Cosmax Chairman Who Built the World’s No.1 Cosmetics ODM Shares His “Direct Approach”

Kyungsoo Lee, Chairman of Cosmax Group, Holds Book Concert at Seoul National University
Advises Students: "Be Prepared to Seize Opportunities"
Exploring Opportunities in China Through Proactive Investment as Other Companies Exit
K-Beauty Expected

"Is it still a good time to start a cosmetics manufacturing business?"

On the afternoon of December 15, at a book concert held at Seoul National University's Central Library, a student who has been running a beauty brand for four years shared this concern with Kyungsoo Lee, Chairman of Cosmax Group. Chairman Lee drew a clear line, stating, "The past, when brand companies needed to have everything from a research lab to a factory, is different from today." He advised, "It is more efficient for brand companies to focus on planning and marketing while collaborating with manufacturers for production," and cautioned, "If you try to do everything yourself, you may fall behind in the most crucial area: speed competitiveness."

Kyungsoo Lee, Chairman of Cosmax Group, is answering questions from attendees at a book concert held at Seoul National University. Photo by Cosmax

On this day, Chairman Lee held a lecture to commemorate the publication of his autobiography, "I Want to Dream Together," and met with over 200 younger colleagues. As a senior who graduated from Seoul National University's College of Pharmacy in 1970 and went on to build the world's top cosmetics ODM (Original Development Manufacturing) company, he provided clear advice on topics that students were curious about.

Specifically, to students aspiring to launch their own brands, he said, "You must be prepared to seize opportunities." He emphasized that the secret to rapidly growing his company after starting his business at the late age of 46 in 1992 was always being prepared so as not to miss any opportunities that came his way.

Chairman Lee's philosophy was also reflected in Cosmax's decision to build a new headquarters in China. After the COVID-19 pandemic, as China's economy became unstable, many cosmetics companies left the country. However, Chairman Lee invested 150 billion won to open a new headquarters in Shanghai's Xinzhuang Industrial Zone, planning to bring together all departments from research and development to marketing under one roof.

He explained, "For K-Beauty to advance further, premiumization is essential, and investing in China is part of nurturing such brands," adding, "China's biochemistry sector is more advanced than Korea's, so I believe it has enough competitiveness in the global market." Chairman Lee predicted that, unlike the past when brand value was centered around companies like LVMH (Louis Vuitton Moet Hennessy), in the future, brands with differentiated functions and technological capabilities, such as those based on dermatological technology, will be recognized as premium.

He also pointed out that having good people around you is important to being prepared. Chairman Lee emphasized, "If you genuinely help others and build trust on a daily basis, those connections will eventually return and become a driving force for your business."

Chairman Lee expressed confidence that if K-Beauty builds up its premium competitiveness, it could surpass France, currently the world's largest cosmetics exporter. As of last year, K-Beauty ranked third in exports, following France and the United States. Given that Korea's export volume surpassed that of the United States in the first half of the year, there is speculation that Korea could become the second-largest cosmetics exporter after France this year.

Cosmax has played a major role in shifting the global beauty market trend from being centered on "Made in Japan" to "Made in Korea" by leading the K-Beauty phenomenon. As K-Beauty becomes a part of daily life for people around the world, he believes that "Made in France" could also be replaced.

Chairman Lee explained, "The difference between global brands like L'Oreal and K-brands is that K-brands use online channels to quickly deliver the products Millennials & Gen Z want," adding, "This is K-brands' greatest competitive advantage."

Toward the end of the lecture, he predicted that Cosmax, ten years from now, would fundamentally become a service company for consumers. He declared, "The greatest competitiveness in the cosmetics market will be determined by who can deliver the products consumers want the fastest," and expressed his ambition, "We will become a company that is the first to understand what consumers need by establishing a research lab dedicated to them."

Meanwhile, Chairman Lee's autobiography, which he wrote himself, details his 33-year management journey and philosophy that led Cosmax to become the top ODM company, including major turning points such as the IMF financial crisis, entry into China, and global expansion.