Global Companies Increase Open Innovation Investments in Korea

Trade Association Publishes Report on 'Status of Open Innovation by Korean Overseas Large Corporations'
Operating 59 Organizations of 52 Overseas Large Corporations as of 2021

Data provided by Korea International Trade Association

[Asia Economy Reporter Kim Heung-soon] It has been identified that over 50 global companies are operating approximately 60 open innovation organizations in South Korea and increasing related investments.

The Korea International Trade Association announced on the 30th that it has published the report "Corporate Innovation in South Korea" in collaboration with Mind the Bridge (MTB), the official consulting firm of the European Union (EU) startup support organization 'Startup Europe Partnership (SEP)'.

According to the report, as of 2021, 52 global companies operate 59 open innovation organizations domestically, sourcing innovative technologies in South Korea through more than 3,500 tech scouts.

Foreign companies mainly operate four types of open innovation organizations: small-scale branches, innovation labs, research and development (R&D) centers, and corporate venture capital (CVC). Among these, R&D centers accounted for the largest number with 27, followed by innovation labs (16), CVCs (9), and antennas (7).

The report stated, "Until before 2000, foreign companies operated open innovation organizations in South Korea only in the form of R&D centers, where 50 to over 1,000 researchers gathered to conduct systematic research and directly develop new technologies and solutions. However, recently, there is a trend toward more flexible and lighter organizations," adding, "In particular, the entry of innovation labs, which were virtually nonexistent before 2015, has become very active."

According to the report, in the past five years, 13 innovation labs in the form of incubators or accelerators, 6 CVCs that increased accessibility to startups as internal corporate investment organizations, and 3 small-scale antenna organizations with about 1 to 10 members have been established in South Korea.

Among global companies operating open innovation organizations in South Korea, U.S. companies were the most numerous with 17, followed by Germany (10), France (8), Japan (4), and the United Kingdom (3). By industry, information and communication technology (IT) and software led with 8 companies, followed by telecommunications (6), chemicals (6), bio and life sciences (5), manufacturing (4), mobility (4), and electronics (3), showing active investment in these sectors.

Park Pil-jae, head of the Startup Global Support Office at the Korea International Trade Association, said, "In the past, we proposed cooperation to overseas large corporations first to support the global scale-up of domestic startups, but recently, it is often the case that global companies propose cooperation first," adding, "We will support various collaborations so that South Korea can establish itself as a global innovation R&D hub."

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