Kakao Healthcare made clear that it has no plans to jump into the non-face-to-face treatment business in the domestic market even after it is introduced in Korea. However, the company left open the possibility of global business.

“We’ve been asked frequently since last year whether Kakao Healthcare would engage in the non-contact treatment business. The clear answer is Kakao Healthcare will not conduct the telemedicine business at home,” said CEO Hwang Hee during a media meeting at the company. “There has been a great deal of discussion internally. However, non-face-to-face treatment is not in our business portfolio from the beginning.”

Hwang added that his company has technologies and ideas about non-contact treatment and can make a solution in two months.

“However, many good startups have already jumped in the market as the nation experienced the Covid-19 pandemic,” he said. “It is my personal judgment that Kakao Healthcare’s participation in the market at this moment is not desirable.”

Still, he did not rule out the possibility of entering the U.S. market.

“The non-face-to-face treatment has taken a firm root in the United States through the pandemic, and the reimbursement system was also established clearly,” Hwang said. “If someone proposes us to support the U.S. non-contact treatment area with Kakao’s technology, there is no reason for us to reject it.”

In terms of the global market, not just Korea, Kakao Healthcare could jump into the (non-contact treatment) business if given the opportunity to enter clearly agreed markets.

Commenting on medical devices, CEO Hwang also said his company’s focus would not be on hardware but on software that can use hardware.

“As I know, the Kakao community, including Kakao Healthcare, has not produced medical devices,” he said. “Considering sales, we can be tempted to make equipment. However, the essence of software business lies in offering options for using various devices and maintaining an independent service in the device area.”

Hwang reiterated his views that it is not desirable to make devices directly or offer services subordinated to specific services, although there can be devices closer to its service strategically.

Commenting on the Digital Therapeutics (DTx) area, where the first homegrown product was born recently, Hwang said, “We have not reached a level where we can say we are ready to jump into the medical device or digital therapeutics business.”

Asked how it could compete with Naver, Korea’s largest portal service, he said, “I think I have made the replies to that question by revealing our business plans and ideas at today’s meeting.”

“Kakao and Naver have too different targets to say which is more competitive. Naver is a healthcare ‘research institute’ while Kakao is a healthcare ‘business,’ so there should be a difference in their viewpoints,” Hwang said. “As we ‘respect’ the assets Naver has, I hope our relationship is not seen as that of excessive competition.”