'Regulations Eased, 13,000 Companies Less Than 10 Years Old Flood In'... London Becomes Startup Heaven

Jeong Manki, Vice Chairman of Muhyeop - Meeting with UK Government
"Regulations Must Be Minimized... Benchmarking London"

Jung Manki, Vice Chairman of the Korea International Trade Association (KITA), emphasized the need to refer to the UK case, which reduced regulations and attracted about 13,000 overseas startups less than 10 years old.

On the 9th, KITA announced that Vice Chairman Jung made these remarks at the 'Korean Startups Entering the UK Roundtable' held jointly with the UK Department for Business and Trade (DBT). The roundtable took place on the 3rd (local time) in London, UK. A total of 22 people attended, including Vice Chairman Jung, Michelle Davidson-Jones, Director of DBT, and representatives from eight startups operating in the UK.

Vice Chairman Jung mentioned that according to KITA’s research, 25% of Korean startups leave the country to avoid domestic regulations and move to places like the US and the UK. Despite Brexit, London was ranked the second-best city for startups to do business. There are 13,475 foreign startups less than 10 years old currently operating in the UK. He stated, "I understand this is fundamentally due to a free market with almost no regulations," and argued, "Korea should benchmark the London case."

Jung Manki, Vice Chairman of the Korea International Trade Association (center), speaking at the 'Korean Startup Meeting for UK Expansion.' The Korea International Trade Association held a meeting in London, UK, on the 3rd (local time) together with the UK Department for Business and Trade (DBT).
[Photo by Korea International Trade Association]

Tony Hughes, an industry attraction expert (deal maker) at DBT, introduced that DBT has been implementing the 'Global Entrepreneur Program (GEP)' since 2004, which designates 24 deal makers to support the relocation of foreign startups to London. This is a one-on-one support program to assist startups in moving to the UK.

Currently, about 1,200 companies have entered the UK. The program guides startups through technology development programs, connects them with financial institutions and investors, and helps with talent recruitment. After the initial settlement phase, it provides opportunities for corporate investment attraction. In particular, it offers consulting for market entry into nearby regions such as the European Union (EU), the Middle East, and the US, and even supports repatriation to the home country if desired.

Hughes, the deal maker, said, "The reason foreign startups’ presence in London is increasing is due to the tailored support activities by deal makers at each business stage and the government’s policy to minimize regulations," adding, "When Uber entered the UK, the UK government revised domestic laws despite opposition from existing drivers."

Companies attending the roundtable stated that personal data protection regulations should be relaxed during the regulatory sandbox technology demonstration process. The CEO of Company A said, "With the help of the UK government, we are testing intelligent transportation system technology in Milton Keynes," and added, "The Korean government should expand testbed exchange projects with foreign governments to increase overseas demonstration opportunities."

The CEO of Company B said, "Due to unclear domestic regulations, it is difficult to combine foreign customer data from overseas branches with domestic data," and criticized, "Related ministries consistently avoid authoritative interpretation with ambiguous answers."

Jung Manki, Vice Chairman of the Korea International Trade Association (center left), is seen meeting with Emma Frost, Director General of Innovation at Runjeon Asset Development Corporation (right).
[Photo by Korea International Trade Association]

After the DBT roundtable, Vice Chairman Jung visited the London Development Corporation and met with Emma Frost, Director of Innovation. He heard about cases of local adaptation and demonstration by Korean companies.

Director Frost said, "Among the 17 startups participating in the corporation’s testbed, four are Korean companies," and added, "They are participating in tests such as indoor air pollution measurement technology and are promoting technology improvement and product innovation."

Vice Chairman Jung said, "KITA is conducting local technology demonstration (PoC) projects with multiple institutions in the US, UK, Spain, and others," and added, "We provide guidance on establishing local startup subsidiaries, setting demonstration periods, methods for extending deadlines, and offer consulting on investment attraction and contract signing."

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