[Distribution Hot People] 'Yakult Ajusshi' Leading the Localization of Probiotics

Shin Sang-ik, Head of HY Research Planning Team

Sales of Patented Kimchi Probiotics Increase
Certification for Skin Functional Strains Also Pursued

Sinsangik hy R&BD Research Planning Team Leader

[Asia Economy Reporter Lim Hye-seon] As the probiotic market size is expected to exceed 1 trillion won this year, more than 80% of the total raw materials are imported, making localization urgent. hy has entered the domestic probiotic raw material business-to-business (B2B) market with Korean-style lactic acid bacteria and launched the exclusive brand ‘hyLabs.’ The company plans to increase the share of Korean-style lactic acid bacteria in the raw material market to over 60% within the next five years.

On the 18th, Shin Sang-ik, head of the hy Research Planning Team (pictured), said, "A representative brand is necessary to target the probiotic material market dominated by foreign companies," adding, "We plan to target the market with Korean-style lactic acid bacteria extracted from traditional foods." Shin joined the company in 2005 as part of the immunology research team and participated in new business development such as coffee and convenience foods.

hy’s goal is to strengthen the competitiveness of domestically produced strains and reduce the proportion of imported materials. hy registered its probiotic KY1032 as a new dietary ingredient (NDI) with the U.S. Food and Drug Administration (FDA). KY1032 is hy’s patented lactic acid bacteria strain. It is a plant-based strain isolated from kimchi and is also the raw material for ‘KillFat,’ a material individually recognized by the Ministry of Food and Drug Safety. KillFat is a composite of this strain and ‘HY7601.’ hy is also pursuing registration of ‘HY7714,’ the country’s first skin-functional lactic acid bacteria, along with the remaining HY7601.

The probiotic raw materials sold by hy are in highly concentrated powder form, with 15 kg of lactic acid bacteria powder produced from a single 1,500 kg fermentation tank, containing 200 billion lactic acid bacteria per gram of powder. The company supplies probiotic raw materials to numerous companies including Chong Kun Dang Health, Hurom, Nutri, and Jangsu Nongga (Seltiva). Shin explained, "This year, raw material sales have exceeded 8,000 kg."

The strain development process is simple but time-consuming. Shin said, "We isolate 4,500 strains owned by hy and create consistent indicators to screen them one by one," adding, "It took 17 years to develop KillFat." He continued, "To be competitive in the B2B business, it is essential to have a diverse strain portfolio," and emphasized, "Continuous research and development focused on high value-added strains is necessary."

Recently, hy completed the development of ‘fermented deer antler velvet.’ Shin said, "Fermented deer antler velvet was made using the affordable mid-section rather than the most expensive tip bone," and added, "We fermented the mid-section with lactic acid bacteria to increase the ganglioside content to the level of the tip bone." The entire process from strain selection to commercialization took five years.

Finally, Shin explained the difference between probiotics and lactic acid bacteria. He said, "Probiotics are live bacteria that enter the body and provide health benefits, while lactic acid bacteria produce lactic acid, suppress harmful bacteria, and help other beneficial bacteria, playing a beneficial role in human health," and defined, "Only the beneficial lactic acid bacteria among lactic acid bacteria are called probiotics."