First Medical AI Company to Develop Pre-Reading Assistance Software Solution
Domestic medical AI company Lunit is opening a new horizon in the medical AI industry by being selected as a KOSDAQ Rising Star. At the end of August, the Korea Exchange selected 39 companies as the 2023 KOSDAQ Rising Stars. Among them, Lunit became the first medical AI company to be named. Since the KOSDAQ Rising Star system began in 2009, this is the first time a medical AI company has been selected.
Lunit develops software solutions that assist doctors in cancer diagnosis using AI technology. Its main products include solutions supporting image reading for lung cancer, breast cancer, stomach cancer, and pathology examination solutions. Listed on KOSDAQ in 2022, Lunit is actively expanding its business not only domestically but also in overseas markets such as the United States and Europe.
![Lunit Selected as KOSDAQ Rising Star... Signal for Medical AI Industry Leap [AK Radio]](https://cphoto.asiae.co.kr/listimglink/1/2024092013481533684_1726807696.png)
Companies selected as KOSDAQ Rising Stars receive various benefits such as exemption from listing fees, support for IR events, and assistance in publishing corporate analysis reports. However, more importantly, they gain recognition for their global growth potential, enhancing their corporate image and credibility. Lunit's selection is expected to have a positive impact on the overall domestic medical AI industry. This milestone is anticipated to accelerate the growth and overseas expansion of other domestic medical AI companies.
Besides Lunit, there are several promising medical AI companies in Korea. Vuno develops software that predicts the likelihood of cardiac arrest in hospitalized patients, LabGenomics utilizes AI in molecular-level diagnostic testing, Selvas AI provides solutions to optimize electronic medical record management with AI, and Voronoi applies AI platforms to new drug development.
Drawing the Future of Cancer Diagnosis with AI Technology
Lunit’s Medical AI Technology and Global Expansion
These medical AI companies show distinct characteristics compared to typical pharmaceutical and bio companies. Medical AI companies tend to focus on supporting medical activities such as testing, diagnosis, and data analysis. In contrast, general pharmaceutical and bio companies concentrate on developing direct treatments or drugs. The products or services of medical AI companies are centered on AI technology, characterized by relatively shorter development periods and higher chances of success.
However, many medical AI companies have not yet reached a stable performance stage. Most record operating losses or fail to generate stable profits. Lunit also reported sales of 32.9 billion KRW and an operating loss of 45.4 billion KRW in 2022. Nevertheless, the industry views this as growing pains. Although initial investment costs are high and product development and approval take time due to the nature of the medical field, the company continuously attracts investment by gaining recognition for its technological capabilities and actively pursues overseas market expansion.
When evaluating medical AI companies, two key factors should be considered. First, it is essential to confirm whether clinical experts’ opinions are sufficiently reflected from the product or service development stage. This is an important indicator to determine whether the product can be practically used in medical settings. Second, it is necessary to check whether the effectiveness of the developed product or service has been validated through reputable international medical journals. This provides objective evidence to assess the company’s technological capabilities and helps gauge the potential for global market entry.
The Korean government is also focusing on the medical AI sector as a new growth engine. The medical AI industry, along with the bio industry, is actively supported at the national level and shows a growth pattern similar to the early stages of the semiconductor industry, indicating significant future potential. In fact, some medical AI companies are already included in KOSDAQ ETF products, attracting investor interest.
Korean Medical AI Gains Attention on the Global Stage
Lunit’s Medical AI Technology and Global Expansion
The growth of medical AI companies is expected to contribute to qualitative improvements and efficiency enhancements in medical services. In particular, AI technology is anticipated to expand its application in various fields such as assisting doctors’ diagnoses, optimizing hospital operations, and accelerating new drug development processes. The significance lies in AI assisting rather than replacing medical staff, and by leveraging AI’s excellent data analysis and pattern recognition capabilities, it can complement areas that human medical personnel might overlook.
However, new challenges are also emerging. Issues such as medical data security and ethical use, accuracy of AI diagnosis, and accountability are becoming major concerns. Compared to the rapid development of medical AI, related laws and regulations remain insufficient, and clear standards regarding the scope of AI participation in medical activities and responsibility in case of medical accidents are urgently needed.
As domestic medical AI companies including Lunit gain attention for their global market entry and achievements, it remains to be seen whether the continuous growth and development of this sector can become a new driving force for the Korean economy. Amid expectations and concerns about what benefits medical AI technology can ultimately bring to patients and what changes it will bring to medical practice, ongoing interest and discussion on future development directions are necessary. Korean companies stand at the center of the new future that medical AI will open.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
