SK Telecom (NYSE: SKM) today announced that it agreed to set up a joint venture with Seoul National University Hospital (SNUH) to develop the future health care convergence technology and services.

SK Telecom and SNUH signed a strategic partnership agreement in April 2011 to share capability in health care ICT business, identify specific areas of cooperation, and devise measures to develop innovative joint business models.

Under this agreement, the two sides held close and detailed discussions on areas of cooperation and the formation of a joint venture, while separately developing specific action plans.

The R&D joint venture to be established between the company and SNUH will develop the next generation health care model that connects prevention, diagnosis, treatment and management; promote the export of ICT-based medical services or so-called "digital hospital"; and enhance Korea’s national competitiveness in medical technology and services.

The development of the next generation medical services that link prevention, diagnosis, treatment and management will lead to the provision of truly personalized health care based on one’s medical information, ‘life log’ (i.e. biometric information like blood pressure, blood glucose, etc., dietary information, activity information, etc.) and genetic information, thereby maximizing the treatment effect and minimizing health care cost. Also the combination of SK Telecom’s leading ICT capability and SNUH’s sophisticated medical care will produce innovative business models strong enough to hit the global market. Furthermore, the R&D joint venture will contribute to the advancement of national health care technology and service, creating valuable opportunities in the field of ICT-converged health care service. 

The joint venture is scheduled to launch within this year upon completion of the establishment process. SK Telecom will hold 49.5 percent of the stake in the joint venture, while SNUH will hold the remaining 50.5 percent.  

The signing ceremony of the joint venture agreement between SK Telecom and SNUH will be held at SNUH and attended by 30 major executives of both parties including SNUH’s President Jung Hee-Won and SK Telecom’s President & CEO Ha Sung-Min.

Jung Hee-Won, the President of Seoul National University Hospital said, "The joint venture between SK Telecom and SNUH holds a significant meaning from the public health care perspective as it includes services for the medically deprived people and areas. Furthermore, some of its profit will be donated or invested to enhance public health care in Korea. SNUH and SK Telecom will work together to research and develop future health care models so as to offer the most reliable next-generation medical services, increase health-care consumer satisfaction, and strengthen Korea’s national competitiveness in health care.

Ha Sung-Min, the President and CEO of SK Telecom said, "Recognizing the importance of the medical sector, SK Telecom has been preparing ICT-based health care business, fully leveraging its differentiated technology and capability, and to this end, created a dedicated team for the health care business. The establishment of the joint venture between SK Telecom and SNUH marks a great start that will lead to the development of the future convergence health care technology and innovative medical services. Looking ahead, SK Telecom will make strenuous efforts to suggest a new development path for the health care industry based on its strong, long-lasting cooperative relationship with SNUH."