South Korea is stepping up policy support for companies bringing production back home amid ongoing global supply chain realignments, with Kolmar Korea emerging as the first official reshoring company of the year.
According to the Ministry of Trade, Industry and Energy, Minister Kim Jung-kwan visited Kolmar Korea’s Sejong plant on April 27 to deliver the government’s reshoring certification, marking the formal start of expanded support measures.
The visit included senior officials from Korea Trade-Investment Promotion Agency (KOTRA) and Korea Industrial Complex Corporation (KICOX), who inspected production facilities and discussed plans for further investment.
The Sejong plant serves as a key hub in Kolmar Korea’s global manufacturing network, supplying products to approximately 4,500 domestic and international clients. The facility is capable of producing around 890 million units of skincare products annually and is also responsible for manufacturing all of the company’s sunscreen products, demand for which has recently surged.
Since its completion in 2014, the plant has been regarded as one of Asia’s largest single cosmetics manufacturing facilities and has played a central role in supporting the expansion of K-beauty exports.
Kolmar Korea’s reshoring decision is linked to a broader restructuring of its overseas production footprint. The company consolidated its China operations into a single plant in Wuxi while increasing domestic production capacity, reflecting a strategic shift toward supply chain stability amid geopolitical uncertainty and rising protectionism.
A policy roundtable held during the visit brought together companies from sectors including semiconductors, cables, and automotive components that are also pursuing reshoring strategies. Participants reportedly called for expanded investment incentives, as well as improved support for industrial sites and workforce availability.
Minister Kim emphasized that corporate competitiveness increasingly depends on securing stable supply chains, adding that the government will strengthen policies to make reshoring and regional investment more attractive options for businesses.
Kolmar Group said it plans to further enhance production capabilities at its Sejong facility to meet growing global demand while contributing to the competitiveness of the K-beauty industry.
The government aims to use this case as a catalyst to encourage reshoring across both advanced manufacturing and consumer goods sectors. Industry observers expect more companies to follow suit as firms seek to balance supply chain resilience with quality control advantages.
