RF Tech Decides on Physical Division of Bio Business to Strengthen Medical Aesthetic Expertise

[Asia Economy Reporter Yoo Hyun-seok] RF Tech announced on the 12th that it has decided to spin off its bio business division and establish a new corporation named ‘RF Bio (tentative name)’. RF Tech will remain as the listed parent company, while RF Bio, established as a 100% subsidiary, will operate as an unlisted corporation. The spin-off will be approved at the shareholders' meeting on the 30th, with the effective date of the split set for the 1st of next month.

RF Bio, which operates businesses such as hyaluronic acid (HA) fillers, is expected to strengthen its identity and expertise as a medical aesthetic specialized company, while simultaneously improving management efficiency and profitability. Additionally, based on expanding market competitiveness and performance growth, it plans to pursue an independent listing in the future.

An RF Tech official stated, “Through the spin-off, we plan to establish a management environment suitable for the characteristics of the existing core IT business and the next-generation growth engine bio business, and to strengthen industry expertise and core competencies for each business. The IT business will focus on 5G-related projects, while the bio business will enhance growth centered on the HA filler business, aiming to maximize shareholder value through pursuing an independent listing in the future.”

RF Tech primarily focuses on smartphone chargers and cables, and since last year, it has equipped itself with new growth engines by starting mass production of antennas for 5G base stations. As a result, the IT business division, which had slowed down after peaking in 2013, achieved a full turnaround last year for the first time in six years. Sales, which were 240.3 billion KRW in 2018, grew 18.5% year-on-year to 284.8 billion KRW in 2019, and operating profit surged 143.1% to 14 billion KRW.

Furthermore, RF Tech entered the medical aesthetic business with HA fillers as a new business in August last year. With the full-scale launch of filler products domestically and internationally, the medical aesthetic business is expected to show remarkable management performance this year. A company official said, “RF Tech will clarify its corporate identity as an IT specialized company in 5G communication equipment, and RF Bio will improve profitability for each business through independent incorporation. We will do our best to receive a fair market valuation.”

This content was produced with the assistance of AI translation services.