Famously Difficult for Foreign Companies, Korea Woos Startups with Support
Korea has emerged as one of Asia’s most prolific unicorn startup breeding grounds. But unlike Korea’s famous tech giants Samsung and LG, newer companies like Coupang, Yello Mobile, Kakao and Viva Republica are still grazing mostly on local turf.
Why haven’t more Korean startups gone global? The government has come to believe that it’s due to a lack of diversity in Korean startups. As a result, they’ve begun directing part of the $2 billion annual startup support budget toward importing foreign startups and startup talent. The expectation is that this will bring diverse ideas and approaches into a largely mono-cultural startup ecosystem.
But you can’t just drop foreign entrepreneurs into Korea and expect them to succeed. There are well documented challenges with language, culture and contacts. This year, Korea’s National IT Promotion Agency along with Ministry of SMEs and Startups set up a new non-equity incubator called In2Korea, aimed specifically at helping overseas startups thrive in Korea. In2Korea provides much needed professional support, expertise, resources and access to networks.
The program has already attracted a number of startups and is open for others to apply through the end of October. Here are some of the stories from participants in batches one and two.
“We wanted to open a branch office in Korea and In2Korea offers the easiest path for high potential startups. The program will also help us localize our product so we can better cater to Koreans’ needs,” said Sarah Lee, head of global expansion at Hopenglish — a company teaching English and Chinese through an innovative app. “South Korea offers so many opportunities. The country has the highest per capita spending in education, especially in the digital English learning market”.
In2Korea is also an opportunity to connect with foreign entrepreneurs in Korea and get access to networking event and talent, which might be one of the most complicated challenge as a foreign entrepreneur in Korea.
“It’s a great program. I think the fact that so many companies with ideas from across the world can come here and test their ideas out in Korea is fantastic. In the future it will be crucial to the Korean economy for international companies to set their business up in Korea,” said Craig LaTouche, CEO of JobFindr and member of the program’s second batch. “For me personally, it is really interesting to see other startups from all over the world and being able to learn from each other. There’s lots of crossover and we have opportunities to help each other out.”
The lack of support and clear information in English for foreign startups is also an issue faced by many when arriving in Korea. Where to go for networking as a startups, who to talk to or simple tips about living in Korea are often missing. In2Korea provides 24/7 support, English manuals with all the necessary info as well as invites to frequent cultural event in Seoul, helping them to feel comfortable in Korea.
“It was really nice how they have welcomed us so far. They gave us a kit with all the information we needed about the program, what we are going to do, where we can get more information, as well as what they expected from us. The lectures about Korean culture and business have helped us as well. It’s exactly what we expected and hoped for,” said Marc Raphael — CEO of KeySupreme — a cloud-connected fingerprint authentication device and service.
Participants of the first and second batches (almost 130 applicants from more than 25 countries) have arrived in Pangyo, the tech-centric city 15 minutes south of Seoul’s glitzy Gangnam district. Pangyo is also home to the head offices and R&D centers for many of Korea’s biggest names in tech.
While the first two batches have been selected, there is still room for additional startups to apply for the final batch for this year. Interested startups must apply by the end of October (application is open at the official program’s website — www.in2korea.org).
Specific benefits for participants include:
- Incorporation Fee Coverage: first 5 startups that incorporate their business in Korea will be compensated for registration fees (apr. $1,000 USD)
- Cultural Acclimation: Learn Korean and get insider tips from expats and entrepreneurs who have spent years succeeding in Korea
- Access to Experts: Legal, accounting, marketing and other professional services to help take a business from a concept to corporation
- Free Office Space: Work from Korea’s $160 million Startup Campus in Pangyo, within walking distance of Korea’s tech giants and 15 minutes from the glitz of Gangnam
- Access to Talent: Exclusive access to monthly job fairs where entrepreneurs can meet qualified engineers, marketers and support staff
- Fast Track Visa Process: Get the Korean OASIS Startup Visa within a matter of months, and legally do business in Asia’s new startup hub
