Domestic Startups Targeting Chinese Investment Hold Online Event

Korea Innovation Center China to Host Korea-China Global Innovation Startup Online Roadshow on the 18th

[Asia Economy Reporter Kim Heeyoon] South Korea's startup and venture companies are seeking investment from Tencent, China's largest IT company. If successful, this will open the door to targeting the local Chinese market by leveraging Tencent's capital, facilities, and vast network.

The Korea Innovation Center (KIC) China, an affiliate of the Ministry of Science and ICT, announced on the 18th of this month that it will hold the "2020 Korea-China Global Innovation Startup Cloud Roadshow" in collaboration with Tencent Incubator (Zhongchuang Space), an institution under Tencent Group, and the governments of Tianjin and Hebei Province.

Lee Sangwoon, head of KIC China, said, "Considering the difficulty of offline meetings due to COVID-19, we planned an online roadshow for companies from both Korea and China," adding, "We intend to support Korean innovative companies wishing to enter China and Chinese parties seeking outstanding talent to overcome these challenging times together."

The roadshow will feature Korean ICT, AI, and 5G companies such as iDOT, Hoje Enable, Sconex, Goldframe, Like a Local, and Hera. On the Chinese side, Tencent Incubator and the governments of Tianjin and Hebei Province will participate as investors. The roadshow will be connected via real-time online broadcast during the "Langfang Economic and Trade Consultation" held on the same day. KIC China explained that this event is a large-scale trade consultation involving the world's top 500 companies, providing an opportunity to attract attention from other prominent companies besides Tencent.

The roadshow format involves Korean startup and venture companies giving a 10-minute online presentation followed by a Q&A session, after which one-on-one matching with interested Chinese companies or government entities takes place. If mutual understanding is established, it may lead to investment.

If Korean companies sign local entry contracts, Tencent will provide free office space in its startup incubator for one year. Tencent Incubator is considered the largest startup space in China. It is an upgraded open platform with 36 locations nationwide, covering approximately 1,653,000 square meters.

Through the Tencent Incubator platform, 24 companies have achieved cumulative revenues exceeding 100 million yuan (approximately 17.26 billion KRW), and 108 companies have revenues over 10 million yuan (approximately 1.73 billion KRW). Additionally, 100 companies have raised investments exceeding 100 million yuan, and more than 20 companies are either listed or preparing for listing.

The Chinese government will support accommodation for Korean companies with investment contracts for one year, and KIC China will provide round-trip airfare for one person per company once. These benefits are valid for one year after the COVID-19 situation ends. Lee said, "Since there are already Korean companies that succeeded in raising investment last year and moved into Tencent Incubator, we can expect synergistic effects," adding, "A lecture on the impact of COVID-19 on the economic ecosystems of both countries will also be provided to help with business preparation."