Top-ranking S.Korean universities become hotbeds for promising startups

South Korean universities have become hotbeds for promising startups. 

Leading the trend are two of the country's best-known higher education institutes – Seoul National University (SNU) and Daejeon-based Korea Advanced Institute of Science and Technology (KAIST.)

Through the national research university's startup incubator Startup KAIST, more than 113 startups were founded and an additional 35 startups were established under the university's umbrella.

The Pangyo-based incubator has what it calls a “startup village,” which encompasses dormitories and office spaces. The village is open not only to KAIST students but also to its dropouts and students at other universities. 

KAIST STARTUP VILLAGE

Classum co-founder Lee Chae-rin is also a Startup KAIST alumnae. 

When Lee was a second-year student at the college of computer science at KAIST, she developed an online communication platform for fellow students and the faculty. 

What prompted Lee, who did not even consider commercializing the product, to actually take the leap of faith and incorporate the company in 2017 was the words of her mentor Kim Dong-jun.

“Why are the students suddenly posing all these questions? I already received some 300 through the platform,” Kim told Lee as a way of encouraging her to believe in the usefulness of her invention. The professor used Classum in his classes and showed her that people find the service beneficial. 

Fast forward to 2021, Forbes’ magazine selected Lee among Asia's “30 Under 30” in the consumer technology sector.  

More than 3,000 schools and companies across 23 countries use Classum, including conglomerate Hyundai and Samsung. As of last month, Classum is used in all KAIST classes. 

Last April, the startup received $6 million in Series A funding, led by Pearl Abyss Capital with participation from Storm Ventures, Big Basin Capital, and Smilegate Investment.

Lee told The Korea Economic Daily that Startup KAIST’s village provides the ideal environment for the two years needed to code all night long at the office and walk to the dormitory. 

“The amount of funding a university gives is not that important,” Lee said. “What is more important for budding startups is the environment in which to stay focused and check the direction they are headed.”

SNU CAMPUS TOWN

Despite the name value of KAIST, some would still prefer the convenience of being located in Seoul.

This is why CEO and founder of Aniai, Inc. Hwang Gun-pil chose Seoul National University’s Campus Town over his alma mater. Hwang earned his doctorate in electrical engineering from KAIST.

Aniai develops 3D ultrasonic imaging systems for autonomous driving and unmanned businesses.

In August 2020 when Aniai had just entered the campus, the startup was only allocated three desks. But as the artificial intelligence firm consistently took the first place in evaluations, it now has a 12-desk area within the campus. 

The national university evaluates the startups at its incubator campus every six months and provides free taxation and legal consultation. 

Aniai received Seed funding from Seoul-based venture capital firm Bluepoint Partners and plans a pre-A round in June. 

From 2020 til now, SNU Campus Town has assisted 62 startups. Emocog, Korea Senior Lab, Petnow and LARTBIO are just some of the successful startups that began there.

LIKE IT'S 1999

Korea University was the first to actively back startups. In 1999, the Seoul-based university launched a startup incubator in collaboration with the government-run Small and Medium Business Administration. 

It wasn't until around 2010, however, that universities began to take note of the importance of nurturing entrepreneurial spirit on campus. 

This is when Hanyang University began to shine for its startup incubator program. Established in 2009, the Hanyang Institute for Entrepreneurship has discovered and nurtured 582 startups founded by its students, alumni, faculty and even those who are not related to the university at all.

The Seoul Metropolitan Government has been running the Seoul Campus Town project in conjunction with different academic institutions. 

The city government has supported 32 startup incubators funded by universities since 2017 and the accumulated number of startups through the project surpasses 1,500. 

Write to Lan Heo at why@hankyung.com
Jee Abbey Lee edited this article.