Kakao Healthcare, acquired by CHA Bio Group, has reorganized its board. The existing Kakao directors resigned, and two directors from CHA Bio Group were newly appointed. CHA Bio Group said it plans to strengthen global healthcare services that combine medicine and IT through Kakao Healthcare.
According to the industry on the 9th, Kakao Healthcare appointed Lee Jae-hak (46), senior vice president and head of strategic business at CHA Healthcare, and Park Hyun-uk (47), senior vice president and head of global operations at CHA Healthcare, as other non-executive directors on Dec. 23 last year. They handled work related to pursuing future new businesses and global strategy at CHA Healthcare.
Other non-executive directors exercise the same voting rights as other directors on the board. Because they are not full-time at the company and the concurrent post restriction that applies to outside directors does not apply, appointments are flexible. CHA Bio Group is expected to be able to participate in management through other non-executive directors.
Jang Jae-mun (41), head of deal support on the strategy committee of Kakao's CA council, and Oh Se-yong (53), performance leader for finance and accounting at Kakao, who had served as other non-executive directors at Kakao Healthcare, resigned from the board. Instead, An Seong-hwan (53), performance leader for corporate planning at Kakao, was named an other non-executive director at Kakao Healthcare.
Hwang Hee (57), CEO of Kakao Healthcare, remained in the post at the request of outside investors. A Kakao Healthcare official said, "As CHA Healthcare has joined the board, we plan to quickly review our overseas expansion strategy."
Earlier, CHA Bio Group said in November last year that it would acquire management control of Kakao Healthcare through an equity exchange. CHA Cares, an affiliate of CHA Bio Group, and its subsidiary CHA AI Healthcare will acquire Kakao Healthcare equity for 70 billion won. CHA AI Healthcare will invest 10 billion won in Kakao Healthcare's paid-in capital increase, bringing the total to 80 billion won.
Kakao Group will use 40 billion won of the 70 billion won secured from the sale of existing Kakao Healthcare shares for Kakao Healthcare's paid-in capital increase, and will acquire equity in CHA Biotech with the remaining 30 billion won. If so, CHA Bio Group will secure 43% equity in Kakao Healthcare and obtain management control. Kakao will hold 30% equity in Kakao Healthcare, and the remaining 27% will consist of outside investors.
Kakao Healthcare launched in 2021 as an in-house independent corporations of Kakao and was spun off the following year. Its main business is the blood sugar management service "Pasta." Pasta links third-party blood glucose meters with the blood sugar management app made by Kakao. It also added sleep and weight management services. It offers CareChat, a service that lets users make hospital appointments, change schedules, complete pre-visit questionnaires, and pay medical bills based on KakaoTalk.
CHA Bio Group operates a medical service platform in six countries: the United States, Australia, Singapore, Japan, Indonesia, and Vietnam. CHA Bio Group can connect Kakao Healthcare's digital technology, and Kakao Healthcare can link CHA Bio Group's hospitals and medical infrastructure.
A Kakao Healthcare official said, "We plan to expand our global business," adding, "There is a possibility that the board composition will change further." A CHA Bio Group official said, "We are preparing the related procedures without delay to complete the equity exchange with Kakao."