Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Cosmetics firms seek for halal certification
By Park Jae-hyuk
Large Korean cosmetics firms have yet to obtain halal certification while targeting markets in the Middle East as a new blue ocean.
The Ministry of Food and Drug Safety said Monday that nine Korean cosmetics firms are participating in a cosmetics exhibition held at Esteghlal International Hotel in Tehran, Iran, between Tuesday and Thursday.
Participants are seeking to expand their sales in the Middle East through their first grand promotion event in Iran and inspire K-beauty fever there, as they did in China.
Minister Sohn Mun-gi expects the exhibition “will promote Korean cosmetics’ fine qualities, as well as being the first step toward the Middle East market.”
The third Cosmetics and Beauty Expo in Osong, North Chungcheong Province, Oct. 5, also shed light on halal cosmetics as the future of K-beauty. Halal experts from the Middle East and Southeast Asia were invited to the expo and held a seminar there.
However, many Korean cosmetics firms still lack halal certification which is necessary for their expansion in Middle East markets where most consumers are Muslim.
Islamic law, Sharia, bans cosmetics made with alcohol and collagen extracted from pigs.
“Small and medium-sized cosmetics firms often complain about difficulties in certification procedures, such as preparing evidential documents,” an official at the International Halal Certification said.
Large firms, such as AmorePacific and LG Household & Healthcare, have no halal certified products as well, although they are joining the exhibition in Iran.
“Our company does not have a clear blueprint for expansion toward Middle East markets yet,” an AmorePacific official said. “We will prepare our plan later this year or early next for halal certification.”
Suh Kyung-bae, chairman of the country’s top cosmetics firm, said, “Dubai, UAE, will be the first market we enter,” during a press conference at the company’s 70th anniversary last year.
An LG Household & Healthcare official said, “We do not have any plan for halal certification of cosmetics.”
The company is operating over 55 stores in five Middle East countries _ Jordan, Saudi Arabia, UAE, Oman and Armenia. Those stores have adapted to the countries through selling only color cosmetics and fundamental cosmetics without animal components.
According to Thomson Reuters State of the Global Islamic Economy 2014-2015, the market volume of halal cosmetics worldwide was $40 billion in 2013 and is expected to grow up to $73 billion in 2019. The government had said it will develop halal cosmetics at the 10th Trade Investment Promotion Meeting hosted by President Park Geun-hye in July.