5 secrets of the successful Korean entrepreneurial ecosystem

In recent years, the Korean entrepreneurial ecosystem has become the great hub for innovation and technological startups that have allowed it to consolidate itself as the fourth largest economy in Asia and the eleventh in the world.

South Korea has been investing more than $2 billion annually in its startup ecosystem since 2013 and registering growth rates above the average of OECD countries according to the IMF.

South Korea is one of the main exporters and developers of technological goods, a world leader in sectors such as automotive, electronics, 5G technology, industrial materials and parts, chemical materials, shipbuilding, steel, pharmaceutical and biotechnology industries.

The Government sought to develop a new startup model focused on innovation through technology, where the Ministry of Strategy published “Measures to Develop A Venture-Startup Funding Ecosystem” (2013) with the aim of complying with what was indicated.

This union, in addition to being effective in the use of resources, has generated a populous ecosystem of entities. There are government companies that provide support programs, known as OASIS (Overall Assistance for Startup Immigration System) in order to revitalize the economy and create jobs. Some with loan programs for startups such as KOSMES, which has the “Youth Startup Academy” incubation program, to encourage the creation of young startups.

The project was provided with real financing through the creation of an Innovation Fund. Unlike many measures that are announced by our politicians with a lot of name and few funds, here sufficient resources were provided. According to Forbes, the Korean government is one of those that spends the most per capita to support the creation of new companies. In addition, well-known government institutions such as Seoul Startup Hub and Pangyo Techno Valley were created to monitor and support the Korean entrepreneurial ecosystem.

Both companies and public plans have a clear international projection. Thus, access to leading conglomerates such as LG, Samsung, Hyundai ensures global development in case of success and the possibility of access to test banks with global application. In addition, the government holds several fairs and networking events during the year for all those companies with a desire to connect with the global ecosystem to participate.

South Korea has the fastest internet speed in the world and has had a 5G network since December 2018 that was implemented nationwide at the end of 2019. These infrastructures facilitate the development of new ideas/services.