OEM and ODM in Korea: How Ordering Private-Label Cosmetics Works
How OEM and ODM differ, what MOQ and FOB mean, which stages an order consists of, and what to look at in a Korean manufacturer's price list.
Korea is one of the world's centers of contract cosmetics manufacturing. If you want to produce a product under your own brand or buy ready-made lines wholesale, let's go through the basic concepts and the order of work.
OEM or ODM
OEM (Original Equipment Manufacturer) means the manufacturer produces the product to your formulation and specification under your brand. ODM (Original Design Manufacturer) means you take the manufacturer's ready-made development (the formula, and often the packaging) and release it under your own brand.
ODM is faster and cheaper at the start; OEM gives more control over the product and how it stands apart from comparable products.
MOQ — Minimum Order
MOQ (Minimum Order Quantity) is the minimum batch. It is often set per item (for example, in multiples of a box) and/or as a minimum first-order amount. As a reference point: at a number of manufacturers the minimum first-order amount starts at roughly a few thousand dollars.
MOQ directly affects the starting budget, so it is one of the first things to clarify.
FOB and Delivery Terms (Incoterms)
Export price lists are usually quoted in USD on FOB (Free On Board) terms: the price includes delivery to the port of shipment in Korea and loading onto the vessel, while ocean freight, insurance, import customs, and delivery to the warehouse are then handled by the buyer — or all of this is arranged separately.
Understanding the delivery terms helps compare offers fairly: an FOB price and a price with delivery to your warehouse are different amounts.
Order Stages
The usual sequence is: inquiry and item selection → agreeing terms and samples → contract and payment → production → logistics, customs, and delivery. At each step, prices, timelines, and your market's requirements are clarified.
Teranova manages this chain end-to-end: selecting a vetted manufacturer, negotiations, samples, logistics, customs, and payment — from first contact to delivery. The manufacturer's direct contacts are disclosed to the buyer at the deal stage.