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Growing in Asia: South Korea

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Growing startups in Asia, winning locally and scaling beyond the region. We take a look at how South Korean startups disrupt the incumbents in Asia and what kind of strategies they take to scale beyond their local market.

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Growing in Asia: South Korea

  1. 1. GROWING IN ASIA How to survive local disruption while going global Alex Barrera alex@thealeph.com
  2. 2. HELLO MY NAME IS...
  3. 3. My Blended Experience
  4. 4. FACE TO FACE FORUMS (WhatsApp) WOW Room
  5. 5. Growing in Asia Group http://bit.ly/GrowingInAsia
  6. 6. Entrepreneurial Region by nature
  7. 7. Historically entrepreneurial
  8. 8. Later Silla sea dominion Trade Control
  9. 9. China Silk Road control Trade Control
  10. 10. Despite Europe… Asia trade was central
  11. 11. Gunpowder
  12. 12. Compass
  13. 13. First Movable Type
  14. 14. Horticulture & use of grafts
  15. 15. Horticulture & use of grafts
  16. 16. Taoism
  17. 17. Buddhism
  18. 18. Confucianism
  19. 19. 4 books and 5 classics (四書五經)
  20. 20. Major peace in the region (Tang Dynasty)
  21. 21. Rise of the Startups
  22. 22. “As fish can’t live out of water, companies should think of society they belong to and make contributions.”   Koo In-hwoi - Founder LG Corp.
  23. 23. Number of internet users in selected countries in the Asia-Pacific region as of January 2019, by country (in millions) Source: Statista 2019
  24. 24. Source: The Mobile Economy Asia-Pacific 2018 Report.GSM Association.
  25. 25. Source: The Mobile Economy Asia-Pacific 2018 Report.GSM Association.
  26. 26. Percentage of population using the internet in South Korea from 2000 to 2017
  27. 27. Source: CBInsights Data.The Aleph Report elaboration.
  28. 28. Source: CBInsights Data.The Aleph Report elaboration.
  29. 29. Sectors
  30. 30. Gaming
  31. 31. eSports
  32. 32. eSports
  33. 33. Communications
  34. 34. Online Retail
  35. 35. FinTech
  36. 36. Cryptocurrencies Source: http://www.theinvestor.co.kr/view.php?ud=20190715000597
  37. 37. Source: KimChi Premium.The hidden history of cryptocurrency in Korea Cryptocurrencies
  38. 38. Incumbent Disruption
  39. 39. Very conservative and inward looking Koo Bon-moo,LG Chairman
  40. 40. CEO Tenures too short Source: CEO Tenure Rates,Harvard 2018.(https://corpgov.law.harvard.edu/2018/02/12/ceo-tenure-rates/)
  41. 41. “ CEO Tenures too short Source: http://www.theinvestor.co.kr/view.php?ud=20190707000190 According to 2016 data from Seoul-based research firm CEO Score, the top 30 Korean companies’ CEOs served an average of about 2.5 years.
  42. 42. Preference for close innovation
  43. 43. General disregard for small startups
  44. 44. General disregard for small startups
  45. 45. Tips for incumbents Don’t undervalue disruptive tech (i.e. Blockchain)
  46. 46. Tips for incumbents Don’t undervalue disruptive tech (i.e. Blockchain) Focus on trends, not tech itself
  47. 47. Tips for incumbents Don’t undervalue disruptive tech (i.e. Blockchain) Focus on trends, not tech itself Focus on new business models, not self improvement
  48. 48. Tips for incumbents Don’t undervalue disruptive tech (i.e. Blockchain) Focus on trends, not tech itself Focus on new business models, not self improvement CVC isn’t just about ROI
  49. 49. Tips for incumbents Don’t undervalue disruptive tech (i.e. Blockchain) Focus on trends, not tech itself Focus on new business models, not self improvement CVC isn’t just about ROI Begin working with Venture Builders
  50. 50. Scaling beyond the region
  51. 51. Local still complicated
  52. 52. "Under the Monopoly Regulation and Fair Trade Act, startups are banned from receiving additional investments from CVC firms once the startups became a CVC affiliate after receiving an investment. This means CVC firms cannot really keep track of startups’ growth.”
  53. 53. The Trade Wars
  54. 54. HUAWEI NVIDIA / QUALCOMM
  55. 55. Natural scaling regions
  56. 56. Cross border investments
  57. 57. Avoided markets
  58. 58. Avoided markets
  59. 59. 660 M vs 743 M
  60. 60. Average annual spending per capita for online shopping in Europe from 2015 to 2018, by country (in euros**) Source: Statista 2019
  61. 61. 28 countries 23 official languages
  62. 62. Northern Europe Southern Europe 4000 KM
  63. 63. Western Europe Eastern Europe
  64. 64. Source: Dealroom.co.Excludes buyouts,secondary transactions,debt,ICOs,lending capital,grants.
  65. 65. Distributed Startups
  66. 66. Global Scope Most SEA too regional Some players undervalued
  67. 67. Europe - Asia opportunities
  68. 68. Market Saturation
  69. 69. Local Corporates (CVC) Who funds the region?
  70. 70. Increased competition
  71. 71. Organic growth
  72. 72. Breaking the regional lock
  73. 73. Excel at scale Apply to Europe
  74. 74. Logistics (Forward Freighter) Operations (massive retail operations) Automation (autonomous vehicle China roads) Recommendation (Dynamic Yield) Semiconductors – AI chipsets (Xiaomi) 5G (Huawei) Cryptocurrencies eSports Cybersecurity & Privacy technology
  75. 75. http://www.slideshare.net/thealeph Alex Barrera (@abarrera) THANK YOU Alex Barrera alex@thealeph.com

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