Why Are There So Few Korean American CEOs and Founders of Major U.S. Companies?

Many Successful Israelis, Indians, and Taiwanese Share a Reputation for Intelligence
Side Effects of a Ranking-Obsessed Education System
Signs of Change: Korean Americans Begin to Unite Through UKF

One of the phrases often used to describe the United States is "melting pot." It refers to a country where various races blend together and live in harmony. Approximately 1.8 million Korean Americans live in the United States-a significant number. However, it is difficult to find Korean Americans among the CEOs or founders of major U.S. companies.

When asked which nationality or ethnic group is known for being intelligent, diligent, and excelling academically, many people mention Koreans and Jewish people. People from other Confucian cultures such as China, Japan, and Taiwan, as well as India, known for its strength in mathematics, are also considered highly intelligent. Common sense suggests that those who are smart and do well academically are more likely to land good jobs and rise to high positions. Graduating from top universities also increases the chances of founding a successful company.

Israelis are a prime example. Notable Israeli CEOs include Safra Catz of Oracle, and among founders, Adam Neumann of WeWork. Among the 7.5 million Jewish Americans, there are countless well-known business figures. It is even said that Jewish people dominate American politics, finance, and media.

Indians, renowned for their mathematical prowess, are considered to have taken over Silicon Valley. Sundar Pichai, CEO of Google, and Satya Nadella, CEO of Microsoft, are both of Indian descent. There are about 5.2 million Indian Americans, roughly three times the number of Korean Americans. This may partly explain why there are more successful Indian American entrepreneurs than Korean Americans.

However, the recent success of Taiwanese entrepreneurs shows that numbers alone do not tell the whole story. The most prominent entrepreneur in the U.S. today is Jensen Huang, the Taiwanese founder of Nvidia. Steve Chen, co-founder of YouTube, and Jerry Yang, co-founder of Yahoo, are also Taiwanese. There are about 330,000 Taiwanese Americans-only one-sixth the number of Korean Americans.

Among the countries considered highly intelligent, Korea, China, and Japan have relatively few individuals who have achieved notable success in the American business world. The common factor among these three countries is that they are economically comfortable. However, there is a fundamental difference between Korea and the other two. China and Japan are global economic powerhouses with large domestic markets, allowing their economies to function independently.

China, the world’s second-largest economy after the United States, and Japan, with a population of 124 million-more than twice that of Korea-and a land area of 378,000 square kilometers-over three times larger than Korea-both have exports accounting for about 20% of their GDP. In contrast, Korea’s export share is about 44%. In simple terms, even without outside cooperation, China and Japan can keep their economies running, albeit tightly. Korea, on the other hand, is at risk.

Broadly speaking, the strength of Taiwanese Americans in the U.S. business world may be attributed to their sense of urgency. Taiwan’s land area (36,000 square kilometers) is one-third that of Korea, and its population (23.5 million) is just over half. Exports account for 60% of Taiwan’s GDP. Furthermore, due to its conflict with China, Taiwan has no choice but to align with foreign partners.

Why, then, do Korean Americans not achieve the same level of success in the U.S. business world as Taiwanese or Indian Americans? A Korean developer who worked in Silicon Valley over a decade ago described the difference between Indian and Korean developers as their “attitude toward accepting job changes.” As people age, it becomes harder to adapt to new technologies. Nevertheless, most Korean developers remain developers even as they get older, continuing to study new technologies.

In contrast, many Indian developers transition to other roles. “In particular, many move into human resources-related work,” he explained. They also recruit people from their hometowns and alma maters into their companies. Unity makes them stronger. While individual excellence is important, the power of the group cannot be ignored. This is one reason why the number of Indians in Silicon Valley continues to grow.

Dr. Yoo Woonghwan, who served as an executive at Intel and later as an executive at Samsung Electronics and Hyundai Motor Company, said, “To get promoted in an American company, you need the support of your subordinates, but in Korea, you need recognition from your superiors.” For Korean Americans who have lived believing that success comes from competing for first and second place and gaining recognition from superiors, this is a difficult concept to accept.

For Korean Americans to stand out in the U.S. business world, they need to unite and, based on that unity, earn the respect of others. Recently, the Korean American community has begun to move in this direction. The symbol of this change is UKF (United Korean Founders). UKF began as a dinner discussion group in 2018, started by Kiha Lee of Sage Partners and a few like-minded founders and investors.

As the group grew, more than 1,000 entrepreneurs and students gathered earlier this year for the 'UKF 82 Startup Summit.' In October, UKF will hold the 'UKF Festival New York' at The Grown Greenhouse in Brooklyn, New York. According to a UKF-affiliated company CEO, “With Hyukbin Kwon, founder of Smilegate, appearing as a speaker, the event is expected to attract between 5,000 and 10,000 attendees.”

For the first time, Korean Americans are gathering on a large scale to support and uplift one another. With the added flavor of K-culture, many Americans interested in tasting Korean food and experiencing Korean culture are expected to participate. In the coming years, I hope to see a flood of articles analyzing the reasons behind the growing prominence of Korean Americans in the U.S. economy.