Kakao Healthcare Launches into Japan's Healthcare Market

Kakao Healthcare has officially announced its entry into the Japanese healthcare market, taking its first step towards global expansion. It has completed the establishment of its local subsidiary 'KHC Japan' and appointed Jin-ho Lee, former CEO of J-PAX and an expert in Japanese B2C and IT businesses, as the inaugural CEO, completing all preparations. CEO Jin-ho Lee, who graduated from Waseda University's School of Commerce in Japan, is regarded as the right person to lead the successful establishment of the digital healthcare business in Japan, thanks to his rich experience accumulated over approximately 30 years at companies such as Hyosung, Cyberd Korea, and Global Tax Free. Kakao Healthcare is also further strengthening its local business expertise by recruiting talent in sales, marketing, planning, and development, including local medical professionals. Formal contracts and partnerships with global and local partners are also scheduled to be finalized within the first half of the year. Kakao Healthcare reviewed various overseas markets, including the US and the Middle East, but chose Japan as its first country of entry. With approximately 11 million diabetic patients and 20 million pre-diabetic individuals as of 2021, Japan boasts a market size twice that of Korea, and there is a dire need for innovative biosensors and digital healthcare solutions. To target this enormous market, 'PASTA,' an AI-based mobile health management solution recognized for its expertise and technological prowess in Korea, will lead the charge. PASTA, which has proven its capabilities as a blood glucose management solution over the past year, plans to provide localized, customized services to the Japanese diabetic population. In particular, it plans to expand its business scope to include not only general consumers but also hospitals, health check-up centers, and local governments, and to target the Japanese diet market through 'Finoat,' a weight management service recently launched in Korea. Thorough localization work is currently underway, reflecting the characteristics and cultural environment of Japanese users, and efforts are being accelerated in health content development, food database, and AI service enhancement. After a pilot test by August, the Japanese version of PASTA is scheduled to officially launch its service in September. Hwang Hee, CEO of Kakao Healthcare, expressed his ambition, stating, "The Japanese market is a crucial first step in Kakao Healthcare's global expansion," and "Based on our service competitiveness proven in Korea, we will provide an optimized, customized blood glucose management experience to Japanese consumers, and we will continuously improve our services and expand local partnerships for a successful establishment." All eyes are on what kind of success story Kakao Healthcare's challenge in the Japanese market will write.