Hugel Founder Who Acquired Dio: Will Overseas Network Shine?

Director Hong Seongbeom Pioneers Chinese Medical Market, Challenges Dental Implant Sector
Synergy Expected from Dio Technology and Overseas Network
Fierce Competition with Foreign Rivals Anticipated... Osstem Implant Emerges Strong in China

[Asia Economy Reporter Hyungsoo Park] The challenge of Hong Seongbeom, the founder of Hugel and director of Shanghai Seoulrigger, continues. Hugel was founded

On the 14th, according to the Financial Supervisory Service's electronic disclosure system, Seoulrigger will issue 10.87 million new shares to Sesim to raise 10 billion KRW. Of the raised funds, 3.3 billion KRW will be used for acquiring securities of other companies, and 6.7 billion KRW will be used as operating funds.

Sesim is an investment holding company wholly owned by Director Hong Seongbeom. Sesim will invest 10 billion KRW in Seoulrigger and simultaneously acquire Dio, a company specializing in dental implants for artificial teeth. Sesim will form a consortium with Seoulrigger, financial investors (FI), and others to acquire 26.44% (4.17 million shares) of shares held by Dio Holdings and related parties for 229.4 billion KRW. The Sesim consortium will also acquire 2.41 million new shares issued by Dio for 77 billion KRW.

The background for mobilizing such a large acquisition fund is attributed to the judgment that Director Hong’s overseas network, built through diverse experiences, will help the newly promoted implant business.

Director Hong has experience investing not only in Hugel but also in various companies such as Seoulrigger and Air Premia. One of the reasons for investing in Air Premia was his experience of flying every weekend for years to understand the Chinese medical market. Seoulrigger operates a distribution business in China. After selling Hugel, Director Hong also served as the chairman of the LPGA tournament 'Hugel-Air Premia LA Open.'

In 2014, Director Hong opened Shanghai Seoulrigger, a cosmetic surgery hospital in Shanghai, China. He developed it into one of the leading hospitals in Shanghai. Seoulrigger distributes botulinum toxin and fillers produced by Hugel and Dongkook Pharmaceutical.

Based on his experience operating a hospital and distributing medical devices locally in China, he is expected to promote the expansion of Dio’s overseas business division. By combining overseas networks with Dio’s technological capabilities, the implant business can maximize synergy effects.

According to NH Investment & Securities, based on a global population of 7.8 billion, more than 30 billion teeth are lost or damaged. It is estimated that over 20 billion teeth can be replaced with implants. Assuming that 10% of the population can economically access implant treatment, there is a market for 2 billion implants. Last year, the implant market grew to about 32 million units, indicating significant growth potential. In addition to implants, the orthodontics market can also be an opportunity for Dio’s growth. The global clear aligner market is worth about 7 trillion KRW.

Dio launched the world’s first digital implant guide system, ‘DIOnavi,’ in 2014. In 2018, it introduced the 100% full digital edentulous solution, DIOnavi Full Arch.

Dio held its regular shareholders’ meeting and newly appointed Director Hong Seongbeom, CEO Lee Jaegyu of Seoulrigger, Director Park Heungsik of Shanghai Seoulrigger Medical Aesthetic Hospital, Director Jo Byungwook of the Dental Department at Yangyak Center, Lasangwon, Korea Head of PricewaterhouseCoopers China, and Lawyer Jeon Youngjun of Law Firm Yulchon as directors. Existing Chairman Kim Jincheol of Dio and CEO Jung Yongseon of Nice F&I were reappointed. Director Jo Byungwook graduated from the Department of Stomatology and Orthodontics at Shanghai Jiao Tong University School of Medicine and practices dentistry in China. He is expected to play an important role in expanding Dio’s market in China as a dental medical device expert.

Researcher Jo Eunhae of Ebest Investment & Securities said, "Chairman Kim Jincheol and other existing executives retained some shares," adding, "They will expand the implant business based on Sesim’s experience operating hospitals locally in China."

However, some analysts pointed out that it will be difficult to achieve short-term results overseas due to competition with global implant leaders such as Swiss Straumann, American Danaher, Dentsply Sirona, and German Zimmer Biomet. Especially, the Chinese market is expected to be fiercely competitive as Osstem Implant has invested significant time and effort. Osstem Implant is one of the leading companies holding over 30% market share in China.

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