[Distribution Hot People] Palmskin Recognized Worldwide: "Cosmetics Will Create an Unprecedented Situation"

CEO Gwak Tae-il of 'FarmSkin,' Korea's Only Cosmetic Using Domestic Pure Colostrum Ingredients
Utilizing Colostrum from Korean Holstein Cows as Cosmetic Raw Material... Realizing Eco-Friendly Resource Productization
FarmSkin Recognized Abroad First, Sold in 43 Countries... Targeting 70 Billion KRW Sales Next Year

[Asia Economy Reporter Lee Seon-ae] “We need to pay attention to the unprecedented uniqueness.”

Gwak Tae-il, CEO of FarmSkin, who introduced himself as a ‘farm son, rural villager,’ said, “The colostrum produced for about three days immediately after a cow gives birth to a calf contains 100 times more nutrients than regular milk,” adding, “Since the leftover colostrum that calves do not consume spoils easily and is difficult to store, about 40,000 tons are discarded annually, so we focused on surplus colostrum.”

FarmSkin is a cosmetics startup based on the only domestic colostrum (a small amount of milk produced immediately after a cow gives birth) processing technology. FarmSkin, which is sold in a total of 43 countries including the United States and the United Kingdom, was first recognized overseas and is also famous as a promising global beauty brand.

◆Devotion to Colostrum Processing Technology= CEO Gwak’s connection with colostrum began when he visited a German farm during his third year studying Animal Science at Konkuk University and witnessed farmers making hand cream from cow colostrum.

The hands of the farmers who applied colostrum cream were white and soft as if they had never done farm work in their lives. It was the moment when it was proven that the immune-related components of colostrum kill acne bacteria, reduce the toxicity of other ingredients, and are effective for cell regeneration, wrinkle improvement, moisturizing, and whitening.

From the moment he decided to make cosmetics using colostrum, he focused on researching colostrum processing technology. CEO Gwak recalled, “We had to preserve the efficacy of colostrum while extending its shelf life and removing the odor. We had to remove unnecessary substances in colostrum that cause allergies or skin troubles and contain only ingredients beneficial to the skin, so we devoted ourselves to researching colostrum processing technology.”

Although colostrum was fishy and easily spoiled, making processing difficult, he eventually developed colostrum processing technology through the use of probiotics and, in May 2017, passed a technology evaluation by the Korea Technology Finance Corporation, verifying the technology. They succeeded in commercializing organic raw material cosmetics by turning domestic colostrum, which had been discarded without being recycled, into products.

For livestock farmers who struggled with the cost of discarding colostrum, the commercialization of products using domestic colostrum was truly good news. FarmSkin currently receives fresh colostrum from a farm in Cheongju. Because it is processed with FarmSkin’s special technology, the colostrum content is significantly higher than other products using imported colostrum.

CEO Gwak said, “Our cows are Holstein single breeds, making quality control easy, and all colostrum used by FarmSkin comes from places certified with HACCP (Hazard Analysis and Critical Control Points), so there is no problem with safety,” proudly calling it “a true colostrum product from the Nakdong River nation, Korea.”

◆“Cosmetics that don’t feel like cosmetics.”= FarmSkin’s first challenge was a mask pack. Although the first product was launched in November 2017 with innovative ingredients, the response was mainly that the product design was not eye-catching. In response, CEO Gwak began contemplating the challenge of ‘design that captures consumers’ attention.’

He visited drugstores every morning and evening to observe product designs and consumer reactions. At the same time, he had to prepare for the Las Vegas Beauty Expo scheduled for July the following year. By chance, when he opened the floor plan to check the booth allocation, FarmSkin’s booth was located in a corner of the exhibition hall. Opposite was a snack bar. That’s where the idea came to him: “Yes! A salad mask pack.”

The product born from various ideas with employees was the ‘Superfood Salad For Skin.’ It used a salad container for packaging and visualized healthiness with a design similar to an actual edible salad. This product gained great popularity at the expo. Moreover, it won the grand prize at the prestigious ‘2019 IDEA Design Awards,’ achieving recognition for its creative design.

Word of mouth spread with comments like, “It’s a cosmetic that doesn’t feel like a cosmetic, I thought it was a salad,” and “My skin feels like it will get healthier eating superfoods.” However, similar concept products with designs resembling FarmSkin’s ‘Superfood Salad For Skin’ have appeared both overseas and domestically, so it was not something to simply laugh off.

CEO Gwak said, “We requested correction because the designs were too similar to ours, and the responses were always disappointing, but we decided not to be swayed,” emphasizing, “Just because the packaging is similar doesn’t mean the product’s function and ingredients are the same.” He focused on the fact that FarmSkin’s technology is not easy to imitate. However, he also urged consumers to be cautious about imitation products, saying, “I hope people don’t take product design theft lightly.”

◆“Is FarmSkin a Korean product?”= FarmSkin’s overseas expansion to department stores such as Manor, Macy’s, and Liverpool was possible because the cosmetic raw materials extracted from domestic colostrum were registered in the International Cosmetic Ingredient Dictionary (ICID) and the technology was recognized by obtaining certification from UL (Underwriters Laboratories), the most prestigious product safety certification body in the United States.

CEO Gwak expressed pride, saying, “FarmSkin products have received every certification possible; there is no more certification to obtain.” The company has already completed safety tests for its products in the United States and Europe, where product credibility is high. As a result, CEO Gwak was selected as one of Forbes’ ‘30 Under 30 Asia Leaders’ and successfully attracted over $4 million (approximately 5 billion KRW) in investment from Translink Capital based in Silicon Valley, among others.

FarmSkin is currently on a growth trajectory, recently launching the baby cosmetics line ‘From Mom,’ which increases colostrum content and optimizes the formula for baby skin. The company has set a sales target of 70 billion KRW for next year.

CEO Gwak stated, “Our goal is to fully recycle domestic colostrum so that everyone worldwide can comfortably use FarmSkin colostrum cosmetics daily,” expressing his ambition, “I want to surprise people by making them say, ‘I thought this global cosmetic was obviously made in the US or Europe, but it turns out it’s a Korean product.’”