Supercharging the Creative Economy in Korea

March 19, 2015 Siwan Kim Senior Manager, D.CAMP

Banks Foundation for Young Entrepreneurs One of the largest non-profit organizations funded by 20 banks in Korea

Startup Korea is a movement to foster an entrepreneur-friendly environment in South Korea, driven by the alliance of entrepreneurs, accelerators, media, and policy makers. Initiated by Banks Foundation for Young Entrepreneurs, it aspires to create an ecosystem where startups have access to the relationships, opportunities, and knowledge they need to succeed. Banks Foundation For Young Entrepreneurs is a non-profit organization

founded in 2012 by the association of twenty banks of South Korea. With an asset base of approximately USD 460M, it aims to return part of contributing banks' profits to the society by helping address worsening youth unemployment through promoting entrepreneurship.

Global Entrepreneurship Week is the world's largest celebration of the innovators and job creators who launch startups that bring ideas to life, drive economic growth and expand human welfare. During one week each November, GEW inspires people everywhere through local, national and global activities designed to help them explore their potential as self-starters and innovators.

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Why creative economy?

Ten largest Chaebol’s share of GDP (2011)

Net Profit No. of Employees

76.5% of GDP 1980% vs. 88% Big 30 Conglomerates in Korea

Paradigm shifting

• Government is driving

Spending $3.7 billion for startups until 2017

- Operating workspaces

- Supporting with fund

- Investing through matching

$2 billion Growth Ladder

Fund

Friendly policies for startups

Healthcare

Education

Finance

Software

Fostering angel

investors

Creative economy

Big companies participating

$7.5 billion Budget in 2015

Evolution of Korean Startup Ecosystem

Source: Startup Alliance Korea

• Experienced mentors

• Reliable investors

• Workspaces for startups

• Supporting institutions from

government

• Media for startups

Growth of Korean Startup Ecosystem

18,893 29,910

• Number of Ventures

Year End 2009

Year End 2014

Source: Korea Venture Business Association

Growth of Korean Startup Ecosystem

• Initial Investment in Early Stage Ventures

Source: Korean Venture Capital Association

$247M $505M

Year End 2009

Year End 2014

Competitive Advantage

Smartphone Penetration in South Korea

Source: Consumer Barometer with Google, Oct 2014

Smartphone Usage for Last Purchase

80%

44%

Messaging Platform: Kakao

$447M

$345M

$207M

Games for Kakao

Source: App Annie

• Founded in 2012

• Raised $100M at $1B Value in 2014

• 74 M&As

• 5 M&As / Month

• IPO in NASDAQ by 2016

New Growth Model: Yello Mobile

• IDG CAPITAL CHINA $100M

• 500 Startups, $15M

• Sequoia Capital, BlackRock PE- Coupang $400M

• Goldman Sachs – Woowa bros $40M

• Tencent – Party Games $20M

• Google Campus in April 2015

Korea on Spotlight

“Today is a different story. Korean innovators and entrepreneurs are some of the best in Asia and Korean startups are making headlines around the world, especially in the

mobile space. We want to support this booming community of entrepreneurs. So it’s with great excitement that we announce that Campus is coming to Seoul!”

- Google for Entrepreneurs –

Global Eyes to Korean Startup Scene

Bridgette Beam Senior Partnerships and Programs Manager

Seoul has been a crucial for several startup scenes.

“As one of the most wired places on earth, Seoul has been a crucible for several startup scenes. The government is even aiming to make a town south of Seoul a Korean Silicon Valley. But it is in the 40 square kilometers of land south of the Han river where the growth of Internet and mobile startups has been most evident and the related culture most vivid.”

- Gangnam Becomes Hot Spot for Korean Startups, DEC 11, 2014 -

Global Eyes to Korean Startup Scene

Seoul awaits you! See you in the city that never sleeps!