Although the United States holds the largest share of the global medical device market, domestic companies are keenly targeting Asian countries with the highest growth rates, such as Vietnam, Mongolia, and India. However, it is difficult to succeed in exports without a meticulous strategy.
Founded in 2012 as a subsidiary of the SCL Group, Ahealthz has achieved success by actively investing locally and building strong partnerships. It has successfully introduced high-quality Korean medical products to numerous overseas markets.
Ahealthz begins by identifying the medical products needed in each target country and evaluating the growth potential. This has enabled them to establish a stable foothold for distributing superior Korean medical products abroad.
Ahealthz signed a distribution agreement for an AI-based respiratory disease testing device developed by the Korean company TR. Through aggressive marketing activities, they secured an export contract with TR to Vietnam. Additionally, the device was selected for Vietnam's National Respiratory Health Improvement Project, led by the Ministry of Health and Ho Chi Minh National University of Medicine. Following a year of clinical trials, the product was recognized for its excellence, recently receiving certification, paving the way for full-scale entry into the Vietnamese market.
Buoyed by these successes, Ahealthz has restructured its organization to focus on overseas ventures, strengthening partnerships with countries such as Indonesia, Japan, Taiwan, and Kazakhstan.
Their relationship with Mongolia is exceptional. Since establishing the diagnostic testing institute Mobio in Ulaanbaatar in 2003 with the SCL Group, they have been operating for 20 years, spreading the latest diagnostic techniques from Korea and organizing academic conferences that bring together scholars from Korea and Mongolia to promote mutual development in the healthcare field.
Earlier this year, Ahealthz invested strategically by acquiring a 30% stake in Arch International Hospital, marking its full entry into the Mongolian healthcare market. Arch International Hospital is the affiliated hospital of Mongolia's first private medical school, ACH Medical University, and is equipped with about 200 medical staff, 120 beds, and a 9-floor facility. Through this investment agreement, both parties have agreed to establish a mutual cooperation system within Mongolia and support disseminating Korean medical technology and medical personnel training.
A tripartite agreement was also signed between Korea University Guro Hospital's International Cooperation and Exchange Center, Arch International Hospital, and Ahealthz. The three institutions will continue collaborating on medical personnel and academic exchanges through this agreement. Ahealthz anticipates that Korea's advanced medical technologies will quickly be transferred to Arch Hospital, positioning it as a base for advancing Mongolian healthcare.
This partnership with Joonghun Pharmaceutical establishes a reliable distribution channel for their top-quality products at Arch International Hospital.
Ahealthz also plans to sign additional tripartite agreements with Arch International Hospital and companies such as TR (for respiratory disease testing and treatment devices) and MediHub (for digital 3D painless injection devices) to accelerate the overseas expansion of Korea's leading medical products.
Ahealthz CEO Kim Jun Yoon stated, "Through active local investment and strengthening partnerships, we have successfully introduced many excellent Korean products to international markets. Moving forward, we plan to expand our global business portfolio with Ahealthz's proactive strategies while creating business synergy through aggressive M&A efforts as we prepare for an IPO.
[Mini Interview] Kim Jun Yoon, CEO of Ahealthz
"If we confirm the potential for success with a product in the domestic market, it's only natural to knock on the door of overseas markets. Our first targets are fast-growing countries like Vietnam, India, and Mongolia, followed by building a successful business model for advanced markets like the U.S."
Kim Jun Yoon's plan is clear. Rather than initially targeting mature, extensive markets, he aims to focus on countries where Korean products have a higher chance of success, achieve results in overseas markets, and establish a successful business model for larger markets.
After rebranding to Ahealthz last year, Kim has been accelerating the company's global expansion efforts. We asked him about his progress and future plans.
-What is Ahealthz' unique strategy for securing a foothold in overseas markets?
Ahealthz is more than just focused on exporting and selling medical devices. To truly succeed in foreign markets, we believe in creating flagship stores and generating various business opportunities through strategic equity participation. Our direct investment in Arch International Hospital was the first step earlier this year. This strategic investment allows us to take a more direct role in healthcare. We plan to use the same strategy to build business ecosystems in Vietnam and Indonesia, and we're also looking to form a global business chain with Singapore.
-How is the overseas market responding to Korean products?
When selecting promising domestic products, we evaluate both the potential in the Korean market and the likelihood of success in the local overseas market. A prime example is the AI-based respiratory disease testing device we successfully launched in Vietnam. This product is essential for the local market. According to the World Health Organization (WHO), six out of the top ten causes of death in Vietnam are respiratory diseases related to air pollution. The country is also pursuing several national projects to prevent and diagnose respiratory diseases early.
-You recently completed another successful academic seminar in Mongolia. Can you tell us more about that?
This year marked the 18th academic seminar co-hosted by Arch International Hospital and the SCL Group. In line with Ahealthz's business direction, we focused on advanced medical technologies like AI and robotic surgery. Esteemed scholars from Korea and Mongolia gave lectures, and the response from the attendees was overwhelmingly positive. I expect this seminar will further elevate the status of Arch International Hospital.
-What are Ahealthz' future plans in the increasingly competitive medical market?
Ahealthz is aggressively expanding its global business to evolve from a simple medical device distributor into a comprehensive medical solutions provider. Recently, we laid the foundation for medical device manufacturing by acquiring a molecular and immunodiagnostic manufacturer with GMP/ISO 13485 certification. We also established a diagnostic technology research lab within the company to focus on product development and various government-funded projects.
Additionally, we have restructured the company into three key divisions: Medical Devices, Diagnostic Medicine Services, and the Overseas Business Division, ensuring that we cater precisely to customer needs. We will continue to secure a stable distribution network through active investments and partnerships while expanding our medical business in all directions and working toward becoming a genuinely comprehensive medical solutions provider.
