inno.N (pharmaceuticals), and Yonwoo (cosmetic packaging).
