[Editorial] K-start-ups beam hope for the economy

Authorities must remove regulations to breed more start-up stars and help them push ahead with their dreams and innovations.

Korean start-ups made an impression at this year’s Consumer Electronics Show (CES) that ran for four days in Las Vegas from Jan. 5. The CES 2023 showed the largest presence in three years amid the ebbing of the Covid-19 pandemic. More than 3,800 companies from 174 countries took part in the show. Korea boasted the largest fleet with 550 companies after the host U.S.

Korean enterprises have been a regular to CES but it is the first time their number came second after the U.S. All the household names — Samsung Electronics, SK and LG Electronics — were there as well as 350 start-ups that took up more than 60 percent of Korean participants. They did not just fill up the numbers as they swept up 100 innovation awards, including four for the 23 Best of Innovation awards.

This year is said to become a tough year for the global economy, not to mention Korea’s. The hurried interest rate hikes to keep pace with the Fed and unfavorable export market conditions from changes in the value chains amid the ongoing technology hegemony contest between the U.S. and China have hardened the Korean economy. Large companies that buttress more than 80 percent of the GDP may not hold up long. Korean smartphones and cosmetics that once dominated the Chinese market have been replaced by local brands. Semiconductors that had been the mainstay exports are under greater pressure from Taiwanese and U.S. rivals. Start-ups are pushed to the corner due to dried liquidity. According to Startup Alliance, investment to Korean start-ups fell more than 30 percent last month on year.

But K-start-ups’ performance at CES raises hope for our future. KAIST sent 12 start-ups founded by faculty members, alumni and technology transfer companies. Graphene Square founded by a chemistry scientist at Seoul National University received the best innovation award for a virtual fireplace that generates heat from graphene. They are reliable as they have been founded by globally recognized research and development. Large companies with R&D bottleneck would gain new impetus through collaboration with them. Local governments and universities sent large groups to see the innovation extravaganza. Postech, a tech academy funded by Posco, sent the entire 2020 class to the CES for hands-on experience with innovation trends.

Authorities must remove regulations to breed more start-up stars and help them push ahead with their dreams and innovations. A space rocket start-up had to go to Brazil because it could not test out its vehicle at home and bio start-ups cannot move ahead with their technologies due to restrictions on telemedicine. Korea cannot turn into a first-moving country merely on words and praises.