Korea has become one of Asia's most important startup hubs. Here is a detailed look at the movers and shakers, support systems, investors and top performing startups in 2017. Compiled by the industry insiders at G3 Partners, we layer analysis on top of facts, stats and lists. • New investment funds for 2017 • Korean investors & global VCs in Korea • Korea's biggest investments of 2015 & 2016 • Korea's top accelerators and co-working spaces • Startup meetups and events in Korea • Top markets for Korean startups • Startup support for Koreans and foreigners • Korean unicorns & top startups • Tech & startup trends • Who's who • And tons more...

1. Insider’s Guide to
Korea’s Tech & Startup Ecosystem
2017

2. Contact Us:
● execs@g3partners.asia
● +8270 8867 1511
● www.g3partners.asia
Nathan Millard Erik Cornelius
Founder & CEO Co-Founder & COO
LinkedIn LinkedIn
Meet The Authors

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

4. www.g3partners.asia

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

6. Gangnam in the 1950s
Rapid & continuous change is the Korean norm
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Gangnam in 2017

7. Korea - 10 Quick Facts
www.g3partners.asia

8. 53 M People
(26 M in greater Seoul)
Top 15
Global Economy
(GDP over US$1 TN)
2 BILLION CONSUMERS WITHIN
A 3-HOUR FLIGHT
#1
#2

9. Highly Developed
Tech Infrastructure &
Mobile Broadband
ACCESS TO MOST PROFITABLE
MARKETS IN ASIA
#3
#4
Sophisticated,
Fickle &
Demanding Tech
Consumers

10. OPTIMAL TEST BED FOR NEW
TECH INNOVATIONS
#5
#6
Good Test Market
For Asia
65%College
Graduates, Many With
International Education

11. THE WORLD’S MOST
TECH-OBSESSED POPULATION
#7
#8
Reasonable Levels
Of English,
Especially Among
Startups
Home Of Global
Brands (Samsung,
Hyundai, LG, Posco)

12. BEST STARTUP ECOSYSTEM IN ASIA
#9
#10
FTAs With 52
Countries
(Includes 74% Of
Global GDP)
Foreigner-Friendly
Government And
Population

13. Korea
Tech backdrop
www.g3partners.asia

14. Market Share
Samsung & LG: 80% > Apple: 12% Monthly Active Users
Kakaotalk: 42M > Facebook: 14.5M
>
Local Brands Rule Korean Tech
Market Share
Naver: 50% > Google: 37%
>
>
www.g3partners.asia
Source: Kakao

15. Author’s note
www.g3partners.asia
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.

16. Foreign Invasion?
www.g3partners.asia

17. www.g3partners.asia
Foreign Tech In Korea

18. www.g3partners.asia
Luxury Brands Are Booming
Automotive Cosmetics Apparel

19. 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.

20. We’re a fast-growing team of marketers, PR pros and communication experts. We
help startups expand beyond their home markets through practical marketing
support that helps them achieve real business goals like securing customers and
partners and raising investment.
We’re based in Asia, but have roots in the West. We’re super-connected to the Asian
and Silicon Valley startup ecosystems.
www.g3partners.asia
* COMMERCIAL BREAK* (1/3)
G3 Partners Are ‘Asia’s Startup Marketing Experts’

21. - 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
www.g3partners.asia
* COMMERCIAL BREAK* (2/3)
Marketing, PR & Cross-border Growth for Startups

22. 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.
www.g3partners.asia
* COMMERCIAL BREAK* (3/3)
How We Help Corporations Connect To Innovation

23. Korea’s Startup
Ecosystem
www.g3partners.asia

24. Author’s note
www.g3partners.asia
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!

25. Seed Series A Later Stage
K Cube Ventures DSC Investment Anchor Equity Partner
Bon Angels Neoplux LB Investment
TIPS DS Asset Mgmt. Partners Investment
Fast Track Asia Smilegate Investment Stonebridge Capital
Yello Financial Group Capstone Partners SL Investment
The Ventures Korea Investment Partners KTB Network
Magellan Tech Investment Premiere Partners STIC Investment
Atinum Investment
Korean Investors
www.g3partners.asia

26. Seed Series A Later Stage
500 Startups Formation 8 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 Tencent
Rakuten Ventures Bluerun Ventures Goodwater Capital
Bluerun Ventures Storm Ventures Rose Park Advisors
Harbor Pacific Capital Acheron Capital BlackRock
Global VCs With Korean Portfolio
www.g3partners.asia

27. ● Investment in 2016 increased
by 23% from previous year
● Number of companies invested
increased 50% to 313
● Data does not include outliers
(see next slide)
Early Stage Investment Trends
www.g3partners.asia
Source: Platum
Million USD # of Startups Invested

28. Forward Ventures (Coupang)
E-Commerce
• USD $1Bn in 2015
• Softbank Ventures
4:33 Creative Lab
Gaming
• USD $100M in 2014
• Line, Tencent
Outliers in 2014 & 2015
www.g3partners.asia
Source: Platum

29. Viva Republica (Toss)
Fintech
• USD $48M
• Paypal, Altos Ventures,
Bessemer Venture
Partners, Partech Ventures
www.g3partners.asia
The Biggest Winners in 2017 Q1
Source: Platum, Startup
Investment Report
Bagel Code
Gaming
• USD $13M
• IMM Investment, Atinum
Investment, LB Investment,
Smilegate Investment
Ticket Monster
E-COMMERCE
• USD $115M
• Simone Investment
Managers, KKR

30. Woowa Bros
FOOD DELIVERY
• USD $50M
• Hillhouse Capital
consortium
Lezhin Entertainment
ONLINE PUBLISHING
• USD $43M
• IMM Private Equity
Memebox
COSMETICS, HEALTH & BEAUTY
• USD $120M
• Formation Group,
Goodwater Capital,
Altos Ventures
www.g3partners.asia
The Biggest Winners in 2016
Source: Platum

31. 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
www.g3partners.asia
The Biggest Winners in 2015
Source: Platum, Startup
Investment Report

32. Startup to Unicorn
www.g3partners.asia
Source: Platum
Kakao
Messaging, O2O, Gaming, Fintech
• IPO in 2014
• Valued at $5Bn
Netmarble
Mobile Gaming
• Set to IPO in 2017
• Valued at $10Bn
Forward Ventures
E-Commerce
• Valued at $10Bn
Yello Mobile
Mobile Services
• $2.5Bn ~
$3.5Bn

33. Korea’s Top Accelerators
> Sparklabs
> KStartup
> Lotte Accelerator
> Samsung C-Lab
> SK Planet
> Shift.
> Orange FAB
> Future Play
> The Ventures
> Primer
> Fast Track Asia
www.g3partners.asia
> Actner Lab
> Neoply
> Bon Angels
> Mashup Angels
> Dreamplus

34. > Google Campus
> Maru180
> D Camp
> WeWork
> MyWorkSpace
> The Bitcoin Center
> Seoul GSC
> Hive Arena
> Fast Five
> 10K
> Seoul Global Center
> CoWnDoG
Seoul’s Best Co-working Spaces
www.g3partners.asia

35. > Startup Grind
> Drink Entrepreneurs
> Wine On Wednesday
> First Thursdays
> Koreans in Mobile (KIM)
> Seoul Tech Society
> Entrepreneurs in Seoul
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
www.g3partners.asia

36. www.g3partners.asia
Large Scale Startup Events

37. 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
www.g3partners.asia
Source: Startup Alliance,
2016 Startup Trend Report

38. Author’s note
www.g3partners.asia
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.

39. • $33B USD pledged for building “creative
economy” (over 5 years)
• $2B+ pledged for 2017, just for startups
• Helped to legitimize entrepreneurship
• Beginning to support foreign-owned startups
• K-Startup Grand Challenge provides
acceleration, government funding, and business
support for foreign startups
Government Support: Overview
www.g3partners.asia

40. Govt. Agencies Supporting Startups

41. 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
www.g3partners.asia
Government Support in 2016
Source: Brunch.co.kr

42. 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
www.g3partners.asia
New Government Funds for 2017
Source: Platum

43. >> 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
www.g3partners.asia
>> 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

44. Author’s note
www.g3partners.asia
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.

45. > K-Startup Grand Challenge
Launched in 2016 K-Startup Grand Challenge
invites foreign-founded startups for three
months all expenses paid acceleration in Seoul.
in 2016 40 startups participated and 20
startups were awarded follow-on funding of up
to USD $130K. Of the many government
funded programs I’ve been involved with over
the years I can honestly say that this is one of
the best. It will return in 2017.
FINALLY... Support For Foreigners
www.g3partners.asia
> Seoul Global Center
With several facilities around Seoul, this organisation
provides legal,financial and other useful advice for foreign
business people in Seoul, as well as office space. Worth
checking out.
> Seoul Global Startup Center
Seoul GSC is a brand new facility in the heart of Seoul,
specifically set up for foreign startups. It offers free
coworking and office space, networking events, courses and
seminars and of course free coffee, pizza and the occasional
beer. If you’re keen on exploring Seoul as a base in Asia, this
is a good place to check out.

46. Author’s note
www.g3partners.asia
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.

47. Author’s note
www.g3partners.asia
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)

48. >> 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.”
>> The Good:
“Korea hasn’t fully told its story yet.”
- Eric Kim, Goodwater Capital
“The public’s perception of startups is improving,
and there are ever more support for startups.”
“The quality of startup workforce is improving.”
www.g3partners.asia
Korean Founder Sentiment
Will Next Year Be Better for Startups?
Source: Startup Alliance,
2016 Startup Trend Report

49. Signs of Success
www.g3partners.asia

50. Yello Mobile
Mobile Services
• $2.5 ~ 3.5 Bn
Biggest Startups by Valuation
www.g3partners.asia
Forward Ventures
E-Commerce
• $4.35 Bn
TicketMonster
Mobile Services
• $1.7 ~ 2.6 Bn

51. 4:33 Creative Lab
Gaming
• $435MM
Biggest Startups by Valuation
www.g3partners.asia
WeMakePrice
E-Commerce
• $870MM ~ 1.75Bn
Podotree
Mobile Services
• $335MM - $355MM

52. Woowa Bros
Food Delivery
• $262~350MM
Biggest Startups by Valuation
www.g3partners.asia
Yanolja
Hospitality
• $350~435MM
SOCAR
Car Sharing
• $174~262MM

53. “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.
www.g3partners.asia
The “Ajumma Factor”

54. > Nathan Millard, CEO @ G3 Partners
> Michael Hong, CEO @ RedHering
> James Jung, CEO @ beSUCCESS
> Jungwook Lim, CEO @ Startup Alliance
> Jeffrey Lim, GM @ Google Campus
> Hee-eun Park, @ Altos Ventures
People to Look Out for /
Connect with in Seoul Startup Ecosystem
www.g3partners.asia
Am I missing someone? Email me (nathan@g3partners.asia)

55. People to Look Out for /
Connect with in Seoul Startup Ecosystem
www.g3partners.asia
Am I missing someone? Email me (nathan@g3partners.asia)
> Seokwon Yang, Manager @ D Camp
> Mike Kim, Manager @ Google Korea
> YJ Min, CEO @ Kono Labs
> Tim Chae, Partner @ 500 Startups Korea
> Minhee Cho, CEO @ RocketPunch
> Louis Ryu, CEO @ Shift.

56. People to Look Out for /
Connect with in Seoul Startup Ecosystem
www.g3partners.asia
Am I missing someone? Email me (nathan@g3partners.asia)
> Hyekyung Hwang, CEO @ Hive Arena
> Kihong Bae, Partner @ Strong Ventures
> Richard Min, CEO @ Seoul Space
> Yer-Hyun Baek, CEO @ Korea Investment Partners
> Douglas Guen, CEO @ Primer
> Junghee Ryu, CEO @ FuturePlay

57. > Elaine Ramirez, Freelance tech writer
> Phil Yoon, CEO @ Big Basin Capital
> Eugene Kim, CEO @ Sparklabs
> Hyemin Lee, CEO @ Finda
> Olivier Mouroux, CEO @ Asiance
> Joon Oh, CEO @ MangoPlate
People to Look Out for /
Connect with in Seoul Startup Ecosystem
www.g3partners.asia
Am I missing someone? Email me (nathan@g3partners.asia)

58. a
Author’s note
www.g3partners.asia
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.

59. Hot Trends that Foreign
Brands / Startups Can
Leverage
www.g3partners.asia

60. Fintech is one of the most promising areas of
innovation and growth in Korea, which has
suffered from obsolete banking system.
Government is earmarking $2.7 Bn just for
Fintech industry and easing regulation.
www.g3partners.asia
Fintech

61. ● $10 Bn market
● 5 of Top 10 mobile games are foreign
● Foreign games grew by 2X per year for the
last 3 years
● Mobile games constitute ⅓ of total gaming
market
Gaming
www.g3partners.asia

62. ● K-Fashion is a $46 Bn market
● K-Beauty is $8 Bn market
● Industry is ripe for disruption, as local brands still
rely on traditional e-commerce shops
● Opportunities for tech partnerships, e-commerce,
exports
Fashion, Fashion Tech & Cosmetics
www.g3partners.asia

63. ● Trendsetter in Asia (music, film, TV)
● K-Pop mania in Asia (and west?)
● Multi-Channel Networks that promote and
manage social influencers and their content
are thriving
● Foreign content platforms entering market
Pop Content & Visual Media
www.g3partners.asia

64. ● Hyundai pursuing autonomous vehicle
innovation
● Government support
● Opportunities in automotive tech
partnerships
www.g3partners.asia
Automotive

65. ● 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)
www.g3partners.asia
Cross-border Commerce & E-commerce

66. ● Songdo ‘completed’ in 2015
● Samsung & LG pursuing smart home
opportunities (and investing globally)
● Government support
● Koreans love tech
www.g3partners.asia
IoE, Smart Home, Smart City

67. ● Koreans are very tech savvy
● Koreans work hard, so helping them
save time is an opportunity
● Overseas business services doing
well
www.g3partners.asia
Biz-tech Services & Platforms

68. ● Air quality in Korea is worsening,
awareness of environment
increasing
● Heavy reliance of coal power and
fine dust from China are the main
culprits
● Sales of air purifies up 300% in 3
years
www.g3partners.asia
Clean Skies

69. www.g3partners.asia
Services for Singles & Seniors
● Demographic shift in Korea away from
multi-generational households
● Singles have given up on traditions like
marriage, children, home ownership
● 1-person restaurants, delivery, affordable
luxury, home healthcare

70. ● 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?
www.g3partners.asia

71. ● 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
www.g3partners.asia
BUT...

72. Got questions or suggestions?
execs@g3partners.asia
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