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GC Corp. Liquidates Big Data Consulting Subsidiary 'Able Analytics'

[비즈한국] It has been confirmed that the GC (Green Cross) Group has liquidated its subsidiary, Able Analytics. Able Analytics is a consulting firm specializing in big data analysis that was acquired by the GC Group in 2020. At the time, GC stated that it acquired Able Analytics to strengthen its digital healthcare business. In particular, Huh Il-sup, Chairman of GC Holdings005250, had shown strong determination regarding healthcare-related businesses since the 2020s. However, Able Analytics failed to make any significant contribution to GC's performance and maintained a negligible presence.

GC Care (formerly GC Green Cross Healthcare), a GC affiliate, acquired Able Analytics in April 2020. At the time of the acquisition, GC explained, "Able Analytics, founded in 2014, has developed data analysis models tailored to customer types across various healthcare, insurance, and financial industries, such as 'predicting patient visits to hospital emergency rooms,' 'detecting abnormal financial transaction patterns,' and 'predicting customer churn in insurance.'"

Upon the acquisition, GC Care announced that it would set out to strengthen its digital healthcare solution business capabilities. The strategy was to internalize Able Analytics' data analysis capabilities based on GC Care’s big data to provide differentiated, personalized health management solutions. Jeon Do-gyu, then-CEO of GC Care, said, "We will actively utilize the vast data, analysis resources, and infrastructure held by both companies to strengthen our business capabilities in the digital healthcare sector and secure future competitiveness." In October 2020, Able Analytics was transferred from being a subsidiary of GC Care to a subsidiary of GC Holdings.

Chairman Huh Il-sup had shown interest in the digital healthcare business entering the 2020s. At the anniversary ceremony in October 2021, he stated, "We will focus on our existing businesses that we have done well in to expand our reach into the global market, and we will continue to increase investments for the development of our digital healthcare business division." Previously, in May 2020, GC Care acquired U-Bcare032620, an Electronic Medical Record (EMR) solution company, to advance its digital healthcare business.

GC continues to show interest in the healthcare business today. The performance of GC Care, which oversees GC's healthcare business, is also not poor. According to audit reports, GC Care’s revenue increased by 19.77% from 191.7 billion KRW in 2023 to 229.5 billion KRW in 2024. Although GC Care recorded an operating loss of 2.7 billion KRW in 2023, it turned a profit with an operating income of 2 billion KRW in 2024. U-Bcare, which GC acquired around the same time as Able Analytics, also contributed to performance with 190.6 billion KRW in revenue and 5.2 billion KRW in operating income last year.

However, Able Analytics failed to demonstrate notable performance. According to business reports, Able Analytics recorded annual revenue of around 1 billion KRW from 2021 to 2023. Revenue plummeted in 2024 to just 36 million KRW. As of the end of last year, its total assets were around 56 million KRW. Even during the 2021–2023 period, when it was recording somewhat meaningful revenue, it could not escape deficits. The company’s scale was much smaller than U-Bcare, and it did not possess significant assets. It was a situation that required investment at the GC Group level for further growth.

However, instead of investing in Able Analytics, the GC Group decided to liquidate it. While they had acquired Able Analytics with great ambition in 2020, the results are considered disappointing. Going forward, the GC Group’s healthcare business appears likely to focus on GC Care and U-Bcare. A GC official briefly explained the move regarding Able Analytics as a "liquidation due to the adjustment of the investment portfolio."