Healthcare corporations CERAGEM Co. is pushing ahead again with an initial public offering (IPO). After reviewing listings several times in the past and stopping midcourse, CERAGEM Co. this time plans to set a mid- to long-term strategy and prepare for a listing with 2028 as the target. With Bodyfriend, a rival in Korea's massage chair and healthcare market, having tasted defeat after pursuing a listing, the market is focused on CERAGEM Co.'s renewed bid to go public.
Lee Kyung-su, CEO of CERAGEM Co., on the 6th (local time) in Las Vegas, at the world's largest IT and home appliance show "CES 2026," made official a plan to pursue an IPO two years from now. Lee emphasized a transition into a global wellness solutions corporations based on customer health data, rather than a simple medical device manufacturer. The idea is to move to list by shifting the business structure and expanding globally.
CERAGEM Co. has grown mainly through spinal care medical devices and massage chairs, but recently has been accelerating a shift into a wellness solutions corporations that incorporates AI. The strategy is to expand into health data-based services, personalized healthcare solutions, and senior-friendly living and care space businesses to build a structure that does not depend on simple appliance sales. This is interpreted as an attempt to move away from a business model centered on one-off product sales and build a sustainable growth model.
Global business expansion is also a key factor in the listing push. Overseas sales account for about 44% of CERAGEM Co.'s revenue, with China, Southeast Asia and Europe as key markets. Recently, it has also been strengthening a premium healthcare appliance brand strategy aimed at North America. The plan is to be evaluated as a global healthcare corporations, not a domestic appliance corporations, through overseas results.
Financial performance is the biggest challenge for the listing. CERAGEM Co.'s sales rose from 282.3 billion won in 2018 to 750.1 billion won in 2022, but fell to 546.0 billion won in 2024. Operating profit plunged from 70.8 billion won in 2018 to 2.1 billion won in 2024. The sharp deterioration in profitability relative to top-line growth is a burden in the listing process. The decision by CERAGEM Co. to assemble a dedicated team in 2021 to prepare for a listing and then shelve it was influenced by the view that, amid slowing results and greater stock market volatility, it would be hard to have its corporate value assessed at an appropriate level.
CERAGEM Co.'s bid to list invites comparison with rival Bodyfriend. Bodyfriend pushed for a listing in the late 2010s but failed. Bodyfriend is said to have received low marks on qualitative requirements such as management transparency and governance. In 2024, Bodyfriend's sales were 375.4 billion won, and operating profit was 26.6 billion won.
Experts said that for CERAGEM Co. to list in two years, it must deliver tangible results. They said the new AI wellness and healthcare businesses need to translate into sales and profits, and the profitability of its existing core businesses needs to recover.
Attracting strategic investors before the listing is also an important variable. At CES 2026, Lee said, "We have never received external investment since our founding, but this year we will meet investors strategically." Attracting investors is meaningful not only for validating corporate value but also for the stability of governance. CERAGEM Co. is said to be keeping open and reviewing the possibility of listing not only in Korea but also overseas.
A source in the securities industry said, "A growth story combining healthcare and AI has already been sufficiently shared with the market," and added, "Now it is time to prove whether that strategy can actually lead to sustainable sales and profits."
The person added, "For a successful listing, it is essential to secure trust not only in profitability but also in qualitative requirements such as management transparency and governance stability."