VC leaders urge Korea to become 'first mover' at annual startup symposium

At a recent symposium, experts emphasized the need for corporate venture capital in Korea to foster tech innovation, highlighting successful startups and urging government reforms.

The JoongAng Ilbo, KAIST and Seoul National University (SNU) hosted the annual international symposium dubbed the “Startup Nation Korea 2024" on Wednesday at SNU's campus in southern Seoul. [KIM KYUNG-ROK]

Corporate venture capital was emphasized as crucial to Korea's ambition to become a global hub for tech and businesses at an annual startup symposium co-hosted by the JoongAng Ilbo, KAIST and Seoul National University (SNU).

The third International Symposium on "Korea, the Country of Innovation and Start-ups," also known as "Startup Nation Korea 2024," took place on Wednesday at the convention hall of SNU's Global Education Center for Engineers in southern Seoul. SNU organized the event, which takes place in the latter half of each year under an agreement that the three co-hosts signed in 2022.

Six companies, selected from among 64 applicants, won Korean Innovative Startup Awards during the symposium: MetisX, Standard Energy, KoBioLabs, Perigee Aerospace, Rznomics and MedIn Tech.

Senior Presidential Secretary for Science and Technology and former SNU science studies professor Park Sang-ook, director Choi Yoon-eok from the Ministry of Science and ICT (in place of Science Minister Yoo Sang-im), KAIST President Lee Kwang-hyung, SNU President Ryu Hong-lim, JoongAng Holdings Chairman Hong Seok-hyun and National Research Council of Science and Technology (NST) Chairman Kim Bok-chul attended the event.

JoongAng Holdings Chairman Hong Seok-hyun speaks at the Startup Nation Korea 2024 in southern Seoul on Wednesday. [KIM KYUNG-ROK]

Adelphi Ventures founder and Managing Partner Ted Jeong; Lim Jeong-min, managing partner at Signite Partners; Lunit co-founder Baek Seung-wook; Rainbow Robotics Chief Technology Officer Oh Jun-ho; Mohan Lyer, general partner at global venture capital firm SOSV; Junichi Nakajima, corporate officer at Digital Garage and representative director at DG Daiwa Ventures; and Tomotaka Goji, managing partner, CEO and president of venture capital firm UTEC delivered keynote speeches.

At the opening speech during Wednesday’s event, SNU President Ryu urged the fostering of an innovative startup ecosystem through investment and successful commercialization, pointing out that domestic industry remains weak.

“Out of 1,243 unicorn companies worldwide — with the U.S. leading with 670, followed by China and India with 167 and 70 — Korea has 15,” Ryu said, referring to July data from market tracker CB Insights.

“Korea has achieved significant growth through a 'fast-follower' model that relied heavily on government planning and regulation,” Ryu continued. ‘It is time for Korea to swiftly move toward [becoming] a first mover in innovation. To achieve this, the wisdom and capabilities of the entire society must be mobilized to foster an innovative ecosystem.”

Senior Presidential Secretary Park proposed government reforms to support commercialization plans for startups’ technology.

“The government has identified technology commercialization as a major reform task and is pushing forward with strong measures,” Park said. “We expect to present an outline of the governmental road map by the end of this year or early next year at the latest.”

Other governmental measures to support startups on the table for discussion include ways to stimulate mergers and acquisitions for small- and mid-sized enterprises related to corporate venture capital as well as to enhance incubation efforts for digital platform companies.

KAIST President Lee expressed particular gratitude to the JoongAng Holdings Chairman Hong, crediting him for the idea of founding of the annual startup conference.

“Four years ago, Chairman Hong said that the future of Korea lies in innovative startups,” Lee said. “To pave the way, he suggested that the two of nation’s leading universities, SNU and KAIST, join forces to create this public initiative, with the JoongAng Ilbo providing support. This was how this event was born, and we are deeply grateful.”

Chairman Hong mentioned Rainbow Robotics, which is 14.83 percent owned by Samsung Electronics, as a success story in which a conglomerate was able to funnel a startup's technology all the way to commercialization.

Samsung secured a call option earlier this year enabling it to up its stake in the company to 60 percent by March 2029.

“The case of Rainbow Robotics offers a solution for both the still-maturing startup ecosystem and large corporations facing growth limits,” Hong said. “Success stories of startups originating from government-funded research institutes, such as HuMaster, Pinotbio and HeimBiotek, are also noteworthy. Their cases will serve as a catalyst for overcoming the paradox of technology commercialization and government-supported R&D [research and development].”

Junichi Nakajima, corporate officer at Digital Garage and representative director at DG Daiwa Ventures speaks at the Startup Nation Korea 2024 in southern Seoul on Wednesday. [KIM KYUNG-ROK]

In a keynote, Nakajima emphasized expanding the Japanese venture network to Korea.

“As mentioned in the other speakers’ slides, Korea has 15 unicorn startups,” he said. “Japan has only six. To compete with the U.S., Korea and Japan need to work together.”

Lunit founder Baek advised hopeful startup founders to bolster diversity and target the global market, as well as to choose carefully when selecting their boards of directors, in order to further propel company growth.

Lunit co-founder Baek Seung-wook speaks at the Startup Nation Korea 2024 in southern Seoul on Wednesday. [KIM KYUNG-ROK]

“Unlike traditional business sectors, deep tech is relatively free from the constraints of borders or cultural barriers,” Baek said. “For instance, in areas like medicine, cybersecurity and space, value isn't confined to a specific country or region. We need to leverage this advantage effectively. We should approach these issues boldly, with the mindset that we're solving problems for all of humanity.

“In the next generation, I hope we'll see more Koreans included on the lists of those setting global agendas,” he continued.

“There's no such difference in people’s intellectual ability, from my experience meeting numerous graduates of Stanford and MIT, and we even have employees with those backgrounds. The real difference lies in the way we think.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]