Leaving Silicon Valley for Public Service... 'K-Unicorn's Hope in the Post-Pandemic Era'

"'The 'Post-Pandemic' Future Leaders Will Be Innovative Ventures'"
Interview with Cha Jeonghun, Director of Startup Venture Innovation Office, Ministry of SMEs and Startups

[Asia Economy Reporter Kim Heeyoon] "The future we will face post-pandemic will be led by innovative ventures."

Cha Jung-hoon, Deputy Minister of the Ministry of SMEs and Startups and co-chairman of the global startup festival 'ComeUp 2020' held this fall in Seoul, identified 'innovative ventures' and 'startups' as the main players in the industrial ecosystem after the COVID-19 pandemic. In an interview at his office in Anguk-dong, Seoul on the 11th, he said this year's ComeUp, which will showcase the future of innovative ventures that will change social structures, work, and life post-pandemic through an online-offline hybrid format, is a significant challenge.

ComeUp, first held last year at Dongdaemun Design Plaza (DDP) in Seoul, attracted 650 participants from 62 countries worldwide. Including online participation, over 5,000 startups took part, and about 20,000 visitors attended this large-scale event. Despite the cancellation of international startup events such as Spain's MWC and Finland's Slush due to COVID-19, the Ministry of SMEs and Startups launched the ComeUp organizing committee last month. The strategy is to turn the crisis into an opportunity by adopting ComeUp as a model for integrated online-offline international events.

Serving as co-chairman alongside Kim Seul-ah, CEO of Market Kurly and chair of the private sector committee, Deputy Minister Cha expressed his pioneering spirit with the startup mindset. He said, "Transitioning from an offline-centered event to an online-offline hybrid event is a big challenge, and there are many concerns about whether we can do it well," but added, "We are working with those in the startup ecosystem to create a new model."

Cha explained, "The reason the government is focusing on startups is because the perception that it is 'not a choice but a necessity' has taken root." He elaborated, "As we enter the Fourth Industrial Revolution era, a cycle has been created where companies develop services over a long period, while startups rapidly develop and validate technologies that global companies then acquire and commercialize. The whole world recognizes this approach, making it essential to strengthen policy capabilities and foster growth."

At 'COMEUP 2019' held in November last year, Park Young-sun, Minister of SMEs and Startups, is delivering a welcome speech. Photo by Asia Economy DB

Thanks to government policy support last year, venture investment reached 4.3 trillion won, showing a 25% growth compared to the previous year. Investment in Fourth Industrial Revolution sectors such as artificial intelligence (AI) and healthcare increased by 27% to 1.706 trillion won. This year, the Ministry of SMEs and Startups plans to establish a parent fund worth 1.9 trillion won to nurture K-unicorns.

Cha, a former executive at NVIDIA, a global leader in visual computing technology, highly praised the technological capabilities and status of Korean startups. "In terms of the number of unicorns (unlisted startups valued over 1 trillion won), Korea ranks around sixth globally," he said, adding, "The attention Korean startups receive from global platforms like Amazon, Google, and Apple is even higher than the country's status, reflecting the world-class power of Korea's innovative ecosystem."

Why did he leave an executive position in Silicon Valley to become a public official? Cha said, "I wanted to deepen the content." He explained, "As Korea entered the top 10 economies globally and gained stronger international and cultural influence, public expectations rose. At this time, I wanted to deepen the content of policies with expertise."

Cha cited the depth of content in response to the COVID-19 crisis in the U.S. as an example. "The New York Times published a three-part series on COVID-19, analyzing the coronavirus genome, vaccine development, and the virus's mutations and spread. This greatly enhanced the American public's understanding of COVID-19," he said, adding, "Similarly, I believe we need diverse content that deepens policy understanding, and I want to contribute to that depth."

Hoping that public interest and affection through ComeUp will lead to a thriving innovation ecosystem, he said, "The parent fund operated by the Ministry of SMEs and Startups since 2005 is a venture investment fund with a 6% return rate. A good return rate indicates a healthy ecosystem, so I hope ComeUp will be an opportunity for people to experience this healthy innovation ecosystem."

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