Seoul Medical Group is set to be acquired by a New York-based healthcare company through a stock sale.
In July 2023, Seoul Medical Group, headed by President Min Y. Cha, and healthcare company Ascend Partners, co-founded by Hwang In Seon and Richard Park, entered into a merger and acquisition agreement. Following this, in August, Seoul Medical Group disseminated a letter to its doctors and stakeholders to announce the impending merger.
The transaction is anticipated to close in early October, which coincides with the 30th anniversary of Seoul Medical Group’s inception.
“Ascend Partners from New York possesses remarkable financial analytic expertise in the healthcare sector,” remarked Hank Lee, the president of Seoul Medical Group. “Seoul Medical Group caters to both Korean and Korean American patients across six to seven states, which includes locations like the western United States, New Jersey, Georgia, and Hawaii. We’re also eyeing an expansion into Texas’s Midwest this year. As we commemorate our 30th year, the merger is a strategic move towards further growth.”
Lee stated that Ascend Partners will hold two-thirds of Seoul Medical Group, while the original Seoul Medical Group will maintain a one-third of its stake. However, the financial specifics of Ascend Partners’ investment in Seoul Medical Group remain undisclosed.
Seoul Medical Group emphasized, “Our commitment to delivering unparalleled medical services to our patients remains unchanged, irrespective of the merger.”
Established in 1993, Seoul Medical Group boasts “4,400 primary care physicians and specialists who operate out of seven primary regional offices,” as per their official website.
Lee assures, “For our patients, it’s business as usual. Post-merger, Seoul Medical Group doesn’t become a subsidiary of Ascend Partners. We retain our identity as Seoul Medical Group (SMG) and continue our existing medical services ‘independently’.”
He added, “The merger will empower us with increased leverage in our dealings with insurance providers. The synergy between Ascend Partners’ financial might and Seoul Medical Group’s expertise promises enriched benefits for the Korean American community across the country.”
However, the restructured stake in Seoul Medical Group by Ascend Partners may lead to a reshuffling of the board. In response to queries regarding the board’s continuity, Lee mentioned, “It’s still under deliberation. There might be modifications once the merger terms are concluded.”
As per Seoul Medical Group, the current board ensemble includes President Min Y. Cha, Treasurer Kyung M. Han, Chief Medical Officer Dong H. Kim, George In, and Associate Financial Officer Jason Paek. Other board members are Young-Jik Lee, Sang H. Baik, Soo W. Kang, Sonwoo Lee, and Ho Bae. Notably, all board members are active medical practitioners.
When the Korea Daily inquired about Ascend Partners’ M&A strategy via email, the response was a succinct “no comment.”
Ascend Partners was conceptualized in 2019 by In Seon Hwang, a 1.5 generation Korean American, alongside Richard Park, a second-generation physician. Their online profile paints them as a “patient-centric healthcare establishment.” As of now, the firm reportedly has investments in seven medical groups and allied tech ventures.
In related news, over a year ago, Ascend Partners allegedly approached Korean American Medical Group (KAMG) with an acquisition proposal. Given that, along with Seoul Medical Group, it stands as one of the two predominant Korean American medical providers in Southern California, industry insiders are rife with speculation about an impending seismic shift.
BY HYOUNGJAE KIM [kim.ian@koreadaily.com]
