SK Telecom (NYSE:SKM) today announced the official launch of Health Connect Co., Ltd., a joint venture with Seoul National University Hospital (SNUH).

Lee Chul-Hee, a professor at SNUH, was named the CEO of Health Connect. Lee has been the President of Boramae Medical Center since 2009. He also served as the CEO of ezCaretech, Co., Ltd., an IT subsidiary of Seoul National University.

Yook Tae-Sun, Senior Vice President and Head of Healthcare Business Office of SK Telecom, was appointed as the CDO (Chief Development Officer) of Health Connect. Yook will take charge of developing futuristic, innovative technologies by converging SK Telecom’s strong ICT capability and SNUH’s extensive knowhow in medical care.

Since signing the joint venture agreement on Oct. 10 2011, SK Telecom and SNUH have closely worked together to promote healthcare business. The two parties have completed creating the organizational structure (i.e. Business, technology, strategy, new business development, etc.) of the joint venture firm and recruited all needed employees in just three months. The joint venture is established with a capital of KRW 20 billion.

The name ‘Health Connect’ represents convergence between the core capabilities of the two companies: SNUH’s expertise in medical technology and knowhow and SK Telecom’s strength in ICT and network operational knowhow. In other words, Health Connect is established with the purpose to realize Smart Mobile Health that connects all stakeholders of medical services including patients, medical professionals and patients’ families to medical equipment and healthcare system anywhere, anytime.

Moreover, the name symbolizes the company’s management philosophy under which it is committed to realizing longer and healthier lives for people by using the integrated medical information for disease prevention and treatment as well as effective health management. 

In line with the outlook that healthcare service will move towards the direction of ’disease prevention and health management" and will face transformation through "ICT-based innovations," Health Connect defined three main pillars of business: Development of a self-health management service model; export of ICT-based digital hospitals to overseas markets; and establishment of an integrated R&D system for the advancement of the Korean healthcare industry.

Health Connect plans to develop a health management service model centered on wellness in 2012, followed by a pilot service conducted jointly between SK Telecom and SNUH within the same year

Lee Chul-Hee, CEO of Health Connect said, "Healthcare costs are rising dramatically due to the aging of population and without thorough preparation, it will become a huge national burden.  By offering ICT-based healthcare, Health Connect will allow people to prevent diseases and manage their health, which will in turn contribute to reducing social cost and enhancing national welfare. As the pace of adoption of IT in the medical industry has been slower than that of other industries, the combination of SK Telecom’s world’s top level ICT and SNUH’s medical technology and knowhow will accelerate the advancement of the Korean healthcare industry, making it strong enough to be exported to the global markets. Health Connect will create a new type of Korean Wave in the field of medical services and thereby boost national competitiveness."

Jung Hee-Won, President and CEO of SNUH said, "The establishment of Health Connect, a joint venture firm between SK Telecom and SNUH, is especially meaningful as countries around the world are pushing to realize IT-based convergence healthcare, making it all the more important for us to timely develop innovative healthcare service models while securing a leadership position in the field of futuristic convergence healthcare technology. Health Connect will serve as an important cornerstone that offers new direction and opportunities for the healthcare industry by taking Korean medical services to the next level."

Ha Sung-Min, President and CEO of SK Telecom said, "The official launch of Health Connect marks a good starting point for SK Telecom and SNUH to join hands to bring ICT-driven innovations to the healthcare industry. SK Telecom will provide the best support and make all-out-efforts to produce successful results in its new, long-prepared healthcare business. With cutting-edge ICT and top-class medical professionals, Health Connect is well positioned to serve as a pioneer in the field of futuristic healthcare services both home and abroad.

Besides the launch of a joint venture company, SNUH and SK Telecom co-developed Mobile EMR (Electronic Medical Record) and medical self-diagnosis applications in 2011 to accelerate the realization and export of ‘Smart Hospital.’ Moreover, plans are ahead for the two companies to create a customer-oriented medical environment by building smart ICT systems within hospitals this year.