Six professors from Seoul National University’s College of Engineering gathered at an SNU laboratory on Dec. 31. Their specialties ranged from mechanical engineering and chemistry to agricultural life sciences and design. Despite their diverse backgrounds, they shared a common focus: collaborative research with Cosmax, the world’s leading cosmetics ODM (original development and manufacturing) company driving the global success of K-beauty.
Cosmax produces cosmetics for global beauty brands without its own consumer brand. However, the company goes beyond manufacturing by researching and developing proprietary technologies to propose to clients. Founded in 1992 with just three employees, Cosmax has held the global No. 1 position since 2015. Today, top executives from global giants such as L’Oréal, Estée Lauder, and LVMH eagerly seek meetings with Chairman Lee Kyung-soo. This has earned Cosmax the nickname “TSMC of cosmetics,” referencing Taiwan’s leading semiconductor foundry.
Cosmax, initially starting with a technical partnership with a Japanese firm, quickly transitioned to independent research and development within two years. For a small enterprise, dedicating resources to R&D from the outset is challenging due to costs and the need for skilled personnel. As global clients raise their expectations and competitors advance, Cosmax maintains its leadership by forming academic partnerships with top universities such as Seoul National University, POSTECH, Harvard University, Fudan University, and the National University of Singapore. These industry-academia collaborations leverage the world’s best intellectual resources.
Cosmax’s university partnerships are noteworthy because they result in tangible technological innovations. Over the past four years, the company has invested 10.4 billion won in academic collaborations, generating 251 billion won ($172 million) in revenue growth. Cosmax delivers measurable returns on investment (ROI), going beyond typical corporate donations.
In 2019, Cosmax signed a research agreement with SNU and established the Technology Incubation Center at the university’s engineering building. Researchers from various departments, including natural sciences, engineering, fine arts, agriculture, and medicine, collaborate at the center. Five to six Cosmax researchers with master’s degrees work alongside them, facilitating real-time idea exchange. As a result, the partnership’s revenue grew from 200 million won in 2021 to 2.6 billion won in 2022, 13.5 billion won in 2023, and 31.6 billion won in 2024. A Cosmax staffer noted, “Discussing commercialization strategies from the research phase creates significant synergy.”
SNU’s Department of Agriculture and Life Sciences alone contributed over 20 billion won in sales. The department’s researchers developed a compound to enhance moisturizing properties, which Cosmax incorporated into serums, sun cushions, and creams for multiple companies. A soothing cream using new materials developed by Professor Seo Sang-woo’s team from the Department of Chemical and Biological Engineering generated 13.7 billion won in sales from a single product.
To encourage researchers familiar with industry collaboration, Cosmax adopted a highly business-oriented approach. Like a “box office guarantee,” the company rewards researchers with a portion of the revenue from high-performing products. Professor Yoon Hye-jung from the Department of Agricultural Life Sciences said, “One advantage is that students gain insights into what issues may arise when their technology is mass-produced and the mindset shift required.”
