Potassium Hydroxide (really any aqueous base) reacts with oils and heat in a chemical process called saponification. The result is soap and alcohols if memory serves.
It’s the same as the JADAM wetting agent, so yes would be considered organic. @Tinytuttle shows how to make it in his thread here:
Tinytuttle's Grow Chronicles 2019 - #98 by Tinytuttle