South Korea's top telco SK Telecom has bought a majority stake in Chinese medical equipment maker Xian Tianlong Science and Technology in order to boost its healthcare business and drive business growth.
According to Yonhap News Agency's report on Monday, the telco acquired a 49 percent stake in the Chinese company, although financial terms were undisclosed. This will allow the Korean company to gain a foothold in the rapidly growing healthcare market in China, it added.
A company executive said: "SK Telecom plans to provide its management expertise to Tianlong and cooperate on research and development (R&D) to strengthen its healthcare business."
The report noted SK Telecom has been trying to bolster its healthcare business in efforts to find a new growth engine to counter the stagnant growth experienced in South Korea's wireless market. It had earlier set up a division dedicated for this business and established a joint venture with Seoul National University.