Global Expansion Startups in Unison... "Lack of Quality Information"

Ministry of SMEs Holds Investment Attraction Event in Singapore
Intense Competition for Startup Information on Site
"Inter-Ministerial Barriers Must Be Removed"

"Japan aggressively engages in information exchange for startups to an almost frightening degree, but Korea still has barriers."

Domestic startups venturing into the global market cited lack of information as the biggest difficulty they face during investment attraction and local market entry. They unanimously agreed on the need to eliminate silos between ministries and public-private sectors to facilitate smooth information exchange.

On the 26th, at the global investment attraction event 'K-Innovation Day in Singapore' hosted by the Ministry of SMEs and Startups in Singapore, domestic startups were busy making moves to establish a foothold for global expansion. The event was attended by 80 global investment firms from Singapore and 52 domestic startups.

Minister Oh Young-joo of the Ministry of SMEs and Startups held a meeting with overseas diplomatic missions during the second part of the 'K-Innovation Day in Singapore' event at Conrad Singapore Orchard on the 26th, receiving a report on the progress of the 'K-Startup Networking Support Project.' (Photo by Ministry of SMEs and Startups)

On that day, representatives from each company met with dozens of investors without a break, but their expressions showed mixed emotions. Some secured investments or opened possibilities for investment on the day of the event, but many startups experienced bitter disappointment.

They all voiced that there is a lack of high-quality information. Since each investor prefers different investment sectors, startups seeking investment must devise different strategies, but the lack of information makes it difficult to respond effectively. Also, even if a company has excellent technology, it must emphasize competitiveness compared to the business environment in the target country, but individual companies find it difficult to grasp the local market environment.

Jo Young-jin, head of OpenPlan, said, "Before entering overseas markets, we collect market information and analyze our strengths, but when we actually go to the local market, the reality is often very different." He added, "When commissioning consulting firms, high costs are a problem, but often the reliability of the information is low. It would be good if the government could introduce credible firms or support programs."

Voices pointing out silos between ministries also emerged. Seo Jeong-hwan, CEO of Sikpama, said, "Even ministries and public institutions not directly related to startup support often have in-depth information about the venture capital (VC) industry due to their work," expressing regret that "network information is a great asset, but information sharing is not well done."

At the 'K-Innovation Day in Singapore' event held on the 26th at Conrad Singapore Orchard, startup officials are raising difficulties encountered when expanding overseas. (Photo by Ministry of SMEs and Startups)

On the other hand, there were voices on site saying that the Japanese government actively engages in information exchange to support startups. Lim Jin-woo, CEO of DreamAce, said, "I once had a meeting with the Singapore Exchange, and somehow the Japanese Exchange contacted me, saying they knew about it," adding, "Japan spares no effort in information exchange to support startups to an almost frightening degree."

Expectations for government support were also expressed. CEO Lim evaluated, "If you contact 100 places, only one responds; Korean startups have no recognition overseas. However, when the government leads and introduces startups like in this event, it can give investors trust and be a great help."

Song Kyo-seok, CEO of Medipixel, said, "I am in my seventh year of running a startup and feel that support policies are becoming more sophisticated," adding, "I hope projects like the Ministry of SMEs and Startups’ 'public-private collaboration support system,' the 'One Team Council,' continue well and that information from each government ministry is well gathered."

Meanwhile, Minister Oh Young-joo of the Ministry of SMEs and Startups held a session at the 'K-Innovation Day in Singapore' event to listen to difficulties experienced on site together with the ambassador to Singapore, KSC Singapore, and startups.

At this session, Minister Oh said, "I agree that sharing information and providing high-quality information is very necessary, and we will make efforts as a task," adding, "We will collaborate between the public and private sectors to become a driving force for innovation."