[DTx Asia] "If DTx succeeds in Korea, it will work globally"

Kim Ju-young Appointed New DTA Director... First Asian Director
'Establishing Guidelines for Regulation and Reimbursement' as Goal

"DTx Must Be Made to Integrate into Customers' Lives"
Korea Has High Digital Level to Create Best DTx
US Industry Development Slower... Asia to Lead Global Industry with Strong Potential

Kim Ju-young, New DTA Director (Welt US Branch Head) / Photo by Lee Chun-hee

[Asia Economy Reporter Chunhee Lee] South Korea is steadily solidifying its position as a global hub for digital therapeutics (DTx). Amid the ongoing global DTx conference 'DTx Asia' held in Seoul, another piece of good news has been announced.

The Digital Therapeutics Alliance (DTA) announced on the 9th (Korean time) that Danny Kim (Kim Ju-young), head of Welt's U.S. branch, has been elected as a new director of the DTA. The term is three years. Established in 2017, the DTA is the largest global association formed to spread understanding of DTx and to activate the DTx industry. About 15 organizations from South Korea participate in the DTA.

At the Novotel Ambassador in Gangnam-gu, Seoul, where 'DTx Asia' is being held, newly appointed Director Kim said, "It is significant that I was elected through a direct vote by member companies," adding, "I believe the members have given me another challenge."

Kim is the first Asian director of the DTA. He said, "Until now, the DTA has focused on the U.S. While this may have been natural at first, now one-third of the members are in Asia, and about 20% are in Europe," expressing his ambition to further expand the DTA's scope.

As a DTA director, he aims to create guidelines on how DTx can adapt to various languages and cultures worldwide. However, he also emphasized that 'regulation' and 'reimbursement' should be treated differently. Kim explained, "Regulation serves as a kind of 'standard,' so we can follow good examples," adding, "South Korea's DTx regulatory guidelines are globally recognized and can be standardized." However, regarding reimbursement, he said, "Since healthcare systems and demand situations vary by country, we need to provide guidelines from a broad perspective to serve as reference materials for reimbursement agencies in each country."

Experience at U.S. PillPack, Pear Therapeutics... "We Must Create Customer-Centered Services"

Newly appointed Director Kim is a pharmacist who graduated from Northeastern University College of Pharmacy in Boston, U.S., and has worked at digital healthcare companies such as PillPack, an online pharmacy startup in the U.S., and Pear Therapeutics, which developed the world's first FDA-approved DTx 'Reset.'

He said, "In the mid-2010s, the software market grew rapidly to the extent that it was said 'software is eating the world.' I was working in venture capital (VC), and as a pharmacist, I wondered how to apply this to healthcare. Then I received an offer to join Pear and started working there." Kim, who helped prepare the launch of Pear's insomnia treatment 'Somryst,' said, "Pear feels like a kind of DTx academy. I learned how DTx can become the future of medicine, thinking like a pharmaceutical company but moving like a tech company."

He also reflected on his time at PillPack, saying, "I learned the spirit of creating customer-centered services." Kim said, "Existing DTx improved access to traditional healthcare but cannot be said to have become customer-centered. The next generation of DTx should better consider customer demand, usability, and adherence to blend well into customers' lives."

On the 8th, at the Novotel Ambassador Hotel in Gangnam-gu, Seoul, Kim Ju-young, the newly appointed director of DTA (Head of Welt's US branch), who served as the chairman of the 1st DTx Asia event, delivered the opening address. / Photo by Lee Chun-hee

Kim joined Welt in 2020, seeing new opportunities for South Korea. He explained, "While the U.S. may be the undisputed largest market for conventional treatments, Asia plays a significant role in the digital market."

Since March, Kim has also been serving as head of Welt's U.S. branch, established at the Boston C&D Incubation Center with support from the Korea Health Industry Development Institute. He said, "Boston is one of the leading centers of the healthcare industry, hosting many conferences and academic meetings. We are at the stage of introducing Welt in the U.S. based on scientific evidence while absorbing global research and development (R&D) trends." After domestic approval of Welt's core pipeline, the insomnia DTx 'PillowRx,' currently in confirmatory clinical trials, they plan to consider entering the U.S. market.

South Korea's High Digital Level... Asia Can 'Leapfrog'

Kim cited 'digital literacy' as South Korea's strength in the DTx ecosystem. He said, "Comparing delivery applications in South Korea and the U.S., the required level of UI/UX and usability is completely different. As the saying goes, 'Korean things are the most global,' if we create DTx with sufficient communicative power in Korea, it can succeed globally."

He also emphasized the great potential for DTx in the entire Asian market. He said, "It is clear that the U.S. leads the pharmaceutical and bio industries, but the situation is different for DTx. Germany has 34 DTx products reimbursed by public insurance, while the U.S. has no federally reimbursed DTx under Medicare," pointing out the slow growth of the U.S. DTx industry.

On the other hand, Kim believes Asia can achieve 'leapfrogging' in technology development, skipping intermediate stages like a frog's leap. He said, "In countries like Indonesia, where healthcare systems are not yet established, DTx can rapidly advance the healthcare industry. I believe the future of the DTx market may be found in Asia or Europe rather than the U.S."