Wait times for psychological counseling were weeks long, and the qualifications of counselors were inconsistent. Workers faced mounting stress, but there were no effective solutions. Now, however, people can receive counseling via video call from home, and companies offer psychological counseling as part of their well-being programs. At the center of this change is an unconventional entrepreneur with a construction background.
Kwak Dong-gu (57), CEO of Hello Smile, graduated from Hanyang University's Department of Civil Engineering and began his career at Hyundai Engineering & Construction. He founded the smart construction company KCMC in 2001 and entered the psychological counseling business in 2012 due to the economic downturn.
He confessed, "As the construction market rapidly deteriorated, I began to consider alternatives. I received a proposal from an acquaintance to open a psychological counseling center." Thirteen years later, HelloSmile has grown into Korea's largest psychological counseling franchise, operating 27 centers nationwide.
From Construction CEO to Psychological Counseling Entrepreneur
CEO Kwak Dong-gu's transformation began by chance, but was backed by meticulous preparation. He participated as an early investor in the startup, but due to deteriorating management, he took on full-scale management.
"As a non-expert, understanding this field was my biggest challenge. I communicated with counselors and personally opened the Nowon Center, experiencing the entire process from A to Z."
His first choice was to expand his direct operation center rather than franchise business.
"I couldn't encourage someone to join my franchise without confidence in the business," he said. He accumulated expertise in consulting center operations by operating six directly managed stores over four to five years. Only after personally verifying space design, consultant management, and regional demand analysis on-site did he begin the franchise business in earnest.
However, the nature of the psychological counseling industry presents its fair share of challenges. Most counselors in key roles work as freelancers and tend to be conservative in their approach to new changes.
CEO Kwak Dong-gu acknowledged that “this is a major challenge when pursuing change and innovation,” and that “it is a task that we must continue to address.”
The Opportunities of COVID-19: The Successes and Limitations of Digital Transformation
COVID-19 marked a turning point for HelloSmile. CEO Kwak Dong-gu analyzed, "At the time, various non-face-to-face counseling apps existed, but phone and text-based counseling had limitations in terms of continuity and immersion." He added, "The counselor qualification system was primarily private, which meant it lacked expertise and stability."
HelloSmile launched the video-based "SmileOn" service and evolved the "MyHelloSmile" app into "MindZIP." The hybrid model, combined with offline centers nationwide, is a key differentiator.
“Clients can freely choose a counseling method based on their situation and preferences.”
Recently, a pilot project is underway to convert the Jamsil branch into a private center to maximize contactless reservations and privacy.
The Light and Shadow of Corporate Market Entry and Future Strategy
Another growth driver for HelloSmile is its Employee Assistance Program (EAP) program for companies. It provides psychological counseling services to employees in partnership with companies like Naver, Joycity, Shinhan Card, and the Industrial and Commercial Bank of China.
CEO Kwak Dong-gu explained, “Since the pandemic, companies have become more interested in the psychological well-being of their employees,” and “We are operating a comprehensive psychological welfare model that goes beyond simple counseling and includes workshops, group counseling, and leadership training.”
He presented a plan to "establish a HelloSmile Center in every small and medium-sized city with a population of 200,000 or more over the next five to ten years." He also plans to strengthen his online psychological platform. He stated, "A balanced combination of online and offline is key," and expressed his ambition, "We will leap forward as HelloSmile, growing fourfold and eightfold over the past ten years."
However, market experts offer cautious observations. While the psychological counseling market is steadily growing, it remains largely niche, and quality control and profitability within the franchise model are key challenges. Furthermore, with a diverse range of players competing in the online psychological counseling sector, differentiation strategies are expected to become increasingly important.
This differentiation strategy also includes efforts to practice social responsibility. Through collaborations with public institutions and non-profit organizations, the company is contributing to the expansion of psychological well-being.
This year, in collaboration with the Population Health and Welfare Association and the Gyeonggi Job Foundation, we ran a psychological assessment and counseling program to encourage fathers and working mothers to participate in childcare and provide emotional support. We also collaborated with Gwangmyeong City to jointly run a developmental support program for children with borderline intelligence and their parents, contributing to raising social awareness.
He also runs group counseling programs for children with cancer and their guardians in collaboration with the Korea Pediatric Cancer Foundation and Smilegate Hope Studio, actively fulfilling his social responsibility to create a sustainable psychological welfare ecosystem.
CEO Kwak Dong-gu defined the unusual combination of smart construction and psychological counseling as, "While they may appear different on the surface, they ultimately share the same philosophy: technology for people and change for society." Starting as a one-man business and achieving success in both fields, attention is focused on the fruits of his labor.
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