JEJU-DO < invest Korea

“At J2KBIO, we discover beneficial compounds from plants and microorganisms in nature to develop functional materials applicable to diverse fields, including cosmetics, food, and pharmaceuticals. Today, as the need for a sustainable future grows more urgent amid climate change and environmental pollution, we leverage differentiated technologies to design materials inspired by nature, explore their value, and help shape a more beautiful world.”                                          

Lee Jae-seop, CEO of J2KBIO

CEO Lee Jae-seop founded J2KBIO in 2017, drawing on extensive experience in the cosmetic raw materials industry. To support independent production and technological development, the company established a factory with an annual production capacity of 3,000 tons and an in-house research institute. Additionally, J2KBIO created the J2K BIOBANK, a microbial information system housing over 2,000 core resources sourced nationwide, from Jeju camellias and green tea to tropical crops in Dangjin, Chungcheongnam-do, and native magnolias from Jirisan. Using these resources, J2KBIO develops functional ingredients with whitening, anti-wrinkle, and UV-blocking properties, supplying around 300 Korean companies, including cosmetic ODM[1]∙OEM[2] firms and small brands. Moreover, J2KBIO provides differentiated solutions such as custom product development and exclusive strain licensing, emerging as a major player in the bio-materials industry with unparalleled profitability and stability. 

[1] Original Development/Design Manufacturing (ODM): A manufacturing approach where the manufacturer handles everything from design to development and production. The manufacturer holds full control over the entire process, while the client has limited involvement. 

[2] Original Equipment Manufacturing (OEM): A manufacturing approach where the client designs the product, and the manufacturer is responsible solely for production based on the client's design.

Q. Your company designs functional materials derived from natural sources. What does ‘designing materials’ entail?

It involves enhancing the efficacy and stability of microbial strains. We identify bioactive compounds beneficial to the human body, refine and concentrate them, and isolate essential components for applications in cosmetics, food, and more. The key is to avoid heat or synthetic substances, preserve the original properties of raw materials, and ensure resistance to pH changes and oxygen exposure. We also optimize the physical properties to blend effortlessly with other components for versatile applications.

Q. Can you outline the overall process, from material discovery to commercialization?

We begin by collecting diverse strains from across the country, a critical step that enhances product stability and enables customized material supply for each client. Following collection, clinical trials uate the efficacy of raw materials, after which production processes are planned based on the results. Our materials fall into three main categories: natural materials, bio-materials, and solvents. Natural materials are extracted from plants and minerals, while bio-materials are derived from microbial fermentation. Solvents are created by blending antimicrobial agents to inhibit mold growth, ensuring skin safety. Once all processes are complete, we conduct additional clinical trials to validate efficacy and quality with scientific evidence.

Q. What are J2KBIO’s patented technologies?

Our signature technologies include the microbial fermentation technique METAexosome and the natural extraction method Microbubble Technology. METAexosome isolates and purifies exosomes  from targeted strains. Recently, we used this to extract and mass-produce lactobacillus exosomes[3] that help alleviate skin conditions and hair loss, for which we’ve filed patents. Moving forward, we plan to develop and mass-produce second-generation exosomes containing collagen and ceramides. Microbubble Technology employs ultrafine bubbles to extract active compounds with minimal impact on raw materials. With bubbles smaller than half the width of a human hair (less than 50 μm), this method minimizes impact on raw materials and preserves 20% more efficacy compared to conventional methods. Recently, this technology was successfully used to extract the active components of nutgrass (Cyperus rotundus), a medicinal herb known for its anti-inflammatory properties and traditionally used in India, China, and Japan. While previously unstable in essential oil[4] form, our technology maximized compound content and stabilized it, making it more effective and suitable for skincare.

Q. In 2022, you established a new base in Jeju to develop new materials. Why did you choose Jeju among other regions in Korea?

Jeju, designated a UNESCO World Natural Heritage site, is a treasure trove of biodiversity, with the entire island under protection. It features diverse climates ranging from coastal areas to volcanic cones, Gotjawal Forest, and Hallasan Mountain, making it home to the richest variety of species in Korea. These resources are essential for developing eco-friendly materials, making Jeju a strategic hub for our research. To date, we have collected over 90 microbial strains from wild plants, flowers, and traditional fermented foods in Jeju. Based on these resources, we collaborate with local businesses and institutions to carry out government projects and R&D initiatives.

Q. What are some products made using Jeju’s microbial resources?

Our flagship product, Metabiome HK-503, was developed through dual fermentation using yeast extracted from green tea flowers at Orteas, a tea garden in Jocheon-eup, and Bacillus strains isolated from malted rice. This method produces biopolymers that enhance the absorption of beneficial bacteria. It increases skin moisture retention, effectively soothing and reducing redness. Another product, Metabiom Black-P, utilizes black yeast extracted from camellia flowers found along Jeju’s coast and is effective in reducing wrinkles. Additionally, we offer ProbioMETA G55, a postbiotic cultivated with sea minerals, and the patented J2K-55, a lactic acid bacterium isolated from Jeju’s clean water-based dongchimi.

 
Q. Since its inception, J2KBIO has achieved consistent revenue growth and industry-leading profit margins, establishing itself as a major player in Korea’s cosmetic materials sector. What are some notable achievements this year?

In Q3 2022, we achieved an operating profit margin of 20.6%, setting a record for the industry. This performance, coupled with steady revenue growth, led to our successful listing on the KOSDAQ in the first half of the year. The listing reflects recognition of our growth potential and stability, opening doors to further opportunities. The funds raised allowed us to establish the HLK Clinical Trial Center for skin clinical testing and actively invest in developing cosmetic materials utilizing Jeju’s microbial resources. As a result, our sales in the first half of the year increased by approximately 54% compared to the previous year. Building on this momentum, we plan to expand our market presence across Asia, North America, and Europe, gradually increasing our global market share.

Q. You have expanded your business beyond raw material production and sales to include clinical services. Are there any other areas you wish to tap into?

While we currently focus on developing cosmetic raw materials, we aim to expand into health-functional foods and pet body care in the future. The pet body care market, in particular, has significant growth potential, offering an opportunity to attract new consumer segments. With our innovative technology, J2KBIO is dedicated to enhancing the value of domestic brands, strengthening competitiveness, and entering global markets. Our mission is to drive continuous growth and provide greater value to customers by pursuing the development of versatile new materials with limitless potential.

■ INFORMATION

Established in | 2017
Business line  | 
: Natural-derived active ingredient research
: functional material development
: physiologically active substance mechanism development
: customized solutions for customers 

Homepage |  j2kbio.com

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