Korea has become one of Asia's most important startup hubs. This Slideshare provides a detailed look at the movers and shakers, support systems, investors and top performing startups in 2017. Need connections in Korea - there's a list for that in the deck. Want to know about government support programs for foreigners? We've got info on that too. Why does Korea deserve attention? It's population is tech savvy. It's tech infrastructure is world class. It's home of the world's top smartphone manufacturer. It has produced more than 10 tech unicorns over the last ten years. The government invests USD $2 billion into startups annually. It's opening up to foreigner entrepreneurs. Global investors have poured billions into it's rising stars. It's one of the world's top 15 economies. There's lots of incubators, accelerators and co-working spaces. There's an increasingly vibrant social scene for startups. Seoulites are social, speak pretty good English and are foreigner friendly. Enjoy the read and let me know if you have questions or suggestions.

1. Insider’s Guide to Korea’s
Tech & Startup Ecosystem in
2017
Updated December 2016
Nathan Millard
Founder & CEO, G3 Partners
nathan@g3partners.asia
+82 (0)10 8723 7702

2. Author: Nathan Millard
Founder & CEO, G3 Partners
> From UK (Scotland - London)
> 8 years as comms pro in Asia (Korea & China)
> Worked with startups in Asia since 2012
> 2.5 yrs as tech journalist, covering Korea’s startups
> Helped 100s of startups in Asia with cross-border growth
> Executed many cross-border startup programs (USA & Asia)
> Speaker at entrepreneurship conferences in USA, Russia,
China, Korea, Singapore, India
> Mentor @ Google Campus, DEV Korea, Orange FAB
> Founded G3 Partners in Jan 2015
> BA / MSc, University of London
Find me on:
● LinkedIn
● Twitter
● Facebook
Contact me on:
● nathan@g3partners.asia
● +82 (0)10 8723 7702
● www.G3Partners.asia www.g3partners.asia

3. The Backdrop
The following slide captures some of the common images
people associate with modern Korea...
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4. www.g3partners.asia

5. www.g3partners.asia
But,
It wasn’t always like this…

6. Gangnam in the 1950s Gangnam in 2016
Rapid & continuous change is the Korean norm
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7. Korea
Quick Facts
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8. 1. 53 million people (26 million in greater Seoul)
2. Top 15 global economy (GDP over US$1 trillion)
3. Highly developed tech infrastructure & mobile broadband
4. Sophisticated, fickle & demanding tech consumers
5. 65% college graduates, many with international education
6. Good test market for Asia
7. Reasonable levels of English, especially among startups
8. Home of global brands (Samsung, Hyundai, LG, Posco)
9. FTAs with 52 countries (includes 74% of global GDP)
10. Foreigner-friendly government and population
Korea - 10 Quick Facts
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9. Korea
Tech backdrop
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10. Samsung & LG: 80% m/s
Apple: 12% m/s
Kakaotalk: 42M MAU
Facebook: 14.5M MAU
>
Local Brands Rule Korean Tech
Naver: 50% m/s
Google: 37% m/s
>
>
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Source: Kakao

11. Author’s note
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Are you surprised that Facebook is not Korea’s dominant social media platform, that Google
doesn’t dominate search and that Apple commands just 12% of Korea’s smartphone market?
Korean consumers are perhaps the most mature technology consumers in the world. Local
brands are so dominant because they are experts at catering specifically to Korean tastes in a
way that the most successful global tech global brands have so far failed to do.
Korea presents a great opportunity for global tech firms, but localisation is absolutely critical.
Your marketing strategy will NOT copy/paste in Korea and translation is NOT equivalent to
localisation. Nimble startups could stand a better chance than lumbering giants.
Coming up - a few examples of foreign tech firms that are making an impact in Korea.

12. Foreign Invasion?
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13. Foreign tech companies are setting up shop in Korea
• Netflix
• Tesla
• Amazon
• Uber
• Air BnB
• Evernote
• Supercell
• Fiksu
• AppLyft
• Facebook
• Twitter
• Instagram
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14. Luxury Brands are also doing well
• Automotive • Beauty • Apparel • Technology
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15. Author’s note
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When I arrived in Korea for the first time in 2004, foreign brands were
rare. As FTAs have opened up trade with Korea and as Koreans garner
more disposable income their thirst for luxury has increased
dramatically.
Along with this a number of new industries have emerged quickly and
present opportunities for foreign firms. These include Pop music, TV
dramas, cosmetics and cosmetic surgery, PC & mobile gaming.

16. G3 Partners is a fast-growing team of marketers, PR pros and communication
experts. We help startups expand beyond their home markets through
practical support.
We’re based in Asia, but have roots in the West. We’re super-connected to
the Asian and Silicon Valley startup ecosystems.
We believe in RESULTS, not REPORTS!
* COMMERCIAL BREAK*
Slide 1 of 3... www.g3partners.asia

17. Marketing, PR & Cross-border Growth for Startups
- Website design, development, content creation and re-writes
- Social media strategy, management & ads
- Multimedia content creation and ads
- Marketing brochures, banners and flyers
- Public Relations, media outreach, press releases
- Crowdfunding campaigns, including strategy, campaign page development, pre-marketing
and full campaign execution
- Pitch coaching and investment support
* COMMERCIAL BREAK*
Slide 2 of 3... www.g3partners.asia

18. How we help corporations connect to innovation
Access to innovation is essential for large corporations. We understand the startup
ecosystem in Asia and we’re perfectly positioned to help organizations gain access.
We're always happy to provide information and introductions to our extensive
startup networks.
* COMMERCIAL BREAK*
MORE GREAT CONTENT NEXT... www.g3partners.asia

19. Korea’s Startup
Ecosystem
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20. Author’s note
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I started working with startups in Korea back in 2012, just as the current ‘startup boom’ was kicking off.
Back then there was precious little infrastructure to support startups, there was just one accelerator,
around ten VCs, a small discreet Angel investment community and practically no government support.
In the last five years the scene has changed beyond belief. There’s now 20+ accelerators, tons of
coworking spaces and startup events, a vibrant Angel and early stage investment scene and over that
period literally billions of dollars in investment by big name global investors like Black Rock, Sequoia,
Softbank, Tencent and others. The government has also jumped headlong into a wide range of fiscal and
logistical support.
What’s more, there’s clear signs of success, in the form of a more active M&A and tech IPO environment.
That’s also fostering a more high-skilled mentor pool. There’s still plenty of work to do, but the signs are
that tech entrepreneurship in Korea is becoming a big deal and Seoul’s claim to being one of Asia’s
premiere startup hubs is gaining legitimacy fast!

21. Seed Series A Later Stage
K Cube Ventures DSC Investment LB Investment
Bon Angels Stonebridge Capital Partners Investment
TIPS DS Asset Mgmt. Atinum Investment
Fast Track Asia Smilegate Investment Company K Partners
Yello Financial Group Capstone Partners SL Investment
The Ventures Value Invest Korea Neoplux
IDG Capital STIC Investment
KTB
Korean Investors
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22. Seed Series A Later Stage
500 Startups Formation Group Softbank Ventures
Strong Ventures Bain Capital Goldman Sachs
Y Combinator Qualcomm Altos Ventures
Harbor Pacific Cap. Big Basin Capital Hillhouse Capital
KOISRA Partners DT Capital Partners Tapjoy Korea
Bluerun Ventures Goodwater Capital
Storm Ventures Draper Athena
D3 Jubilee Cyber Agent Ventures
Global VCs With Korean Portfolio
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23. ● Data does not
include outliers
(see next slide)
Early Stage Investment Trends
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Source: Platum

24. Author’s note
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You’re probably wondering why investment amount dropped from 2015 to 2016.
One answer is that the figure only counts investments up to November. More importantly there were
two major outliers that each raised USD $1 billion in 2014 and 2015 respectively. There were no USD
billion investments in 2016.
See next slide for details of those monster investments.

25. Forward Ventures (Coupang)
• USD $1Bn in 2015
• Softbank Ventures
4:33 Creative Lab
• USD $1Bn in 2014
• Line, Tencent
Outliers in 2014 & 2015
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Source: Platum

26. Woowa Bros
FOOD DELIVERY
• USD $50M
• Hillhouse Capital
consortium
Lezhin Entertainment
ONLINE PUBLISHING
• USD $43M
• IMM Private Equity
Memebox
COSMETICS, HEALTH & BEAUTY
• USD $66M
• Formation Group,
Goodwater Capital
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The Biggest Winners in 2016
Source: Platum

27. Socar
CAR SHARING & RENTAL
• USD $55M
• SK, Bain Capital
Zigbang
REAL ESTATE
• USD $50M
• Stonebridge Capital,
Capstone Partners,
Goldman Sachs
Consortium
Yello Mobile
MOBILE SERVICES
• USD $48M
• Formation 8
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The Biggest Winners in 2015
Source: Platum, Startup
Investment Report

28. Korea’s Top Accelerators
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29. Seoul’s Best Co-working Spaces
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30. Check these for up-to-date info:
>> Google Campus, Maru180, D Camp, Startup Alliance &
Hive Arena websites
>> OnOffMix and Eventbrite
>> Startup Digest newsletter for Seoul
>> Facebook groups:
> Marketing in Korea
> Entrepreneurs in Seoul
> Seoul Startups #1
> Seoul Startups #2
> South Korea Startup Club
Monthly Meetups for Startup People
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31. www.g3partners.asia
Large Scale Startup Events

32. Rank 2014 2015 2016
1st USA S.E.Asia China
2nd China USA S.E.Asia
3rd S.E.Asia China USA
Desired Overseas Market
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Source: Startup Alliance,
2016 Startup Trend Report

33. Author’s note
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The last slide indicates that Korean founders’ most desired market for expansion is China. But
I’m not aware of any Korean startups that are successful in China. Literally, not one and I’ve
been working in the scene for over five years.
Three years ago it was the USA. Similar story - I’m aware of a couple of Korean startups that
are doing well - that means big revenues and decent profit margins.
Of Korea’s recent stand out successes (Kakao, Coupang, Baedal Minjeok, etc) - none have
found success beyond Korea.
All this to say that while there’s some very positive signs of success, Korea still needs some big
overseas success cases to prove that she’s ready to take on the big boys overseas and begin
attracting the top global talent that can further speed up her claim to being one of Asia’s top
startup hubs.

34. • $12B USD pledged for building “creative
economy” (over 5 years)
• $2B+ pledged for 2017, just for startups
• Helped to legitimize entrepreneurship
• TIPS program (1:5 & 1:7 matching)
• Beginning to support foreign-owned startups
>> Doing too much?
Government Support: Overview
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35. Govt. Agencies Supporting Startups

36. New Entrepreneur/ Early
Stage Support
• 12 programs
• Funding from $17K to $85K
• Ex) TIPS: Angel investment
of $35M in select startups
Global Expansion Support
• 3 programs
• Funding, local incubation and
acceleration, global marketing
expense paid
• Ex) K-Global Smart Mobile
Tech Startup Support
• 9 programs
• Funding, development
support, international patent
expense paid
• Ex) K-Global Startup
Female Entrepreneur Support
• 2 programs
• Small funding, startup camp
• Ex) Women Venture Care Program
Re-Startup Support
• 3 programs
• Funding from $25K to $250K
• Ex) K-Global Re-Startup
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Government Support in 2016
Source: Brunch.co.kr

37. Ministry of Science, ICT and Future
Planning
• USD $127M
• Science/Tech focused
• Focused on establishing infrastructure for
basic science and new growth sectors
Ministry of Culture, Sports and
Tourism
• USD $100M from 2015 to 2019
• Tourism focused
• USD $17M to be invested in 2017
• Early stage
• Operated by AJ Capital
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New Government Funds for 2017
Source: Platum

38. >> USD $43M
>> Media/content focused
>> Early stage with proprietary tech for media
>> Seeks to stimulate an ecosystem for individuals to create and share contents
New Corporate Funds for 2017
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>> Pledged $420M investment in startups over the next 5 years
>> Including $84M fund with Mirae Asset to invest in AI, IoT, VR, and autonomous driving
>> Providing IR services for 300 startups
>> Partnership with accelerators and VCs to match them with startups

39. Author’s note
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The last few slides demonstrate an amazing level of government and private
support, but it’s gone too far. I believe the government in particular MUST back off a
bit and let the ecosystem begin managing and funding itself. There’s so many
programs that many fail because there simply aren’t enough relevant startups.
It’s also so easy to startup right now meaning that the talent pool is spread so thinly
that VCs are really struggling to find good deals.
There will be a correction and it’s likely to begin in January 2018.

40. FINALLY... Support For Foreigners
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41. Author’s note
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Support for foreigners and foreign entrepreneurs in Korea is an extremely good sign.
The Korean startup ecosystem has been too homogeneous until now (just 17% of
founders are non-Korean, compared to 53% in London). I’ve advocated for a long
time that every Korean startup that is serious about going global needs to hire a
foreigner. It’s also important for the ecosystem as a whole to have more
foreign-founded companies as they bring knowledge of other markets and a more
cosmopolitan view of the world.
Thanks to a huge increase in the number of foreign students in Seoul there’s also a
growing talent pool of foreigners that local startups can hire from.

42. Author’s note
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You’re probably thinking, “I’m a foreign entrepreneur, how easy is it to set up shop in
Korea?”
Quick answer: Not very, and you’ll need to be committed. That means registering a
patent locally, attending a 3-week government course (the OASIS program),
committing USD $100K to the cause… or marrying a local.
It’s great to see programs opening up for overseas startups and they may also be
your best bet to test the market with minimal outlay and risk.
Contact me for more on this if you’re interested (nathan@g3partners.asia)

43. >> The Good:
“The public’s perception of startups is
improving, and there are ever more support
for startups.”
“Startups simply offer better products with
great ideas, leading to more customers.”
“The quality of startup workforce is
improving.”
>> The Bad:
“There are just too many startups;
investors are reeling back, and
some are even starting startups to
put them on their resumes.”
“Stagnant economy and lackluster
policy performance.”
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Korean Founder Sentiment
Will Next Year Be Better for Startups?
Source: Startup Alliance,
2016 Startup Trend Report

44. Signs of Success
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45. Primary Source: John Nahm, Strong Ventures (2014)
The Korean Unicorn Club
“13 companies belong to what we call the “Korean Unicorn Club”
(Korean software companies valued over $1 Billion by public or private market investors)”
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46. “Get a nice job at Samsung, son”
- Ajummas
Until recently it was socially frowned upon to join a startup or be
an entrepreneur, especially for the well educated. Thanks in part
to recent successes demonstrating the viability of tech
entrepreneurship as a career this stigma is changing fast.
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The “Ajumma Factor”

47. People to Look Out for /
Connect with in Seoul Startup Ecosystem
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Am I missing someone? Email me (nathan@g3partners.asia)

48. a
Author’s note
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The wonderful people on the previous slide have been selected as ‘go to people’ in
the ecosystem because they’ve been in it for years, speak English, work at companies
I’d classify as ‘ecosystem builders’. They are people whom I know as knowledgeable
and whom I’ve found to be open and willing to give advice and connections.
Many don’t know they’re on the list, but if you mention that you saw their name in
this presentation it should help break the ice.

49. Hot Trends that Foreign
Brands / startups can
Leverage
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50. >> Strong gaming heritage in Korea
>> Foreign games doing well
>> Opportunities for foreign games and
related services (e.g. Ads & Analytics)
Gaming
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51. >> Korea is trend leader in Asia
>> High fashion market is growing
>> Opportunities for tech partnerships,
e-commerce, exports
Fashion, Fashion Tech & Cosmetics
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52. >> Hyundai pursuing autonomous
vehicle innovation
>> Government support
>> Opportunities in automotive tech
partnerships
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Automotive Tech

53. >> Korea is one of Asia’s largest
E-commerce markets
>> Coupang recently raised $1Bn
>> Regulations easing
>> Opportunities for import, export,
e-commerce platforms and support
services (payments, analytics, Ads, etc)
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Cross-border Commerce & E-commerce

54. >> Trendsetter in Asia (music, film, TV)
>> K-Pop mania in Asia (and west?)
>> Foreign content platforms entering
market
Pop Content & Visual Media
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55. >> Songdo ‘completed’ in 2015
>> Samsung & LG pursuing smart home
opportunities (and investing globally)
>> Government support
>> Koreans love tech
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IoE, Smart Home, Smart City

56. >> Koreans are very tech savvy
>> Koreans work hard, so helping
them save time is an opportunity
>> Overseas business services
doing well
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Biz-tech Services & Platforms

57. Nope - don’t bother.
Despite local fintech events and tons of
chatter, there really isn’t opportunity for
foreign startups in Korean fintech. In fact,
the government is increasing regulation.
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Fintech

58. >> Of course barriers to entry exist
>> Government desire doesn’t always mean
results
>> Samsung (and other conglomerates) are
tough to get into and very conservative
Is There REALLY Opportunity
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59. >> Early movers have an advantage
>> Korea’s a small market, but Koreans are big
spenders
>> It’s easier doing business in Korea than
Japan or China
>> The Korean market is open for business
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BUT...

60. Got questions or suggestions?
nathan@g3partners.asia
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