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Entrepreneurship might not be the first word that comes to mind when you think of Korea. The peninsula is more known for its automotive industry and high-end consumer electronics, not its start-ups. Hankenes met with some of the people who are trying to change this.
Richard Choi, head of operations and creator of the party guide SeoulGrid, says that the rise of the smartphone is transforming the entrepreneurial scene in Korea.
”Such wild spreading of smartphones allowed one-man companies to arise. Any developer could theoretically make apps and start a company. Also throw in Facebook as a platform for application development. All these smartphones app companies, Facebook-based app or game developers, and social commerce started taking off in Korea. The entrepreneurial scene in IT is definitely on fire.”
Besides renting out workspace (start-ups usually stay for six to twelve months) they also hold seminars and workshops. The main focus of the start-up incubator Seoul Space is on IT. Richard Min, co-founder of Seoul Space with a background in Google, tells me about their next event, a hackathon organized in cooperation with the Austrian embassy. Start-up weekends, similar to Garage48, are also popular at Seoul Space, according to Richard.
A problem that Korea shares with Finland is a lack of funding for start-ups. Richard Choi is however optimistic.
”As there are so many companies that are coming out of the horizon, funding opportunities are coming out as well. As with anything, with good reference and the right connections, there are a few companies that are offering funding opportunities. Angels aren’t as common as they are in for example Silicon Valley, but I feel that in a few years’ time Korea will see more venture capital.
There are currently seven companies renting space in Seoul Space. One of them is Token (token.co.kr), run by Mike Sim and Peter Yoon. Mike is very happy with the set up and says that he will probably stay there for as long as possible.
”Peter and I both had zero experience running any sort of business. Seoul Space has been incredibly helpful in providing us with working space, insight, and the necessary resources to get us standing on our feet.”
Mike and Peter first came to Korea from the U.S. as language teachers. When Groupon was making it big in the states they got the idea to try the concept in Korea. The fact that Groupon recently launched in Korea doesn’t seem to bother Mike. “It is very exciting to follow them as they enter a new market. We don’t worry too much about the competition as we have our own niche.”
Many of the start-up’s founders at Seoul Space have an international background. Mike suggests that it is because Korean’s are under a lot of pressure from their family to get a stable job after they finish university. “Also, I believe that having an international background makes you less risk sensitive. It also makes it easier to see opportunities.”
This guest post was written by Erik Johansson, a Hankenes board member currently on exchange in Seoul.
