Twenty-Year-Old Jiranjigyo Japan Approaches Direct Listing in Japan

Overcoming Three Years of Zero Sales Through On-Site Management
Two Subsidiaries Scheduled for Direct Tokyo Stock Exchange Listing in 2025
Plans for Global Expansion Beyond Japan to Europe and North America

Amid the recent surge of domestic startups entering the Japanese market, there is a small and medium-sized enterprise celebrating its 20th year in Japan this year. Jiranjigyo Japan, which has reached the age of majority in human terms, is now 'twenty years old.' Since its first step into Japan in 2004, it has grown into a company recognized in the Japanese software industry. To date, it has done business with over 15,000 Japanese companies. Last year, the sales of Jiranjigyo Japan and its affiliates reached 14.7 billion KRW, surpassing 10% of the Jiranjigyo Group's total sales of 134.7 billion KRW.

O Chi-young, CEO of Jiranjigyo Japan (left), and Ahn Jung-sun, CEO of Direct Cloud (Photo by Jiranjigyo)

Jiranjigyo Japan has six subsidiaries, including DirectCloud and JSecurity. Its clients include major corporations such as Canon IT Solutions, Fujitsu, and SoftBank. A direct listing in Japan is also within sight. DirectCloud, which provides cloud services, and JSecurity, which offers security solutions, are collaborating with Nomura Securities, Japan's largest securities firm, to pursue an IPO (Initial Public Offering). They are expected to enter the Tokyo Stock Exchange's Growth Market by 2025. The Tokyo Stock Exchange is divided into three segments based on company size: Prime for large enterprises, Standard for mid-sized companies, and Growth for venture companies.

Overcoming Three Years of Zero Sales Through On-the-Ground Efforts

DirectCloud participating in the Japanese information security exhibition IST (Photo by Jiranjigyo)

The early days of Jiranjigyo Japan's entry were truly like 'heading into the unknown.' From establishing a local office to recruiting staff and opening corporate bank accounts, every step was fraught with difficulties. There were hardly any precedents to refer to. No companies in Japan were willing to work with a newcomer like them. Sales were zero for the first three years. Voices within the Jiranjigyo Group even suggested withdrawing from the Japanese market.

O Chi-young, founder of Jiranjigyo Group and CEO of Jiranjigyo Japan, overcame the crisis through hands-on 'field management.' He boarded flights to Tokyo two to three times a month and at times spent nearly half the year in Japan. This is how relationships and networks began to take root. A prime example is 'Tripod Works,' with whom they still collaborate. Tripod Works was also a startup when Jiranjigyo Japan first entered the market. It is a company that distributes software. Unlike in Korea, where direct contracts are common, in Japan most contracts are made through such companies. Korean and Japanese startups have grown together by joining hands in this way.

Adapting to Japan’s ‘Craftsmanship’ and ‘Manuals’

The biggest difference between Japanese and Korean corporate cultures lies in the 'details.' Unlike Korea, which values speed, Japan prioritizes meticulousness even if it means being slower. For example, if Korea has 1,000 inspection items before releasing software, Japan typically requires 10,000.

Moreover, unlike Korea, where software is updated first and manuals are revised afterward, in Japan manuals are updated first before any software update. Updates not included in the manual are absolutely not permitted. The phrase 'the country of manuals' is not without reason. Jiranjigyo Japan actively embraced this Japanese culture. They entered the market with the philosophy that 'without localization, survival is impossible.' Many software companies have tried to enter the Japanese market, but few have survived for 20 years because they failed to overcome these cultural differences.

Now Moving from ‘Japan to Global’

JSecurity participated in the Japanese information security exhibition IST. On the left is Ochiyoung, CEO of Jiranjigyo Japan (Photo by Jiranjigyo).

The reason Jiranjigyo Group chose Japan as its top overseas expansion base was the 'market size.' Japan's software market is worth $92.5 billion, about six times larger than Korea's $15.1 billion, ranking third in the world. Although the initial transaction and trust-building period is longer than in Korea, once a contract is established, companies can enjoy stable sales for decades. It is also attractive that even for the same products, contracts can be made under much better conditions than in Korea.

Now, Jiranjigyo Group dreams of 'Beyond Japan.' Andae-geun, CEO of Jiranjigyo Partners, said, "If you gain recognition in the notoriously demanding Japanese market, it becomes easier to be recognized in the US and Europe," adding, "We will use Japan as a base to expand our global presence." They plan to secure resources through a direct listing in Japan and invest directly in excellent startups in the US and Singapore. Having reached adulthood, Jiranjigyo Japan is already preparing new momentum.

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