DongKoo Bio&Pharma said on May 19 that it has expanded its field of business to artificial intelligence by investing 3 billion won ($2.4 million) in medical solution provider Vuno.

The two firms signed a memorandum of understanding whereby DongKoo Bio&Pharma will leverage its 50-year know-how to commercialize Vuno’s AI solutions.

DongKoo Bio&Pharma CEO Cho Yong-joon (right) with Vuno’s Chief Science Officer Kim Hyun-joon (DongKoo Bio&Pharma)

AI radiology market is showing explosive growth of over 40 percent every year and is expected to form a 2 trillion won market by 2023, DongKoo Bio&Pharma said citing Signify Research and Frost & Sullivan.

The technology is a means to provide quicker and more accurate readings of patients’ medical scans, through which doctors save time and the government can save health care welfare budget in the long run.

Vuno is one of the first Korean players that has delved into deep learning based AI software that can organize and analyze massive amount of medical data. Its VunoMed BoneAge assessment program is approved by the Drug Ministry as the nation’s first AI medical solution.

Vuno also has AI solutions that can preemptively detect early signs of neuro-degenerative diseases and anomalies in lung, chest and the fundus of the eye. The company is pushing for an initial public offering within 2020.

By Lim Jeong-yeo (kaylalim@heraldcorp.com)