[VC Now] ③ FuturePlay "Innovating the Future with Robotics... New Opportunities Amid Korea's Aging Population"

Interview with Kwon Oh-hyung, CEO of FuturePlay
'Automation of Annoyance'... "Investment Reading People and the Future"
"Aging Population is a New Opportunity... Focus on Robotics, etc."

Editor's NoteVenture capital (VC) nurtures early-stage companies that will become the pillars of future industries at the forefront of the capital market. Although the VC industry is experiencing a downturn due to the global economic recession and high interest rates, efforts to identify and grow promising companies continue unabated. Asia Economy meets various investment firms, from large-scale VCs with accumulated experience and know-how to emerging VCs, to hear about their investment strategies and stories.

"What will we do for fun in the future? How will we work and what will we eat? What kind of technology will exist then?"

The concerns of VC FuturePlay, which celebrated its 10th anniversary last year, always start from the 'future.' Recently, at FuturePlay's office in Seongdong-gu, Seoul, CEO Kwon Oh-hyung said, "FuturePlay is a house that always thinks and works with the future in mind, as its name suggests. Our goal is to create sustainable and innovative startups that can change human life within 10 years."

Relentless Pursuit of 'Innovation'... Expanding Investment in Robotics

To achieve the goal of innovation, FuturePlay explores 'deep tech.' Although the VC industry was hit last year due to high interest rates and other factors, FuturePlay secured future growth engines by focusing investments on the 'robotics' sector. CEO Kwon stated, "From 2020 to 2022, we made new investments in 30 to 40 companies annually, but last year it was limited to 29 companies. However, looking at each company, the investments were qualitatively meaningful. We mainly invested in deep tech companies capable of global expansion."

FuturePlay lounge and office space in Seongdong-gu, Seoul. On one glass wall, the phrase "I am just someone trying to find my way in the universe" is written. Photo by Huh Younghan younghan@

Agmo, a digital agriculture solution startup funded by FuturePlay, possesses technology that converts existing agricultural machinery into autonomous agricultural machines. By connecting Agmo's solution to devices such as tractors, rice transplanters, and cultivators, work efficiency can be maximized on limited farmland. It creates routes for each plot to increase production. Additionally, it provides autonomous driving kits to Daedong, the largest autonomous transport robot manufacturer in Korea. The total cumulative investment, including FuturePlay's, amounts to 1.9 billion KRW.

ADUS, which develops automotive safety systems and autonomous driving solutions, also completed seed bridge investment through FuturePlay and others. Although the exact investment amount was not disclosed, its technological value was highly evaluated in areas such as smart ports. CEO Kwon explained, "ADUS supplies commercial autonomous driving platforms. It provides solutions for ultra-large trailers used in ports and truck driving in Europe and is growing very rapidly." ADUS achieved a contract with a European original equipment manufacturer (OEM) just six months after its establishment in October 2022.

"I believe robotics is currently at a significant inflection point in future industries, and we have made many investments accordingly."

CEO Kwon said, "'It would be great if all the tasks we dislike were automated'?this is human desire. Many desires such as cleaning, slaughtering, and waste disposal have been continuously expressed, but in the past, technology was insufficient to proceed." He added, "Now, technology usage fees have become cheaper, and the applicability in industries has increased." He further explained, "Originally, this field was perceived as difficult for startups. For example, making a mold for a prototype used to cost 100 million KRW. Now, using 3D printing technology, it is possible for 1 to 2 million KRW. There have also been many innovations in the process of training robots with artificial intelligence (AI)."

CEO Kwon shared, "To make such investments, FuturePlay strives to anticipate changes in the world. For instance, we analyze what shocks might arise from the conflict between Israel and the Palestinian armed group Hamas, what repercussions might occur from the US-China trade conflict, and what opportunities these events might create for Korean startups."

Kwon Oh-hyung, CEO of FuturePlay. Photo by Heo Young-han younghan@

At the same time, they have not spared investment in people. Acquiring and directly managing 'Tanygement,' a talent management solution that diagnoses individual strengths, is part of this effort. Tanygement produces reports that help with career planning and diagnoses individual traits and their applicability within organizations.

CEO Kwon said, "I thought understanding people well would also help with investment. I wanted to discover what kind of explosive potential could emerge when certain members come together and what constitutes a successful team." He added, "If members recognize themselves and complement each other's weaknesses, organizational efficiency can be improved. As a manager, it is necessary to understand and motivate members based on their traits. In fact, customer satisfaction is very high." Tanygement's sales grew by 31.2% compared to the previous year. About 90 companies, including Samsung Electronics, LG Electronics, CJ, and NHN, use this analysis tool.

"Ultimately, It's About People... Finding New Opportunities in Future Changes Like Aging"

CEO Kwon left his original profession as an accountant and entered the venture investment field because he was attracted to the charm of 'growing together.' He said, "I was very interested in helping various startups and growing together. While working at an accounting firm, I learned about business and number-based management methods, but I wanted to engage in more future-oriented activities." He joined FuturePlay as an investment manager through open recruitment in 2015 and was appointed co-CEO with founder Ryu Jung-hee in 2022.

CEO Kwon emphasized, "FuturePlay was originally not a 'fund business.' However, we thought we should become a company that provides comprehensive support from early-stage investment to mid and late stages on a small scale." He added, "CEO Ryu is basically open to 'organizing and expanding.' The need for a fund business was recognized by CEO Ryu and the team, and trust was built within that."

Founded in 2013, FuturePlay currently operates about 10 funds. The total assets under management (AUM), including committed capital, amount to approximately 215 billion KRW. Last year, it acquired not only an accelerator (AC) license but also a VC license. The plan is to provide continuous support tailored to the growth stages of companies while investing in early-stage startups. It is also active in overseas investments. CEO Kwon said, "Rather than focusing on specific countries or regions, we look at where companies creating innovative futures are located. We find strengths according to the characteristics of each region and culture and invest together with local companies." A representative overseas investment company is Swiss-based Embotech, which provides commercial autonomous driving control systems. It develops autonomous driving perception software for global automotive companies such as BMW.

Even the 'aging' issue, considered a problem in Korean society, is embraced by FuturePlay as a new opportunity. CEO Kwon said, "Domestically, Korea's productive labor population and domestic demand will sharply decline. However, due to aging, 'automation of production processes' is essential, and naturally, robotics will inevitably develop." He pointed out, "Korean robotics has its own competitiveness. Korea is the most advanced country in the world in factory automation."

"I do not think all changes have only negative aspects. Also, because changes occur, startups and VCs have opportunities. From this perspective, I believe Korea will continue to maintain dynamism and develop."

Kwon Oh-hyung, CEO of FuturePlay. Photo by Heo Young-han younghan@