The Korean Startup Ecosystem in 2019 is stronger than ever. It may surprise some to know that the economy of South Korea is now the 4th largest in all of Asia.  They have one of the best wireless infrastructures, yet Korea is still globally not recognized as a startup tech hub.  This is because their rise from being one of the poorest countries in the world to a highly developed country in just 60 years is not commonly known.  South Korea continues to be one of the fastest growing developed countries in the world.

Post-Korean War

After the Korean War, South Korea and North Korea were dirt poor.  In fact, many don’t know that North Korea was in better shape than South Korea after the war. North Korea controlled most of the industrial infrastructure while South Korea mainly relied on agriculture.  North Korea had great support from Russia and China while South Korea didn’t get much support from their ally the United States.  A third of the South Korean population was homeless and the government depended on the little help the United States provided.  However, North Korea has struggled to advance since the war, while South Korea has been an economic powerhouse. 

The man most responsible for South Korea’s success is President Park Chung-hee.  This plan for South Korea was to have the top leading companies and helped fund them through government loans.  Therefore many of these companies were able to get loans at low-interest rates. The Korean government tended to give massive tax breaks to these Korean companies which allowed them to compete with the rest of the world.  These Korean companies were able to put the massive Korean population to work and work they did.  

Government Corruption 

There was a lot of corruption in Korea, however, Korean companies were now able to compete with global competitors.   Not all succeeded.  However, those that did succeed like Lotte, Samsung, and LG are now giant and efficient corporations.  South Korea’s GDP at the end of 2018 was 1.65 trillion, which is bigger than in Australia.  The power of these corporations is still very present today.  In fact many young Koreans dream of working for one of these corporations.  Therefore there is no real culture of entrepreneurship in Korea.  For a young person with talent, their choices are to become a doctor, lawyer, government worker, or work for these major corporations like Samsung.  

Korean Startup Ecosystem

The Korean startup ecosystem did not exist just 20 years ago.  The Korean government was trying to grow and find new ways to create jobs in the economy.  They started to realize that entrepreneurship was the key to job creation. It was the main factor in a strong and innovative economy.  When you look at the Korean startup scene today, the community is strong and growing. Over 500 million dollars a year has gone to funding late-stage startups for a few years now.  There is a lot of potential in Blockchain, Fintech, and IoT which are key growth areas for Korea. It seems the culture has changed as well as more and more young Koreans are looking to get into entrepreneurship.  

The Seoul city government plans to nurture 10,000 workers to prepare them for the 4th Industrial revolution and to help with unemployment through startups.  Their Innovation Academy will train 2,000 young Koreans to play a leading role in the 4th Industrial revolution.  In addition, they will double the number of spaces for tech startups by 2022.  Furthermore, Seoul has cooperated with the justice ministry to introduce a startup visa fast track for young foreign entrepreneurs who want to start their business in Seoul.  

FOLLOWING THE SILICON VALLEY MODEL

What made Silicon Valley successful was because the United States opened its doors to skilled foreign workers.  In 1990, President George H.W. Bush signed the Immigration Act of 1990 called the H-1B Visa. This new visa system allowed a large amount of global highly skilled talent to work temporarily in the United States.  The industry that was most affected was the tech centers mainly in Silicon Valley. Many tech companies were able to recruit the best of the best from China, India, and so on. For example, the India Institute of Technology in Mumbai’s most elite engineering grad students moved to the United States.  Most ended up at Silicon Valley became the top destination for global science, math, and computer science.

The E-7 Visa

Korea has its own form of H-1B Visa, it is called an E-7 Visa.  This allows employers to hire skilled foreign workers to work in Korea.  The aim was for these workers is to help fill a critical worker shortage in Korea. As well as allow Korean companies to remain strong and create thousands of jobs for Korean workers.  However, the Korean government did not take into account Korea’s working culture which demands brutally long workers and an overload of work. There was not a lot of workers willing to move to Korea and conform to Korea’s working culture.  Most foreign workers in Korea have bad experiences in the Korean workplace. Many leave or at most stay for only a few years until they can get a better job in a more western-style company.

Entrepreneurs in Korea

The number of startups in South Korea in 2018 was close to 30,000 with over 100,000 startup employees.  Just 20 years ago the number of startups was below 2,000. A vast majority of these startups are in Seoul (Gangnam District).  This helps drive trends and word-of-mouth about new products and services very quickly. Seoul is essentially a single-market city within a conservative culture slowly adapting to entrepreneurship.

Many Koreans now have an alternative to working for a big conglomerate like Samsung, Hyundai, or LG.  The older generation is starting to embrace entrepreneurship a lot more than in the past. Now young Koreans have the alternative to be an entrepreneur and run their own business.  

Foreigners working in Korea

One of the issues, South Korea has been having has been retaining foreign talent.  If you go on the internet you will find many horror stories of foreigners who have worked for big corporations like Samsung.  Usually, when foreigners join a Korean company they will be working with Koreans. Many times they will be the ONLY foreigner in the company or team.  

It is natural for many foreigners to feel isolated and most of the blame/responsibility will fall on them. Add this to the lack of communication due to language barriers and you have a terrible working environment.  Therefore foreigners need young Korean entrepreneurs with a global mind in order to bridge the gap for a productive working environment.

The Korean Working Culture

The working culture and living culture in Korea is a bit different from the West.  The hours at a Korean company are very long. While it might say 9-6…in reality you can’t leave at 6 pm.  You need to wait for at least an hour and if there is more work to do, you must finish it before you leave.  Even if that means working until 1-2 am. You most likely will not get overtime. Korean bosses usually have crazy demands and deadlines which you can never question in public.  Thankfully young Koreans and foreigners are slowly moving away from this archaic Korean working culture.

Korean Government Support for the Korean Startup Ecosystem

The Korean government has encouraged more Korean entrepreneurs rather than foreign startup entrepreneurs.  For example, the TIPS (Accelerator Investment-Driven Tech Incubator Program for Startups) in Korea offers Korean government support to share the risk of business failure.  However, it requires the startup to have at least one Korean startup founder in the company. This is why you don’t see a lot of foreigners working in Korea.

The working culture and living culture in Korea is a bit different from the West.  The hours at a Korean company are very long. While it might say 9-6…in reality you can’t leave at 6 pm.  You need to wait for at least an hour and if there is more work to do, you must finish it before you leave.  Even if that means working until 1-2 am. You most likely will not get overtime. Korean bosses usually have crazy demands and deadlines which you can never question in public.  Thankfully young Koreans and foreigners are slowly moving away from this archaic Korean working culture.

Startup Funding in Korea

Funding in South Korea really started to take off in 2014.  It went from $71 million in funding in 2013 to $949 million in 2014.  Then went to an all-time high of $1.8 billion in 2015. These days it has settled down to around $500-$600 million per year.  However, in 2017 and 2018 many Korean Blockchain startups have found success raising funds through an ICO. Currently, in 2019 the ICO scene is pretty much nonexistent.  However many Korean investors are still interested in Blockchain technologies and alternative fundraising methods could rise in 2019 through IEOs or STOs. All this shows that Korea has a large and diverse range of investors, Korea-based funds, corporate VCs, Angels, and crowdfunding systems just to name a few.

Accelerators in the Korean Startup Ecosystem

There are many Accelerator programs, Angels, and VC firms in South Korea.  Some of them include:

Softbank Ventures

Softbank Ventures Asia which was formerly known as Softbank Ventures Korea specializes in IT startup investments.  They recently opened a brand in Singapore in early 2019. Now have offices and investment managers in Singapore, Shanghai, Seoul, Beijing, San Francisco, and Tel Aviv. They are famous for their $1 billion investment in Coupang. They have a $500 million fund and will focus on early-stage startups.

Stonebridge Capital

STONEBRIDGE CAPTIAL which now goes by Stonebridge Ventures has been responsible with private equity since 2017.  They currently manage a private equity fund worth a little over $1 billion. They focus mainly on the biotech industry.  Their assets are worth over $350 million with an annual rate of return around an impressive 25%. Their CEO is Yoo Seung-woon who headed Kakao Ventures and is well experienced in the IT industry.

Korea Investment Partners

Korea Investment Partners, the leading venture capital firm in Korea.  They made headlines in late 2018 for investing in TEMCO a blockchain-based supply chain platform.  This was their first ever investment in blockchain. KIP (Korea Investment Partners) manages over 40 funds with assets under management totaling $2 billion.  Since 2010, KIP has liquidated 12 funds with an average internal rate of return of 18% and no net loss on any fund. KIP backs on average 120 companies every year.

MBK Partners

MBK Partners, the largest and most successful independent private-equity firm.  They have gotten bad press due to the labor issues of one of their holding companies Homeplus which is a discount store chain in Korea.  MBK bought Homeplus in late 2015 for $6.2 billion. Due to online retailers as well as Costco, Homeplus has been losing a lot of value. They are known for their annual special situations fund which was at $850 million in 2018.  Since being founded in 2005, MBK Partners has over $16 billion under management and have invested $12.9 billion in 38 companies. They have five offices located in Seoul, Beijing, Hong Kong, Shanghai, and Tokyo with over 60 investment professionals.  

Sparklabs

SparkLabs, a Seoul-based accelerator for early-stage Korean startups that want to go global.  They also have a cybersecurity and blockchain program in Washington D.C.  Sparklabs has a dedicated blockchain fund called SparkChain Capital.  Sparklabs Group is a network of accelerators and venture capital funds that have been active investors in Fintech since 2013 across Asia, Europe, and the U.S.

Hashed

Hashed –  Hashed is a blockchain accelerator and investment fund, based in Seoul as well as San Francisco.  They invest in blockchain startups as well as help with community building and acceleration. They are Korea’s largest Blockchain fund. Hashed was founded in 2017 and became famous for raising 150,000 Ether through an ICO for ICON Foundation.  What started out as a $600K digital assets fund pooled together by partner investments is now worth $250 million. They are currently the largest holder of ICON and EOS in Korea.

..just to name a few…

Corporate Support for the Korean Startup Ecosystem

I have not mentioned some of the big corporations that have started their own startup hubs like Samsung’s C-Lab Space or Naver and their Startup Alliance.  A lot of big corporations in South Korea are actively investing in local startups.  However, there is still a large talent gap compared to the United States. We are talking about talented programmers, engineers, and developers.  The top graduates tend to want to work for global companies like Apple or Google. Most of the gifted students in Korea tend to want to study abroad in the UK or the US.  Once there they usually don’t come back to Korea.

Corporations embracing Blockchain in Korea

Kakao the top mobile platform in Korea started Ground X which will focus strictly on Blockchain to create a scalable blockchain platform to help with mass adoption.  This could open the door for new and innovative blockchain startups to work with Kakao and take advantage of their infrastructure.

There is still pressure from the old generation in South Korea to get stable secure jobs with big conglomerates like Samsung, LG, and Hyundai.  However, like most corporations, they can’t adopt new technologies as quickly as startups. While many Koreans still have a lot of fear about starting their own business, especially a startup. The idea of working new and trendy technologies like Blockchain could be a gateway for more Korean entrepreneurs to enter the startup scene.  Since Korea is always looking to find the next tech wave. Therefore there will always be an opportunity to join or start new and disruptive startups.

Korean Startup Ecosystem Infrastructure

Currently, there are over 50 co-working spaces in Korea.  Some of the big names include WeWork, Fast Five, Fab Lab, Seoul Startup Hub, Google Campus Seoul, Maru 180, and the most recent HEYGROUND.  There are also over 100 accelerators, incubators, and Innovation Centers in South Korea.  HEYGROUND impressed me the most with their community of changemakers managed by ROOT IMPACT.  Their facility is great as well with their high-end design, open-concept workstations, as well as a restaurant and bar on the bottom floor. There is even a Blockchain coworking space/co-living space in Seoul called Nonce.

K-Startup Challenge

The Korean government also assists in programs to help the startup ecosystem.  South Korea has the highest government backing per capita for start-ups. I mentioned TIPs earlier but there is also the K-Startup Challenge which promotes collaboration between domestic and foreign startups.  All companies form the K-Startup Challenge work out of the Pangyo Global Startup Campus. The Campus was opened in 2016 by the Korean government as part of a new startup hub.

Korean Startup Ecosystem – Blockchain Ecosystem in Korea

The Korean Startup Ecosystem got a huge boost from the Korean Blockchain explosion.  Koreans were buying cryptocurrencies from around the world. Then selling them in Korea because of the price difference between exchanges.  This was called the Kimchi Premium and even mom and pops that knew nothing about cryptocurrencies started to buy it.

Korean Startup Ecosystem – Crypto Exchanges

Despite the fact that Korean exchanges got hacked like Bithumb, and ICOs were banned, cryptocurrency trading continued.  Many Korean investors exploited bitcoin arbitrage and ended up making quick and easy money. Once the common investor caught on and got in, the price of cryptocurrencies crashed. Many were left with almost nothing.

Cryptocurrency Regulations in Korea

Still, Koreans are calling for mass adoptions and for the Korean government to step in with regulations.  The Korea Blockchain Enterprise Promotion Association has been tasked to create these regulations but so far nothing has come out.  Jeju is a potential place for being a special Blockchain region in Korea. Korean Blockchain startups can run their ICOs and test out Blockchain services and technologies in Jeju.  Cities like Gwangju also want to become the Crypto-valley district. So it seems it is not a matter of if but when, as it comes to cryptocurrency regulation. Once cryptocurrency regulations are set in Korea, there could be another crypto boom in Korea.

Korean Startup Ecosystem – Blockchain events

Since 2018, Korea held Korea Blockchain week which included Blockchain events, meetups, investor meetings, workshops, and networking events.  Beyond Blocks is one of the main Blockchain events in Seoul as well as Deconomy.  In 2019, FactBlock, a global Blockchain accelerator hosted D.FINE for Korea Blockchain Week.  

Since ICO projects were banned in Korea many Korean Blockchain startups ended up going to Singapore, Hong Kong, and etc.  However, while ICO projects are banned, the Korean government has no issue with Blockchain technologies. As mentioned above Ground X by Kakao is looking into Blockchain technologies.  SK Telecom, Korea’s largest wireless telecommunications network announced it will be adopting Blockchain payments and security functions.

Korean Startup Ecosystem – Cryptocurrency Exchanges

Korea also has two of the biggest cryptocurrency exchanges in Bithumb and Upbit.  There are dozens more and more should increase once regulations are set.

The Seoul City government is also partnering up with ICON to create a Seoul Coin to replace T-Money cards in the future.  Seoul is investing a lot into creating a strong Blockchain industry in Seoul. It is devoting over $100 million to build a blockchain complex near Seoul.  Over 200 Blockchain startups will be incubated there. The complex will be essential for early-stage Blockchain innovation.

The Korean government has also created the Seoul Innovation Growth Fund for Blockchain and Fintech startups in Korea. This fund was created for those having trouble raising Series A funding.

Korea’s Strengths/Weakness

Korea’s Strengths

Korean culture

South Korean popular culture is growing every year.  Korean beauty products are thriving thanks to successful Korean startups like Memebox.  There are over 8,000 K-Beauty brands in South Korea.  Korean K-pop is bigger than ever thanks to groups like Big Bang, 2NE1, and EXO.  

Korea’s biggest K-pop Band BTS has broken all records on Youtube. Also, they were the first-ever Korean musical host on SNL.  Also, the Korean IT infrastructure is one of the best in the world. The country has the best internet connection and most Koreans own smartphones.  Koreans are early adopters of new technologies and early trendsetters for fashion.

Korean Startup Ecosystem – Fintech

Fintech is also huge in the Korean Startup Ecosystem, as Korea is becoming the leader in cryptocurrency exchange and services.  Korea looks to become the leader in the global financial centers. Soon Seoul will become the FinTech hub of Asia.  One of the top Fintech startups in Korea is Viva Republica. They are the developer of Toss. A mobile payment tool that is looking to go global after having much success in Korea.

Korean consumers

The Korean startup ecosystem benefits from a great consumer market. Their middle class in the majority.  Most people living in Korea have smartphones and a credit card. They have the highest GDP per capita, great wireless penetration, great infrastructure, and fast LTE.  All these elements combine to make a great home market to grow your startup.

This is why Korea is able to support companies and startups in Korea that are focused only on the domestic market.  Korea has 50 million residents that are very tech-savvy. That is one of the main reasons why Korea is able to support a massively scalable business. Some examples would be companies like Naver, Coupang, and Ticket Monster that solely focus on the Korean market.

Korea’s Weakness

Cost of living

The Korean Startup Ecosystem has weaknesses they have to work on.  The cost of living in Seoul is very high. Especially in Gangnam where you will need to put down a deposit of $10,000 and a monthly payment of at least $600 just for a one-room studio. Therefore most Korean startup entrepreneurs commute in and out of Seoul to avoid the high living cost. Office spaces are expensive as well, which is why many Startups are moving into co-working spaces.  Starting a startup is hard enough for Korean entrepreneurs. The last thing they want to do is spend their money on rent.

Finding the right investor

Investors in Korea need more education about investing in startups.  There is a lot of “old” wealth in Korea which has come from real estate and family inheritance.  Most of these old investors WANT to invest in tech startups. The problem is that they don’t know a lot about it. Hopefully, this will change as successful startup entrepreneurs give back to the community.

Korea still holds a corporate mentality. Therefore it is up to the 2nd and 3rd generations of traditional Korean startup entrepreneurs to the ranks of their family hierarchy.  This is the only way Korean startup will be able to go global. They need to throw away the old Korean corporate mentality and bring in fresh minds.  The lack of global know-how for Korean startups really holds back the development of the Korean Startup Ecosystem.

Where are the unicorns?

There have been many startup success stories.  However, South Korea does not have many “Unicorns”.  The only three that come to mind are Coupang (e-commerce), Kakao (Internet), and Yello Mobile (Mobile commerce) who all have established multi-billion dollar valuations.  Korea needs to produce more global startups and Unicorns. Exits are what boosts a startup ecosystem progression that allows Korea to attract global resources which in turn accelerate growth.

It is hard for most Korean startups to break out internationally due to their lack of localization ability. Therefore most Korean startups tend to focus more on the local market which limits their potential.  Therefore, the Korean startup ecosystem is a bit behind the United States. It will still take a few years to catch up.

Conclusion of Korean Startup Ecosystem

South Korea needs to continue to invest in programs to help the Korean startup ecosystem.  Entrepreneurship has proven time and time again to be the #1 driver for job creation and economic growth.  South Korea will never be able to compete with Silicon Valley or Shanghai. However, they can leverage their own unique assets to create innovative startups.

As long as they push to bring in more and more international talent into Korea, the more likely Korean startups will have the chance to go global.  Korea’s potential is there and many countries are recognizing it. I fully believe that the Korean startup ecosystem will continue to accelerate. At the same time, it will produce global startups and hopefully some Unicorns.

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Coworking Spaces in Seoul

Why rent a whole office for your business when you can work from a co-working space? Free coworking spaces in Seoul have sprung up recently, with services ranging from; absolutely free to use, moderately priced offices to premium-priced coworking spaces. In addition to bootstrapping startup teams, there are free coworking spaces in Seoul for you to get your stuff done.

Seoul is edging to be the most preferred global startup destination in Asia.  Therefore coworking spaces in Seoul have become a necessity as it was with startup ecosystems in Israel, USA, London, Germany and the rest.

What is more?

Working at coworking spaces allows you to meet other like-minded entrepreneurs.  In addition, the environment alone can foster your creativity.

No need to stress about office rent.

Here are the top 5 free coworking spaces in Seoul for Startups in Korea

SEOUL GLOBAL STARTUP CENTER

Launched in 2016, the Seoul Global Startup Center has grown rapidly to become a center of attraction for foreign-owned startups in Seoul. Furthermore, the Seoul GSC is a startup incubation center that was established to support foreign entrepreneurs. It was founded by the Seoul Metropolitan City Government but operated by Rehoboth, a private business and incubator services provider.

The center provides support for early-stage startups in their 1-year incubator program, including Free office space, Seed Fund, Mentorship and skills training. In addition, apart from that, they offer separate public coworking space for prospective foreigners who are interested in starting up in Seoul. You need to register to gain Access membership of the space. It is open to anyone and you can participate in the periodic startup lectures and monthly networking opportunities.  They offer free high-speed WiFi and coffee.  In addition, meeting rooms can be booked for meetings.

Global Enternship

The Global Enternship (Entrepreneur + Internship) is a support program from the Seoul Global Startup Center.  It offers an opportunity to match talented individuals with global startups.  Foreign residents in Korea, Foreign University students, Korean University students, Seoul GSC 4th Batch Residents, a Graduate startup with a Foreign Representative (co-representative are eligible to apply.  While as an Entern, you will get up to 1.6 million won before tax.  The Enternship will last for two months from July 1 – August 29th.

Become a member of the Seoul Global Startup Center by registering here SeoulGSC coworking space. Locate the center on this address: 3F, Electronic World Building, Hangangro 3-ga, 1-1 Yongsan-gu, Seoul, South Korea 04370

GOOGLE’S Space for Startups

‘Campus Seoul’ is one of the Google Spaces in the Google Campus family worldwide.  Therefore with Seoul having an established center, it means Google recognizes the potential of entrepreneurship growth in Seoul. Furthermore, Campus Seoul is a community coworking space where like-minded entrepreneurs and innovators can…

• collaborate
• share ideas
• support each other
• create a valuable impact
• have access to free wifi
• access to low-priced coffee at their Campus Cafe
• comfortable desks and event spaces
• meet other founders and entrepreneurs to boost your business opportunities.

Campus Seoul also offers a startup residency program for Googlers and early-stage startups, Campus Meetup programs, and mentoring programs.  Other global campuses are located in Warsaw, London, Sao Paulo, Madrid, Tel Aviv, and Berlin, and they offer the same services.

They offer free Wifi and a chance to meet many fellow founders at the Campus Cafe.  It is the perfect place to get things done, take a break or collaborate with like-minded people.

Register to become a member of the Google Campus Seoul here. Easily locate the campus on this address: B2 Autoway Tower, 417 Yeongdong-daero, Gangnam-gu, Seoul

SEOUL GLOBAL CENTER

Seoul Global Center is a full-government run support center that assists foreign residents in Seoul with various services including visa, immigration issues, employment, language training, business consultancy, counseling, among others.  Furthermore, they offer incubation service for early-stage and most promising foreign startups by providing free office space in the business centers at Jongno and Gangnam. In addition, selected startup teams usually spend 6-months in the program.  There they can receive coaching, 1:1 mentoring, and special lectures.

Seoul Global Business Center Free Incubation

The Seoul Metropolitan Government and Seoul Business Agency (SBA) offer free in-house incubation offices to prospective foreign entrepreneurs and to foreign residents with less than 1 year of startup experience to help foreign residents’ startups and stabilize their business activities.  Applications are usually until the end of May.  Benefits include free office space, internet, business coaching, mentoring, and opportunities to participate in corporate networking events with local and foreign companies.

The Seoul Global Center is a place to make your startup dreams a reality.

Check this page for the announcements of the incubation programs.

HONGHAP VALLEY

If you are an aspiring startup or early-stage start team looking to hang out in the most hippy and vibrant neighborhood in Seoul, look no further than HonHap Valley. HongHap is a combination of ‘Hongdae’ and ‘Hapjeong’, which are some of the most lively districts in Seoul where young people hang out.  Therefore, Honghap Valley is a creative hub for young innovators and entrepreneurs to connect and breathe life into their business ideas.

The Center also caters to other services like startup consultancy, event space, cafe, Fast wifi, startup matching, networking, and workshops.

It is open from 9am-9pm on weekdays for anyone to use, regardless of your nationality or status. Furthermore, it is Free to use but all you need to do is complete an online registration form and you are good to go.

Follow this page to become a member of Honghap Valley.

Locate Honghap Valley on this address: 1F. ANT Bldg, 197-10, Donggyo-dong, Mapo-gu, Seoul, Korea and it is easily accessible by the Seoul Subway Line 2.

SEOUL STARTUP HUB

The Seoul Startup Hub is a spacious, ultramodern facility located in the heart of Seoul. Furthermore, the 10-floor edifice can boast of a 234 seat co-working space.  There are incubating floors for over 300 startups, audiovisual equipment, a large seminar and auditoriums, and a roof-top garden. Therefore it is by far the largest coworking space for startups in Korea.

Seoul Startup Hub exists to be the place for entrepreneurs, startups, investors, and innovators to connect and create global businesses. Therefore, take advantage of and access this hub to grow your startup.

Locate the hub at 21 Baekbeom-ro 31-gil, Mapo-gu or by Subway Line 5/6 Gongdeok Station Exit 2.

Find out more information about the Hub here: Seoul Startup Hub.

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Korean Entrepreneurs have a larger fear of failure than those in the western world. That might be mainly because of the strict standards set by their parents. In Silicon Valley, it is expected that you fail when starting a startup. Through failure, you can learn from your mistakes. However for Korean entrepreneurs, if they fail their first startup company, most give up and go back to corporate jobs.

Why Failure is Good for Korean Entrepreneurs

From my experience covering the Korean startup ecosystem, failure is actually better for you in the long run. For Koreans, they are able to face their fears head-on and realize that it is NOT the end of the world. If you read many of the great startup success stories in Korea, many have had failures but were able to rise above it.

Korean society looks down on failure. Similar to Japan and many other Asian countries. So it is implanted in us that failure is associated with some kind of flaw. Try to break away from this. Failure, in reality, propels your further and at a far greater level than you ever imagined. Failure is important because it gives you the strength and the fortitude to dig deep within yourself and find out what you are truly made of.

It has been said that failure is the greatest teacher of all time. It allows you to see the problem in a whole new way. You need to step away from what you know or you think you know and look for another answer to the problem.

One Problem has Many Answers

Koreans usually take problems in a mathematical way of thinking. One problem with one answer. However, in the startup world, one problem can have hundreds of different ways of solving it. So if you fail, just know that there are answers still out there. Use these failures as a way to learn from your mistakes and what not to do in the future. It took Thomas Edison over one thousand tries to get the lightbulb right. However, Edison didn’t think of it was failing one thousand times but rather having one thousand steps in getting to the final product.

Always Keep in Mind the Worst Possible Outcome

Most Korean Entrepreneurs do not have a problem with this but what I mean is to just keep it in mind. So if it does happen you will be ready for it. What I noticed with many Korean startups is that they have unrealistic expectations and don’t go over the possible failures. Sometimes it is almost like a cult and everyone has to live this delusional lie. Unrealistic expectations are one thing but to not think about the possible problem and failures are leave a company unprepared and unequipped to deal with them.

So Why are Korean Entrepreneurs Afraid of Failure? 

This goes back to when many Korean Entrepreneurs were students.  In Korea, there is a national high school exam called Suneung and it is the most important test for Korean high school students.  It will determine which University they will enter.  It is such an important test, that cars are not allowed to honk their horns, airplanes take alternate routes to reduce noise, and buses and subways run more often to decrease traffic.  All this is aimed to lower the stress for over 600,000 high school students in Korea.  The test itself takes around 9 hours to complete.  Many begin studying for the Suneung as early as 12 years old. 

The goal, in the end, is to enter one of the three top Universities in Korea referred to as SKY.  These three are Seoul National University, Korea University, and Yonsei University.  Only 2% of those that take the exam will enter one of the SKY Universities.  

Therefore at an early age, Korean students have massive pressures to enter a top University in Korea.  Going to SKY will increase the chance to get a job for one of the top Korean companies like Samsung, Hyundai, LG, etc.  Failure is not an option.  Those that don’t make it will continue to self-study in order to get a job with the Korean government. Studying for these public-service exams is a full-time job in and of itself.   Many of these exams can be life-changing tests.  Koreans are programmed to take tests and study hard to pass them.  So when they become Entrepreneurs they look at it as a test, which they must pass.  

Entrepreneurship offers a way out for Korean Students

One crucial lesson Entrepreneurship offers is that there is more to life than studying.  Failing is not the end of the world.  That is what entrepreneurship is all about.  Taking risks and exploring new possibilities.  The lessons learned from starting a startup in Korea prepares young Koreans for real life.  Instead of spending 20-30 years of their life studying for exams, Koreans need to gain experience in the real world.  The real world is not a multiple-choice test and not all questions will have exact answers.  

The post Korean Entrepreneurs First Need to Learn How to Fail appeared first on Seoulz.

Lotte Accelerator has since its 2016 inception become one of Korea’s most active and accomplished accelerators.  They provide in-house venture capital, a nexus between startups and corporates, and L-Camp (six-month accelerator program).  Lotte Accelerator is a Corporate Accelerator of Lotte Group. Investing in Seed stage startups.

Korea’s 170 accelerators/incubators make it one of the startup ecosystem’s most competitive.

“What makes Lotte Accelerator a cut above the rest, is no other Korean startup investor has as comprehensive program as ours”, is how Jong Hoon Lee, the Head of Investment, puts it.

Korea’s Top Accelerator

Lotte’s vision of becoming Korea’s top accelerator ultimately led to Jong Hoon Lee leaving a distinguished academic and venture capital career.

“Lotte group was setting up its first startup fund and there was not enough internal manpower, so I thought my background could play a contributing factor in developing Lotte’s in-house venture capital”.

Its $90 million “war chest”, indeed, gives it leeway to invest in numerous promising startups. In addition, L-Camp graduates like WeCook (Korea’s first shared kitchen service) received $1.5 million in funding and “Tutoring”, Korea’s most globally-renown educational app also received sizable funding.

What is more, no other Korean or for that matter few global accelerators do later-stage funding like Lotte.  Therefore, the Korean startup community’s prevailing opinion that Korea’s lack of follow-on funding inhibits growth is a weakness that Lotte Accelerator addresses. Furthermore, Lotte Accelerator believes mentoring and networking alone cannot facilitate a startup’s success.  Therefore funding is the linchpin for an optimal outcome—without follow-on funding, “how can our graduates grow and expand their startups without sufficient funding”.

A Nexus Between Startups and Corporates

Lotte’s nexus between startups and corporates seems to be difficult to replicate. Therefore, a common complaint among Korean startups participating in accelerator programs is their lack of conglomerate network. One of Lotte’s main missions is linking startups with its numerous subsidiaries through open innovation. Jong Hoon Lee describes Lotte’s mission in the following way:

“By growing startups and adding innovation to Lotte group we are creating a symbiotic relationship where startups bring innovative know-how and Lotte Accelerator mentors and connect them with our numerous subsidiaries”.

L-Camp – Accelerator Program in Korea

L-Camp is a 6-month accelerator program to help startups in need of subsequent investments.  Lotte Accelerator is able to leverage its affiliates to measure the marketability of the startups through collaborations.  This enables more investments and business cooperation for startups in the program.  History shows that startups in L-Camp increased in value by over 90%.  In addition, the number of employees increased by over 85% and follow-up investment increased by over 60%.

Some of the Benefits of L-Camp include:

• Free office space
• Access to meeting rooms, event halls, and IT infrastructure
• Free support for legal, accounting, tax advice, and etc.
• Bank-linked financial service
• Global IT infrastructure support
• Free video production support for promotion through their social media
• Business connections with affiliated companies
• Follow-up investor relations support
• Various lecture program operation
• Access to external mentoring expert pool

To be sure, L-Camp graduate “Now Pick” (24-hour rocket delivery service) best exemplifies Lotte Accelerator’s hyper-connectivity when they recognized Now Pick’s potential convergence with its electronics retail affiliate, HIMART. Since consummating an exclusive contract with HIMART last year, Now Pick’s fortunes have grown with the addition of a similar deal with E-mart earlier this month.

Is L-Camp too good to be true? No. However, as a caveat to potential applicants, Lotte Accelerator has the most competitive acceptance rate among any Korean accelerators: Lotte Accelerator generally receives over 500 applications per cycle and accepts anywhere from 10-20 startups—their 2-4% acceptance rate compares to Y Combinator which takes roughly 3% of each batch.

The post Why Startups in Korea are Lining up to Enter Lotte Accelerator appeared first on Seoulz.

Obi Beer AB InBev Startup Demo Day

Startups need to apply by November 12th to participate in the Startup Demo Day on November 28th, 2019.

AB InBev Korea seeks your creativity & innovation power to revolutionize the retail ecosystem!

Objective

Reinvent retail through new technologies.

Qualification criteria

Startups looking to revolutionize the retail industry with their know-how.

Location

180 Yeoksam-ro, Yeoksam-dong, Gangnam-gu, Seoul, Corée du Sud, Maru180 (From 1 pm to 6 pm)

Obi Beer/AB InBev’s business challenge is set to tackle the retail industry 

Big companies and small structures will join forces to innovate the retail sector. Through AI, IT, new or existing solutions startups already brought to life, this challenge will be the place to drive some change and adapt our logistics to the future.

The target:

Startups specialized in AI, Fintech, Retail, and E-commerce are qualified to register today. We are looking for the best K-startups.

What are the current pain-points?

This challenge includes anything related to innovation in the beer industry.  Therefore, Obi Beer/AB InBev has brought forth various issues they want to integrate into their future company strategy. Those issues can be a track for some startups.

Obi Beer/AB InBev is looking for:

1. Startups that can help in-house users to use Obi Beer/AB InBev system by using voice recognition.
2. A startup with a high MAU customer platform that contributes to the acquisition of Obi Beer/B InBev‘s customer data and collaborates with Obi Beer/AB InBev on customer insights.
3. Startups that can help improve the productivity of internal employees by utilizing IoT, RPA and bots.

A tailor-made agenda!

Startups must apply on the ABinBev K-startup demo day website until November 12th.

The 10 qualified startups will undergo a one-week online coaching program by ABinBev industry retail leaders; whereafter they will showcase the solution during the Obi Beer/AB InBev startup day at Maru180 on November 28th. In addition, the winning startups will win the beginning of a longterm partnership with Obi Beer&AB InBev.

• Registration until November 8th
• 2nd form submission until November 12th
• Selection made on November 15th
• Coaching & Mentoring for selected startups from November 15th until Demo Day.
• Pitch day & Winner selection on November 28th

What’s in it for the participants?

The chance to be mentored & trained by an industry leader. Obi Beer/AB InBev will act like a real incubator by providing technical solutions and personalized support for selected startups. In addition, it will be a chance to bring a project to reality with advisory support from industry experts. Furthermore, the selected startups will also get a chance to build a long term business partnership with Obi Beer/AB InBev.

The post Startups in Korea Should Apply to Obi Beer AB INBEV Startup Demo Day appeared first on Seoulz.

How to do a workshop for Korean startups in Seoul?  Since covering the Korean startup ecosystem for over 7 years I have organized my share of events and workshops in Seoul.  Some of these were 1 day, some were 2 days, and for bigger startup conferences it can last for up to 3 days. It is always a great feeling to bring startup entrepreneurs in Korea together. In this article, I will write about what you will need to set up a workshop in Seoul.  The advantages of workshops are that you will have an instructor that will guide you along the way. Furthermore, you can be more hands-on rather than learning through online courses. Finally, workshops are a great way to network with people with the same issues you are facing.

What is your workshop about?

A good way to find the answer is to actually ask the Korean startup entrepreneurs through a survey.  It will be crucial to figure out exactly what they need help with. You want to be specific and that will be the main goal of this one or two-day workshop.  A good tip is to go on forums or Reddit to see the trending questions for entrepreneurs in Korea.  Join startup communities in Korea and see what issues many of them are having.  The goal is to make sure Korean startups leave with knowledge or skills they did not have before. Therefore, it is important to create a clear outline of the topics and instructions that will be offered at the workshop.  With this outline, creating an agenda will be much easier to do.

Lastly, you must be clear whether or not your workshop will be done in Korean or English.  It is our experience that workshops done in Korean attract a wider audience.  Of course, your topic will be key in whether to go with English vs Korean.  However, if you have to choose, go with Korean and have translation services in English.  

How many people do you want at the workshop?

It is very important to determine the size early. This will help you determine the venue.  When starting out I suggest going small as you gain more experience along the way. Going small also has many benefits.  The workshop can offer better service and care. Therefore the next time you do the event, you will already have an outline and agenda so the process will be much easier.  Then you can increase the number of attendees. Many Korean events want to go big right away but in my experience, that is a mistake.  Start out small and slowly build your audience and community.  Each workshop should increase in attendees or else you are not doing it right.  

A large event has its pros and cons.  The pros are that it is great for team exercises and you have more people to network with.  There are a lot more options when you can form teams and do team-oriented exercises.  The cons are that you will not be able to give individuals the attention they need and will need to have more prep materials and a bigger venue.  The main purpose of a workshop is to get more hands-on personal help from experts.  This is something you can’t get online and something you can’t get if the attendees are too big.  We recommend a typical workshop should not exceed 50 attendees.  

When do you want to have your workshop?

This is another important step.  Most Koreans do not like going to events on a Friday, Saturday, or Sunday.  Events during the weekday is a great excuse for many workers to leave their office a little early. Remember most Koreans need to stay at the office due to office politics. Going to these workshops or meetups is a great excuse for them to leave early.  Try to set the time around 6 pm. However, keep in mind that most people in Korea will arrive around 30 minutes late. The most popular dates for the workshops are Thursday. If it is a two-day event it is possible to have it ending on Friday.

Where will you hold your workshop?

There are many places to hold a workshop in Seoul.  The best are co-working spaces but if you have a larger budget it is good to see what Coex has to offer.  Make sure you hold these workshops around Gangnam and especially below Han River. Koreans do not like going to events that are above the Han River. Most of the tech entrepreneurs are located in the Gangnam district.  Google Campus Seoul offers free event spaces to its members. It is free to become a member so this option is what I would recommend.

Create an event page using ON OFF MIX

ON OFF MIX is the Eventbrite of Korea.  Most of the meetups and events are posted on the site.  You will be able to do your ticketing there. Or you create your own event page and link it to the ON OFF MIX.  The ON OFF MIX is also a great way to advertise your event to the Korean public.

These are just a few tips when organizing a workshop in Seoul for Korean startup entrepreneurs. Remember to make the attendees feel special but offering fun and innovative activities that get them involved. Keep the data from the event and you will be able to grow your community with each event.

The post How to organize a workshop for Korean Startups in Seoul appeared first on Seoulz.

Korean Startup Ecosystem

The startup ecosystem in Korea has been surging since 2015.  Furthermore, the Korean government launched a drive to support startups and also promote entrepreneurship among the youth.

Entrepreneurship drive has been one sure strategy at the core agenda of past and successive presidents to alleviate the rate of unemployment among the youth.

Many Korean government agencies have outlined plans to support new and creative ideas, especially from foreigners and other sectors of the economy.

In the meantime, achieving these ambitious technological goals will also help propel the government’s steep dive into the fourth industrial revolution.

Therefore, here are notable Korean government organizations and agencies that support startups. The kind of support varies according to each organization’s setup and goals.

However, most of them support early-stage ventures and startups. Whether you are looking for funds, office space, VC partners, mentoring, acceleration or global expansion, these companies and organizations listed here can help you in one way or the other.

It’s time to access them for the benefit and growth of your startup.

Korean Government Agencies that Support Startups and Small Business

Ministry of Science and ICT

This is the official government agency that is constituted to oversee and implement the government’s grand science and ICT policies.  They are in charge of evaluating science and technology policies.  Furthermore, they support innovative research and development and skills development in ICT.  Presently, it is now championing the 4th industrial revolution.  They run The Korea Institute of Startup and Entrepreneurship Development which focuses on helping promising startups get investments.  In addition, they help pioneer markets, protect technologies, and help develop prototypes.  The Ministry of SMEs and startups have devoted $85 million to help startups in Korea.  The money will be to help innovative companies find a firm foothold and scale.

Pangyo Techno Valley

Pangyo Techno Valley is the Korean version of Silicon Valley in the USA. Located in Seongnam, Gyeonggi Province of Korea, the vast industrial and startup campus is home to some of Korea’s top tech companies such as NCSoft Corp., Kakao, SK Planet, Nexon and other global companies. Currently, it also hosts global startups that are accepted into the annual K-Startup Grand Challenge program. First opened in 2011, the campus has accommodated over 1,200 companies. Aside from the startup campus, you can find a global R&D center as well as the center for the creative economy and innovation.

It has now become an AI hub in Korea.  They are planning to form an AI cluster and help startups in Korea go global.  Furthermore, they will look to attract foreign supporting agencies to Pangyo.  Gwangju Metropolitan City stated that it would invest over $330 million in the next 5 years to create an AI-based scientific technology startup complex.  An AI-based self-driving car center will be created to support the already existing AI graduate school set up by KAIST and an industry-university collaboration center.

There were 685 foreign guests who visited Pangyo Techno Valley through GBSA last year. Guests from central governments and local governments of China, Thailand, and Canada learned about different platforms of Pangyo Techno Valley.

Korea Creative Content Agency (KOCCA)

Creative content is at the forefront of Korea’s digital innovation. The Korea Creative Content Agency ensures the promotion of the Korean content industry.  Therefore, they oversee and coordinate promotion of the Korean content industry including the Korean Broadcasting Institute, the Korea Culture & Content Agency, and the Korea Game Agency.  In addition, they provide education for content creators and serve as an incubator for content start-ups. Some of the fields they support include games, Comics, AR/VR, Animation, Character Licensing, Broadcasting, and music.

They have been a part of the SXSW Music Festival for 7 years in a row.  Furthermore, they have worked with K-pop Entertainment companies to showcase K-pop groups and idols at the global festival.

Center for Creative Economy and Innovation (CCEI)

The CCEI is one of the leading government agencies that help local startups and businesses to expand globally. Opened in 2014, it operates 18 local offices in 17 regions across Korea. The CCEI provides special assistance to small and medium enterprises from the regions.

In 2019 the CCEI signed an official business cooperation agreement with SparkPlus a shared office space for entrepreneurs in Korea.  Therefore, the agreement means that they will work together to discover and foster competitive startups, create a strong Korean startup ecosystem, create entrepreneurship programs, and create stable office spaces for startups.

K-Startup

K-Startup is a government-run online hub that announces various startup programs aimed for the youth. They run the K-Startup Grand Challenge which is an accelerator program in Korea run by the Ministry of SMEs and Startups and the National IT Industry Promotion Agency.  The goal of the challenge is to promote the expansion of an open entrepreneurship ecosystem in Asia and assist in Korea’s evolution into a prominent startup business hub.

Warning: the site is in Korean.

National IT Industry Promotion Agency (NIPA)

NIPA is the Korea government’s IT promotion organization. They promote Korea’s ICT industry and attract global business partnerships. Therefore, they also implement relevant policies through a robust R&D strategy.  They provide annual update statistics related to research and policies.  Therefore the agency researches and promotes policy for the IT industry in Korea.  In addition, they cultivate professional human resources and support international exchange, cooperation, and overseas expansion.

Small & Medium Business Corporation (SBC)

The SBC exists to support startups and small businesses from business plans design, incubation, early-stage, growth, market-entry, and sustainable growth. They also offer loans with little interest to enterprises that plan to scale.  The SBC is a non-profit, government-funded organization that was established to implement government policies and programs for the growth and development of Korean SMEs.  They have worked with other countries such as India to cooperate on supporting businesses and exchanging technologies.

Small and Medium Business Administration (SMBA)

The SMBA is one of the agencies under the Ministry of SMEs and Startups that foster innovation of Small Medium-sized Enterprises (SMEs) and Micro Enterprises (MEs). Furthermore, their business mission is underpinned in three areas: business growth promotion, fostering business startups and support for micro-enterprises.

Korea Institute of Startup and Entrepreneurship Development (KISED)

KISED is also one of the affiliated organizations under the Ministry of SMEs and Startups, tasked with creating a convenient environment for startups to thrive and create jobs for the creative economy. Moreover, they provide entrepreneurship education, develop startup infrastructure, mentoring support and many others.  They not only function as a business incubator foundation but also a public institute that supports startups as well as entrepreneurs in Korea.

KISED recently supported 14 Korean startups at the RISE conference in Hong Kong.  Their aim was to help get the startups funding and grow their network with global companies.

Korea Venture Investment Corporation (KVIC)

If you are looking for venture funding for your startup, the Korea Venture Investment Corporation (KVIC) should be top on your list. They provide a capital source for the venture capital market. Some of the funds they provide are related to job creation, angel funds, foreign VC investment funds, and industrial technology commercialization.  Some of their funds include:

Korea Fund of Funds

The Korea Fund of Funds was established in 2005 based on the “Special Measures for the Promotion of Venture Businesses Act,” for the purpose of providing a stable capital source for venture investment.  As well as the Foreign VC Investment Fund

Foreign VC Investment Fund

The fund promotes the advancement of the venture capital ecosystem in accordance with “Ways to Promote the Virtuous Cycle of the Venture Foundation Fund Ecosystem.”

Job Creation Fund

The Job Creation Fund invests in SMEs and venture companies in the growth stage that have high job creation potential.

Fund of Funds for Industrial Technology Commercialization

This fund was created to invest in domestic small- and medium-sized companies that proceed with technology commercialization by utilizing the result of industrial technology R & D projects.

Angel Fund of Funds

This fund is for investing in Private Investment Associations which make investments in early-stage startups and venture companies in Korea.  They invest indirectly in startups and venture companies through partnership funds from Private Investment Associations.

K-Growth

The Korea Growth Investment Corporation is an independent funds-of-fund management agency that provides risk capital to Korean startups and SMEs at various stages of their business cycle.  Therefore they are an independent “fund of funds” management company that is dedicated to providing risk capital to Korean startups and SMEs.

K-ICT Startup Mentoring Center

This mentoring center under the Korea Youth Entrepreneurship Foundation is a place where startups mentees are paired with experienced startup and business owners to help early-stage businesses.

Korea Trade and Investment Promotion Agency (KOTRA)

If you need a consultation about establishing a global business or trade-investment venture in Korea, KOTRA is the right place for you. Therefore, do not entangle yourself with any stress. They offer comprehensive direction for companies that intend to invest in Korea.  In addition to those that are looking to expand their markets internationally.  They also operate BuyKorea (a B2B E-marketplace for Korean products).  Their focus is on 4 main missions.

• Full Support of SMEs to explore overseas market opportunities
• Global Job Creation
• Diversification of exporting goods and market
• New overseas expansion opportunity identification

Korea Invention Promotion Association (KIPA)

Do you have any inventive ideas? Are you seeking patent attorneys to file a patent for your idea? Then, KIPA is your one-stop service center for such tasks. KIPA helps startups through idea acquisition, intellectual property registration, patent application and all other stages required for your invention to commercialization. Moreover, they host the Seoul International Invention Fair annually.  They specialize in promoting Korea’s IP rights and commercializing patent technology under Article 52 of the Invention Promotion Act.

Korea Technology Finance Corporation (KIBO)

KIBO is a non-profit institution also affiliated with the Ministry of SMEs and startups.  They are in charge of facilitating technology finance for innovative companies and SMEs in Korea. They provide credit guarantee, technology appraisal, equity investment and technology transfer for many startups and firms.

Do you know of any other agencies that are not mentioned in this article? Please send me an email and we are sure to update it. Meanwhile, try these agencies.

The post Korean Government Agencies That Support Startups appeared first on Seoulz.

With all the uncertainty regarding Blockchain regulations in South Korea, you would think their Blockchain ecosystem would be dying down.  However, that is far from the case.  Blockchain adoption is consistently growing in Korea.  Industries involved in finance, logistics, health, social media, and IP rights are incorporating these new innovative Blockchain technologies.  Recently the South Korean Financial Service Commission (FSC) launched the first financial regulatory sandbox where Korean Blockchain startups can work on innovative services using Blockchain technologies without regulatory oversight during the trial period of up to four years.  Since 2018, Korea has held Korea Blockchain Week to bring in leaders in Blockchain from all across the world.

The South Korean government has committed to investing over $18 dollars for upcoming Blockchain projects for 2019.  In 2018 there have been big blockchain projects set up by some of the top conglomerates in South Korea.  Kakao debuted a Blockchain platform called Klaytn, Line Corporation (Subsidiary of Naver) introduced its own cryptocurrency (Link Token), and Samsung revealed their cryptocurrency wallet for their Galaxy S10.  Korean Blockchain startups are also continuing to drive Blockchain adoption in Korea.

Here are the top 25 Blockchain startups in Korea you need to know for 2019

1. ICON Foundation (ICONLOOP)

Korean Blockchain startup ICON is the largest blockchain network in Korea.  They provide a Blockchain sharing ledger for industries such as hospitals, banks, securities, Universities, and insurance companies.  In addition, ICON has its own cryptocurrency token called ICX and is looking to do an IPO sometime in 2020.  They will need to first pass a technology evaluation process and preliminary review before they can do an IPO.

It has done projects with Seoul Metropolitan Government, National Election Commission, and Kyobo Life Insurance among others.  ICONLOOP is the developer of Loopchain, a technology to connect different blockchains separately developed by individual companies.  It is a subsidiary of DAYLI Financial Group, one of the largest Fintech companies in Asia.  ICONLOOP’s focus in 2019 will be on IRC16.  The IRC16 is a newly added token standard based on ICON’s public blockchain network.  In addition, they will focus on ICON’s Decentralized Exchange (DEX) for p2p exchange between ICX and IRC2.

ICONLOOP received a series A investment of $8 million.  The investment will be used for their “my-ID” digital identification service.  Currently, they have 27 companies within their my-ID alliance.  These companies include banks, e-commerce companies, manufacturing companies, and security firms.

It is the only cryptocurrency to make the top 50 list among the cryptocurrencies developed by Korean companies.  Furthermore, they have strong networks within the Korean government and Korean enterprises.

2.  Terra

Korean Blockchain startup Terra aims to create a stable coin that can be used on Terra’s blockchain payment solution.  Therefore their focus is to create the next generation modern financial system on the Blockchain.  Their focus in 2019 will be to target e-Commerce platforms through the Terra Alliance which is a group of global e-Commerce partners (TMON, Woowa Brothers, Baedal Minjok, and etc) to help drive mass adoption and the use of Blockchain payment systems.  In addition, they have already created their own Blockchain-based simple payment service called Terra Pay.  The potential Terra could go beyond e-Commerce and into all types of financial products like loans and insurance.

Terra has been aggressive in its partnerships to bring in eCommerce companies to join its Terra Alliance ecosystem.  Sinsang Market is a business to business fashion platform that will work with Terra to create a payment system that uses the Korean mobile payment service CHAI.  Terra’s platform offers better order settlements, payments, and deliveries through CHAI.

Terra was able to close a $32 million funding round led by major cryptocurrency exchanges like OKEx, Huobi Capital, and Binance Labs

3.  Medibloc

Korean Blockchain startup Medibloc that uses Blockchain technology for the healthcare data system.  It is very difficult for healthcare providers to get the complete data of a patient.  Therefore this complete data is important for getting an accurate diagnosis for the most effective treatment.  Furthermore, MediBloc provides a data integration system that gathers patients’ medical information through real-time updates.  In addition, the patients are in control of their medical records.  The records are kept confidential according to HIPPA regulations.  Therefore, the patients are the ones who can grant access to their personal medical data.

MediBloc also offers a secure and transparent data storage system.  Therefore, all new entries come with a location and time stamp.  The MediBloc system their own token called MEDX which will serve as the primary medium of exchange between all users on MediBloc.  MediBloc has strategic partnerships with many institutions in both the healthcare and financial industries.

In 2018, MediBloc raised over $10 million through an ICO and will look to get institutional investments in 2019.

Korean Blockchain startup Blocko that focuses on providing a Blockchain system for transaction validation, user authentication, wallet management, and micropayment solutions.  Blocko has been working with Bank of Korea to help them use blockchain technology for their financial transactions among consumers.

Blocko builds and supports its hybrid Blockchain AERGO Enterprise which allows companies to build applications and services by sharing data on a trustless and serverless IT ecosystem.  AERGO Enterprise offers a greater level of security, scalability, and performance.  Blocko has built over 20-full scale Blockchain implementations on private and public Blockchain ledgers.  For 2019 they will focus on implementing a Blockchain solution for land registry in South Korea.

Blocko was able to get $9 during the last round of funding in June of last year.

5.  Haechi Labs – Henesis

Korean Blockchain startup Haechi Labs is an expert for smart contract audits.  They have done audits for Ground X’s Klaytn and have worked with them on their launch of their mainnet.  Their focus for 2019 will be on their Blockchain SaaS solution called Henesis.  Henesis removes technological barriers for companies looking for Blockchain adoption.  Therefore, the solution will reduce the time and cost involved with Blockchain development. In addition, companies will be able to easily collect, process and deliver their Blockchain data in real-time.  Their solution has already been tested with Shinhan Bank.  Their aim is to be an all-in-one platform for Blockchain integration.

6.  Kodebox (CodeChain)

Korean Blockchain startup CodeChain is a Blockchain network with a built-in issuance and exchange protocols.  Therefore, now digital assets issued on CodeChain can be programmed and customized so that it can comply with the regulations of a particular country.  In addition, their mobile wallet offers a simple verification process, easy to use interface and fast/secure transactions.

CodeChain is the only project that is funded by two of the biggest exchange operators in Korea (Bithumb and Upbit).

7.  Scanetchain (Inxight)

Korean Blockchain startup Scanetchain recently launched its new DApp Inxight, its new AR Blockchain platform.  Inxight is an open-source platform that combines advertisements, search engines, and e-Commerce platforms.  They use AR technology to identify products both online and offline by assigning a scannable market for each product or image.  Furthermore, Inxight uses its SWC token for payments or discounts.

Their “beta” version of their marker scanning reward system will be available in the next software update.  Inxight aims to change the way people search for things.  Scanetchain has been aggressive in entering into a number of strategic partnerships to grow the ecosystem and bring greater value to their users.

8.  FANTOM Foundation

Korean Blockchain startup FANTOM Foundation is a non-profit organization that is building an infrastructure for decentralized global finance.  They do not use Blockchain but rather an approach called a directed acyclic graph (DAG).  They have a DAG-based distributed ledger technology (DLT) that incorporates new methods for scalability with a high-performance virtual machine for a more secure smart contract execution.  The network’s aim is to build an infrastructure to power smart cities, IOTs, and offer faster payment solutions.  Furthermore, it could be a secure and efficient platform for public utilities, medical records, healthcare services, identity storage and more.

9.  Cosmochain (FitsMe)

Korean Beauty blockchain startup Cosmochain is the creator of a Blockchain-based app service called FitsMe.  FitsMe is a personalized beauty recommendation service that uses past purchase data and preference data to recommend the best cosmetic products.  They already have attracted over 150,000 users from their beta service.  Furthermore, they got $2.5 million in investments from a U.S. hedge fund.  Samsung Electronics also selected Cosmochain as an initial DApp partner for its Galaxy S10  smartphone.  In addition, the Galaxy Keystore, the cryptocurrency wallet for the Galaxy S10, supports CosmoCoin (COSM), the cryptocurrency used in FitsMe.

10.  ARTBLOC

Korean Blockchain startup ARTBLOC has created a marketplace platform where you can purchase and sell fractionalized ownership interests in investment-grade private artworks.  Now people will be able to invest in a diverse portfolio of art pieces.  Their aim is to make art investing easier for the next generation of buyers.  They are making art ownership factional which means a piece of art will be put into sections.  Therefore, this way it will make works of art more affordable to the common consumer.  All ownership and trading will be stored on a distributed public ledger.

Their first test was with David Hockney’s work (Pictured Gathering with Mirror).  This was the first introduction of fractionalized ownership to the general public.  Furthermore, of all the buyers, 71% of them were in their 20s/30s.  Therefore this further shows the potential of the next generation of art buyers in the digital space.  There is a lot of potential for this project to disrupt the art world.  In addition, they open up new markets for artists to showcase their talent and creativity.

11.  GAPS

GAPS Platform gathers information from debates conducted by community users.  The data collected is used to predict certain answers.  Topics can range from sports to even the weather.  Users can ask questions on the platform and get rewarded.  Furthermore, those that answer the questions in a logical manner will also get rewarded.  GAPS uses AI technology to gather the data collected from discussion forums in order to best predict the future.  In order to gather as many coins as possible, users will need to best predict the answers.

The platform has great potential to succeed because they focus on community and discussion which leads to content creation.  This is something many projects lack.  The discussion platform can be a great tool for companies to better understand their product, service, as well as their customers.  Their AI technology can also go a long way in predicting future market trends in many different industries.

12.  Coinduck

Korean Blockchain startup Coinduck is a cryptocurrency payment service that allows users to pay in Ethereum at offline stores.  They are a subsidiary of Chain Partners.  They were also incubated by Samsung Electronic’s Creative Lab (C-Lab).  Therefore you can download their payment system through the Samsung Blockchain wallet app on the Galaxy S10.  Therefore, users simply enter the payment amount by scanning a QR code that will be placed at the store.

13.  Aergo

Korean Blockchain startup Aergo an open decentralized system where developers or businesses can interact and build applications and services.  It is a pubic infrastructure that connects third parties for cost reduction and to increase efficiencies in all industry sectors.  The Aergo main network will act as the central hub for the internet of business and consumer-focused Blockchains.  In addition, Aergo hosts both crypto-centric decentralized applications and enterprise-IT solutions.

Aergo offers an easier and more proven way to adopt blockchain and transform your business while building on your existing IT and cloud assets.  It lowers costs, delays, and reliance on working with third parties in business transactions.  Furthermore, it eliminates manual, error-prone processes and information redundancy.

14.  Zikto (Insureum)

Korean Blockchain startup Zikto is the company behind the Insureum Protocol.  The Insureum Protocol uses Blockchain technology to provide insurance companies with the data to create better policies.  Zikto started out as a smart wearables company that did a great job of collecting data.  In 2017 they partnered with KB Bank to launch “The Challenge” program that offered KB Kookmin cardholders rewards for their fitness data (walk count).  The program ended in mid-2018 and was a huge success.  Zikto looks to create a decentralized ecosystem that connects insurers, their policyholders, and third parties through the Insureum protocol.

15.  Futurepia

Korean Blockchain startup Futurepia is an open-source public Blockchain platform that was developed to help enterprises, businesses, and startups to move to Blockchain.  It is built on a 3G+ consensus algorithm called DDPoS (Dual Delegated Proof of Stake).  DDoS solves the security, scalability, and usability issues of existing solutions.  Futurepia not only has a mainnet core engine APIs but also other modules like live-streaming, smart wallet, communication network, and P2P Cloud API.  In addition, it has won the “Most Innovative Blockchain Award” at the Blockchain Leadership Summit in Switzerland in 2018.

The Futurepia team has also launched a social media reward sharing DApp called SNAC which has a DAU of 10,000+, in over 40 countries and is available to download for Android & iOS, as well as their web version.  Furthermore, Futurepia offers various user-friendly developer solutions thanks to its PASTA protocol.  Their aim is to bring Blockchain technology to everyday life.

16.  Jane/KIN (Watchbot)

Korean Blockchain startup Jane/KIN released Watchbot, an automatic trading bot that uses AI and big data.  The Watchbot software program buys and sells cryptocurrencies by watching the market’s price movements.  They simply buy cryptocurrencies whose price has fallen dramatically and sells them when the price goes up.  Users can create their own trading strategies.  Their current weekly transactions reach over $77 million.  Furthermore, most of the users of Watchbot are less experienced traders or those that do not have the time to analyze the cryptocurrency market.

17.  Planetarium

Korean Blockchain game startup Planetarium is the creators of a new decentralized role-playing game called Nine Chronicles which will be launched at the end of 2019.  The game will store its storyboard and data all on its own Blockchain.  Furthermore, Planetarium created an open-source authoring tool platform called Lipplanet, so developers can make Blockchain for games.  The first game developed on Libplanet was Nine Chronicles.  Libplanet allows for games to be made and run on an independent ecosystem.  Therefore, decentralized games built upon their open-source platform could lead to a new era for secondary creations.

18.  HUPAYX

Korean Blockchain startup HUPAYX is a crypto payment platform for local merchants.  HUPAYX is actively forming partnerships so they can provide crypto payment solutions for over 400,000 stores in Seoul.  Therefore, they plan to install the HUPAY (POS) terminals where users of the HUPAY app can make transactions via the HUPAY wallet or by scanning barcodes and NFC connectivity. Furthermore, their initial targets will be Duty-free shops and tourist shopping districts like Dongdaemun.  Furthermore, the platform has two basic features.  One is their service payment feature and the other is a peer-to-peer transfer of crypto assets between users.

19.  WeHome

Korean home-sharing Blockchain startup WeHome is looking to disrupt Airbnb in Korea buy giving the power back to the guests and hosts.  WeHome takes 0% in commissions.  Therefore guests and hosts are the true owners of WeHome.  The WeHome team has over 8 years of domain expertise in the home-sharing industry.  Their MVP is running now and you can find it here.  Guests can book a property on WeHome through by using their token called HOM token.  They also take BTC and ETH.  The HOM Token has been listed on CPDAX.com which is operated by Coinplug who is one of WeHome’s strategic partners.

20.  Storichain

Korean Blockchain startup Storichain provides narrative content by verified content creators and influencers.  Content creators can collaborate with other creators to produce content on Storichain.  In addition, Storichain keeps track of who contributed to the platform and how the ownership was transferred.  Therefore Storichain can be seen as a digital story asset management system.  The platform makes writing fast and simple and can be translated, sold, or even protected by copyright for global expansion.  In addition, the platform offers the growth graph that indicates the value of story intellectual property assets for each party(storytellers, crypto investors, readers). If a story IP changes into a movie, stakers of early stories will be able to exit.

21.  Directional

Korean Blockchain startup Directional is a stock lending platform based on Blockchain technology.  They offer stock lending and borrowing services for individual investors.  In addition, they were selected to be a part of South Korea’s FSC’s regulatory sandbox program.  It is a peer-to-peer stock lending platform for individual investors who will be joining Klaytn in 2019.  Furthermore, the main benefit of Directional will be that they will give investors rewards in the form of interest yields.

22.  TEMCO

Korean Blockchain startup TEMCO a blockchain-based supply chain solution DApp developer.  It aims to transform supply chain management using Blockchain technology and smart contracts.  Their goal is to provide greater transparency and reliability across the entire supply chain process.  TEMCO has established a Blockchain supply chain network that utilizes Bitcoin.  Last year the startup secured funding from Korea Investment Partners, the leading Korean VC firm.  It was the firm’s first investment in a Blockchain startup.  Their focus for 2019 will be on branding, service promotion, and marketing.

23.  Ziktalk

Korean startup Ziktalk is a language sharing platform that has created ZIK coins for their users.  Now users of Ziktalk can make payments to tutors.  Currently, Ziktalk has over 1,800 tutors and over 100,000 students in over 25 countries.  Furthermore, they received an investment from global cryptocurrency exchange BW.com.  Ziktalk matches people who want to teach and learn foreign languages.  The majority of their users are from Korea.

24.  Payexpress

Korean Blockchain startup Payexpress is a decentralized payment/credit solution.  Payexpress guarantees fast settling cycles based on Blockchain technology for small businesses.  Once users sign up on Payexpress, an integrated electronic wallet is automatically opened.  Therefore users can charge their wallet with a variety of means through an internal digital asset exchange center.  In addition, they have an integrated digital wallet solution as well as a Blockchain-based credit & crypto card.  Therefore, the more often users use the Payexpress payment module the more mileage they will receive.

25.  Mavlux

Korean Blockchain startup Mavlux provides a content delivery network (CDN) service that uses P2P Video and Blockchain technologies.  The network bandwidth is shared by group peers.  Furthermore, Mavlux can provide P2P operations without any plug-in installations.  The CDN market size in Korea alone is $170 Million.  In addition, by 2020 it is estimated to increase to $200 million.

The post Top 25 Korean Blockchain Startups You Need to Know – Best of 2019 appeared first on Seoulz.

Korea became the first country in East Asia to legalize medical marijuana. CBD oil in Korea is big news considering the United States has seen a boom in the cannabis market in the past few years once cannabis was legalized. Furthermore, what makes this news so shocking is that South Korea has always been against legalizing marijuana for recreational purposes. However, with this step toward legalizing medical marijuana, it might be possible that marijuana will at some point be legalized in Korea.

CBD for medical use now legal in Korea

The legalization of recreational marijuana is not coming anytime soon. However, the use of hemp oil or cannabidiol (CBD) is now legal for medical use. In addition, CBD has no hallucinogenic effects. Therefore, the medical community has tested CBD for its efficacy in neurological and brain diseases. The Ministry of Food and Drug Safety (MFDS) will create regulations regarding medical cannabis. The regulations will be done by the middle of 2019.

The laws in Korea will be strict regarding CBD. Tetrahydrocannabinol (THC) products will be prohibited. Not all cannabis plants are created equal. Hemp, for example, has very little THC but a large amount of CBD. It is a huge craze in the United States due to its relaxing effects. Scientists are still trying to figure out exactly how CBD affects the body. Some initial studies have shown that CBD can help with a number of different medical conditions.

The Potential CBD Market in East Asia

Early on everything regarding medical marijuana will be controlled by the Korean government. The key here is that the cannabis market now has Korea as a target market. With possible other East Asian countries following in Korea’s footsteps.

For Korean startups, this is now the perfect time to plan to start a CBD oil business in Korea. This is because if history has anything to say, CBD products will soon be legalized in Korea. Those that plan early can reap the benefits.

This is what happened in America. There is CBD in everything from lollipops to lattes. CBD products are part of what is estimated to be a one billion dollar industry in the United States. Currently, only a handful of big companies have the right to produce CBD Oil in Korea but that could change. It will only be a matter of time before Korea opens CBD to the masses. We will be seeing CBD in more and more Korean products.

The current state of CBD oil in Korea

This does not mean you can bring CBD oils or products in Seoul.  Therefore don’t even think about having them mail it to Korea to help a loved one.  The good news is that now people in Korea can go to a hospital and get medical CBD treatment.  There have been close to 70 arrests made in Korea in 2018 for smuggling CBD into Korea.  Koreans need to get a letter from their doctor explaining their condition and why CBD would be beneficial.  The letter then needs to be taken to the Korean Orphan Drug Center for final approval which should not take longer than a week.  

The post A Korean Startup Needs to Capitalize on CBD Oil in Korea appeared first on Seoulz.

Ground X is the blockchain subsidiary of the leading South Korean Internet company, Kakao. Ground X aims to tap new and innovative blockchain technologies that can be adopted by the mainstream market. They created a scalable Blockchain platform called Klaytn and are looking to create more DApps to become the global leader in the Blockchain industry. What separates Klaytn from other DApps is that it does away with the hassle of wallets, private keys, and cryptograph addresses in order to bring in mass adoption. Therefore, it will also feature tutorials on Blockchain services and technologies.  Ground X has over $8 billion in assets and has a crypto wallet called Klay which utilizes the Klaytn platform.  

The Klaytn Public Testnet Baobab

The Klaytn public test net Baobab was launched in the first quarter of 2019. Baobab features new functions and developer tools for greater security and usability. They also incorporated account management functions. This was put in to help users choose their own account names to make them easy to remember.

Kakao understands that Blockchain is the future. Kakao Talk has 50 million monthly users. Therefore, it makes sense that they would want them to transact with each other. This is why they created Ground X. This does not mean Kakao is looking to put their Kakao Chat on the blockchain but rather create a new platform on the Blockchain.

Terra a blockchain startup in Korea is using Klaytn in the development of its payment platform.

The Klaytn Phone

Ground X and Samsung released the Klaytn Phone which will have a crypto wallet called Klay and will offer 5 Klaytn-based blockchain apps.  For more information on the Klaytn Phone go to the Klaytn Phone website.  With Klay users will be able to store and make transactions with not just Klaytn cryptocurrency called KLAY but also other Klaytn-based cryptocurrencies.  The phone costs around $1,000.  It will come with 5 Klaytn-based blockchain apps listed below.  

• FitsMe – Blockchain-based beauty data curation service
• Haemuk – Dining recommendation decentralized application
• Piction Network – Blockchain-based digital content provider
• WomansTalk – Fashion e-commerce platform
• Antube – Mobile video platform

More Klaytn-based services will be added in the future.  For those that purchase the Klaytn Phone, they will receive 2,000 KLAY via airdrop.  The 5 applications will also have their own token airdrop events for Klaytn Phone customers.  

Kakao Token?

In order for Kakao to really monetize their service, they would ultimately need their own token. Kakao is not just a messaging app. They have many different segments such as banking, transportation, and gaming just to name a few. This is why Ground X is so important to Kakao. If at any point Kakao wants to transform their service onto the Blockchain, Ground X can help in that transition.

Ground X is based in Tokyo. The reason for this is due to Korean regulations. Japan has a more lenient regulation. Also, they are looking to tap into the gaming services companies which are vast in Japan. Game developer Wemade Entertainment Co. and Chinese travel agency Zanadu are among the 26 companies that will run their applications on the Klatyn platform.

In order for mass adoption, it seems the easiest way in would be through gaming DApps or content sharing DApps. However, the key will be making sure they are able to offer a great UX experience as well as a great DX (Developer Experience).

Ground X Global Partnerships

Ground X is active in gathering strategic partners like Orbs and are currently looking for other global partners interested in developing the Blockchain Ecosystem together. They already raised over $90 million and will look to raise an additional $300 million so that Ground X can develop its own token. “There’s going to be a wide spectrum of services […] we’re continuing to have conversations with Kakao.”

The continued success of Ground X comes as South Korean lawmakers are still working on regulations and their current zero-tolerance policy to ICOs, which became illegal in 2017.

Woori Financial Group runs Woori Bank which is one of the largest banks in South Korea.  Woori will work together with Ground X to develop blockchain financial services.  It is rumored that the blockchain financial services will be applied to Woori Card which is a credit card subsidiary of Woori Financial Group.  It will not involve the use of cryptocurrencies.  In addition, Ground X has teamed up with Shinhan Bank and Hexlant to develop a private key management system.  Woori Bank has been an aggressive bank in Korea in regard to blockchain-related development.  They are considered second behind Shinhan bank in pursuing blockchain initiatives.  In 2018, Woori made the news for testing Ripple for their overseas remittances.  They have further looked into the personal identification functions the blockchain will provide.  

Ground X has also partnered with SK Group to develop a blockchain-based donation platform.  

The post Ground X, the Blockchain Subsidiary of Internet Giant Kakao appeared first on Seoulz.

Dongdaemun is now online thanks to a Korean e-commerce startup called Linkshops, an online Korean apparel shopping mall.   Linkshops has over 1 million items from over 8,000 stores.  For those that are unfamiliar with Dongdaemun, it is the biggest offline shopping district in Seoul.  The Dongdaemun night market is famous with tourists from Asia, who come to Dongdaemun the find the best deals.  The area is packed with wholesale malls, retail malls, and street stalls.  Not only are the selections large, but the area is open until dawn so you can shop all night long.  It is a must-go destination for tourists visiting Korea.  However, one of the issues some retailers/tourists/locals expressed was that most of the items at the store are unpriced.  This means that bargaining plays a big part in sales at Dongdaemun.  This is great if you are a great negotiator, however most feel like they got taken for once they make a purchase.

Linkshops takes away the fear of having to negotiate with a salesman at Dongdaemun.  Now people will be able to browse around without having to deal with the crowd and knowing they got a fair price.

Dongdaemun Offline to Online

Dongdaemun has over 20,000 shops.  They sell everything from clothing to bags to footwear.  Most will open around 9 PM and close at 6 AM.  However, with LinkShops retailers can shop at Dongdaemun 24 hours a day.  The e-commerce industry has really hurt Dongdaemun over the years and it has taken some time before stores realized that they needed to go digital.  Instead of going to Dongdaemun there is now an option to buy the latest wholesale clothes through LinkShops.  They have connected with Dongdaemun wholesalers and retailers to sell on their online platform.  Every single month, more and more wholesalers are joining LinkShops in order to stay up to date with the times and competition.

B2B E-Commerce Website for Dongdaemun

LinkShops was founded in 2012 and they are mainly a Korean B2B e-commerce website where retailers can find items from Dongdaemun’s wholesalers.  Both will need to download the LinkShop’s app and put in their orders.  There is a membership fee for joining the platform.  Retailers will no longer need to go to Dongdaemun and look through the many wholesalers that are located in different buildings and different floors.  The latest styles are updated daily on LinkShops so retailers can order the newest styles.  They will also have the option to make online repayments for the stock they order.  Retailers will be able to see the whole ordering process from orders selected to distribution.  They can even get their purchase listing via Excel file.

Connecting Retailers and Wholesalers

LinkShops will help wholesalers remind them of possible shortages and if an item is out of stock, the retailers will know about it instantly.  Therefore LinkShops is a lot more convenient and helps both parties.  Consider them as the largest brokerage platform for the Korean fashion market.  It is great news that Dongdaemun has finally joined the digital fashion market.  If they didn’t then their sales would have continued to decline and they would have been left behind.

What will happen to Dongdaemun?

The one issue of LinkShops could be the potential decrease in foreign travel into Dongdaemun.  If Dongdaemun becomes fully online and more and more retailers and shoppers realize that they do not need to go to Dongdaemun to buy the products, there will be a sharp decrease in the tourist industry in Seoul, especially in Dongdaemun.  This could affect not only the local shops but the restaurants and the street vendors.  This is something we should monitor moving forward.  It is possible the offline stores will need to create innovative user experiences to keep their tourists coming back.  Korea has increasingly become a country where shopping online has become the norm.  With the rise of same-day delivery services and wide selections online it is no wonder that Koreans are skipping retail stores for online stores.

Same Day Delivery in Seoul

Linkshops will be offering same-day delivery in Seoul as well as Gyeonggi province.  Thanks to this service, the number of customers that use Linkshops is one the rise.  They have been increasing customers by an average of 25% every month.  They have partnered with CJ logistics to make same-day delivery services possible.  The cost of the service is around $5 and can be done through their app or web page.  The best part of the same-day delivery service is that the item or items will be delivered from wholesalers the next day even if it is just one item.  They will focus on cities outside of Seoul starting in 2020.

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The Korean government has spent a lot of money trying to make Pangyo Techno Valley into Seoul’s top tech cluster.  There is even an express subway line to Pangyo from Gangnam that takes around 20 minutes. The area was created in 2012 and is now home to major gaming companies like Nexon and NCsoft, biotech firms like Medisoft and SK chemical, and Korea’s top messaging app Kakao.  Foreign startups that are looking to work out of Pangyo Techno Valley should look at the pros and cons we laid out here.   Every company is different so it is important to weigh your options.  

The Pros

Pangyo saw its population increase by over 40% in 2018 and expects the same growth for 2019.  Pangyo has attracted a lot of Seoul residents to move out to Pangyo mainly to invest in real estate as well as get away from the busy city life that Seoul brings.  Currently, they have a population of just under 150,000. In addition, the area has become the epicenter for young foreign entrepreneurs.  This was due to the Ministry of SMEs and Startups hosting a program called the K-Startup Challenge that brought in 40 foreign startups last year.  They helped them set up their business in Pangyo which on average only took 5-7 days.  

As Pangyo grows they are attracting more foreign companies that wish to not only enter Korea but the Asian market as a whole.  The hottest sectors at the moment are startups dealing with AI, Fintech, and BioTech. The main factors for coming into Korea has been their speedy production, innovative environment, and cheap yet reliable manufacturing.  Korea has developed a strong reputation as having the world’s best internet connection and some of the most innovative hardware. Therefore another strong selling point for Korea is its customer base which is very tech-savvy and early adopters of the latest tech.  

The Cons

Similar to Silicon Valley, one of the main issues of Pangyo Techno Valley is the high cost of the rent.  While there is a fast connection from Pangyo to Gangnam, Gangnam has the highest living cost in Korea.  Therefore finding workers that are willing to commute to Pangyo or live in Pangyo has been difficult. There has also been a sharp increase in coworking spaces in Seoul and in 2019 there have been many startups that have decided to work there rather than Pangyo.  Many that are moving out to Pangyo are rich Koreans that would don’t mind the high rent costs.  

Relocating to Gangnam seems to have more benefits than staying at Pangyo for foreign startups.  It is a lot easier to set up meetings in Gangnam and meet investors. Furthermore, some of the best talents are in the city.   That is the real issue.

The Future of Pangyo Techno Valley

If the Korean government wants to continue to support Pangyo they have two options. They need to give rental support to these foreign startups.  Or lower the office rental fees in Pangyo. Currently, there is no real difference in the price of office spaces in Gangnam and Pangyo. Therefore why would a startup move out to Pangyo?  If the Korean government does not do anything about the rent in Pangyo, Pangyo Techno Valley could end up a failure.  Another option might be to make Pangyo Techno Valley into the Gaming Hub of Korea.  Most of the top gaming companies are located in Pangyo and for gaming startups, it will be great to have a cluster of gaming companies in one location.  Esports tournaments can be held there and attract the top gamers and companies to Pangyo.  Currently, there is no real benefit for other tech startups to work out of Pangyo.  The Korean government should let the market dictate what Pangyo Techno Valley should be.  The market is showing that Gaming companies are striving, so their focus should go to that sector.  

Additional Features of Pangyo Techno Valley

Korean AI Ecosystem

The Korean government has been fully on board in creating a strong AI industry in Korea.  They realize the importance of AI and the possibilities of AI thanks to the development of 5G technologies in Korea.  This is why Pangyo Techno Valley has been focusing so much on AI and has formed an AI cluster to help AI startups in Korea go global.  This means they will bring global AI startups to Korea through Pangyo.  The ultimate plan is to convert Pangyo Techno Valley into an innovative AI cluster that connects to ICT (Information Communication Technology) and Bio-Technology.  Gwangju Metropolitan City will invest over $330 million in the next 5 years to create an AI-based scientific technology startup complex.

AI-Based Self-Driving Center

The AI-based self-driving center in Pangyo Techno Valley is expected to be fully completed by 2021.  It will become the hub for Korean startups doing research, development, and testing in regards to autonomous driving and 5G technology.  Korea hopes to be the leader when it comes to perfecting autonomous driving and developing new technologies for commercial use.  Currently, self-driving cars are being tested on the public roads of Pangyo.   It is expected that a Korean company will be able to achieve a level 5 autonomous driving level by 2021.

AI Graduate School

KAIST, the top technical institute in Korea set up an industry-university collaboration center in Pangyo.  In addition, along with KAISt, Korea University, and Sungkyunkwan University have been selected to run government-funded graduate schools that will specialize in teaching and developing AI technology.  The Korean government will invest $8 million for the next 5 years in order to support these three Universities.  They plan to further invest a combined $16 million in the next 10 years after conducting performance evaluations.

The three universities have already opened up AI-related masters and doctorate programs.  Korea University will also focus on healthcare as well as self-driving technology which can both incorporate AI technologies.  Sungkyunkwan University has hired 15 professors who have experience specializing in AI software and hardware.  These universities have already partnered with many Korean enterprises including Samsung.

The post The Pros and Cons for working at Pangyo Techno Valley appeared first on Seoulz.

Korean cryptocurrency exchanges are still going strong despite facing opposition from the Korean government and banks.  Korea still remains one of the top cryptocurrency trade exchange markets.  South Korea has become a hub for cryptocurrency exchanges over the past few years.  As cryptocurrencies are looking to be on the rise during the summer of 2019, we will look at the top 10 Korean cryptocurrency exchanges for 2019.

1. UPbit

UPbit is one of the largest Korean cryptocurrency exchanges today.  They have switched back and forth with Bithumb as the top exchange. 2018 was not a great year for UPbit and Bithumb.  UPbit founder Song Chi-Hyung and two other senior members were charged with making fake accounts to inflate the trading volume figures in order to get more customers.  UPbit has denied the charges.

In spite of these charges, UPbit remains the top crypto exchange in Korea.  The exchange has around 1.2 million users and a daily trading volume of over $300 million despite the heavy regulations from the Korean government.  

UPbit has helped the Korean Blockchain ecosystem the most through their investment of $50 million into Blockchain startups since March of 2018.  Their Blockchain investment arm is Dunamu & Partners which has invested in over 25 Blockchain startups. They are expected to invest over $30 more into the Blockchain projects related to Fintech and content creation. Among Dunamu’s shareholders is South Korean Internet giant Kakao Group.   

Their other plan for 2019 involves the launching of a blockchain service platform called Luniverse.  Their LUK token will be used to fund Blockchain projects.

Upbit and Bittrex Partnership Ends

Bittrex and Upbit ended their partnership agreement in late October of 2019.  During their 2 year partnership, Bittrex allowed Upbit to provide a wider range of trading options compared to other Korean cryptocurrency exchanges.  Support for many tokens has since been suspended.

Upbit has recently listed Klaytn a crypto project that was developed by Ground X, a blockchain arm of Kakao.

2. Bithumb

2018 was a terrible year for Bithumb.  In March of last year, they paused their cryptocurrency withdrawals and deposits due to insider trading issues.  Since then the company has been fighting an uphill battle of security on their exchange. Bithumb has been hacked so many times that they are working with KISA (Korean Internet & Security Agency) to recover their losses.  Their most famous hacking incident was the loss of $13 million in EOS and $6.2 million in XRP. Another hack resulted in a loss of $30 million in cryptocurrencies with Bithumb retrieving back $14 million.

Many felt the hack was due to the massive layoff by Bithumb who cut 50% of their workforce in 2018 from 310 employees to 150.  The layoff was not due to the hacks but rather the fall of cryptocurrency prices. Bithumb posted a net loss of $180 million in 2018.  Compare that to the net profit of $470 million in 2017.  Korean cryptocurrency exchanges have all suffered in 2018 but none has suffered more than Bithumb.

Bithumb now allows the withdrawal and deposits services for three cryptocurrencies (XRP, BCH, and EOS).  They will also focus on going global with Bithumb Global.  They are already established in 10 countries and will look to provide a safe and reliable withdrawal and deposit service globally.  The hope of Bithumb Global is to provide access to cryptocurrencies in as many countries as possible.  

3.   Korbit

Korbit was the first ever Korean won cryptocurrency exchange.  They are considered the 3rd biggest crypto exchange in Korea. The exchange has been making the news lately with EA and Disney bidding against each other to acquire Korbit.  Tencent, a China-based IT company is also very interested in buying Korbit. NXC (Nexon) bought Korbit back in 2017 for $150 million. Then it bought Bitstamp in 2018. While the interest in NXC will be their gaming industry, Korbit and Bitstamp will benefit greatly the acquisition from any of these three major companies.

Buying NXC means that one of these companies will have two of the major crypto exchanges in their portfolios.   If Tencent wins the bid they will add Korbit and Bitstamp to their already impressive Blockchain operations.

Korbit was the first cryptocurrency exchange to get an “optimal” grade during its due diligence for information security and AML (anti-money laundering) by the MSIT (Ministry of Science and ICT).  In addition, they have brought back Korean won deposit services and formed a partnership with Shinhan Bank.

4.  Coinone

Coinone will be looking to expand elsewhere in Asia in 2019.  They are still one of the biggest crypto exchanges in South Korea.  However, they will focus on Southeast Asia, especially Indonesia, Hong Kong, and Singapore.  Coinone already operates in Indonesia and is looking to set up an umbrella exchange in Malta.  This is in direct response to the strict government regulations in South Korea.

Coinone Transfer is a payments business and subsidiary of Coinone.  They have introduced South Korea’s first Blockchain remittance mobile app called Cross.  It is a remittance app that utilizes Ripple’s xCurrent product that facilitates speedy cross-border payments.  This will provide unbanked individuals the ability to transfer funds from South Korea to Thailand or the Philippines at a very low cost.  Coinone is already working with Siam Commerical Bank (SCB) in Thailand and a financial institution called Cebuana Lhuillier in the Philippines.  Furthermore, Cross users will be able to send funds to any Thai bank account through the PromptPay app which is powered by Mastercard.

Coinone Criteria for Listing

There are 9 criteria that cryptocurrency projects need to meet in order to get listed on Coinone.  These are…

• market size
• use case
• vision and value
• sustainability of business models
• transparency of governance
• token distribution plan
• team formation
• roadmap achievement rate
• marketability

Coinone will mainly focus on Korean Blockchain projects that have a Korean market-focused business plan.  The reason is that most of the users on Coinone are Koreans.

5.  GOPAX

GOPAX, which stands for Global Online Professional Assets Exchange is the 5th largest Bitcoin exchange in South Korea.  Founded by Streamit, it partnered with Shinhan Bank and has been aggressive in hiring the best engineers in the world.  Many of their core engineers are from Harvard, Stanford, and KAIST. They allow for trading in Korean won and have over 20 coins available for trade. Traders are able to trade the day they register with no trading fees.  This has its pros and cons as many fear GOPAX lacks key security features as it is very easy to register and trade. However, they are the only exchange that acquired the Information Security Management System (ISMS) certification from KISA.  

GOPAX has been very active in 2018 by doing a lot of promotional events in Seoul and around Asia.  They also hold a lot of live seminars and workshops for cryptocurrency enthusiasts. Their focus in 2018 has largely been on the Korean market.  The Korean won is the only fiat currency on the platform. Things may change once the Korean government provides an operational guideline on crypto-exchanges.  They have already created gopax.com which is focused on their foreign subscribers. Korean servers cannot access the site.  The interesting part is that the company runs its business operations in Korea and paying taxes in Korea.  

6.  Huobi Korea

Huobi Korea is the subsidiary of the China crypto exchange Huobi.  When they launched they listed 100 coins and 208 markets. They hold over 98% of its customer’s assets in cold wallets.  In 2019 they will continue to add coins while look to add Korean won to their exchange for trading. Huobi itself is the 3rd largest crypto exchange globally.  They have companies in Singapore, US, Japan, China, and Hong Kong as well.

Huobi Korea has also strengthened its anti-money laundering protections.  They closely monitor any suspicious transactions on their platform. They also have an inter-exchange hotline to prevent fraudulent activities.

7.  Probit Korea

Probit Korea was recently listed as the 28th safest exchange in regards to security by Hacken.  Security is one of Probit Korea’s strongest features.  The CEO of Probit Korea is the ex-partner of Kim & Chang, the largest and most prominent law firm in South Korea.  Probit Korea offers KRW deposits and is currently ranked in the top 70 on CMC.  They currently have over 100 markets and continues to grow.  They are an IEO exchange and have done over 80 IEOs so far.  Projects continue to come to Probit Korea for their fair business practices and good value.

8.  Bitsonic

Korean Cryptocurrency exchange Bitsonic which is operated by Skoopmedia which specializes in mobile app development.  They are integrated with the Binance API and offers a wide range of altcoins.  Bitsonic returns 90% of the transaction fees to exchange users.  Therefore they are the first revenue-sharing cryptocurrency exchange in Korea.  They have over 180 cryptocurrencies on their platform.  Bitsonic hots many IEOs per month (10-12).  They also have their own coin (BSC) and have opened their own Bitsonic coin market, which allows users to trade coins listed with BSC.  Their focus for 2019 will be to enter the global market starting with Vietnam.

9.  Hanbitco

Hanbitco, launched in March of last year, is a cryptocurrency exchange in Korea.  They offer a secure trading platform that strictly complies with Korean government regulations.  Currently, they offer BTC pair trading. They also offer English support and have been adding coins continuously.  

Hanbitco was one of seven exchanges that have met all the 85 item requirements set by KISA.  This makes Hanbitco a very secure crypto exchange. They have been very active in the meetup space and continues to grow their listing and users every month.

10.  OKCoin Korea

OKCoin Korea is the subsidiary of the China crypto exchange OKCoin.  They had to shut down their operations in China in late 2017 following regulations from the Chinese government.  They have over 60 digital currencies that can be traded against the Korean won. However, OKCoin Korea was penalized for failing to maintain their user’s data.  In addition, they were penalized for their account closure process which they deemed too complicating.

OKCoin is under the same management as another cryptocurrency exchange OKEx which is based in Malta.  

HONORABLE MENTION

CoinZest

CoinZest made headlines when they gave out over $5 million worth of cryptocurrencies to its customers as part of an airdrop event.  They ended up giving out Bitcoin and Ethereum instead of WGT Tokens (We Game Tokens). They have still yet to recover over half those cryptocurrencies.  CoinZest also had two of their senior executives jailed for lying about their trading volume data.

CPDAX

CPDAX (Coinplug Digital Asset Exchange) considers themselves the leaders in pioneering blockchain development and cryptocurrency trading in Korea.  They have helped many companies and organizations implement blockchain technology into their existing operations.

CPDAX launched an ATM crypto withdrawal service through its CPDAX app.  Furthermore, they will look to expand this crypto ATM to convenience stores in Korea.  The ATM will not only allow for withdrawals but for deposits of up to 1 million won.  

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Naver is a South Korean online platform that launched in 1999 becoming the first web portal in Korea to develop and use its own search engine. Naver is basically the “Google of Korea”. In 2019 Naver will focus on their live video streaming service V Live. Thanks to the popularity of K Pop and the explosion of BTS, there is a very high demand for realistic and immersive viewing experiences.  Especially in the era of 5G networks. V Live will focus on going global and becoming a global entertainment platform by the year’s end.

The Rise of K-Pop

K-Pop started in South Korea during the early 1990s.  The sound was a mixture of Asian and Western music. It brought parts of R&B, Rap, Pop, and Hip-Hop. What separated them was their focus on awesome music videos. The K-Pop music videos produced were very well produced and the talents were well trained in dance and choreography.  In 2019 K-Pop is worth billions of dollars with bands gaining mass followings all around the world. What many might not know is that the Korean government has a department dedicated just for K-Pop. They offer support because the K-Pop industry is so valuable for Korea’s economy and culture.

K-Pop officially hit the mainstream with Psy and Gangnam style in 2012 but since then records have continued to break with K-Pop groups like BIG BANG, BLACKPINK,  and BTS.

V Live Going Global

Naver is Korea’s biggest web portal operator and they will help V Live go global in 2019. They will first target Vietnam, Indonesia, Thailand, and Japan to start because there is a massive K-Pop following in each country. Since V Live launched four years ago they have grown to over 30 million visitors a month with over 80% being non-Koreans.

V Live is not just a live video streaming platform, it is a kind of community where people from all around the world can talk about their favorite K-Pop stars. They can even engage with the artist themselves who regularly engage with their fans. Their newly launched “Fanship” platform will feature live interactive streaming and big data technology. Fanship is a combination of Fan and membership. It is a place where fans can pay to connect with their favorite celebrities and influencers. Therefore V Live will create new value in the global entertainment market.

Expanding into Vietnam, Indonesia, Thailand, and Japan is a no brainer. Not only are they crazy about K-Pop but they all have high smartphone penetration rates.

The Popularity of BTS

BTS has exploded in the West. They already pretty much took over Asia. Now in 2019, they are looking to conquer the US and UK markets. Their single Boy with LUV featuring American pop star Halsey brought all sales records and youtube views. In addition, they even appeared on Saturday Night Live and became the first Korean musical group to perform on the show.

Now BTS will move to the UK and V Live will live-broadcast BTS’s performance on June 2nd at Wembley Stadium in London. The tickets sold out in just 90 minutes! This is amazing because Wembley Stadium can hold 90,000 people. Furthermore, this was the first time an Asian musical artist or group sold-out Wembley Stadium. Ticket prices ranged from $70 to $250. However, scalpers were already reselling tickets on StubHub for more than $4,000.

BTS was formed by Big Hit Entertainment in 2013. They are now the most successful K-Pop group of all time. What separates BTS from the rest besides their music and dancing is their impact on social media. They have the largest following on Youtube, Facebook, Twitter, etc.  They also engaged with fans and talked about taboo subjects such as cultural politics. BTS has been a strong supporter of LGBTQ rights.

V Breaks Solo Video Record

BTS V video became the fastest solo video to reach 300 million views and 1 billion hearts. It only took 146 days to break the record for most views. The video title is translated in English to “Long Time No See” and is close to 50 minutes in length. In addition, it is still currently the most viewed video of 2019.

V Live + 5G + VR

5G will offer new possibilities for content creation and streaming services. V Live will offer the most realistic and immersive viewing experiences as if users are actually in performance venues with their favorite stars. They will do this with VR by releasing a VR application by the end of 2019. V Live hopes to build a K-pop VR content for mass adoption.

The VR infrastructure in Seoul is growing. These days it is easy to come across a VR arcade or cafe. Therefore Seoul might be ready for a full 5G VR experience. Imagine a place where K-pop fans can see their idols up close through high-quality 3D/360 videos. For this to go mainstream, VR needs to become more personal. Once VR becomes a mass consumer phenomenon, it will make it possible for K-Pop entertainment companies to sell their content directly to the consumers.

What you can do on V Live

V Live currently has over 580,000 subscribers on Youtube. You can download the V Live app on the computer and smartphone. Once on V Live, you can watch videos uploaded by K Pop groups. These videos include reality shows, interviews, and behind the scenes videos. They even have a premium section where die-hard fans can pay for VIP content. V Live offers a store where K-pop fans can purchase emoji stickers of their favorite K Pop idols. They have a coming soon section of upcoming videos. All the user has to do is just click on the notification bell and they will get notified when the video is up. They also have a level-up system where the more you share and engage the higher you will level up.

The best feature of V Live could be their option to filter the language to communicate with fans in their preferred language. Those interested in trying V Live yourself you can download the app here.

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South Korea has powerful industries in mobile, automotive, beauty, fashion, entertainment, and technology.  They got to this level because of their massive workforce that has usually put career over family.  The average Korean worker works about 70 hours a week.  It got so bad that the Korean government lowered its maximum working hours down to 52 hours.  This was done to change the Korean working culture and to have a better work-life balance.  Therefore recently South Korean consumers have more time to spend their hard-earned income.  Furthermore, Korea makes for an ideal market for global brands because of their open-minded youth culture and their love of the West.

Global Brands in Korea

Global brands are embraced in Korea more than ever.  From Apple to Shake Shack, western brands are seen all around Seoul.  However, there are key differences between South Korean Consumers and Western/European Consumers.  Here is a breakdown of everything you need to know about the average South Korean Consumer.

Marketers take into account every countries culture, habits, and behaviors.  Korea has been known to be a shy and quiet culture that puts importance on family and respect above all. The economy of South Korea is the 4th largest in Asia and the 11th largest in the world.  A large portion of their economy is made up of the middle class that has a lot of disposable income.  This is why South Korea has a lot of potential for global brands that want to break into the Asian market.  Korea is known as the trendsetter for Asia as a whole.  If it is a success in Korea, it is a pretty safe bet it will succeed all across Asia.

Ten tips when Marketing to South Korean Consumers

Tip #1 – Most South Korean Consumers do not speak English

This might be a bit shocking for a country where so much money and time is spent on teaching English to children.  However, many will be shocked that most Koreans do not speak English.  This does not mean they can’t, but rather won’t.  About 10% of the Korean population can speak some level of English.  Therefore, around 90% only speak Korean.

When entering the Korean market make sure you have a Korean translator or know a translation company in Korea that you can work with.  Messages can get lost in translation so it is important to check the content before it is released to make sure it is in line with your brand’s message.  Furthermore, try to use as many pictures and visuals as possible.  Avoid long texts and make sure your layout is easy to read and understand.

Tip #2 – South Korean Consumers use Naver, not Google.

When South Korean consumers do an online search, they will not use Google.  They will use Naver.  Therefore it is important to know what people are saying about your product or service on Naver blogs and cafes.  Therefore, pay close attention to Naver search engine results for your brands.  If you are a new brand and want to enter Korea, it is important to have content about your company on Naver.  This might require having a media site or blogger to write about your company.  The average South Korean consumer will not trust your company if they can’t find any information on it on Naver.  Yes, Naver is THAT important.

Tip #3 – South Korean Consumers are early adopters of tech

Koreans love the latest tech innovation and trends.  Proof can be seen with cryptocurrency.  Korea accounts for less than 1% of the world’s population but at one point 30% of all crypto trading took place in South Korea.  There was a statistic that 40% of all Korean male workers owned cryptocurrency at some point.  So why did South Korea embrace this new technology so quickly?  Korea is a very tech-savvy country.  Technology is a part of Korea’s national identity.  Samsung, LG, Naver, have paved the way for Koreas to quickly absorb the latest technology.  They do everything with their smartphones.  They order food, pay their bills, and shop.  Digitization is the future and Koreans know it.  This makes South Korea the ideal test market for any new device or service.

Close to 90% of the Korean population owns a smartphone and that number comes close to 99% when it comes to college students.  In addition, South Koreans are amongst the top users of credit cards online.  Online shopping has become the norm thanks to eCommerce sights like Coupang and G-Market.  It is estimated that Koreans will spend over $70 million in 2019 on online purchases.  This means the average Korean consumer will spend time online in researching and reviewing products and services before a purchase.  This is where social media platforms like Facebook and Instagram becomes so important for consumers, especially the younger generation.

Tip #4 – South Korean Consumers want special promotions and discounts

The average South Korean consumer wants to feel special.  They love being a VIP member.  They love accumulating points and getting rewards.  Most retail shops in Korea will offer some kind of rewards program.  In addition, most transactions are made using a credit card so rewards are associated with Korean banks.  Korean companies partner with Korean banks to offer discounts to the customers of that particular bank.  It is not uncommon for the average South Korean consumer to have 3-4 bank cards.  If you can’t partner with a Korean bank or a payment company, make sure you offer a rewards program to make the consumer feel like a VIP.

Tip #5 – South Korean Consumers use Social Media Platforms after Work

There is a small but important time gap to target South Korean consumers.  This is the time after work to the time they go to sleep.  The average Korean worker ends work at 8 pm.  This means that from 8 pm until midnight is the highest engagement timeframe.  During this 4 hour window, the average Korean worker will spend an average of 1 hour on their smartphone.  Therefore, when running ads on social media, make sure to target these times.  Koreans love playing mobile games on their phones.  The mobile gaming industry is huge in Korea, especially free to play games.  Try contacting Korean mobile gaming companies for advertising on their platform.

Tip #6 – South Koreans love their smartphones

South Korea is ranked #1 in terms of smartphone ownership.  The average Korean replaces their smartphone once every 2 years compared to 3 years for Americans.  94% of Korean adults own a smartphone and the other 6% just own a cellular phone, not necessarily a smartphone.  Therefore it is crucial for your brand to be mobile-friendly.  The use of mobile devices is everywhere in Korea.  On subways, in coffee shops, even in schools!  Over 60% of all e-commerce sales in Korea were made through smartphones.  Therefore make sure your website is optimized for mobile use.

Tip #7 – South Korea has the fastest internet connection

Everyone in Korea seems to have a smartphone.  This is because South Korea is home to the fastest internet connection on earth.  With 5G, it could get even quicker.  Koreans want things fast and demand smooth streaming.  If your app or website needs to load and run quickly.  Try to compress your images and upgrade your hosting to make sure you have the fastest load speed as possible.  Over 75% of South Koreans use internet media on a daily basis compared to 15%  that use paper media.

Tip #8 – In Korea everything is on-demand

Delivery in South Korea is like no other.  There is same-day delivery for all foods and products.  Once it is known your product or service is fast and easy, the customers themselves will generate interest using word of mouth or social media.  This desire for speed makes the average Korean consumer prone to always look for the latest gadget, idea, or trend.  Therefore make sure you are on e-commerce platforms like G-market and Coupang which offer same-day delivery.  There are delivery services in Korea that offer same-day delivery services as well.

Tip #9 – South Korean Consumers listen to social media influencers

Global brands need to work twice as hard compared to Korean brands because they need to convince Korean consumers to leave their country’s product or service for theirs.  The best and most efficient way to do this is with social media influencers.  Global brands need to reach out to one or two trusted and popular social influencers in their space.  Korean consumers will trust your brand because you’ve been endorsed by the influencer and not only that, you will automatically have a group of potential consumers right off the bat.  Getting these social media influencers is not easy, especially when you don’t speak Korean.  Make sure you have someone that not only speaks Korean but can be personable and can sell your product or service.

Most social media influencers in Korea focus on clothes, K-beauty, and accessories worn by actors or actresses on TV and film.  Or they feature the newest products released from major Korean brands.

Tip #10 – Embrace Korean Culture

Korean culture is beautiful.  Embrace it.  They might have a lot of rules and traditions you need to be aware of, but most Koreans are forgiving of foreigners.  When targeting Korean consumers try to be as polite as possible.  When writing in Korean use the right phrasing and appropriate form.  A naive Korean will know were texts will be appropriate and which will be offensive.  The saying of the customer is always right is doubled in Korea.  Customers in Korea are ALWAYS right and held in very high respect.  Therefore, especially in Korea, it is important to focus on your customer service.  Many companies in Korea have started to use Kakao and Telegram to deal with questions consumers might have about their product or service.

In Conclusion

South Korean consumers are early adopters of the latest trends.  Therefore they are continuously changing.  This ability to adapt and try new things has made Korea into what it is today.  60 years ago Korea was one of the poorest countries in the world.  Now they are one of the top economic powerhouses.  The fast pace of development seems to have created a need in the average South Korean consumer to always seek out the next big thing.  This is one of the major reasons why Bitcoin was embraced in South Korea.

Partnering with Korean companies

The biggest competitors in Korea will always be the largest Korean firms.  They have big marketing budgets and influence in Korea that it makes it very difficult for big brands to break into the Korean market.  Think about it, many Koreans use Galaxy instead of an iPhone, they shop on G-Market rather than Amazon, and Uber?  Good luck finding an Uber in Seoul.  Therefore the only way to quickly find success in the Korean market is to partner with a large Korean company.  This is unless you are a tech company.  Many tech startups in Korea have found success, from E-commerce platform Coupang to gaming developer NCSoft, the tech industry in Korea has been booming.

The Korean government played a large role in creating a strong tech ecosystem in Korea.  So strong in fact that many are leaving their high paying Korean conglomerate jobs to start their own startup.  For foreign tech companies, partnering with a Korean startup is an easy way to break into the market.

The post Everything You Need to Know About South Korean Consumers – Best Tips appeared first on Seoulz.

The Korea Creative Content Agency (KOCCA) is a government agency that oversees and coordinates the promotion of the Korean content industry. KOCCA was established by the Korean Broadcasting Institute, the Korea Game Agency, and the Korea Culture & Content Agency. Therefore, the aim of KOCCA is to introduce Korean content to the world. Korean content such as Korean Dramas (K-Dramas), Korean Music (K-Pop), Korean Beauty, Korean Fashion, Korean Games, and Korean Animation just to name a few. Furthermore, KOCCA has been incorporating new technologies for future projects and has been working with Korean startups to expand Korean content to the globe. Therefore, by working with Korean startups, KOCCA has access to new and innovative technologies of the 4th Industrial Revolution.  

The Rise in Demand for Korean Content 

The Korea Creative Content Agency was created by the Korean government due to the rise of interest in Korean content. The global popularity of South Korea’s cultural economy is called “Hallyu” (The Korean Wave). The exporting of Korean pop cultures such as TV dramas, movies, and music has played an important role in the growth of the Korean economy. Therefore the Korean government has played a major role in becoming the world’s leading exporter of popular culture. In addition, they have been sending delegates to promote Korean content to countries all around the world. For example, the Korean Culture and Information Service have set up over 30 Korean Cultural Centers in over 25 countries across North America, Europe, Asia-Pacific, and Africa to promote Hallyu. Now, it is estimated that Hallyu added an estimated $15 billion to the Korean economy.  

Thanks to Hallyu, there has been a rise in Korean tourism. Furthermore, tourists from around the world come to Korea each year to experience Korean culture for themselves. Therefore, many Korean tour companies offer packages that include visits to famous K-drama shooting locations and various towns and resorts made famous by Korean movies, dramas, and K-Pop videos.

What is the Korea Creative Content Agency?

KOCCA was founded in 2009 as a government agency that deals with policy and actions regarding the promotion of Korea’s content industry. Their goal is to develop Korea into one of the world’s top 5 producers of content. In doing so, they will play a vital role in creating jobs and improving the quality of life in Korea. Therefore KOCCA is in charge of supporting the development and production of Korean content. These forms of content include: 

• Television
• Films
• Gaming
• Comics
• Animation
• Character Licensing
• Fashion
• Technology 

KOCCA helps the expansion of Korean content to the global market. Therefore, they have created strategic bases for overseas business in Los Angeles, San Paulo, London, Abu Dhabi, Beijing, Shenzhen, Jakarta, and Tokyo just to name a few. They are continuing to develop new markets to promote Korean content. These strategic bases offer 1 to 1 business consulting, localization support, and overseas application. Furthermore, they help with the marketing of Korean content and products abroad.  

International Events Hosted by KOCCA

• Mu:CON – A global music convention that focuses on promoting K-Pop to international markets. In addition, they bring in experts from Korea and abroad to affiliate business opportunities.  
• KNock (Korea’s New Offer for Content of Korea) – KNock is an IR event to attract investors for new Korean content and products.  
• Its Game – Exhibition of Korean content for the global gaming industry. 
• Character & Licensing Fair – This is the largest content licensing fair in Asia that attracts over 300 Korean and international character and licensing companies.  
• BCWW (Broadcast Worldwide) – This is a global content convention for broadcast programs that highlight global media trends and promote broadcast content in international markets.  
• NCC (Next Content Conference) – An International forum that showcases the latest Culture Technology (CT) trends used in creating and supporting content.  

In order to continue the rise of Korean content, innovation will be the key. Therefore, Korean movies, music, and cultural products need to continually innovate themselves. This is where KOCCA will play a major role in the innovation of Korean content. In addition, KOCCA analyzes the latest trends and statistics and develops long term strategies for the Korean content industry. Furthermore, it will be vital to continue to capitalize on the popularity of the Korean wave and keep its appeal to the global audience.  

KOCCA’s Support of the Korean Startup Ecosystem 

KOCCA is very active in supporting the Korean startup ecosystem. They started CKL (Content Korea Lab) that helps entrepreneurs in Korea turn their ideas into startups. CKL is a platform that offers mentoring, networking, funding, and marketing for content creation startups. In addition, they offer open space and facilities to promote creative activities and form prototypes. They have different levels of support for each stage of a startup. For example, there is the Startup Farm, Content Startup League, and Startup Masters. To generate innovative ideas from entrepreneurs in Korea, CKL has created the Idea Fusion Factory which is a kind of imagination camp. In addition, KOCCA runs content creation training for teenagers, supports content-specialized high schools in Korea, and an online Content Academy.  

KOCCA operates programs to support content firms to help Korean startups go global. Some of these firms include the Global Game Hub Center, Popular Culture & Art Support Center, CKL Business Support Center, CKL Planning Center, and the Story Creation Center (Ilsan Center).  

KOCCA Opens a Content Creator Support Center in Los Angeles 

KOCCA opened up a new facility in Los Angeles to support content creators, Korean artists, and business ventures in the US market. It is a support center that offers exhibition rooms, meeting rooms, and expert consulting for funding and business development.

KOCCA’s support of Women’s Rights Issues

KOCCA signed an MOU with the Women’s Human Rights Institute of Korea, the Korean Artists Welfare Foundation, and the Korean Film Council for their cooperation in creating education programs dealing with sexual violence and a hotline system for victims. In addition, KOCCA has started providing basic cultural education for teenage artists which includes sex-related issues.  

The Future of Korean Content Exports 

South Korea’s export of Korean content did not slow down in 2019. The export of Korean content is expected to reach $12 billion in 2019. This is an average annual growth of 16% over the past five years.  

• 2014 – $5.4 billion
• 2015 – $5.8 billion
• 2016 – $6.2 billion
• 2017 – $8.9 billion 
• 2018 – $10.1 billion 
• 2019 – $12.2 billion (estimated)

There are over 2,500 cultural content companies in Korea that employ over 650,000 people. Therefore, Korea knows the importance of content creation, content marketing, and content strategy. The world is changing and those changes are being determined by consumers. These consumers are what is driving the latest content trends. KOCCA hopes to enrich the lives of not only Koreans but people all over the world with creative content. 

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Korean Venture Capital Firms have grown quickly over the last decade. Seoul is becoming a major tech hub in Asia. Furthermore, they have the highest concentration of smartphone users. Therefore Korea presents a good place for innovative startups that can shake up the market through technology. Many Korean startups have been upgrading and introducing new products to the market which they can test in Seoul.

The global market sees Korea as a limited market due to its tough regulations that limit entrepreneurs from doing new business models, mainly in the fields of finance and Blockchain. Once this changes, multibillion-dollar markets will be up for grabs for VCs in Korea. Korea has a strong talent pool. Big corporations like Samsung, Kakao, LG, and Naver have some of the highest trained engineers. Many Korean startups are looking to find the right Korean VC. Therefore here are Top 20 Korean VC firms of 2019.

Top Korean Venture Capital Firms of 2019

1.  POSCO Venture Capital 

Korean Venture Capital Firm POSCO Venture Capital is the largest VC firm in Korea.  They have over 20 years of investment experience and a sound asset base. They provide diverse investment services for promising small and medium-sized venture companies and growing companies that need growth capital. POSCO is South Korea’s largest steelmaker.

POSCO Captial provides competitive capital throughout every industrial area. Therefore, they have a partnership with MSS (The Ministry of SMEs and Startups) and KVCA (Korean Venture Capital Association) for a project that has a budget of over $800 million dollars. Ultimately they hope to establish a sound ecosystem for Korea’s startup communities and create new jobs.  

POSCO Venture Platform – $660 Million Venture Fund

The POSCO Venture Platform will focus on Venture Valley and Venture Fund. Venture Valley is a hub where startup entrepreneurs in Korea can collaborate on R&D, draw investment, and share knowledge. Venture Fund is a fund for promising Korean and global startups. Therefore, by 2024, a total investment of over $830 million will go into the project. Over $160 million will go towards Venture Valley and over $660 million will go towards the Venture Fund.  

2. Korea Investment Partners

One of the largest Korean VC firms is Korea Investment Partners.  They manage an investment fund worth around $2 billion. The fund was created in 2008 but the firm itself was founded in 1986.  Their investment team is the biggest in Korea. They have over 80 investment managers.

They have invested in YG Entertainment,  Kakao Corp., and Bodyfriend just to name a few. These three companies alone brought in 10x on their investment (16.4 billion Korean won to 169 billion Korean won).

$120 Million Joint Venture Fund

Recently Korea Investment Partners launched a $120 million joint venture fund with Golden Equator Capital, a Singaporean fund management firm. The venture fund is called the GEC-KIP Technology and Innovation Fund. It will only invest in Series A and Series B startups that are based in South East Asia. There will be a reserved amount for Korean startups looking to enter the Singaporean market. Furthermore, the investments will range between $2 million to $5 million.

Korea Investment Partners is one of the few Korean venture capital firms that have invested in their first Blockchain project. TEMCO is a blockchain-based supply chain platform, BI tool, and customer application. Therefore, this gives hope to other Korean Blockchain startups of securing investments from traditional venture capital firms like KIP.

3. SoftBank Ventures Asia

SoftBank Ventures Asia formerly known as SoftBank Ventures Korea is an investment company. It was established by Japan’s SoftBank Group Corp in 2000. Therefore SoftBank Ventures Asia is a foreign holding company that invests mainly in Korean startups but by 2011 expanded into Asia. SoftBank Ventures Asia invested in many sectors such as IT, Biotech, Med-Tech, AI, Robotics and manufacturing. They have invested in over 200 Korean startups with about half being early-stage startups. Their focus is on startups that are looking to enter the global market or have already entered the global market. They have invested in Sunday Toz, the creators of Anipang. Other notable investments include Knowre, TrueBalance, RSquare, Tokopedia, Mythic, Hyperconnect, and Snow China, just to name a few.

SoftBank Ventures Asia has operating teams in Seoul, San Francisco, Beijing, Tel Aviv, Singapore, and Shanghai. Companies invested by SoftBank has access to SoftBank’s community, resources, and network. Furthermore, their goal for 2019 is to focus on AI technology and its application across different industries. They raised $270 million for early-stage investments globally, with a focus on Asia.  

Over $1.2 Billion under Management

SoftBank has over $1.2 billion under management. They have invested in over 250 countries across 10 countries. If you are an AI startup in Asia that is outside of China there is a good chance you can get an investment from SoftBank Ventures Asia. Their new $500 AI fund focuses globally on disruptive startups with AI technologies and services in the Asia-Pacific, except China. Furthermore, SoftBank Ventures Asia already has a $300 million China Venture Fund in partnership with TPG Growth, a US-based private equity firm.

Focus on Korean AI in 2019

SoftBank Ventures Asia partners with Korea Venture Investment to help Korean AI startups. They will create a fund for investment into AI startups in Korea and help them grow their investor network. This means that they will hold more AI venture investment conferences in Seoul moving forward. Their aim is to turn Korea into a world-class data and AI global hub/network.  

4.  Altos Ventures

Altos Ventures is one of the more established Korean Venture Capital firms (Founded in 1996). However, they operate out of Menlo Park, California but also have an office in Seoul. Therefore they not only invest in Korean startups but companies in North America as well. They do have a dedicated fund that is solely focussed on Korean startups. Altos Ventures is a first-stage venture capital firm that also incubates its startups. They focus mainly on cloud-based business software companies. They offer funding investments for seed rounds and to early to late venture companies. Their aim is to nurture and develop startups and companies that have the potential to scale globally.  

Altos Ventures has invested in all sectors in IT such as application and infrastructure software, systems, services, and components. They can invest up to $10 million, but they typically invest $1-2 million for initial investments for 20% equity in the startup. Some of the startups they have invested in include, Coupang, Woowa Bros, Kmong, MEMEBOX, Zikbang, and Hyperconnect just to name a few.  

First Investors in Korean FinTech Unicorn Toss

Altos Ventures was the first investor in Toss, a now $2 billion money transfer company. They invested $1 million back in 2014 with an additional $27 million since then. It was considered a very risky investment because peer-to-peer transfer services were technically illegal in Korea at the time.

5.  STONEBRIDGE Ventures

VenturesStonebridge Ventures is a venture capital firm in Korea that invests in seed to late-stage technology companies. They are a spin-off from Stonebridge Captial a Korean private equity firm. They focus on bio/healthcare, fin-tech, and consumer spaces. Stonebridge has over $500 million in assets under management across multiple funds. The firm looks for long-term investments by analyzing the growth potential of the target companies. Their CEO previously headed Kakao Ventures.

6. Smilegate Investment

The firm was founded in 1999 under their original name MVP Capital (Meridian Venture Partners). Smilegate acquired MVP Capital in 2011 and changed the companies name to Smilegate Investment. Their first investment fund was formed in 2000 and since then they have created over 30 investment funds. They have over 30 investment managers who have in total invested in over 200 projects. Their main investment focus is on Internet and gaming companies. Some of these companies include Devsisters, R2Beat, Seed Nine, and BGF Retail.

$350 Million Asset Under Management

Currently, they have over 20 funds.  In addition, their asset under management is over $350 million. This could get bigger in 2019 as The National Pension Fund plans to invest up to 30 billion won in individual funds.

Korean venture capital firms are always interested in gaming and Smilegate is one of the leaders in investments in the game industry. However, in 2014 they opened Orange Farm, a support center for all early-stage startups. In addition, they also have an Orange Fund ($3.3 million) to invest only in companies incubated by Orange Farm. More than half of the startups in Orange Farm are not related to gaming. Therefore Smilegate is looking to enter new verticals like travel, music, and education.

7. LB Investment

South Korean VC firm LB Investment founded in 1996 specializes in buyouts and seed for early-stage, growth stage, cross-border transactions. They invest mainly in companies operating for 3 to 5 years since the date founded. The focus of their investment is mainly on information technology, electricity hardware, digital device, mobile content, digital media, education, and entertainment.  They have invested in not only South Korea, China, South East Asia, and the United States. The firm invests between $500,000 to $3 million taking between 10-15% equity.

LB Investment was formerly known as LG Venture Investment. In 2000 LB Investment separated from LG Group. They have a very diverse portfolio. In addition, some of their investments include Big Hit Entertainment which is the agency for K-Pop group BTS, Kakao Games, Bodyfriend, and Korean biotech firm Toolgen just to name a few.  

8. IMM Investment

Korean venture capital firm IMM Investment was founded in 1999. IMM manages around $3 billion in assets with its 12 venture capital funds and 13 private equity funds. Therefore, they have a team of over 35 investment experts that invests over $300 million in over 120 promising venture-backed firms and startups. In addition, some of their investments include IDUS which is the largest handicraft market in Korea, Coupang which is Korea’s largest social commerce site and StyleShare which is now the largest fashion social-media site, Woowa Brothers, Bluehole Studio, WeMakePrice, and Celltrion,  just to name a few.

Their focus

For their growth stage investments, they spend 20% on startups, 40% on expansion, and 40% on others. The industries they focus on include information technology infrastructure focusing on security, e-commerce solutions, biotech, and contents that focus on education, game, and animation.  Furthermore, they also invest in digital hardware focusing on network and communications equipment and semiconductor parts. In addition, IMM Investments larger affiliate IMM Private Equity invests in growth capital opportunities and buyouts, such as Holly’s Coffee and Woori Bank. 

Startups should focus on their business model, market size, and the industries potential in order to get funded by IMM. However, they pride themselves on trying to find great entrepreneurs with a great drive.

9. SV Investment

SV Investment is a South Korean venture capital firm that invested in Big Hit Entertainment. The investment was before BTS became the sensation they are today. Their initial investment was $3.3 million. Their return on investment was $91 billion. That is a return of over 25x. Through their IPO they also raised $25 million.

SV Investment has a valuation of $160 million. In 2019 they are looking to expand their investments overseas including the US. Furthermore, they will launch a $100 million fund with the help of U.S. based VC Kensington Capital Ventures. The industry they focus on is IT, bio, and health care.

Continued Support for Big Hit Entertainment

SV bought 33% of Big Hit Entertainment back in 2011 and was able to recoup over 25x of its initial investment. Since 2016, Big Hit Entertainment has exploded. Revenue increased from $30 million in 2016 to $200 billion in 2018. Net profit rising from $8 million to $47 million during the same period. SV Investment sold off $75 million of its stake in 2018 but continues to support the K-pop entertainment company.  

10. InterVest

South Korean VC firm Intervest is focused on BioTech, IT, and Southeast Asia. They have $580 million assets under management. Their team consists of 11 VCs that focus on early-stage startups that have new and innovative technologies. Furthermore, InterVest has 6 funds and has invested in Genexine, Balance Hero, Alchera, Brich, Tomocube, Lunit, and Noom.

InterVest is one of a handful of VCs that are actively investing in Blockchain technologies. Therefore, they have invested in a Korean Blockchain startup Blocko. Blocko provides a decentralized platform for digital identity and payment services. Furthermore, they are focusing on BioTech because Korea has the potential to become a great biotech player global. This is because Korea has a great pool of medical data collected by the Korean government.

Outside of BioTech, they are looking into new and innovative technologies like AI, Blockchain, and VR.

Currently, Interest is very active in Southeast Asia and has partnered with VC Kejora Ventures an Indonesian VC. Therefore, they will soon start investing in startups in Indonesia, Vietnam, and Thailand through their $60 million fund.

11. KTB Network

KTB Network is a leading Korean VC firm that is also in Silicon Valley and Shanghai. They lead a $7 million funding round for Indian Startup NoBroker which is an online real estate marketplace and also invested in Indian online grocery startup Grofers for $20 million. The investment of NoBroker was the first time a Korean fund has lead the funding round for an Indian Startup. KTB is one of the oldest VC funds in Korea. They have $1.2 billion in assets under management and have done over 270 IPOs. They are the VC arm of Korean brokerage firm KTB Securities & Investment.  

Justin Shin leads KTB Network investments and has over 30 years of venture capital experience. The firm will be doing an IPO soon and could be listed on the Korea Exchange sometime this year. KTB Network is owned by KTB Investment & Securities. They are the largest VC in terms of investment volume. KTB is operating a $300 million fund investing in Chinese firms only.

Their latest investment was with Clobotics, a computer vision technology startup. In addition, KTB leads the funding round with participation from Capital Development Investment Fund in China and GGV Capital. 

12. Atinum Investment

South Korean VC firm Atinum Investment is the venture capital arm of Atinum Partners which is a private investment company owned by a high profile independent investor, Lee Min-joo. It has over $450 million in assets under management. Lee Min-joo became famous for losing hundreds of millions on his investment in a shale gas venture in the United States 5 years ago.

However, since then Atinum has invested in Medy-Tox, Gamevil, and $41 million in a Singaporean digital cross-border money transfer startup InstaReM.

Atinum has also invested in Fast Five a South Korean co-working space startup. Fast Five received funding of $15 million from Atinum Investment. The investment from Atinum will allow Fast Five to open 20 additional coworking spaces in the Gangnam area. In addition, Atinum Investments have also invested over $10 million in Cheongju-based Aero K Airlines.

13.  Mirae Asset Ventures

Korean VC firm Mirae Asset Ventures is the venture capital unit of Mirae Asset Financial Group. They invest in smaller venture firms and have over $250 million in assets under management. In addition, their focus is on investing in companies that can lead the 4th Industrial revolution such as Bio, ICT, Games, and semiconductors. In 2019 they have expanded their investment fields to new industries such as eco-friendly food, education, and alternative energy. Furthermore, in 2018 they launched the Mirae Asset Youth Startup Investment Association to help young entrepreneurs in Korea.

14.  Kakao Investment/Ventures

Kakao Investment or sometimes known as Kakao Ventures was incorporated in 2015. They are the venture arm of Kakao and their focus is on investing and supporting innovative startups. These include industries such as mobile commerce, O2O, Fintech, IoT, and BoT. In addition, Kakao Ventures is interested in infrastructural and software technology developing startups. Therefore, startups with high growth potential or early-stage startups looking to go global should seek investment from Kakao Ventures.  

Kakao Ventures Very Interested in Blockchain Technology

In 2018 Kakao Ventures invested in Israeli blockchain startup Orbs. Orbs is also a partner of Kakao’s blockchain subsidiary Ground X, for developing applications for the network.  

Kakao does a great job of identifying key trendsetters and innovators in the blockchain sector. They have been making aggressive inroads into the blockchain sector. They invested in Dunamu, which manages the South Korean cryptocurrency exchange platform Upbit.  

In 2018 Kakao Ventures invested around $30 million in 43 startups. They were mainly in seed rounds and Series A rounds. 

In 2019 Kakao Ventures will focus on AR and blockchain industries. They recently invested in LetinAR and Spatial in the AR sector and Kodebox and Terra in the Blockchain sector. Their investment in Terra aims to apply Terra’s blockchain-based payment system to Kakao’s blockchain platform Klaytn.  

To date, Kakao Ventures currently operates 6 investment associations with a combined asset total of $174.7 million (204.6 billion won). Therefore, their portfolio includes more than 140 companies and half of them in the mobile and service sector.

15.  Sparklabs Ventures

Sparklabs Ventures the venture arm of SparkLabs Group. Their goal is to lead the revolution of the Korean startup ecosystem by helping Korean startups go global. Their Sparklabs Demo days are famous in Korea and they do a great job of showcasing some of the best up and coming Korean startups. They have a vast global network that plays a large role in helping Korean entrepreneurs expand globally.  

SparkLabs Ventures Ignition Fund

The SparkLabs Ventures Ignition Fund is a $50 million fund that was launched in 2016 to focus on Korean and Southeast Asian startups. While their main focus is on Korean startups, they have invested in Southeast Asian startups in the past. In addition, back in 2017, they invested in a Vietnamese e-commerce firm called Tiki. 

SparkLabs Ventures to Focus on AI Technology in 2019

Recently Sparklabs Ventures led a $3.4 million Series A round in Allganize, an Oakland based startup that provides deep-learning-based Natural-Language Understanding (NLU) and conversational AI for the enterprise. Furthermore, AI investments in Korea have grown 5x from last year.  

SparkChain Capital 

SparkChain Capital operates a $100 million early-stage venture capital fund focused on investing in the leading Blockchain startups and innovations across the world. They typically invest $1-3 million per startup.

16.  Samsung Venture Investment Corporation

Samsung Venture Investment is the venture arm of Samsung Electronics. The firm was founded in 1999 and since then has been investing in new future technology. They manage investment and investment-related activities for Samsung affiliate companies. Their main focus tends to be with investments in semiconductors, displays, telecommunications, and consumer electronics.  

Samsung Ventures was created to promote promising startups that are engaged in new growth technologies. Therefore, they hope to create a new innovative environment. One of their more famous investments was in Blocko, a Korean blockchain company that raised $8.9 million in their latest Series B funding round.

More Recently the firm made its first investment into a Southeast Asian HR startup called Swingvy. It was a series A round which Samsung lead and was able to raise $7 million.

17.  Ascendo Ventures

Ascendo Ventures is a Korean early-stage VC fund that focuses on Korea’s tech and market innovation strengths in sectors such as IoT, AI, Machine Learning, Fintech, Blockchain, New Media, entertainment, beauty, and Data Intelligence. They have a strong network rough partnerships with R&D hub and tech institutions in Korea. Their investment plan is to target early-stage startups and obtain deals at each stage of investment.  

Ascendo supports its invested startups by connecting them to its global network of strategic advisors and partners. Therefore their cross-border business development activities really help accelerate Korean startups looking to go global. Therefore they target Korean startups that bring a kind of “unfair advantage” into already strong industries in Korea. For example innovative technologies that can help the K-Beauty or K-Pop industry.  

In 2018 Ascendo had three funds, together worth around $75 million. Therefore, they not only focus solely on Korean startups but Southeast Asian startups as well. They are especially interested in Vietnam and Indonesia.  

18. Bon Angels

Bon Angels Venture Partners is a Korean venture capital firm that invests in early-stage startups. They are considered one of the first early-stage VC in Korea. They have helped shape the Korean startup ecosystem for over 10 years. Bon Angels have invested in over 120 startups in the fields of IT, O2O, EdTech, FinTech, and etc. They were early investors for Woowa Bros, Daily, and Jobplanet. The firm expanded outside of Korea and into Southeast Asia with the aim to build a greater Asia startup ecosystem.    

Pacemakers Fund 3

Bon Angels announced their plans to launch their third Pacemakers Fund which is dedicated to early-stage startups. The fund will be worth over $40 million. Furthermore, Bon Angels Pacemakers Fund 3 has raised its seed funds from the private sector, including successful entrepreneurs and companies that want to work with promising startups. In addition, Bon Angels Venture Partners has over $80 million in assets under management.

19.  Bass Investment

Bass Investment is an investment firm in Korea that aims to support early-stage startups, participating in seed, pre-A, Series A, and Series B rounds. The founders of Bass were the core leaders or founders at Kakao and TMON. They offer investment as early as seed and help with future rounds. In addition, they help with operational support for their portfolio companies such as making partnerships with larger Korean companies. In addition, they have a fund of over $26 million. 

20.  Fast Investment

Fast Investment is the investment arm of Fast Track Asia, one of the top accelerators in Korea. The VC firm was founded in 2013 to focus on angel investments. Their focus is on mobile security, messaging solutions, workplace communication, new media services, and data analytics. In addition, some of their investments in Korean startups include SEWorks, Sendbird, Jandi, Outstanding, and Zoyi. Furthermore, Fast Investment continues to form new funds in order to invest in more Korean startups. They invest mainly in early-stage startups.

HONORABLE MENTION 

Neoplux Investment Company

Neoplux Investment Company was launched by Doosan Group which is one of the top 10 conglomerates in Korea. Therefore, like many Korean venture capital firms, they have two departments. The venture investment department and the private equity investment department. Their venture investment department focuses on early-stage venture capital investments and later-stage control investment opportunities such as IT convergence, disruptive technologies, and alternative energy just to name a few.  

Their VC platform focuses on supporting not just Korean startups but any company can offer innovative solutions and have superior growth potential. Furthermore, Neoplux VC provides management advice and helps with customizing the right operating system for each stage of their growth.  

KOLON INVESTMENT

KOLON INVESTMENT is a Korean venture capital firm that was established in 2000. They manage various types of funds such as startups, growth capital, and M&A funds. They specialize in buyouts, mezzanine, corporate restructuring, growth capital, and turnaround investment. Their focus is on electronic components, petroleum, energy, computer, and telecommunications equipment. They invest mainly in Korean startups. In addition, they have invested in Korean startups Pearl Abyss, ProtoPie, and Wanted, just to name a few.  

The post Top 20 Korean Venture Capital Firms You Need to Know – Best of 2019 appeared first on Seoulz.

While Instagram influencers are getting a lot of attention these days, Youtube influencers are the ones that started it all. There are very powerful Youtubers in South Korea that brands can collaborate with.  Our list is mainly based on the number of Youtube subscribers these Korean YouTubers have. Many of these channels might not be suitable to be influencers for your brand. Furthermore, we have taken out official company channels such as Kpop entertainment company channels.

Here are the Top 20 YouTubers in South Korea for 2019

20.  YD(YANGDDING) Gaming Channel

Yang Ji-young has created a daily vlog that has over 1 million subscribers. However, it is her gaming channel that is really blowing up in Korea. The main game covered on the channel is Minecraft. Her Minecraft Prison Escape video has gotten over 5.6 million views to date. She does gameplay walkthroughs and commentary and what makes her so interesting is her goofy style and fun personality. Yang-ji started off like many on AfreecaTV as a video game streamer and now runs all kinds of channels such as cooking, traveling, eating, and more. In addition, she even has a mobile app called Yangdding TV. She is a jack of all trades and can be an influencer in many different verticles.

1,760,732 subscribers

19.  Shukii

Youtubers in South Korea love to make mukbang videos. Shukii will not be the lone mukbang Youtuber on this list. Meokbangs are huge in Korea but what separates Shukii from the rest is that she is cute and eats…A LOT. Furthermore, she loves spicy food. Therefore you will often see large amounts of spicy rice cake fill-up the youtube screen. Her full name is Choi Seulgi and she also does food reviews and spicy food challenges. Her vlogs are interesting as well and you get to know her cute and fun personality through those. One of her laugh challenge videos got over 11.8 million views to date.

1,829,002 subscribers

18.  The World of Dave

Dave is known by his Korean name Deok Young-bae. He moved to Korea in 2008 and has since amassed a massive following on Youtube. His channel is called The World of Dave. It covers all things regarding Korean culture, language, and daily life. He is fluent in Korean and is hilarious. Therefore, most of his content is in Korean but there are some in which he speaks both English and Korean. Some of his best videos are with his friend Erina, their chemistry is great and some of the fun quizzes and games they play are a must-watch. Some of his most popular videos are his pronunciation differences videos. His third video on English, Korean, Chinese, and Japanese pronunciation differences have gotten over 13.4 million views so far.

1,875,457 subscribers

17. CarrieAndToys

15.  MariAndFriends

The channel is run by Kook Dong Woon and his family.  MariAndFriends do videos on their daily lives such as going to the local aquarium or going to an indoor playground for children. They are known for being one of the top Youtubers in South Korea for doing great toy review videos and product review videos. Their best is “how-to” or educational videos that feature the couple’s nieces and nephews. Furthermore, the content on the channel is always fun and entertaining and most revolve around children. Their biggest hits are their challenge videos such as their famous fire ramen noodle challenge. However, the most viewed video is of them going to the Lego City Hospital which has gotten over 54.2 million views so far.

2,127,280 subscribers

14. Wassup Man

Wassup Man’s real name is Joon Park. He is a member of a K Pop boy group called G.O.D. He always had a very outgoing personality. His videos are mostly daily vlogs where he goes to a lot of hip areas around Seoul. Therefore you will find many videos of Hongdae, Han River, Itaewon, and Gangnam on his channel. He visits some of the trendiest restaurants, lounges, and stores. His top video was of him going to the Big 3 K-pop Entertainment companies which have gotten him over 8.1 million views. He does a variety of content so not one video is the same. One might have him doing a mukbang and another might have him surfing. What makes him one of the best Youtubers in South Korea is Park’s personality.  He named the channel Wassup Man because he usually yells “What’s Up” to strangers on the street. He recently introduced Korean food to the cast of Dark Phoenix. In addition, the editing on the show is outsourced to a group called Studio Lulu Lala and they do a fantastic job!

2,297,531 subscribers

13.  FRAN

Here is another fun mukbang Youtuber in South Korea. Same as Shukii, Fran eats a lot and she loves spicy foods. Most of all she loves noodles and instant ramen.  Her mukbang challenge video with 5 spicy seafood noodle soups (Jjamppong) in 20 minutes is her most viewed video with over 16.6 million views. In addition, she always has her Kakao bear Ryan around her as she eats everything on her table. We are talking about massive quantities of food. She is very petite but has a massive appetite. She also makes fun videos were she creates big foods such as a giant hotdog, giant sushi, and giant sandwich.

2,580,893 subscribers

12.  With Kids

If you love toys you will love this toy review channel! The star of the channel is Ye Jun. His father runs the channel but Ye Jun’s passion for toys is what really drives the channel. He is very passionate about cars, trucks, and pretty much anything on wheels. Therefore, they cover many toys such as excavators, power wheels, superbikes, and more. Their videos are always fun and really makes you want to buy the toy featured. Their video about Ghostbusters, Slimer and a haunted house has gotten over 51.4 million views to date! Global brands looking to break out in Korea need to team up with With Kids!

2,684,042 subscribers

11.  Banzz

Banzz is one of the top mukbang Youtubers in South Korea. He is slim but he can eat a lot. He is almost a professional eater. Therefore, to maintain his weight he says he exercises 6 a day! Therefore he is by far the top Korean eater on Youtube and is seen as the original starter of mukbang. He can eat 10 instant ramens in one sitting. His Monster Jjajang Challenge video has gotten over 12.5 million views and is his most popular video to date. He is currently the senior partner creator at CJ ENM’s DIA TV, a networking agency for content creators. Furthermore, he has 14 employees that work on his channel and his dietary supplement business. He makes close to $1 million dollars a year.

2,713,358 subscribers

10.  Heopop

HEOPOP is a Korean Youtuber that has two channels. He uploads fun and unusual experiments on his Heopop channel and does a vlog on this Heopop life Channel. He makes $10,000 a month on his Youtube channel. An example of one of his experiments is when he filled a swimming pool using slime. His experiments are fun and interesting and usually has a scientific element to them. Some of his best videos are the ones where the experiments fail. Most of his viewers are children and his creative content has really taken off in Korea. Furthermore, 80% of his subscribers are Koreans. He was able to get over 111 million views for his Dame Tu Cosita Dance Challenge video!

3,460,030 subscribers

9.  Korean Englishman

Youtubers in South Korea are not all Korean. Josh and Ollie run this very popular channel. Korean Englishman now has over 3 million subscribers just through introducing various Korean foods such as jokbal, Korean fried chicken, and samgyeopsal. Their main focus in introducing Korean food to foreigners. Therefore most of their content is in English but there are Korean subtitles. Their most popular video is of English people trying Korean BBQ for the first time, which has gotten over 17 million views so far.

Only Josh is fluent in Korean but Ollie does a great job filming the show. They recently received the Korean Image Stepping Stone Bridge Award at the Korea Image Awards. They are now interviewing some of the biggest stars in Hollywood. His recent interview was with Chris Hemsworth where he got him to try some interesting Korean snacks.

3,556,528 subscribers

8.  waveya2011

K Pop is huge not only in Korea but all around the world. With the success of BTS in America and the UK, more and more people are getting interested in K Pop. A famous K Pop cover group Waveya is Korea’s top dance team. The channel teaches the choreography of some of the top K Pop groups as well as global singers such as Beyonce. Their Gangnam Style dance video has gotten over 174 million views doubling their second-highest viewed video which is Gentleman also from PSY.  They are sisters named Jang Eun-young and Jang You-sun. They do a lot of cover dances and are now full-time YouTubers.

3,566,646 subscribers

7.  ddeong-gae

This Youtube channel is managed by two brothers. The younger brother is Ddeong-gae is known for his mukbang videos where he eats large amounts of food very quickly. He is a speed eater and does not talk when he eats. Therefore, all you will hear are the sounds of food getting chewed and swallowed (great for ASMR).  Sometimes he adds strange combinations such as a mixture of shrimp, corn, and cheese in ramen. He eats a lot of exotic foods, snacks, and candies so enjoy!  His ASMR video of him eating seasoned and unseasoned fried chicken drumsticks has gotten him over 30 million views.

3,580,509 subscribers

6.  Awesome Haeun

Haeun is a kids model and singer who loves to dance!  Her Youtube channel recently passed 3.9 million subscribers. Haeun collaborates with K Pop groups like Momoland. Most of her content is dance videos and her daily vlogs.  She is very cute and is a very good singer. In addition, her dance videos are not just K Pop groups, she has also done dance videos for Beyonce, Christina Aguilera, and many more. She has a huge fan club and for Global brands looking to get into the K pop space. Haeun is a great influencer to work with. Her music video “So Special” has gotten over 37 million views to date.

3,937,933 subscribers

5.  SeoeunStory

SeoeunStory is a beautiful Korean Youtube channel that shows a mom and her daughter having the time of their lives. It is a daily vlog that showcases Seoeun and her mom doing many different activities. Some of these include toy reviews, food reviews, and fun contests. It is great to see their loving relationship. Furthermore, they cover mostly toys and products designed for kids so if you are a global toy company make sure you contact this family. Their most popular video is Seoeun eating Pororo & Friends Chocolate candy in her Tayo Tent. It got over 154 million views so far!

4,279,482 subscribers

4.  PONY Syndrome

Pony is one of South Korea’s most famous beauty influencers. Her real name is Hye-Min park and she has been vlogging about Korean beauty products for years. She has some of the best makeup tutorials online. Some of her most famous videos are when she makes herself up to resemble famous K-Pop stars and even western stars like Taylor Swift. Her Taylor Swift transformation makeup tutorial got over 21 million views to date. She has over 5 million subscribers and has loyal fans in both Korea and China. Therefore, many Korean beauty brands want to collaborate with Pony. She even has her own brand called Pony Effect cosmetics and those have done very well in international stores. Furthermore, Lens Town which is one of Korea’s top color contact companies has launched Pony Edition color contact lenses. Those that are interested in entering the Korean beauty market need to know who Pony is.

5,357,861 subscribers

3.  Twin ROOZI

Twin ROOZI are identical twins and 11 years old. They upload daily vlogs and food reviews. What makes the channel great are the twin’s reactions to such things as live octopus, Turkish Ice Cream shows, and strange international candies. Their most viewed video of them eating strawberry and tangerine tanghulu got them over 292 million views so far. Their commentary is fun and very cute. They don’t eat a lot but they do eat very interesting food and travel to many different locations. They are the perfect Youtubers in South Korea for children looking for fun and entertaining videos.

6,447,968 subscribers

2.  JFlaMusic

Kim Jung-hwa is known for her Youtube channel JFlaMusic. She became super famous in Korea for doing covers of popular songs both in Korean and English. She started in 2011 and has gained in popularity every year. Some of her best covers are for Luis Fonsi’s Despacito (Over 156 Million views), Ed Sheeran’s Shape of You (Over 246 Million views), and Justin Bieber’s Let Me Love You (Over 109 Million views). She released her cover album “Believer” and it featured covers of Ariana Grande and Imagine Dragons. Therefore if you are an artist looking to get your music a lot more exposure, have JFla cover it!

13,745,639 subscribers

1. Boram Tube Vlog

The TOP Youtuber in South Korea is Boram Tube! Boram is not much different from your average Korean pre-teen. She just really loves toys! The way her Youtube channel is doing, she will be able to play with any toy she wants. Her daily vlogs showcase Boram and her family doing fun and silly childlike activities like going to children’s cafes and indoor playgrounds. In addition, she also has a toy channel that has over 12 million subscribers. Furthermore, most of her audience is elementary school-age children in Korea. Therefore, this makes Boram the perfect target for Global toy brands looking to expand into the Korean market. What makes her channel so fun is the interaction with her family as well as the pure joy they are having making the videos. Their challenges are fun and their videos are very well edited. Their fun video on cooking Pororo Black Noodle got an incredible 448 Million views to date! Seeing one episode and you will understand why children in Korea can’t take their eyes off it.  

21,196,433 subscribers

The post The Top 20 YouTubers in South Korea – Best of 2019 appeared first on Seoulz.

In 2018 North Korean dictator Kim Jong-un signed the Panmunjom Declaration with South Korean President Moon Jae-In in South Korea. The declaration was to have both countries cooperate on officially ending the Korean War. Therefore, beginning a new area of peace and improving inter-Korean relations and open up the North Korean market to the world.

These agreements have been reached before. They have fallen apart in the past as was in the case in 2007 with Kim Jong-un’s father Kim Jong-il. However last year’s agreement seems a lot more promising. The signing was done on South Korean soil. This was the first time a North Korean leader stepped foot onto South Korea.  Reunification seems more possible than ever.  

What Will Start to Happen?

The first thing we should start to see as 2019 continues is the slow reduction of military assets on both sides along the border between North Korea and South Korea. Once that happens we should see is more back and forth travel between the two countries. South Koreans will be able to travel to North Korea a lot easier, as well as, North Koreans will be able to travel to South Korea.  These will be the first steps towards reunification.  

The Potential of the North Korean Market

North Korea has a population of 25 million.  They have an estimated $28 billion in GDP. Not much is known about North Korea which intrigues a lot of potential investors in Asia. Especially when it comes to the travel industry. For example, Korean Airlines will benefit greatly from the increased travel to and from North Korea. Infrastructure demand for this would reach $3 trillion by 2030. Furthermore, Korean Startups will be able to be the first to market for their product or services to be implemented in North Korea which could be a decade or so behind in regards to technology infrastructure.

North Korea’s tech ecosystem will need to be upgraded quickly to keep up with Asia. This is where there will be high demand for Korean startups to help them with the process. Korean enterprises will be players as well but their process will be slow and drawn out. Korean startups can start right away which will give them a huge advantage. At first, Korean travel startups will be in high demand but all other sectors will soon follow.

The real question is whether to send a lot of resources preparing to enter North Korea when it is not a certainty that a peace agreement will be reached soon. However, the potential outweighs the time spent in slowly looking to position themselves to enter the Korean market. Every Korean startup should at least keep an open mind into expanding into North Korea within the next couple of years.

How Korean Chaebols Can Capitalize 

Reunification would be huge for Korean conglomerates.  Companies like Samsung and LG would be able to hire millions of Korean-speaking workers for very low salaries.  There will also be a huge market for their products and services.  The interesting part will be that most of the old products and services which is pretty much obsolete in South Korea will be in high demand in the North.  It will almost be like turning back the clock 20 years and starting over for most of these conglomerates.  This could be terrible news for the average working-age South Koreans as there will be a lot of jobs, especially in manufacturing going to the North.  

The average worker in North Korea currently takes home around $200 a month.  Therefore it is no wonder that most North Koreans are undernourished.  Even a low monthly wage of $1,000 a month which would be unheard of for South Koreans can drastically improve the lives of many North Koreans.  In addition, it is estimated that there are over $10 trillion worth of mineral deposits in North Korea which have not yet been mined.  These minerals include gold, iron, copper, and graphite.  These minerals are crucial in the production of smartphones.  It is in the best interest of electronics companies like Samsung and LG to establish a mining company in North Korea.  

How Korean Startups can Capitalize

Korean startups could be positioned to be the gateway to North Korea. There will be a lot of Asian and Western companies looking to find a way in and could start reaching out to the Korean Startup Ecosystem to find the right partner.  North Korea will need a lot of help with their infrastructure and quality of life to bring it up to South Korean levels.  The quickest movers into North Korea will be Korean startups.  They will not have to deal with all the red tape required by bigger companies.  

Were South Korea and North Korea to unify, North Korea will be aggressive in their effects to leverage digital technologies.  North Korea will have an advantage in being in close proximity to China, Japan, and South Korea.  Since North Korea is largely undeveloped, it will have the ability to experiment with new technologies.  Testing new technologies in manufacturing and urban services will be possible by partnering with Korean startups.  

Korean ed-tech startups can help improve North Korea’s primary and vocational education system.  The North Korean government will be very active in major upgrades in education to equip the workforce for the future.  

Challenges

Currently, the United States and North Korea are not progressing as much as North Korea and South Korea. What the United States wants is one thing. Denuclearization. This is also something China wants. However, China does not like the idea of North Korea becoming too westernized and under the influence of South Korea and the United States. This is because North Korea is an ally of China and acts as a buffer between South Korea and the United States. However, it seems more of a matter of time between peace is reached at some point.

A compromise that would satisfy the United States, China, South Korea, and North Korea seems possible now. A peace treaty would be a game-changer in Asia and bring a new player into the game that everyone will try and befriend. South Korea will be the perfect middleman between business deals with North Korea and the world, moving forward.

The post Korean Startups Should Plan to Enter the North Korean Market appeared first on Seoulz.