Korean Startup Ecosystem
Korean Government are putting the importance of fostering startup in Korea and developing the local startup ecosystem. There are lots of government grant programs which have tons of diverse direction, offering place, mentoring, educating and R&D supporting for startups as well. Also, in 19 local areas has each center for Creative Economy and Innovation for connecting with local partners and organisation.
Korea ranked 4th in the world for venture investment in a percentage of GDP. It is the first time that venture investment has over $ 3.5 billion in 2019. Especially in healthcare industry got funded over $ 500 million. Also, the atmosphere of M&A is chafing and become more active than before. Already Yello Mobile acquired 61 promising companies across Asia including Korea. Kakao group and Naver Corporation which are giant companies in Korea, they also actively have conducted many M&As.
with Big corporates
Many corporates started to understand the advantages of collaboration with startups. So, the percentage of investment from big corporates are increasing. So there are many startup accelerating programs operating by them like Samsung Electronics, SK telecom and Lotte.
Even Shinhan bank founded futureslab and expand its startup accelerating program expanded to Indonesia after Vietnam.
Best place as a Testbed
with early adopter
Best place as a Testbed with early adopter
Most of Korean are very tech-savvy so they are acceptable to adopt new technology because they are sensitive to change and always keep on eye for the trend. Also, as Korea has well known for competitive society, it might have to be superior to anyone in order to survive. So if it survives, the foundation of its is strong and competitive.
Korea has a big influence over the world in the culture sector from last years. BTS who becomes a biggest alum selling singer has won three awards at the 2019 American Music Awards and sold 20.32 million albums until March 2020. Also, Bong Joon Ho, who is a famous film director, won a total of four Oscars in best Picture, Director, Original Screenplay and International Feature Film area. The K-Beauty industry is predicted into $200 billion by 2024 and it will be taking it 25% of the world’s total beauty market.
South Korea has a geographically strategic location because of being between China, Japan and other countries which is possible to access over 140 cities within 3 hours. South Korea has a good reputation for culture and business in Southeast Asia. Therefore startups can have an opportunity to expand their business.
South Korea got the second crown in the 2020 Bloomberg Innovation index. However, R&D investments by Korean ICT companies are gradually increasing and reached over $40 billion in 2018 since 2015.