Tae-hyung Kim, Gounee Yang

Global Economic News

FOLLOWING on the heels of Samsung and SK, South Korean companies in sectors including manufacturing, IT, and distribution are actively entering the health care market, through either establishing new subsidiaries or merger and acquisitions.

Lotte Holdings held a board meeting Sunday and decided to establish Lotte Healthcare by investing 70 billion won (US$57 million). It plans to establish a health care platform that will provide comprehensive solutions for health management.

Kakao has created a health care division, dubbed Kakao Healthcare, to enter the global health care market.

Doosan and LG Electronics added medical device manufacturing and sales to their business model at the general shareholders’ meeting this year. LG Electronics said it will enter the home medical equipment market.

The healthcare market is expected to grow significantly. According to the International Trade Research Institute of the Korea International Trade Association, the global digital healthcare market is expected to more than triple from US$152 billion in 2020 to US$508 billion in 2027.