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According to a 2018 survey by Forbes, 55% of unicorn startups in the United States were founded by immigrants. In this sense, recently, the Korean government announced its goal to transform the current domestic-focused startup ecosystem into a global startup hub through the 'Startup Korea Strategy Meeting'.
The government plans to relax the eligibility criteria for support, expanding it from being limited to domestic founders to include Koreans starting businesses abroad and foreigners starting businesses in Korea. Key elements of this strategy include revising regulations related to foreign entrepreneurship, establishing a 'Global Startup Center', and introducing a 'Global TIPS (Tech Incubator Program for Startups) Program'.
Meanwhile, efforts at the private level to expand Korea's startup ecosystem globally are also noteworthy. underdogs spoke with Marta Allina, the leader of 'Seoul Startups', Korea's largest global entrepreneur community, which has been addressing 'problems faced by foreign entrepreneurs' for over seven years under the slogan "Regardless of borders, nationality".
Marta Allina : Seoul Startups, established in April 2017, is a community where approximately 5,100 domestic and foreign entrepreneurs residing in Korea interact. It is the largest global startup community operating in Korea.
When I started Seoul Startups, I was working as an accelerator in Korea, conducting incubating programs for foreign entrepreneurs aiming to do business here. At that time, a common concern among foreign entrepreneurs was :
"How do we find the resources or networks needed for business in Korea?"
Conversations with fellow accelerators revealed that the information gap faced by foreign entrepreneurs in Korea was not an isolated issue but a common problem. To effectively address this, I wanted to create a platform connecting domestic and foreign entrepreneurs interested in doing business in Korea.
Seoul Startups began with the creation of an online channel, 'Slack', where anyone could join freely.
Marta Allina : For Korean entrepreneurs, as well as for foreign entrepreneurs starting a business in another country, there are many moments when it feels challenging and overwhelming to go it alone.
Being with fellow entrepreneurs walking the same path allows them to share know-how and knowledge, gaining hints to overcome current problems and positively influencing each other. For instance, someone might connect you to the right person or set up mutually beneficial events. Such communication can lead to unexpected synergies.
Ultimately, I believe these exchanges and connections play a crucial role for early-stage entrepreneurs who still lack experience.
Marta Allina : Primarily, we operate a 'Slack' channel. With about 5,100 active members, the channel is used to freely share startup information, related events, support programs, and projects.
We also host various programs for regular member gatherings. There's 'CommuniTea', a casual networking event held monthly in coffee shops, and 'Seoul Startups Breakfast', an early morning talk concert and meal gathering. The most popular program is 'Founder's Live', a live pitching battle.
Marta Allina : 'Founders Live' is a program that started in Seattle, USA, in 2016. It is a global pitching battle and networking event held in over 60 major cities worldwide. At Founder's Live, participating startups pitch their ideas in 99 seconds, and the audience votes to determine the winner.
Participants in Founder's Live gain various benefits, including opportunities to connect with global startup and investor communities. The winning team from each city gets a chance to participate in the 'Founders Live Prime Time' global event held at the end of the year.
In Seoul, Founder's Live pitching participants include five startup teams, with founders within seven years of starting their business. The selection criteria focus on the potential for global expansion.
Through Founder's Live, participants can widely promote their ideas and gain various networking opportunities.
Marta Allina : I was familiar with underdogs from my time working as an accelerator before starting Seoul Startups. underdogs is well-known in the Korean startup scene. As we built mutual trust, we frequently discussed ways to create synergies to strengthen the global startup ecosystem in Korea, which eventually led to signing this MOU.
Marta Allina : Based on this partnership, we aim to establish a joint cooperation system with underdogs to conduct entrepreneurship education programs and community events for foreigners aspiring to start businesses in Korea. More specifically, we want to provide educational content, such as underdogs' original entrepreneurship methodologies, to help Seoul Startups members grow into more mature entrepreneurs in a structured manner.
In particular, we plan to co-host this month's 'Founders Live' with underdogs. While the event has primarily featured foreign entrepreneurs, this time, we intend to actively promote it to Korean entrepreneurs as well, aiming to create an event where Korean and foreign entrepreneurs can better integrate and collaborate.
Marta Allina : While there are areas where improvements are noticeable, it is true that there are still significant areas needing further enhancement.
Particularly, I think it would be beneficial if the Korean government could slightly ease the mandatory requirements for foreign entrepreneurs, thereby lowering the psychological barriers. For instance, foreign companies wanting to do business in Korea are required to establish a Korean legal entity, which can be burdensome for foreign entrepreneurs due to obligations related to taxes, employee hiring, and the four major insurances.
Marta Allina : The Korean market is not always easy, but once established, it can offer great opportunities for foreign entrepreneurs. Especially for those planning to expand their business into the Asian market, Korea can serve as a testbed to validate their business’s potential success in Asia.
Korea is perceived as more technologically innovative compared to other Asian countries and is generally open to new technologies. Many foreign entrepreneurs believe that if they can succeed with their technology or product in Korea, it is likely to be recognized in other Asian countries as well. Additionally, Korea’s relatively small size and population allow for quick and easy market testing.
Marta Allina : Currently, entrepreneur communities in Korea can feel somewhat closed off to foreign entrepreneurs. To address this issue, Seoul Startups aims to be an 'open community' that anyone can easily join and connect with.
Although we are currently focused on networking, gatherings, and pitching battles, we plan to expand our programs to include entrepreneurship education and startup hackathons. Through these initiatives, we aim to create a more conducive environment for foreign entrepreneurs to start their businesses in Korea, ultimately contributing to Korea's emergence as a global startup hub.
Written by Yeonju Kim (underdogs)
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