Skip to content
Seoul_2

Taking The First Footstep Together With The City

The global war for talent has become a universal phenomenon across regions and industries. Virtually all the major cities around the world are vying for the attention of top talents in future growth sectors such as artificial intelligence, bioscience and fintech, by creating easier environments to launch startups.

Seoul is hardly an exception in this regard. The tech-savvy capital city of South Korea had announced plans last year to nurture 10,000 ‘innovative talents’ by 2022 – individuals with technical knowledge in fourth industrial revolution-related segments or startup entrepreneurs from overseas. The city will also double the number of available business facilities for tech startups in AI and bio sectors to 2,200 spaces.

Its ambition is gradually becoming a reality. Seoul is grabbing more spotlight in the global startup scene as its ecosystem is becoming more competitive. According to The Global Startup Ecosystem Report published by Startup Genome, the world-leading innovation policy advisory and research organization, Seoul was included in the Top 20 list of cities for the total value of startup ecosystem in 2020, whereas it was outside the Top 30 list in 2017. Startup Genome valued Seoul’s ecosystem at 47 trillion won in 2020.

Startup Genome highlighted that the city has seen a rapid rise in the ranks due to the emergence of more unicorns, advanced R&D capabilities it has accumulated as Asia’s center of technological innovation, and patent application rate. Its report especially emphasized that South Korea’s R&D spending ratio to GDP is the second highest in the world at 4.3%.

Startup Genome further evaluated that the public sector’s proactive role in supporting startups has been fruitful in creating a more attractive ecosystem in Seoul. It emphasized the city’s scale-up policies such as the 1.2 trillion won ‘Seoul Future Investment Fund’ and fully customized support to startups in all stages of business development.

The numbers also prove that more global talents are coming to Seoul for entrepreneurial opportunities. First, the number of startups launched by global talents with the support of Invest Seoul Center, the institution responsible for attracting foreign direct investment (FDI) and supporting startups launched by global talents, increased by 2.6 times in 5 years, from 45 in 2014 to 115 last year. Likewise, the amount of FDI generated in relation to these startups was up from 4.5 billion won to 10 billion won. Choe Hong-seok, Project Manager at Invest Seoul Center, commented that “Seoul is the Asian Silicon Valley with many great talents enjoying the benefits of world-best IT infrastructure. To achieve win-win growth of both individuals and the city, the public sector has been ceaseless in assisting global talents to launch startups here in Seoul.”

image image

"Koreans are fast adopters of new technologies. Seoul has good infrastructure to support them."

To understand the full story behind Seoul’s recent rise as the destination to launch startups, we interviewed 3 entrepreneurs whose companies are respectively occupying office space at Seoul’s major institutions that provide support to startups: Seoul Fintech Lab, AI Yangjae Hub, and Invest Seoul Center.

Seoul Fintech Lab (SFL) is located in Yeouido, also known as the financial center of Seoul. SFL is an incubator established to bolster Korean financial industry’s global competitiveness and hosts both fintech startups as well as relevant key government agencies including Financial Supervisory Service and Korean Intellectual Property Office. There is a clear synergy coming out of such physical proximity of different organizations, according to Chea Srun, CEO of XQuant that provides analysis of unstructured financial data using machine learning and natural language processing: “We have a partnership with DNeuro, another startup on the same floor, working together on an online financial information platform.”

Other entrepreneurs added that the government efforts on early-stage financial support had been impressive. Leland Creswell, VP and Chief Marketing Officer of GoQba that uses AI technology to track abnormal eye movements of the elderly for predicting the risk of Alzheimer’s and related brain diseases, stated that “the government here has been making a very strong push to get more ventures started.”

Loma Sernaitto, CEO of urGlow that offers curated and customized Korean cosmetics products and solutions to Brazil, agrees that Seoul has a competitive edge in early-stage support. She evaluated that there are many funding opportunities for Koreans and global talents alike, and shared her amazement at the amount of support from both the community of private-sector entrepreneurs as well as government entities in Seoul.

Q&A with Chea Srun

  • How did you choose Seoul Fintech Lab as your office, and more fundamentally, why did you select Seoul as the geographic base of XQuant?

    We’ve initially incorporated our company in Hong Kong in 2018, as we’ve thought that Hong Kong is a major financial hub in Asia. In 2019, a friend who is a CEO of a startup in Korea introduced us to the Seoul Fintech Lab (SFL) program and we’ve applied. After being successfully selected, we’ve moved all our operations here. This was before the political protests in HK last year and the Covid-19 pandemic. Retrospectively, we think we’ve done a very good decision. My colleagues and I know the Korean financial industry well and we think we have a higher chance of success here.

  • What are some of the specific benefits that companies residing at Seoul Fintech Lab are enjoying? How big is the ‘agglomeration effect’ at the Lab, with many fintech startups being physically close to each other?

    We have a very nice office in the middle of Yeouido, allowing us to meet the customers very easily. Having other startups around us is definitely an advantage. Currently we have a partnership with DNeuro which is another startup in the Seoul Fintech lab. Since last month we are working together on an online financial information platform for retail investors.
    K-Accelerator who runs the SFL has organized business matchup events with Singapore and Luxembourg, allowing us to meet potential partners or customers. We’ve also received many advices from K-Accelerator about financial aids and how to apply. Without the SFL program we probably wouldn’t be here today.

  • What do you think is the key comparative advantage of the city of Seoul in the Fintech sector?

    Koreans are fast adopters of new technologies and the city of Seoul has very good infrastructure to support the new technologies. In the Fintech sector, although the market size is smaller than other major financial hubs, there is also less competition.

  • France has also been expanding support to startups and to the Fintech sector. In comparing the startup ecosystems of the France and South Korea, where does each country’s competitiveness lie?

    Korea’s business environment is friendly and launching a startup is easier and faster than in France. There are also many Early Startup Packages programs with relatively less applicants, so the chances of getting government’s help is higher. On the other hand, Korea’s market is smaller than France. So it’s vital for us to expand oversea once we have some success in Korea.

  • Now let’s talk in detail about XQuant – please briefly tell us about your company’s key service.

    Some studies have shown that on average, 80% to 90% of any organization’s data are unstructured. For a financial institution, unstructured data can be reports, contracts, confirmations, prospectus, messages, internal and external emails. Usually, treating those data requires a huge amount of manual work, and very often some of those data are not even treated at all.
    Our software helps financial institutions to achieve a high level of automation in dealing with those data. For example, TS-Expert can extract with 100% accuracy all relevant information from a 5-page term-sheet of an OTC transaction in 2 seconds, a task that will require up to 20 minutes for a human operator.

  • XQuant has recently launched ESG-Analytix. Can you share some background on your company’s decision to provide an ESG-oriented service to the market?

    We believe that ESG will be a very important issue in Korea next year. President Moon recently announced a target of carbon neutrality for Korea by 2050. The financial industry will have to analyze in detail the activities of companies from a ESG point of view to assess their progress toward the targets.
    ESG-Analytix is able to find out all relevant sentences related to ESG inside financial reports, news articles or even social media postings, helping analysts and fund managers to navigate through the huge amount of data available to them. We can even go deeper by searching themes such as waste management, water management or GHG emissions.
    One of the strengths of ESG-Analytix is that it works for Korean language. We expect Korean regulators to increasingly request companies to disclose more ESG related information linked to their activities. Our objective is to help analysts and fund managers to capture such information quickly and accurately.

Q&A with Leland Creswell

  • Can you tell us about the full, detailed story of how and why you joined GoQba? What drove you here?

    I joined GoQba about two years after its launch, when there were only two members, after being sent a business plan and mission statement from CEO Park. Having met him in person, I felt strongly that he was someone who could lead the company to success, and the overall mission was solid – attempt to make the world a better place through applying AI to the prediction and detection of health problems, specifically Alzheimer’s.
    My grandfather also had Alzheimer’s for many years, before passing away, and so I immediately leapt at the chance to be a part of creating technology that might help others protect their families from this, and other diseases affecting the mind.

  • We would like to hear about GoQba’s target market. Can you provide us some background on how GoQba decided to focus on the Alzheimer’s disease/dementia patients?

    Mainly, technological breakthroughs in deep learning AI coupled with very promising research out of the University of British Columbia and Cambridge in 2019 caused us to act. We believe that now, the goal of creating meaningful indicators out of passively collected data without using extreme-precision devices is possible. The market for passive prediction of dementia and related is also growing rapidly due to the aging population and the ever-increasing average life expectancy, so there is a strong business case to be made as well.

  • Canada is well-known in Korea for having an advanced technology in the AI sector, especially deep learning. From your own personal experience and knowledge, where does Korea’s startup ecosystem and AI technology stand in comparison to those of Canada?

    I’ll focus on comparing Edmonton (one of the main AI hubs in Canada) with Seoul. In terms of funding sources and access to incubation/initial capital, the Seoul ecosystem clearly wins out. The government here has been making a very strong push to get more ventures started, and we materially see it with the own support we are getting, including incubation and access to important networks and mentors.
    In Edmonton, generally initial funding usually must come directly from private investors, angels, family or friends. These can be quite difficult to rely on for unproven entrepreneurs. I believe that due to this, you will see a much lower number of startup ventures in Edmonton led by young, unproven entrepreneurs – instead, most ventures being formed there either have pre-existing funding, or due to the previous successes of the founders.
    Due to this, I believe that Seoul is definitely a better place for entrepreneurs who are willing to put in the work needed to create a successful venture.
    In terms of the technology, I have to say that the Edmonton ecosystem is ahead of Seoul. My personal belief on the reason for this is mainly that it is too easy, and there is too much pressure in Seoul, to “localize” or otherwise follow the ideas and technological innovations from the global market. Said another way, the Korean market is not well integrated with the global market, and so there is a lot of profit waiting to be made via “technological arbitration”.
    When you look at the Canadian venture ecosystem, you see 99% of founders there working towards the global market, and building technology that is, from the get-go, globally competitive.

Q&A with Loma Sernaiotto

  • Can you tell us the full story of your decision to launch your own skincare startup in Seoul that provides sustainable, customized Korean cosmetics products to Brazilian market?

    There is a growing demand for skincare products in Brazil and Korean brands are getting popular due to the global Hallyu. South Korea is 13th place (1.62% share) in the list of importing countries for cosmetics in Brazil with $3.32 million of products in 2019, growing 55.8% from the previous year according to KOTRA.
    Even though it’s already possible to get Korean products everywhere in the world, there’s a lack of customization when it comes to Brazilian skin needs, sustainability and information, due to language barrier.
    With this concern in mind, I’ve decided to focus on curation and customization. urGlow not only connects the Brazilian market to Korean brands, but also educates consumers, builds community and offers what Brazilians need with a local experience.

  • We would like to hear about your own experience with ‘Invest Seoul Center’. What were some great things about the center and difficulties that you ran into?

    Invest Seoul Center believed in urGlow’s growth potential since day one and I am thankful for that. It was a fulfilling experience, filled with learning and challenges.
    Having such an accredited organization backing my startup helped me in many ways, from the great office location to mentoring and coaching. My weak point when it comes to doing business in Seoul is language barrier, since my Korean level is still basic, but they also helped me a lot with that.

  • You have created a platform in Seoul that connects Korean products with Brazilian consumers. Is everything going well according to plan? How would you evaluate your business achievements so far?

    urGlow website was supposed to have launched in April, 2020. Due to the current pandemic, I had to postpone the launch and also pivot the business.
    Invest Seoul Center was kind enough to extend my lease in that time, which allowed me to focus on pivoting my company in such a hard time. Right now, we are working on building our community along with new branding, modified logistics and development of our proprietary products. I’ve also got a chance to meet new partners in Seoul that will make the experience even better. Our SNS is going well and people are excited for the launch. So I could say it was a positive delay, after all.

  • We would like to hear about your own analysis of startup ecosystem in Korea and in Brazil. How are they similar and different?

    I am amazed by the support provided both from the community of entrepreneurs and from the Government entities in Seoul. There are many funding opportunities for both Koreans and global talents, great events to join and many options of incubators and accelerators, as I’ve seen so far.
    As for São Paulo, we have a diversity in industries with Fintech and Life Science sectors being the most notable in the ecosystem. There’s also a wide range of support from public and private entities, as well as non-profit support networks.

Q&A with Chea Srun

  • How did you choose Seoul Fintech Lab as your office, and more fundamentally, why did you select Seoul as the geographic base of XQuant?

    We’ve initially incorporated our company in Hong Kong in 2018, as we’ve thought that Hong Kong is a major financial hub in Asia. In 2019, a friend who is a CEO of a startup in Korea introduced us to the Seoul Fintech Lab (SFL) program and we’ve applied. After being successfully selected, we’ve moved all our operations here. This was before the political protests in HK last year and the Covid-19 pandemic. Retrospectively, we think we’ve done a very good decision. My colleagues and I know the Korean financial industry well and we think we have a higher chance of success here.

  • What are some of the specific benefits that companies residing at Seoul Fintech Lab are enjoying? How big is the ‘agglomeration effect’ at the Lab, with many fintech startups being physically close to each other?

    We have a very nice office in the middle of Yeouido, allowing us to meet the customers very easily. Having other startups around us is definitely an advantage. Currently we have a partnership with DNeuro which is another startup in the Seoul Fintech lab. Since last month we are working together on an online financial information platform for retail investors.
    K-Accelerator who runs the SFL has organized business matchup events with Singapore and Luxembourg, allowing us to meet potential partners or customers. We’ve also received many advices from K-Accelerator about financial aids and how to apply. Without the SFL program we probably wouldn’t be here today.

  • What do you think is the key comparative advantage of the city of Seoul in the Fintech sector?

    Koreans are fast adopters of new technologies and the city of Seoul has very good infrastructure to support the new technologies. In the Fintech sector, although the market size is smaller than other major financial hubs, there is also less competition.

  • France has also been expanding support to startups and to the Fintech sector. In comparing the startup ecosystems of the France and South Korea, where does each country’s competitiveness lie?

    Korea’s business environment is friendly and launching a startup is easier and faster than in France. There are also many Early Startup Packages programs with relatively less applicants, so the chances of getting government’s help is higher. On the other hand, Korea’s market is smaller than France. So it’s vital for us to expand oversea once we have some success in Korea.

  • Now let’s talk in detail about XQuant – please briefly tell us about your company’s key service.

    Some studies have shown that on average, 80% to 90% of any organization’s data are unstructured. For a financial institution, unstructured data can be reports, contracts, confirmations, prospectus, messages, internal and external emails. Usually, treating those data requires a huge amount of manual work, and very often some of those data are not even treated at all.
    Our software helps financial institutions to achieve a high level of automation in dealing with those data. For example, TS-Expert can extract with 100% accuracy all relevant information from a 5-page term-sheet of an OTC transaction in 2 seconds, a task that will require up to 20 minutes for a human operator.

  • XQuant has recently launched ESG-Analytix. Can you share some background on your company’s decision to provide an ESG-oriented service to the market?

    We believe that ESG will be a very important issue in Korea next year. President Moon recently announced a target of carbon neutrality for Korea by 2050. The financial industry will have to analyze in detail the activities of companies from a ESG point of view to assess their progress toward the targets.
    ESG-Analytix is able to find out all relevant sentences related to ESG inside financial reports, news articles or even social media postings, helping analysts and fund managers to navigate through the huge amount of data available to them. We can even go deeper by searching themes such as waste management, water management or GHG emissions.
    One of the strengths of ESG-Analytix is that it works for Korean language. We expect Korean regulators to increasingly request companies to disclose more ESG related information linked to their activities. Our objective is to help analysts and fund managers to capture such information quickly and accurately.

Q&A with Leland Creswell

  • Can you tell us about the full, detailed story of how and why you joined GoQba? What drove you here?

    I joined GoQba about two years after its launch, when there were only two members, after being sent a business plan and mission statement from CEO Park. Having met him in person, I felt strongly that he was someone who could lead the company to success, and the overall mission was solid – attempt to make the world a better place through applying AI to the prediction and detection of health problems, specifically Alzheimer’s.
    My grandfather also had Alzheimer’s for many years, before passing away, and so I immediately leapt at the chance to be a part of creating technology that might help others protect their families from this, and other diseases affecting the mind.

  • We would like to hear about GoQba’s target market. Can you provide us some background on how GoQba decided to focus on the Alzheimer’s disease/dementia patients?

    Mainly, technological breakthroughs in deep learning AI coupled with very promising research out of the University of British Columbia and Cambridge in 2019 caused us to act. We believe that now, the goal of creating meaningful indicators out of passively collected data without using extreme-precision devices is possible. The market for passive prediction of dementia and related is also growing rapidly due to the aging population and the ever-increasing average life expectancy, so there is a strong business case to be made as well.

  • Canada is well-known in Korea for having an advanced technology in the AI sector, especially deep learning. From your own personal experience and knowledge, where does Korea’s startup ecosystem and AI technology stand in comparison to those of Canada?

    I’ll focus on comparing Edmonton (one of the main AI hubs in Canada) with Seoul. In terms of funding sources and access to incubation/initial capital, the Seoul ecosystem clearly wins out. The government here has been making a very strong push to get more ventures started, and we materially see it with the own support we are getting, including incubation and access to important networks and mentors.
    In Edmonton, generally initial funding usually must come directly from private investors, angels, family or friends. These can be quite difficult to rely on for unproven entrepreneurs. I believe that due to this, you will see a much lower number of startup ventures in Edmonton led by young, unproven entrepreneurs – instead, most ventures being formed there either have pre-existing funding, or due to the previous successes of the founders.
    Due to this, I believe that Seoul is definitely a better place for entrepreneurs who are willing to put in the work needed to create a successful venture.
    In terms of the technology, I have to say that the Edmonton ecosystem is ahead of Seoul. My personal belief on the reason for this is mainly that it is too easy, and there is too much pressure in Seoul, to “localize” or otherwise follow the ideas and technological innovations from the global market. Said another way, the Korean market is not well integrated with the global market, and so there is a lot of profit waiting to be made via “technological arbitration”.
    When you look at the Canadian venture ecosystem, you see 99% of founders there working towards the global market, and building technology that is, from the get-go, globally competitive.

Loma Sernaiotto

  • Can you tell us the full story of your decision to launch your own skincare startup in Seoul that provides sustainable, customized Korean cosmetics products to Brazilian market?

    There is a growing demand for skincare products in Brazil and Korean brands are getting popular due to the global Hallyu. South Korea is 13th place (1.62% share) in the list of importing countries for cosmetics in Brazil with $3.32 million of products in 2019, growing 55.8% from the previous year according to KOTRA.
    Even though it’s already possible to get Korean products everywhere in the world, there’s a lack of customization when it comes to Brazilian skin needs, sustainability and information, due to language barrier.
    With this concern in mind, I’ve decided to focus on curation and customization. urGlow not only connects the Brazilian market to Korean brands, but also educates consumers, builds community and offers what Brazilians need with a local experience.

  • We would like to hear about your own experience with ‘Invest Seoul Center’. What were some great things about the center and difficulties that you ran into?

    Invest Seoul Center believed in urGlow’s growth potential since day one and I am thankful for that. It was a fulfilling experience, filled with learning and challenges.
    Having such an accredited organization backing my startup helped me in many ways, from the great office location to mentoring and coaching. My weak point when it comes to doing business in Seoul is language barrier, since my Korean level is still basic, but they also helped me a lot with that.

  • You have created a platform in Seoul that connects Korean products with Brazilian consumers. Is everything going well according to plan? How would you evaluate your business achievements so far?

    urGlow website was supposed to have launched in April, 2020. Due to the current pandemic, I had to postpone the launch and also pivot the business.
    Invest Seoul Center was kind enough to extend my lease in that time, which allowed me to focus on pivoting my company in such a hard time. Right now, we are working on building our community along with new branding, modified logistics and development of our proprietary products. I’ve also got a chance to meet new partners in Seoul that will make the experience even better. Our SNS is going well and people are excited for the launch. So I could say it was a positive delay, after all.

  • We would like to hear about your own analysis of startup ecosystem in Korea and in Brazil. How are they similar and different?

    I am amazed by the support provided both from the community of entrepreneurs and from the Government entities in Seoul. There are many funding opportunities for both Koreans and global talents, great events to join and many options of incubators and accelerators, as I’ve seen so far.
    As for São Paulo, we have a diversity in industries with Fintech and Life Science sectors being the most notable in the ecosystem. There’s also a wide range of support from public and private entities, as well as non-profit support networks.

Guide to Starting Your Own Business in Seoul

photo_1

Step 1:
The Local Basics

Get customized consulting service to learn local culture, laws, and institutions

The first step in starting your own venture in Korea is to receive a thorough consultation and understand the local way of working before you jump into the entrepreneurial adventure of your dreams.

Invest Seoul Center (ISC) is a one-stop, must-go support center that provides consulting on a wide range of subjects from visa application, patent filing, standard process of starting a business in Korea to more specialized topics such as tariff and legal advice. It is also conveniently located in Jongno District, right in the center of Seoul.

General consulting service is offered on weekdays from 9 a.m. to 6 p.m., in multiple languages including English, Chinese, Japanese, Russian and Mongolian. Specialized consulting service is offered through prior appointments, with each weekday providing sessions in different topics. Between January and November this year, Invest Seoul Center conducted 3,265 consulting sessions to global talents preparing to launch own startups and those who are already operating their businesses in Seoul. Read More

photo_2

Step 2:
Business Incorporation

Receive professional support on business incorporation in your preferred language

After you have received ISC’s consulting, you must legally register your business as the next step. You must incorporate the business first and then apply for business registration certificate at the local tax office with your certificate of residence in Korea, corporate seal, and seal certificate.

To facilitate and expedite the required process, ISC provides the full list of lawyers and judicial scriveners who can provide a foreign-language service to international entrepreneurs like yourself. On top of that, the center also has a long list of accountants, tax accountants, labor attorneys and patent attorneys. You can also contact the center for networking with external institutions that provide assistance with your business incorporation, patent filing, and other areas.

You must also have an office to incorporate your business and legally register it. Should you lack sufficient funds to purchase or rent an office space, you can apply to rent one at the Seoul Global Startup Center (SGSC), for free once you are selected.
Read More

photo_3

Step 3:
Startup Visa Application

Apply and obtain Technology and Business Startup Visa (D-8-4)

To launch a tech startup in Seoul based on that unique idea of your own, you have to obtain the right visa (D-8-4). For successful application, you must hold a bachelor’s degree and must earn the required number of points for the visa.

The points can be earned by completing education programs under OASIS (Overall Assistance for Startup Immigration System). OASIS is a 9-category preliminary education program for future startup CEOs. You must have 80 points or more for a successful visa application. For instance, OASIS-1 is an 18-hour session that teaches the basics of intellectual property and grants 15 points upon completion. The session is conducted in the participant’s language, not in Korean.

Other ways to earn points than completing OASIS sessions are possessing a research visa (E-3), holding an intellectual property right or attracting funds of more than 100 million won. There are total 77 global talents holding the D-8-4 startup visa as of October this year. The figure has risen by more than eightfold compared to 9 holders in 2015.
Read More

photo_4

Step 4:
Material Support

Get tailored assistance to raise funds and develop new sales routes

Seoul Global Startup Center (SGSC) can help you with the next step. Its selective startup incubation program can offer you its office space for up to 3 years, and a maximum funding of 20 million won. It provides fully tailored assistance in fundraising and developing new sales routes, and further plans to launch an online crowdfunding platform as well. SGSC also opened up a course on ‘Business Korean’ and received good feedback from the startup CEOs whose Korean level was not so high. Song Gwang-nam, Head of Investment & Business Incubation at Seoul Metropolitan Government, commented that “SGSC is set to making Seoul the city where everyone including anyone from overseas can easily start his or her own business.”

SGSC currently hosts 48 startups composed of 187 entrepreneurs from 18 countries. Industry sectors also vary, from education, platform, hardware IoT to lifestyle. Their annual revenue sums up to 8 billion won, 36 times more than that generated by 35 startups during SGSC’s first year of opening in 2016. The startups at SGSC this year have attracted total funding of 1.3 billion won and registered 36 IP rights.
Read More