[Startup Struggles] "Challenge Is Our Privilege... We Run Every Day Even If It Drains Us"

Hesitant in Investment and Weighed Down by Regulations, Yet Standing Tall
"Startup-Centered Economy, Not a Choice but a Necessity for Survival"
Famous Overseas Companies Also Focus on Startups

Insurtech (Insurance + Technology) startup Bomap employees attending the year-end closing ceremony held on December 27 last year. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Minwoo Lee] Last year was a series of "heart-wrenching moments" for Kim Kidong, CEO of Konatus, a mobility startup operating the taxi ride-sharing service 'Banban Taxi.' Since the service was not covered by existing regulations, persuading the industry and authorities was essential. He repeatedly explained the difference between 'carpooling,' where drivers choose passengers, and 'ride-sharing,' where users choose rides. The 'regulatory sandbox' system, which grants pilot operation permits for new businesses that are difficult to apply under current laws, was a much-needed relief. However, this relief did not come from the start. CEO Kim revealed, "We failed to pass the first application in May last year, so we put our life on the line for the second attempt," adding, "We built the service believing it was possible, but before even launching, the thought that it might be completely buried made my blood run dry." Subsequently, Banban Taxi finally passed the regulatory sandbox in July last year and is now running on the roads. CEO Kim said, "I believe the mobility market will change the world, and startups can lead that trend," and vowed, "This year, we will expand the service and show innovation with the unique toughness of startups, trying everything until it works."

There are those who still dream of high growth and strive amid South Korea's economy entering a low-growth phase. These are startups. Startups are not a choice but a necessity. Since global renowned companies also focus on collaboration with startups, this is not merely a 'high risk, high return' choice but an essential strategy for survival.

On the 30th, Choi Sungjin, CEO of Korea Startup Forum, the largest startup organization in Korea, met with Asia Economy in a conference room in Seocho-gu, Seoul, and made this diagnosis. He explained that adapting to the rapidly changing technologies and culture of the Fourth Industrial Revolution era and achieving growth beyond economic growth rates requires the swift innovation unique to startups. CEO Choi said, "Eight out of the top 10 U.S. companies by market capitalization started as startups," adding, "We have entered an era where even large corporations cannot survive by internal innovation alone."

According to the report 'Status and Implications of Open Innovation between Global Large Corporations and Startups' published by the Korea International Trade Association, more than half (54.2%) of the 'Global 500 companies' selected by the U.S. economic media Forbes collaborate with startups worldwide through methods such as technical consulting, sharing products and services, and operating incubators (startup nurturing spaces and programs). The higher the ranking of the company, the more active the collaboration. Among the top 500 companies, the startup collaboration rate of the top 100 companies is 68%, more than twice that of the bottom 100 companies (32%). The effectiveness of the startup-centered ecosystem is also becoming apparent. In the U.S., jobs at existing companies have decreased by more than one million annually over the past 30 years. Startups create three million jobs annually, leading the overall employment market.

Kim Kyunghwan, head professor at Sungkyunkwan University's Graduate School of Global Entrepreneurship, advised, "The true spirit of challenge and the privilege of innovative startups lie in standing up again after failure and changing institutional blind spots and deficiencies with user support," adding, "In the Fourth Industrial Revolution era, where rapid innovation is a competitive advantage and essential for survival, we must devote all efforts to a startup-centered ecosystem, which is the hope for the future and the best solution."

This content was produced with the assistance of AI translation services.