Bangladeshi student in Korea pursues entrepreneurship with upcycling startup

Andrua Haque, a student from Bangladesh studying at Seoul National University, is knocking on the door of entrepreneurship with his startup, MFM Korea.

MFM Korea co-founder Andrua Haque poses for a photo with the startup's co-founder at an event for H-On-Dream, an incubation program run by the Hyundai Motor Chung Mong-Koo Foundation, in August. [ANDRUA HAQUE]

As Korea solidifies its standing as a global stronghold for tech and innovation, it presents an abundance of startup opportunities, even for foreign entrepreneurs.

However, it's equally true that uncertainties and certain governmental shortcomings present their own set of challenges. Especially for foreigners and international students, embarking on the already daunting journey of entrepreneurship in a foreign land demands a considerable amount of courage.

Andrua Haque, a student from Bangladesh studying at Seoul National University, is knocking on the door of entrepreneurship with his startup, MFM Korea.

Founded in May, the startup aims to provide job opportunities for women through resource recycling and tries to solve environmental issues. The venture is currently in the pre-production phase and is actively communicating with investors and refining its operations through various startup incubating programs.

To discuss more about Korea's startup culture and infrastructure, the Korea JoongAng Daily met with Haque for an interview.

This interview has been edited for length and clarity.

Andrua Haque, co-founder and chief operating officer of MFM Korea [ANDRUA HAQUE]

Q. Can you introduce yourself and your startup to our readers?

A. I am Andrua Haque, and I am 24 years old. I major in political science and international relations, and this is my last semester as an undergraduate. I am originally from Bangladesh and here and there, but I was born and raised in Korea mostly.

Our startup is a food-tech startup. We upcycle the byproducts of tiger shrimp and produce premium pet food. By doing that, we reduce water pollution, which is caused by the illegal dumping of tiger shrimp byproducts. We are currently a pre-stage startup. We did our incorporation back in March.

Do you have a particular reason for choosing the pet food-tech and upcycling industry?

Our initial target was to solve or reduce a social issue in Bangladesh. While researching, we found out that there was a huge issue going on in the shrimp sector in Bangladesh, which is the second largest market in the economy after the ready-made garment sector. The shrimp sector is located in southern Bangladesh, where the salinity of the water makes the quality of the soil impossible to farm crops on those lands. Agriculture is a huge part of Bagladesh's economy, and since the people there cannot farm, the only sector that is available for them is shrimp. The people there, especially women, are forced to work in the shrimp sector to survive, many without any official employment offers. They get paid $3 a day.

Another issue was the environmental issue caused by the illegal dumping of shrimp byproducts that destroy the mangrove forest.

We thought, "What could we do with these byproducts and create more job opportunities for women?" We went into that region several times, did field research and market research, and found out that the pet food market was growing intensely. Moreover, tiger shrimp byproducts are very high in nutrients such as chitin, which is essential for pets and animals. Korean Pet Food Association then developed some recipes for us, and we started making pet foods.

Does Korea provide a good environment to launch a startup?

Yes, it gives us a huge advantage as the upcycling technology here in Korea is very high quality, at least compared to Bangladesh. Not only that, but the investment fund in Korea is also huge in terms of food tech and upcycling business. Though we are a pre-stage startup, we could use the enormous funds that Korea offers.

How is Korea's upcycling industry more competitive?

Korea's tech sector is very advanced. While the technology industry is advancing worldwide, environmental issues have been worsening for a long time. This has become a global issue, and global economies have started investing to resolve such issues. It became a global trend, and Korea quickly focused on this sector. When it comes to the rate of recycling, Korea stands in the top five around the world. Korea has the capital and the capacity to invest in such sectors, and the upcycling sector has boomed in Korea as well. The market size doubled in six years, from 2014 to 2020. While the market was booming, the tech sector had the opportunity to open up a new sector, the upcycling sector. They did not hesitate to invest in the research development in this sector. Hence, it is fair to say that the upcycling industry in Korea is more competitive compared to that of other countries, especially in Asia.

How did your entrepreneurial journey start in Korea?

My friend and I have always been interested in the startup industry and solving social issues. We have been friends since we were first-years. This one time, he came up to me and asked if I would be interested in joining a global non-profit organization program by SK Happiness Foundation.

I said yes instantly. Through that program, we made our first business plan and built the basic foundation for our startup. The incubation program lasted for eight months, and we were lucky enough to get the first grand prize. After it ended, we did our incorporation. Ever since, we have gotten into a few other programs for incubation and acceleration.

Have you used other support available for startups in Korea, such as governmental programs or university-linked programs?

Thanks to SK Happiness Foundation, we got the opportunity to get the idea and make a proper business model. Through that, we did our incorporation. After that, we modified our business model for other programs, such as H-On-Dream, an incubation program by the Hyundai Motor Chung Mong-Koo Foundation. We won the grand prize there as well.

After that, we joined a government program that the Korea International Cooperation Agency (Koica) directs. We entered Koica's CTS Seed 0 program, which is taking place right now. We are also currently competing in the final round of Korea Social Enterprise Promotion Agency's Social Venture Competition.

With programs like these, we were able to get the funds and investments we needed.

Are there enough funding and investment opportunities for entrepreneurs in Korea?

I only have a little database outside of Korea, but speaking from experience, the opportunity for funding and investment in Korea is limitless. With a solid idea, it is very easy to get investment and funding for a startup, especially if it is tech-based. But for social ventures without any tech side, it is tough for them to get investments.

I know this because we looked into it because we wanted to be a social venture or non-profit, but the laws for incorporation and funding were very complicated.

How would you describe the networking opportunities available for foreign entrepreneurs in Korea?

This is something I am still struggling with. As we started from scratch and with no networking in our field, it is very lonely. I know there are many networking platforms, but as my co-founder and I are still full-time students, it is very hard for us to make time for those events. The only networking we do is through all the student startup programs we apply to and get accepted.

Have you encountered any cultural or business-related challenges during your journey? If so, how did you overcome them?

As I am still a student, I am on a D-2 student visa. As I am the founder of the startup, I cannot yet make any profit or income as I am on a student visa. After graduation, I plan on getting a D-8-4 startup visa. There are certain point systems in order to get that visa, but I do know a lot of foreign entrepreneurs in Korea, and they say it is not difficult at all to get that visa.

In which market will you be selling your products once the manufacturing and distribution get sorted?

We have conducted minimum viable product (MVP) tests twice, where we distributed our products to consumers to analyze the market and the capabilities of our product. We are still a pre-stage startup and have yet to fully establish it. The beauty of this is that we still have some flexibility in terms of the choices we make for the future of our company. Our target markets are Korea and Bangladesh, and therefore, we [are looking into] production and distribution in both nations. We are currently manufacturing MVP tests and doing market analysis for limited amounts of consumers, but hopefully, we will release our products to the targeted market soon.

How do you think Korea can support its startups better?

I wish there were more classes or programs at the university level that teach about the startup field, as it is currently trendy. Though they exist, they don't feel very approachable. It would be great if those programs and lessons were more approachable regardless of one's background and major. Tech-based startup market is booming right now, and it would be great to let our generation know that there is a huge opportunity in this field. While doing that, it is very important to know the risks as well.

BY STUDENT REPORTER LEE CHE-EUN [kjd.kcampus@joongang.co.kr]