The analysis of Korea's ICT startup ecosystem and supporting environment. The Korea's agency's role and supporting system for ICT start-up.

1. Korea’s successful
ICT start-up process and
support policy
Ph.D / Bang, Seungae
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2. Lecturers
Name: Bang, Seungae (Ph.D)
Department
- Adjunct Professor, Dong-Ah Institute of Media and Arts
- Squat Company, CEO
E-mail: seungaebang@gmail.com
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3. The table of contents
1. Start-up
2. The government agencies
3. Co-working space
4. Startup incubator
5. Startup accelerator
6. Venture capital
7. ICT startup case
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4. 1. Start-up
4

5. 1. Start-up
- Types of Entrepreneurship
1. Technology start-up
2. Existing business
5

6. 1. Start-up
- Types of Entrepreneurship
1. Technology start-up
• Technology ICT start-up is based on innovative ideas.
• ICT technology entrepreneurship has future growth potential,
when it succeeds, there will be more jobs.
• When existing the general business combines IT, the business
is more innovative.
2. Existing business
• General manufacturing, general service, outsourcing service,
facility management…
• In Korea, large companies hold the initiative, small companies
do not develop their own technology or know-how.
6

7. 1. Start-up
- The meaning of Start-up
• Start-up is ICT / IT based new venture company.
• Start-up is the term originated in Silicon Valley, USA.
• Founding company with innovative IT technology and idea.
• Start-up differs from ventures, because start-up does not
raise more financial resource than ventures.
• ICT technology companies have high risk, high growth,
high profitability.
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8. 1. Start-up
- The Growth Stage of Start-up
8
1.
Sharing the
information about
start-up
2.
Start-up
Acceleration /
education
3.
Investment

9. 1. Start-up
- The Ecosystem of Start-up
Co-working space
9
Start-up
Incubator
Start-up
accelerator
Start-up
Start-up Media
Venture Capital
Government
agency

10. 2. Government Agency
10

11. 2. GovernmentAgency
- The Role of Government Agencies
• An unemployment rate of Korea is the one of biggest problems.
• In 2017, government support for start-up, the budget is very
high for start-up support in the meaning of job creation.
• In the meantime, Korea has focused on the major industries for
large companies, this brings to limit of growth.
• The government should diversify and improve the economic
growth base.
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12. 2. GovernmentAgency
- The Role of Government Agencies
• The government should focus on revitalizing innovative
ICT entrepreneurship to create good jobs.
• ICT start-up based on new ideas should be increased.
• The government should ensure that young entrepreneurs
succeed through market research and customer validation
for the discovery of good business item.
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13. 2. GovernmentAgency
- The Support of Government Agencies
• The business foundation support of government is less
than the investment funds of venture capital, but it helps
start a business.
• Start-ups should not rely on government supports for a
long time, because start-ups do not have the
independence of their own business.
• The important thing is that start-up only has to make
money from customers, not government support.
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14. 2. GovernmentAgency
- The Support of Government Agencies
• The Start-up must receive government supports or
funding in the initial business phase.
• And then start-up needs the seed investment from the
accelerator. The next step is to receive from the
investment of venture capital.
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1.
Government
supports
2.
The seed
investment
from the
accelerator
3.
The investment
from the
venture capital
< The step of start-up’s financing >

15. 3. Co-working Space
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16. 3. Co-working Space
- The important elements of start-up
1. The space for office
2. The innovative, good item
3. Team members
4. Money for business
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17. 3. Co-working Space
- The important elements of start-up
1. The space for office
- The space is the most important for start-up that lack money.
- The co-working space provides opportunities for human
networking, information sharing, team discovery, connecting with
investors.
2. The innovative, good item
3. Team members
4. Money for business
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18. 3. Co-working Space
- The Definition of Co-working Space
• Co-working space is sharing the office space with people
from different disciplines.
• It is divided into the open space and fixed office space
managed by membership. (2 types)
• It can save money by sharing the office equipment and
meeting rooms with low rent.
• From there, start-up teams can naturally connect to other
idea and collaborate with other teams.
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19. 3. Co-working Space
- The History of Co-working Space
• The co-working space is a model that started in the
United States.
• Since the mid 2000s, freelancers from U.S.A have
gathered to create the co-working space, and then it has
spread to Europe, Southeast Asia, China.
• After the advent of Web 2.0, various collaborative tools
based web became available for free. Because of this,
people do not have to work together in a fixed office every
day.
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20. 3. Co-working Space
- The History of Co-working Space
• Digital nomads collaborate on laptops through real-time
collaboration tools like Messenger, Dropbox, and Google
Drive.
• The office rent fee is very expensive in New York, San
Francisco, USA. Because of this problem, co-working
space has spread.
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21. 3. Co-working Space
- Co-working Space in Korea
• The co-working space introduced so far are operated by
private companies. (Fastfive, Hivearena, Rehoboth)
• The business center operated by government agencies
also include co-working space.
• The characteristics of private enterprise operation and
government agency operation are different.
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22. 3. Co-working Space
- Co-working Space in Korea
• The operation of private companies are aimed at the
profitability, start-up investments, the professional
networking.
• The operation of government agencies are aimed at the
public, and open space for as many people as possible,
and operated for free.
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23. 3. Co-working Space
- The Profitability of Co-working Space
• The profit model of existing business centers is the real
estate.
• But the profit model of co-working spaces for individuals is
membership fee.
• Co-working spaces are categorized as a sharing economy
and is classified as innovative business service such as
Uber or Airbnb.
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24. 3. Co-working Space
- Recently, Combined with a Share House
• Share houses is a place where people can share their
residential space and live together.
• Recently, several companies operate in conjunction with
the share house and the co-working space.
• Various people, such as entrepreneurs, activists,
designers, IT developers, planners live and collaborate in
the share house.
• Digital nomad foreigners are living in share house and
doing project – based work at the share house.
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25. 4. Start-up Incubator
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26. 4. Start-up Incubator
- The Role of Incubator
• The incubator is an organization that supports the
launching of products/services and attracting investment.
• The start-up incubator has many offices for
entrepreneurship.
• The incubator has space for seminars, networking and
events as well as working offices.
• It helps connects start-up members and experts through
events and educational programs.
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27. 4. Start-up Incubator
- The Role of Incubator
• The incubator helps start-up members to shape their
business item from a simple idea to business model
through the educational training.
• After the idea has been shaped, they proceed the
deepening verification such as the market research and
the customer development.
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28. 4. Start-up Incubator 28
1.
Creating Idea
for business
item
< The Incubating process for early stage business >
2.
Business
modeling
3.
Verifying
Business
model
(Customer
development
/ Market
research
4.
Business
development

29. 4. Start-up Incubator
- Examples of Incubators in Korea : D.Camp
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http://dcamp.kr/

30. 4. Start-up Incubator
- Examples of Incubators in Korea : D.Camp
< D.Camp >
• Establishment Year : 2013
• Operator : Banks Foundation for Young Entrepreneurs
• Goal : Investment, Start-up training, infrastructure
construction
• Major business
Funding through venture capital and investment for start-ups
Operating co-working spaces and educational programs
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31. 4. Start-up Incubator
- Examples of Incubators in Korea : D.Camp
• The history of business start-up in Korea is divided into
“before D.camp” and “after D.camp.”
• Twenty financial institutions have launched “Banks
Foundation for Young Entrepreneurs”, this foundation has
established D.Camp.
• D.Camp is also the business hub, Silicon Valley’s venture
capital moved into D.Camp.
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32. 4. Start-up Incubator
- The Cooperation between major companies and
government
• Some Korean incubators are operated by the Korean
government.
• The Korean government and major companies jointly invest
money, they then establish a incubator and operate it
together.
• In this case, public servants, government agency employees,
and company employees work together in the incubator.
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33. 4. Start-up Incubator
- The Cooperation between the major company and
government
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Government
(Public official)
Major
company
(Company
employee)
Government
affiliated
organization
(Government
agency
employee)
A joint investment

34. 4. Start-up Incubator
- The Cooperation between the major company and
government
< Center for Creative Economy and Innovation >
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35. 4. Start-up Incubator
- Center for Creative Economy and Innovation
• Establishment Year : 2014
• Operator : Ministry of Science and ICT
• Location : Total 18 (Seoul, Gyeonggi-do, Gangwon-do…)
• Goal : Business support for ICT start-up
• Major business
The competition contest for start-up, Business mentoring
program, Job creation for young people, etc

36. 5. Start-up Accelerator
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37. 5. Start-upAccelerator
- The meaning of accelerator
• The accelerator means supporters and support
organizations that promotes the growth of start-ups.
• Since Silicon Valley’s “Y Combinator” has established,
the history of accelerator has started.
• Before the appearance of “Y Combinator”, there was only
venture capital.
• Accelerators invest in start-ups with less budget than
venture capitals. Accelerators invest more in start-ups and
train start-ups.
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38. 5. Start-upAccelerator
- Korean start-up accelerator
• May 2016, Korea has established a law for the start-up
accelerator, defining the role of the accelerator, and
granting legal status, deducting income tax / corporation
tax.
• Korean government has monitoring authority to registered
accelerators.
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39. 6. Venture capital
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40. 7. Venture Capital
- The role of venture capital
• Many venture companies have technological prospects,
but they are difficult to obtain loans from general financial
institutions because their business management is weak.
• Venture capital invests in venture companies that need a
lot of initial budget.
• Venture capital acquires shares from a company, it aims
at the redemption of funds from the company.
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41. 7. Venture Capital
- The role of venture capital
• The accelerator invests less than the venture capital. It is
the initial investment like a seed.
• Venture capitalists are investing a lot more than the
accelerator. (Billions to ten billions)
• Unlike the accelerator, venture capital does not train and
provide the education program for start-ups.
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42. - The Ecosystem of Start-up
Co-working space
42
Start-up
Incubator
Start-up
accelerator
Start-up
Start-up Media
Venture Capital
Government
agency

43. 7. The Example of
ICT Start-up
43

44. 8. The Example of ICT Start-up
- Bagle Labs
• Bagle Labs received the
support of office / fund from
government, and then they
had succeeded in attracting
investment from venture capital.
• Their item is a smart tape
measure, which makes it easy
to measure the length of things
through the big data.
44

45. 8. The Example of ICT Start-up
- BISECU
• Smart bike lock
• BISECU’s item is automatically
locked when the owner installs it
on the front wheel of the bicycle.
• When the owner get close to the
bicycle, it is automatically
unlocked.
•
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46. 8. The Example of ICT Start-up
- OPUS ONE
• OPUS ONE’s item is the smart umbrella.
• This umbrella checks the weather for the user and tells the day
when the umbrella is needed.
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47. Reference
• ‘The startup Cartel’, Young Rok Kim, Min Ji Kim, Tipping
Point, 2017
• http://dcamp.kr/
• https://ccei.creativekorea.or.kr/
• https://www.bagel-labs.com/
• http://www.theopusone.com/kr/index.html
• https://www.bisecu.com/
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