Untact Startups, Turning Crisis into Opportunity Amid COVID-19

Home-Staying Culture Tailored Technologies Spotlighted... Surging Demand for Contactless Services

[Asia Economy Reporter Kim Cheol-hyun] The startup industry, which has been struggling due to investment contraction and other difficulties following the spread of the novel coronavirus infection (COVID-19), is finding breakthroughs in 'untact' (contactless) technologies and services. The increasing demand for untact services due to COVID-19 is being seen as an opportunity to escape the tunnel of stagnation. Startups providing untact educational content such as video lectures are seizing new business opportunities, and those that have introduced untact technologies into their services are showing remarkable growth.

◆Rise of Untact Education Startups = According to Backpacker, which operates the online handmade market 'Idus,' the video lecture service 'Online Geumson Class' recorded sales exceeding 100 million won last month, growing 166% compared to the previous month. The service started at the end of last year, and growth rates in January and February were similar, but in March, it rapidly grew as remote work increased due to COVID-19, Backpacker explained. Online Geumson Class, a handmade lecture where Idus-affiliated artists participate directly, currently offers over 20 classes including leatherwork, embroidery, silkscreen, glass crafts, calligraphy, and drawing. Kim Dong-hwan, CEO of Backpacker, said, "Recently, many people have been looking for handicraft classes as a hobby," adding, "We are striving to secure professional classes and diverse educational content."

Other startups providing educational content have also encountered opportunities to take their business to the next level. Alice, an online coding education platform, reported that inquiries about institution-exclusive platform adoption increased fivefold around the outbreak of COVID-19. Programming education previously conducted can now be delivered as untact corporate training for tens of thousands of people through Alice’s efficient online operation. Online lecture platform Class101 is supporting the first semester lectures at Ulsan National Institute of Science and Technology (UNIST). Leveraging its technology that has provided about 500 online classes in various fields such as art, crafts, design, and cooking, Class101 has ventured into university untact lectures. Class101 supports some extracurricular courses, and all profits generated from the courses will be donated to help overcome COVID-19. Go Ji-yeon, CEO of Class101, said, "This is the first case of collaboration with a national university," adding, "We want to contribute to overcoming COVID-19 through cooperation with universities."

◆Growth through Adoption of Untact Services = Laundry startup Laundrigo, which launched Korea’s first untact mobile laundry service in March last year, has also seen significant growth due to COVID-19. Laundrigo explained that last month it grew 48% compared to the previous month, handling laundry orders from 20,000 households per month. Compared to the average monthly order growth of 30%, orders increased further in March when COVID-19 spread rapidly. Laundrigo’s service allows customers to complete the entire process of pickup, washing, and delivery contactlessly within a day with just a simple touch on a mobile app, without the need to carry heavy laundry to a laundromat. Operating its own 2,600㎡ smart factory equipped with top-level facilities, if laundry is placed in the smart collection box by 11 p.m. outside the door, it is completed and returned by midnight the next day.

Healthcare startup Lemon Healthcare is also accelerating the strengthening of untact services for medical institutions as the COVID-19 situation prolongs. Lemon Healthcare plans to newly introduce its platform-based patient app service to three hospitals under Korea University Medical Center and Ilsan Myeongji Hospital. With this app, all procedures except for medical treatment can be handled untact, minimizing patient movement and waiting times and effectively preventing infections within medical institutions. Hong Byung-jin, CEO of Lemon Healthcare, said, "Currently, we provide patient app services to about 48% of nationwide tertiary general hospitals leading public healthcare, building a broad healthcare service network."

At 'Ddokdak,' a hospital appointment and reception service operated by Vibros, the use of untact services such as mobile hospital reception has also increased significantly. From February 23, when the COVID-19 crisis alert was raised to the severe level, for one month, the number of mobile hospital reception, reservation services, and kiosk usage at Ddokdak accounted for 25% of total medical visits, about twice the 13% recorded the previous year. Song Yong-beom, CEO of Vibros, said, "Untact services not only reduce patients’ concerns about secondary COVID-19 infections but also help maintain the number of hospital visitors," adding, "We will continue to provide safety and efficiency to both hospitals and patients through various untact services."