The South Korean government is providing support for halal certification to exporters targeting Indonesia and Malaysia. This initiative aims to alleviate the certification burden on K-consumer goods exporters as Indonesia plans to implement mandatory halal certification for imported goods, including food and cosmetics, starting in October.
On July 21, the Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency (KOTRA) held an online briefing for over 150 representatives from small and medium-sized enterprises exporting to Indonesia and Malaysia.
Halal certification is a system where accredited organizations verify that products and services comply with halal standards throughout the entire process, including raw materials, manufacturing, and distribution. Many companies aspiring to enter the Southeast Asian market have found the halal certification process challenging, prompting the need for this briefing.
Starting in October 2026, Indonesia will enforce mandatory halal certification for imported goods, including food and cosmetics. As a result, obtaining halal certification has become a necessary step for K-consumer goods companies targeting the Indonesian market.
The briefing included participation from KOTRA's FTA Overseas Utilization Support Center in Indonesia and Malaysia, which explained the halal certification systems in both countries, methods for mutual recognition of certifications through domestic halal certification agencies, and support for certification costs through government export vouchers.
Mutual recognition allows Korean halal certification agencies to have their certificates recognized at the same level as those issued by local certification bodies in foreign countries under mutual recognition agreements. In Malaysia, the Korea Halal Industry Promotion Agency and the Korea Halal Certification Agency can serve as domestic certification bodies. In Indonesia, six organizations, including the Korea Testing Laboratory of Machinery and Electronics and the Korea Halal Industry Promotion Agency, provide related certification support.
KOTRA also outlined support for certification costs through its export voucher program, which can cover 70% of certification costs for small enterprises and 50% for medium-sized enterprises.
Halal certification has evolved into a significant non-tariff barrier affecting entry into the Southeast Asian consumer goods market, extending beyond mere religious considerations. The certification status can directly impact the ability to enter local distribution networks and customs processes, meaning delays in preparation could hinder export schedules.
As demand for K-food and K-beauty products rises, managing the entire production process in accordance with halal standards is essential for effectively targeting the Muslim consumer market.
Park Geun-o, Director of Trade Agreement Policy at the Ministry of Trade, Industry and Energy, stated, "In the face of rapid changes in the international trade environment and increasing trade barriers, proactive preparation for region-specific certifications like halal is a key factor in determining the international competitiveness of our export companies. We will expand tailored support activities that small and medium-sized enterprises can feel."
* This article has been translated by AI.
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