[Interview] Challenging Japan’s Dominance in the Endoscopy Market: Chi-Won Lee, CEO of MedInTech
Endoscopes are essential medical devices indispensable for the diagnosis and treatment of diseases. In Korea alone, endoscopic examinations are performed approximately 20 million times each year. The problem is that, despite their importance, endoscopes are almost entirely dependent on Japanese products. In particular, flexible endoscopes used to examine digestive organs such as the stomach and colon are dominated by three Japanese companies—Olympus, Fujifilm, and Pentax—which together account for 95% of the market.
An endoscope is a device that captures images inside the human body using a miniature camera. Japanese companies that originally manufactured cameras entered the endoscopy market more than 50 years ago, quickly establishing dominance and now controlling the global market. Among them, Olympus stands out as the overwhelming leader, with a market share exceeding 70%.
Chi-Won Lee, CEO of MedInTech
Department of Mechanical and Aerospace Engineering, Seoul National University; Ph.D. in Bioengineering (Interdisciplinary Program), Seoul National University; Former Senior Researcher at Seoul National University Medical Research Institute; Former Senior Researcher at the Korea Electrotechnology Research Institute
Photo by Heung-Goo Kim, Guest Reporter
Korean clinicians are regarded as among the best in the world, yet most medical devices are still dependent on imports. As a result, when equipment breaks down, timely repairs are difficult, and it is also challenging to customize devices to suit the characteristics of Korean clinicians or patients. This is why frontline medical professionals emphasize the importance of localizing medical device production.
There is a domestic company taking on the challenge of localizing endoscopes. That company is MedInTech, founded by CEO Chi-Won Lee and Vice CEO Myung-Jun Kim, both former researchers at the Korea Electrotechnology Research Institute. Established in 2020, MedInTech is preparing to bring to market a flexible endoscope developed entirely with homegrown technology.
In 2021, MedInTech was selected—together with Seoul National University Hospital and others—for a KRW 9.5 billion inter-ministerial, full-cycle medical device R&D program. In 2022, the company also secured KRW 8 billion in Series A funding. We recently met with CEO Chi-Won Lee at MedInTech’s office in Daehangno, Jongno-gu, Seoul. The following is a Q&A.
Chi-Won Lee (left), CEO of MedInTech, and Myung-Jun Kim, Vice CEO, are explaining the flexible endoscope they developed at MedInTech’s office in Jongno-gu, Seoul.
Photo by Heung-Goo Kim, Guest Reporter
What are the key strengths of MedInTech’s endoscope?
“Mechanical endoscopes made by Japanese companies are heavy and make it difficult to integrate advanced technologies such as artificial intelligence (AI). With mechanical endoscopes, physicians must hold a control body weighing up to 800 grams and manipulate the endoscope using their thumb. In contrast, we succeeded in motorizing the control body and knobs. We are the first to successfully motorize a flexible endoscope. As a result, the weight of the endoscope has been reduced by about half, and physicians no longer need to hold it and perform all operations manually.”
Did motorization make it possible to utilize AI software as well?
“An endoscopy system equipped with AI software can automatically correct images of internal organs, making it easier for physicians to identify abnormalities. Beyond that, the AI can directly detect lesions and notify the physician. The software we developed can reconstruct the entire organ in three dimensions and indicate blind spots—areas that were passed without being examined during the procedure. This is a technology that can significantly reduce misdiagnosis rates in endoscopy. To use an automotive analogy, it represents a level of innovation comparable to the transition from internal combustion engine vehicles to electric vehicles.”
It seems that technology development is in its final stages. When do you expect to launch the product?
“Our flexible endoscope became the first domestically developed product of its kind to receive Class II medical device approval from the Ministry of Food and Drug Safety (MFDS). This means the product could technically be launched immediately. However, we developed a second-generation product that better reflects physicians’ usability requirements. We expect the second-generation product to receive MFDS approval by the end of this year, with full-scale commercial sales targeted for next year.”
Not only in Korea but globally, the endoscopy market is growing rapidly each year. According to market research firm MarketsandMarkets, the global endoscopy equipment market is expected to grow from USD 27.34 billion (approximately KRW 36 trillion) in 2021 to USD 39.28 billion (approximately KRW 51.8 trillion) in 2026, representing a compound annual growth rate of 7.5%. In addition to gastrointestinal endoscopy commonly used in health screenings, the market includes laparoscopic, gynecological, arthroscopic, and urological endoscopy.
Could Korean-made endoscopes expand into overseas markets as well?
“We are already preparing to enter the U.S. and European markets, and starting with gastrointestinal endoscopes, we are also considering various medical device businesses, including flexible surgical robots. By combining our core technologies—motorization and AI—we ultimately believe it will be possible to develop medical devices that support remote medical care.”
How are you collaborating with domestic medical professionals?
“Separately from the product launch, we will begin large-scale clinical trials at Seoul National University Hospital starting next year. To facilitate close collaboration with the hospital, we relocated our office from Hanam to Daehangno. Medical staff at Seoul National University Hospital will directly use the endoscopes we developed, and we plan to discuss together whether there are additional features or improvements needed.”
You are also participating in the inter-ministerial, full-cycle medical device R&D program.
“Through participation in the program, we have received substantial practical support. In addition to government funding for R&D, we received assistance with regulatory approval consulting and forming clinical advisory committees at various hospitals, with market entry in mind. Because endoscopes have been 100% dependent on foreign products, localization was urgently needed. The program also helped us analyze and prepare for intellectual property risks, including potential patent disputes with existing foreign products.”
Why is localization of endoscopes necessary?
“Korean physicians are already among the best in the world, but Korean-made medical devices have not been able to fully support their capabilities. To provide treatment and diagnosis tailored to the characteristics of Korean patients, medical device companies must closely reflect the needs of Korean medical professionals. However, foreign medical device companies often have difficulty communicating and do not provide services optimized for the Korean market. With Japanese endoscopes, repairs can take a long time when failures occur, and feedback from Korean physicians is not adequately reflected in product development. As a result, there is strong anticipation in the field for Korean-made endoscopes. If the medical device industry grows, Korea can move closer to becoming a true advanced medical nation, alongside its already world-class medical professionals.”
Company Info
Company Name: MedInTech
Headquarters: Jongno-gu, Seoul
Business: Medical devices
Founder: Chi-Won Lee
Year Founded: 2020
Total Funding Raised: KRW 8 billion (approximately USD 6 million)
Lee Jong-hyun, ChosunBiz
Room 511
October 9, 2023, 11:00 AM
View the original article
https://economychosun.com/site/data/html_dir/2023/10/09/2023100900006.html
[Interview] Challenging Japan’s Dominance in the Endoscopy Market: Chi-Won Lee, CEO of MedInTech
Endoscopes are essential medical devices indispensable for the diagnosis and treatment of diseases. In Korea alone, endoscopic examinations are performed approximately 20 million times each year. The problem is that, despite their importance, endoscopes are almost entirely dependent on Japanese products. In particular, flexible endoscopes used to examine digestive organs such as the stomach and colon are dominated by three Japanese companies—Olympus, Fujifilm, and Pentax—which together account for 95% of the market.
An endoscope is a device that captures images inside the human body using a miniature camera. Japanese companies that originally manufactured cameras entered the endoscopy market more than 50 years ago, quickly establishing dominance and now controlling the global market. Among them, Olympus stands out as the overwhelming leader, with a market share exceeding 70%.
Chi-Won Lee, CEO of MedInTech
Department of Mechanical and Aerospace Engineering, Seoul National University; Ph.D. in Bioengineering (Interdisciplinary Program), Seoul National University; Former Senior Researcher at Seoul National University Medical Research Institute; Former Senior Researcher at the Korea Electrotechnology Research Institute
Photo by Heung-Goo Kim, Guest Reporter
Korean clinicians are regarded as among the best in the world, yet most medical devices are still dependent on imports. As a result, when equipment breaks down, timely repairs are difficult, and it is also challenging to customize devices to suit the characteristics of Korean clinicians or patients. This is why frontline medical professionals emphasize the importance of localizing medical device production.
There is a domestic company taking on the challenge of localizing endoscopes. That company is MedInTech, founded by CEO Chi-Won Lee and Vice CEO Myung-Jun Kim, both former researchers at the Korea Electrotechnology Research Institute. Established in 2020, MedInTech is preparing to bring to market a flexible endoscope developed entirely with homegrown technology.
In 2021, MedInTech was selected—together with Seoul National University Hospital and others—for a KRW 9.5 billion inter-ministerial, full-cycle medical device R&D program. In 2022, the company also secured KRW 8 billion in Series A funding. We recently met with CEO Chi-Won Lee at MedInTech’s office in Daehangno, Jongno-gu, Seoul. The following is a Q&A.
Chi-Won Lee (left), CEO of MedInTech, and Myung-Jun Kim, Vice CEO, are explaining the flexible endoscope they developed at MedInTech’s office in Jongno-gu, Seoul.
Photo by Heung-Goo Kim, Guest Reporter
What are the key strengths of MedInTech’s endoscope?
“Mechanical endoscopes made by Japanese companies are heavy and make it difficult to integrate advanced technologies such as artificial intelligence (AI). With mechanical endoscopes, physicians must hold a control body weighing up to 800 grams and manipulate the endoscope using their thumb. In contrast, we succeeded in motorizing the control body and knobs. We are the first to successfully motorize a flexible endoscope. As a result, the weight of the endoscope has been reduced by about half, and physicians no longer need to hold it and perform all operations manually.”
Did motorization make it possible to utilize AI software as well?
“An endoscopy system equipped with AI software can automatically correct images of internal organs, making it easier for physicians to identify abnormalities. Beyond that, the AI can directly detect lesions and notify the physician. The software we developed can reconstruct the entire organ in three dimensions and indicate blind spots—areas that were passed without being examined during the procedure. This is a technology that can significantly reduce misdiagnosis rates in endoscopy. To use an automotive analogy, it represents a level of innovation comparable to the transition from internal combustion engine vehicles to electric vehicles.”
It seems that technology development is in its final stages. When do you expect to launch the product?
“Our flexible endoscope became the first domestically developed product of its kind to receive Class II medical device approval from the Ministry of Food and Drug Safety (MFDS). This means the product could technically be launched immediately. However, we developed a second-generation product that better reflects physicians’ usability requirements. We expect the second-generation product to receive MFDS approval by the end of this year, with full-scale commercial sales targeted for next year.”
Not only in Korea but globally, the endoscopy market is growing rapidly each year. According to market research firm MarketsandMarkets, the global endoscopy equipment market is expected to grow from USD 27.34 billion (approximately KRW 36 trillion) in 2021 to USD 39.28 billion (approximately KRW 51.8 trillion) in 2026, representing a compound annual growth rate of 7.5%. In addition to gastrointestinal endoscopy commonly used in health screenings, the market includes laparoscopic, gynecological, arthroscopic, and urological endoscopy.
Could Korean-made endoscopes expand into overseas markets as well?
“We are already preparing to enter the U.S. and European markets, and starting with gastrointestinal endoscopes, we are also considering various medical device businesses, including flexible surgical robots. By combining our core technologies—motorization and AI—we ultimately believe it will be possible to develop medical devices that support remote medical care.”
How are you collaborating with domestic medical professionals?
“Separately from the product launch, we will begin large-scale clinical trials at Seoul National University Hospital starting next year. To facilitate close collaboration with the hospital, we relocated our office from Hanam to Daehangno. Medical staff at Seoul National University Hospital will directly use the endoscopes we developed, and we plan to discuss together whether there are additional features or improvements needed.”
You are also participating in the inter-ministerial, full-cycle medical device R&D program.
“Through participation in the program, we have received substantial practical support. In addition to government funding for R&D, we received assistance with regulatory approval consulting and forming clinical advisory committees at various hospitals, with market entry in mind. Because endoscopes have been 100% dependent on foreign products, localization was urgently needed. The program also helped us analyze and prepare for intellectual property risks, including potential patent disputes with existing foreign products.”
Why is localization of endoscopes necessary?
“Korean physicians are already among the best in the world, but Korean-made medical devices have not been able to fully support their capabilities. To provide treatment and diagnosis tailored to the characteristics of Korean patients, medical device companies must closely reflect the needs of Korean medical professionals. However, foreign medical device companies often have difficulty communicating and do not provide services optimized for the Korean market. With Japanese endoscopes, repairs can take a long time when failures occur, and feedback from Korean physicians is not adequately reflected in product development. As a result, there is strong anticipation in the field for Korean-made endoscopes. If the medical device industry grows, Korea can move closer to becoming a true advanced medical nation, alongside its already world-class medical professionals.”
Company Info
Company Name: MedInTech
Headquarters: Jongno-gu, Seoul
Business: Medical devices
Founder: Chi-Won Lee
Year Founded: 2020
Total Funding Raised: KRW 8 billion (approximately USD 6 million)
Lee Jong-hyun, ChosunBiz
Room 511
October 9, 2023, 11:00 AM
View the original article
https://economychosun.com/site/data/html_dir/2023/10/09/2023100900006.html