LG Household & Health Care is venturing into the DNA testing business
LG Household & Health Care, a major South Korean company engaged in the manufacture of household goods, cosmetics and beverages, is entering the growing market for genetic testing products and services. The goal is to launch health management services using personal genetic data.
The cosmetics powerhouse is teaming up with Macrogen, a Seoul-based biotechnology startup company, by year-end in order to accumulate expertise in DNA testing. The companies will create a 50-50 joint venture for genetic testing dubbed GenStory and capitalized at 6 billion Won (US$5.17 million).
The new company will initially focus on research and development operations based on Macrogen’s expertise in the field.
Macrogen CEO Jeong Hyeon-yong sees the joint venture with LG Household & Health Care as a springboard for his company’s expansion in the growing market. South Korea is lagging other countries in genetic information services, he said.
Regulations on genetic testing have been eased in South Korea, creating new opportunities to offer health care and cosmetic services for consumers based on genetic information.
In June, under the revised law concerning bioethics and safety, South Korea’s Ministry of Health and Welfare made it legal for businesses to conduct genetic tests for 12 health parameters, including blood sugar, blood pressure, skin aging, cholesterol and hair loss, without any request from a medical institution.
Genetic information about key health indicators like blood sugar and blood pressure helps individuals align their health risk management and cosmetic efforts to their personal needs.
LG Household & Health Care also envisions the development of cosmetic products based on DNA analyses in the future. The company’s long-term goal is to capitalize on newly acquired expertise to develop skin care products that are tailor-made to meet the personal needs of consumers.
In line with this, the company plans to gain expertise in DNA testing through the joint venture to provide health management services for consumers based on genetic data. The company also hopes to cater to corporate clients interested in employee health management.
In Japan, cosmetics maker Fancl is already offering such services.
LG Household & Health Care will also consider providing genetic tests and analyses in overseas markets where its brand is becoming popular.
