SK Telecom (NYSE:SKM) today unveiled the future direction of its healthcare business, which has been designated as one of the company’s three new growth engines, at MWC 2013.

The company is currently demonstrating innovative healthcare services/solutions including Health-On, Smartcare , Patient GuideTM and FRENDTM :

Health-On is a new concept of healthcare service that 1) establishes optimal health management goals based on the results of user’s medical checkups and professional heath consultation; 2) continuously recommends diet and exercise plans; 3) measures health-related indexes and provides on/offline consultation on a regular basis; and 4) offers real-time health management system utilizing mobile/web connectivity. The company conducted a service trial on 30 of its employees in the second half of 2012 and found out that after the three-month trial, their weight and body fat decreased by an average of 8.8kg and 6.2kg, respectively.

The service has been developed by HealthConnect, a joint-venture established by SK Telecom and Seoul National University Hospital (SNUH), the nation’s top hospital. HealthConnect, established in January 2012, is focusing on the development of smart healthcare services that combine SK Telecom’s advanced ICT technology and SNUH’s leading medical expertise. Health-On will be launched in the Korean Market in March 2013.

Smartcare is a healthcare service that enables chronic illness patients to efficiently manage their conditions by conveniently measuring biometric information like blood sugar and blood pressure. Then, patients can send the measured information to healthcare professionals via mobile connectivity to receive appropriate and timely advice or treatment.

Building on its experience of performing a government project for three years, SK Telecom will closely work with SNUH to build a system - that allows patients with chronic diseases to self-check and keep track of their health/disease conditions, and enable health professionals to check the patients’ status in real-time to offer effective treatment – and begin trial service within this year. The service, once launched, will not only dramatically enhance efficiency of services provided by medical professionals but will also allow chronic disease patients to receive high-quality medical services without having to visit hospitals.

Patient GuideTM is a mobile application/service that offers a wide-range of hospital-related guidance services for out-patients. It provides patients with accurate route guidance to destinations within hospitals using differentiated indoor positioning technologies. Users can also schedule their hospital appointments/ checkups; search for detailed medical information; check waiting time; pay hospital charges via mobile phone; and download mobile prescriptions. The service can also be provided through designated kiosks installed in hospitals.

SK Telecom is currently working with Seoul National University Bundang Hospital to build a smart hospital environment through diverse innovative ICT-combined technologies/services including Patient GuideTM.

FRENDTM is a point-of-care testing device that uses a single drop of blood to provide immediate on-site diagnosis of cancer (prostate cancer), cardiac diseases (myocardial infarction, heart failure) and hormone disorders. As test results can be promptly and securely shared between patients, doctors and healthcare providers via 3G/4G wireless connectivity, patients can use it as a convenience means to monitor their health, and benefit from early detection/effective management of diseases, which will, in turn, significantly reduce healthcare cost.

The device is being supplied by an in-vitro diagnostic medical device manufacturer named NanoEntek and is currently undergoing FDA approval.

Meanwhile, SK Telecom has been laying a solid foundation to create long-term business opportunities in the healthcare business by acquiring stakes in NanoEntek and X’ian Tianlong Science and Technology Co. Ltd., a Chinese medical device manufacturer.

In-vitro diagnostic medical device is being highlighted as a promising area in healthcare business: The market for in-vitro diagnostic medical device in China alone is expected to be worth KRW 6.3 trillion in 2021. SK Telecom projects that, in the long term, it will be able to open a new market for ICT-based medical devices, while also making inroads into overseas medical device/equipment markets through investment in and cooperation with medical device makers.

Furthermore, in the mid-to long-term, SK Telecom will seek opportunities to enter global markets including China, Thailand, Vietnam, Africa and the Middle East by joining hands with strategic partners around the world.

Yook Tae-sun, Executive Vice President and Head of New Business Division at SK Telecom said, "SK Telecom has been promoting its healthcare business with a mid-to-long term perspective. As part of its thorough preparation to build a strong healthcare business, SK Telecom joined hands with SNUH and made meaningful investments in medical device manufacturers. Supported by continuous R&D efforts and collaboration with valuable partners, SK Telecom will take year 2013 as the year the company begins its healthcare business in full swing."