[Startup Struggle①-1] "Company's Growth Is My Growth"... Opportunities for the Entire Korean Economy

7 Failures and 8 Successes: Startup 24 Hours
"Company growth is directly linked to my growth... That's why I work here"
Korean startups also show rapid growth... 5th in the world for unicorn count
Warm support is a no-go... Can lead to 'self-preservation' instead of innovation
Kim Bong-jin, founder of Baemin, says "Startups are not entities to be helped but partners to move forward with"

[Asia Economy Reporter Minwoo Lee] Park Seonghwan (29), a graduate of Seoul National University's Department of Mechanical and Aerospace Engineering, is taking a different path from his peers. Unlike his classmates who have entered major domestic and international corporations, he chose a startup. The reason was not grandiose. He wanted to grow while managing 'his own work.' Currently, he works at the online lecture platform Educast. Just a year and a half after joining, he received the title of 'Head of Product Management,' equivalent to a director level. Park's daily life is quite different from his peers who regard 'work-life balance' as a golden rule. When he reflects on his day, the phrase 'company and self as one' fits perfectly. Every day is tough, with no guaranteed bright future, but the company's growth is the same as Park's own growth. Even if he fails, he believes it will become nourishment for further growth, and his days with like-minded colleagues are filled with anticipation and hope rather than hardship.

◆ 'Scrum' starts with commuting = Park's day begins on the subway. On his way to work, he checks major issues and today's tasks on his smartphone. From 10 a.m., when he arrives at the company, the 'scrum' starts immediately. It is a brief standing meeting held at a fixed time every day. This culture spread mainly among startups in Silicon Valley in the early 2000s. Although criticized for sometimes turning into a platform for team leaders' long speeches, when used as intended, it is not bad. Without small talk and with light laughter, everyone quickly shares what they have done and what they will do. Exactly 10 minutes later, the meeting ends neatly, and everyone returns to their seats. As he reviews various statistics, analysis data, and user feedback, hunger quickly sets in. Although lunch starts at 12, leaving a bit early is not criticized. Since the culture encourages finding one's own tasks, time management is also 'on one's own.'

From the afternoon, serious work and decision-making begin. Park said, "We decide on customer requests and feature demands through meetings and distribute tasks through various meetings." He added, "Sometimes, time flies while conducting quality assurance (QA) tests, and I often miss the official quitting time." On his last commute home this year, Park's face was bright as he recalled the busy year. He said, "In a capitalist society, I thought a person's survival ability ultimately depends on whether they can run their own business." He continued, "Even when working day and night without rest and running personal projects, it is not hard because I feel that I am growing."

◆ "I am not a company accessory but the protagonist" = Ryu Junwoo, CEO of the insurtech (insurance + technology) startup Bomap, held a year-end ceremony with all employees on the 27th at Dreamplus in Gangnam-gu, Seoul. They shared their reflections and watched videos they made together, laughing off the hectic year. Newcomers also spoke freely. Sometimes joking, sometimes playfully teasing, the employees' faces were full of smiles. This was because the company grew rapidly this year. Since its launch in 2017, Bomap surpassed 1.5 million cumulative downloads and 1 million members within two years. The number of employees, which was about ten last year, tripled in one year. This year alone, it received over 10 billion won in investment.

The employees' smiles were not just because the company grew in size. They felt they grew as much as the company did. This is also CEO Ryu's philosophy. He also worked at a stable, well-known domestic surety insurance company but left due to his desire for growth and launched Bomap seven years later. Ryu said, "In hierarchical corporate life, my achievements often got buried under my boss's accomplishments and the organization's results, so I often felt like a company accessory." He added, "On the other hand, here, we receive feedback from users every day, not through searches or books, and I feel that we are evolving and alive."

◆ Korea's economic structure is an opportunity for startups = The domestic startup ecosystem has rapidly grown over the past five years and has become a new driving force for the Korean economy. According to the Korea Startup Forum's '2019 Startup Korea' report, last year, there were 37,000 venture-certified corporations and 572 corporations with sales exceeding 100 billion won, reaching record highs. The number of unicorns also tripled from 2017 to nine. Investment returns reached a record high of 2.7 trillion won. The government's startup support projects have also increased significantly, from 615.8 billion won in 2017 to a record 1.1 trillion won this year. Last month, President Moon Jae-in emphasized to ASEAN leaders and representatives of startups from various countries that "startups themselves are innovation, open opportunities for everyone, and share hope."

The large-corporation-centered economic structure is also an opportunity for startups to be active. CEO Ryu said, "It is difficult for large corporations to quickly execute ideas like startups because the organizations themselves are large and heavy." He added, "There is a consensus within large corporations that they cannot do everything themselves, so they are choosing a path of coexistence."

Mergers and acquisitions (M&A) are not a panacea either. If existing large corporations acquire startups and absorb them into their own culture, the startups may lose their unique characteristics and competitiveness. This means that a coexistence model where each party's domain is distinguished and they cooperate is effective. CEO Ryu explained, "Startups receive support from large corporations' infrastructure and networks, and large corporations target rapidly changing niche markets through startups' innovation, forming a win-win model."

◆ Support that fosters startups' self-sustainability is important = However, experts advise that startups should not be blindly supported or treated only as entities to be protected. Choi Seongjin, CEO of the Korea Startup Forum, expressed concern that such 'pity-based' attitudes could lead to startups becoming self-protective. He said, "It is necessary to have mechanisms to prevent startup failures from leading to ruin, but merely providing subsidies to keep them alive is meaningless." He emphasized, "Especially government support policies funded by taxpayers' money, if obsessed with 'no waste of public funds,' may cause startups to pursue only short-term and non-risky results."

Kim Bongjin, CEO of Woowa Brothers, operator of the delivery app 'Baedal Minjok,' recently said in a lecture, "Large corporations and financial sectors always ask startups what they can help with, but this views startups as entities to be helped in a master-servant relationship." He pointed out, "It is desirable to consider startups as equal partners and to acquire or jointly develop businesses with them, which is a proper relationship and attitude."