The international media has taken another swipe at Korea’s fledgling startup (small- and medium-sized enterprises) sector, in the shape of a report by media outlet Forbes, who published an article claiming that Korea’s startup culture is “marred by misguided ambitions.”
The article carries a quote from the Seoul-based founder and CEO of a mobile advertising app who says, “A true startup culture is a movement, something Korea is lacking.” The CEO adds, “Drive is lacking in Korean startup culture nowadays – failure is inevitable in most cases.”
The Korea Small Business Institute last year announced that exports by Korean startups fell by 4 percent in the period 2009 to 2013, an indication that the government’s much-vaunted “creative economy” drive may still be faltering when it comes to smaller Korean companies.
Some analysts feel that one of the causes of this could be the fact that Korean startups and the government are having trouble singing from the same hymn sheet.
At the end of last year, British newspaper The Financial Times reported that Korean startups were “struggling to compete,” and carried a quote from a researcher at the Korean Small Business Institute, who noted, “Some startups do not use what the government offers because they are not aware of it. Both need to find better ways of communicating with each other.”
Government policy in regards certain parts of the startup sector have also come under fire, not least of which are smaller financial technology innovators. Earlier this month, a partner at Yozma Group told media outlet e27, “It is difficult to find innovative fin-tech startups in Korea.” He also added, “Overseas [investors] are interested in the Korean market, but you would need to act timely in order to use the tide.”
e27 noted that of the need for Korea to change its attitude and “get its act together” in what has become a “booming sector.” Optimists point to the fact that overseas firms and investors remain keen on cultivating Korean startups, however. Alibaba chief Jack Ma earlier this month said, “[Alibaba] is very interested in Korean startups. [The company] will make investments if it can find the right opportunities.”
Another tech giant, Google, established a Seoul Campus this month, the company’s first Asian campus aimed at nurturing domestic startups.
Others point to the success of startups such as Coupang, the fastest-growing eCommerce enterprise in the world, dubbed by many as the “Amazon of Asia.”
However, former United States congressman Jay Kim has previously urged Korean startups to build a base in overseas markets, rather than risk entering a domestic market that has become “saturated,” calling on the Korean government to “make an all-out effort to actively help them” to do so.
By Timothy Daniel
