South Korean pharma players are getting halal certification for the Indonesian market, while also eyeing other Muslim markets.

Taipei: South Korea’s pharmaceutical industry, a global player with exports reaching South Korean Won KRW7.93 trillion ($6.8 billion) in 2020, has been expanding its foothold in the world’s Muslim markets, offering guarantees that manufacturers avoid inputs that are offensive to Muslims. This includes certain animal-derived materials, especially capsules from pig gelatin, and ingredients or processes utilising alcohol.

The South Korea industry has made particularly strong progress in the halal market by forming joint ventures with Indonesian companies. For example, CKD OTTO Pharmaceuticals is one company that has been making progress in targeting international halal markets. A joint venture company between Chong Kun Dang Pharm Corp, a leading South Korea pharmaceutical company, and PT Otto Pharmaceutical Industries, part of the Indonesian pharma-focused MENSA Group, it signed in mid-November an export agreement worth $32 million with Saidal, the largest state-run pharmaceutical company in Algeria. According to the contract, CKD OTTO will export anticancer injections produced at its Indonesian plant to Algeria until 2026.