Article Source: Economic Review

[ER Interview] Hae-Wook Lee, CEO of EASYTEM, the 'father' of Korean thermometer, challenges K-beauty 〈Economic Review〉, 2024. 01.01 

Hae-Wook Lee, CEO of EASYTEM

The renowned U.S. market research firm Transparency Market Research selected the Korean company EASYTEM as one of the ‘Top 10 Global Players in Medical Thermometers’ in 2021. EASYTEM was ranked second in the U.S. market, accounting for 9.5% of the market share, following Exergen Corporation (Exergen), and was one step higher than Omron, a leading medical device company in Japan.

In 2020, this company recorded over 20 billion KRW (approximately 200 million USD) in sales in the thermometer sector alone. Surprisingly, just three years later in 2023, they generated over 90% of their total sales of 35 billion KRW (approximately 350 million USD) from beauty devices.

EASYTEM's CEO, Hae-Wook Lee(66), frequently attached the epithet ‘first’ from the early stages of the business. It is him who monopolistically developed ‘shape memory alloys,’ which return to their original shape even when bent, and domestically produced them for the first time. He also achieved the first Korean production of infrared sensors, which were previously imported. He even manufactured Korea's first infrared ear thermometer using domestically produced infrared sensors.

Hae-Wook Lee, the CEO of EASYTEM, who is now seeking to expand into the K-beauty market with innovative ideas and solid technological capabilities, shares the story from the founding of the company to the present and discusses future plans.

- What was the motivation for starting your business?

I was born in the Year of the Dog in 1958, so I'm 66 years old this year. I started my business in 1994, so it's been 30 years. My first job after graduating with a master's degree in metal materials in the late 1980s was at a company's research institute. However, there was no acceptance of proposals for business ideas I researched, which made me feel frustrated because I had ideas that weren't being realized. With the thought, ‘Why not try doing it myself?’ I ventured into entrepreneurship without fear.

Hae-Wook Lee, CEO of EASYTEM

Thus, he established a company called ‘MetaTech’ and localized infrared sensors, creating an infrared ear thermometer in 2001. This product became the current company name, ‘EASYTEM.’ In 2008, it was spun off into a medical device specialized company, changing its name. Then in 2020, when COVID-19 struck the world, EASYTEM attracted attention once again.

During the COVID-19 pandemic, everyone was searching for non-contact thermometers, and the core of non-contact thermometers is the infrared sensor. However, at that time, there were no domestic sensors available. We had made them before, but we stopped production because the market was too small. However, many countries around the world blocked sensor exports to meet their domestic demand. With shortages worldwide and even production workers falling ill with COVID-19, we couldn't find a supplier. The Korea Food and Drug Administration said, "Can't you make this in Korea?" and approached our company with a proposal for localization. So, we produced 1.25 million thermometers and received a commendation for doing well. When the number of thermometer manufacturers was the highest, with more than 30 companies, we supplied more than 20% of the total volume as the top producer. Thanks to us, Korea had a smooth supply of non-contact thermometers compared to other countries.

- How did you enter the skincare market after manufacturing infrared sensors and thermometers?

Since it had been 15 years since the development and production of the infrared ear thermometer, many competing companies had emerged in the field. Moreover, as the market for thermometers was primarily for children, the market had shrunk due to a decrease in births. We realized that diversifying our business beyond a single product was necessary. The item we came up with was a medical device applying electroporation technology. It's a technology that temporarily opens skin cells by applying electricity to the skin. We developed a device that increases the absorption rate of cosmetic ingredients or ointments by about five times using this technology and aimed to conduct medical trials. However, the clinical costs were enormous. So we changed the product nature from a medical device to a beauty device that aids in the absorption of cosmetics, for the time being. Now, that product has become our main product.

- Could you describe your flagship product?

During the pandemic, non-contact thermometers were undoubtedly our flagship product, but in 2023, over 90% of our total sales of 35 billion KRW came from beauty devices. In the ODM (Original Design Manufacturer) sector, EASYTEM is now recognized as the top company in Korea. The most lucrative product is APR's Medicube. Although it's not our brand, we supplied 100% of the volume. In the ODM business, we develop and manufacture all products and then deliver them. It's as if we're supplying them to be sold under their own brand.

- Do you have any plans to produce your own branded products?

We also plan to produce our own products from 2024. However, if we compete directly in the domestic market, it will clash with our clients, right? So, we plan to target overseas markets first. Moreover, our clients are not interested in professional equipment for aesthetics or beauty shops. Even if we put our brand on such professional equipment, it won't have a significant impact.

Hae-Wook Lee, CEO of EASYTEM

- What significance does winning the Small and Medium Venture Business Minister Award for the skincare device CELL-RISER in November 2023 hold?

‘L'Oréal Big Bang Open Innovation’ is a startup fostering program by L'Oréal, the world's largest cosmetics company. EASYTEM participated in it as a winner with CELL-RISER. As a special reward, we received the Minister's Award. It not only acknowledges our technological capabilities from a global company but also provides us with the opportunity to work together. We are currently co-producing products with L'Oréal, and in the future, EASYTEM will be a supplier to L'Oréal.

- What competitive advantage does CELL-RISER have?

However, CELL-RISER is designed so that only the handpiece can be replaced, changing the functionality. It's possible to add or remove functions as desired. You can assemble combinations that are legally acceptable in each country. For multinational companies like L'Oréal, it's truly the technological innovation they've been wanting.

- What are your goals for 2024?

Our company participated in Cosmoprof held in Hong Kong in November 2023. Cosmoprof is a beauty and skincare exhibition. This time, a total of 44 countries and over 2,500 exhibitors participated, with 119 countries and over 65,000 attendees visiting, showing its significant scale. In March 2024, Cosmoprof will also be held in Bologna, Italy, targeting overseas buyers. We plan to exhibit EASYTEM's own brand there. Our goal is to continue expanding into overseas markets, and on one side, to consistently engage in ODM business with major companies like L'Oréal.

Although our sales were around 35 billion KRW in 2023, we aim to reach 50 billion KRW in 2024. In that case, we anticipate an operating profit of around 6 billion KRW. It will be a year of shifting focus towards high value-added multiple product categories.

- What are your IPO plans?

First, we plan to attract a first-round investment of around 10 billion KRW in mid-January 2024, with an IPO scheduled for the second half of 2025.

- Do you have your own management philosophy?

It's ‘Once you delve into a technology, you must see it through to the end.’ I believe we are now in an era where unique technology leads the market beyond the era of quality competition. Although we have developed infrared thermometers and thermal imaging thermometers, we don't plan to stop there. We are researching technology to measure the temperature of the body's deep tissue, 3 to 5 cm below the surface, to create a thermometer unaffected by ambient temperature. To implement this management philosophy, we invest heavily in R&D. Therefore, out of our total staff of 77, we allocate more than 40 billion KRW in development costs to 24 developers.