Members of the startup ecosystem, including venture capitalists and startup support organizations, gathered to discuss strategies for the overseas growth of Korean startups.

The Startup Alliance, a public/private partnership network for Korean startup companies, held the Startup Ecosystem Conference in 2024 on June 20 at the Venezia Resort Hotel & Spa in Yeosu (South Jeolla Province).

The Startup Ecosystem Conference, held since 2015, is a large-scale event for networking that attracts government agencies, accelerators, venture capital firms, and large companies who help startups grow. The Startup Ecosystem Conference is held at different locations each year to boost local startup ecosystems. This year it was held in Yeosu, which had hosted the World Expo in the past.

The theme of the Startup Ecosystem Conference this year is globalization of Korean startups ecosystems. Startup Korea 2023 is a study that examines the global openness and startup ecosystems in Korea. According to this study, only 7 percent (or 7,000) of Korean startups will be going overseas by 2022. Singapore and Israel, the two world leaders in startup, accounted respectively for 90 percent and 80%.

The event focused on global expansion strategies for Korean startups and the current state of startup eco-systems in Japan, Southeast Asia, the Middle East and the Middle East.

Participants first asserted that corporate venture capital (CVC), which is a form of VC, plays a crucial role in the globalization process of Korean startups. CVC companies are VCs established by companies to support their business strategies. They differ from general VCs who maximize financial profit.

Park Young-hoon is the head of d*camp, and a former vice-president of GS Retail. He said that CVC companies of large businesses groups such as Hyundai Samsung, GS, and CJ had some of largest networks. “CVC companies who have engaged in open innovation with startup companies can play a major role in helping startups to grow their businesses, based on CVC companies’ global network and capabilities.”

Han Tae-shik is an economist policy researcher at LG Business Research. He says that the impact of global geopolitical events such as the US-China war, wars and the US Presidential election on startup ecosystems must also be taken into consideration.

Han said that “large companies are reflecting geopolitical concerns in their business strategy and U.S.-based and European startup ecosystems are beginning to take these issues into consideration.” “However startups that lead in technological innovation are not affected by geopolitical issues. It will be an opportunity, rather than a crises.”

Some people also thought that Korean startups should use Japan to help them globalize. “Channel Talk represents a good example. Lee Kyung-hoon is the head of Global Brain. “The company found Product Market Fit in Korea and then went global by increasing sales in Japan,” he said. “There will be many opportunities in large markets like Korea, such as commerce and entertainment, as well as software as a services (SaaS).”

Another piece of advice was that you should expand into the Middle East. “For the next ten years, you should concentrate on Saudi Arabia and UAE, who will make massive investment, and for the following ten years after that, Egypt and Pakistan, which have large populations of young people,” said Shin Yoo Keun of Shorooq Partners based Abu Dhabi, capital of the UAE.

“It’s difficult for foreign firms to enter the Middle East. Therefore, there have been many instances of foreign companies buying Middle East companies and competing with them. For example, Uber’s purchase of Middle Eastern car sharing company Careem. We will see more IPOs as the local stock exchange grows rapidly,” Shin added.

Won Dae -roo is the CEO of Singapore startup consultancy Wilt Venture Builders. He said that many Korean startups entered Southeast Asia with no plan, without any prior analysis, or with insufficient capital. “Now they need to create strategies that are tailored to the conditions of a region, such as creating customized strategy for each country and sector,” he added.