Kolmar Korea Co, a leading cosmetics original design manufacturing (ODM) company in South Korea, is turning to outside sources to fuel innovation with an unprecedentedly generous package to support promising startups that seek to new opportunities in the beauty care industry.

On Wednesday, the company signed a memorandum of understanding with startup consultancy Kingsley Ventures, retailer BGF Retail, sectoral venture capital Ost Investment to discover and finance the most promising innovations in making cosmetics and toiletries using technologies that fit the Fourth Industrial Revolution.

Anyone with a great idea in starting a cosmetics business can benefit from their packaged support from manufacturing to market access to financing.

The companies agreed to work together on building a startup ecosystem where new players can connect with established companies with special know-how, access manufacturing capabilities and distribution channels and increase knowledge of market developments.

Selected startups with novel and differentiated ideas can materialize their inventions on Kolmar Korea’s industry-leading production line and release products through BGF Retail’s nationwide distribution channel, the Kolma said. Kingsley Ventures will offer a well-equipped office space and upfront capital funding, while Ost Investment will provide follow-up investment.

Applicant recruitment and evaluation is due to start early next year and details will be communicated on the websites of the companies.

The Korean cosmetics market is growing rapidly on rising popularity of Korean beauty products in overseas markets, in particular in the Asian region, thanks to Hallyu, Korean Wave of popular culture. But the market is currently dominated by big players and it is not easy for new comers to venture into the market. It is rare for a rival big player to offer comprehensive support aimed at fostering the growth of new players.

By Lee Young-wook and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]