\tAPAC 5G LEADERS\u2019 CxO SUMMIT, SEOUL: South Korea can\u2019t support venture capital funds focused solely on technology because the country\u2019s conglomerates, including all the mobile operators, are reluctant to invest in start-ups, argued Simon Baek, who handles fund management in Southeast Asia at InterVest.<\/p>\n
Baek (pictured) pointed out that the top two tech starts-ups in the country have only about $30 million in total funding \u2013 Chinese start-ups are 100-times better funded than in Korea. Only one Korean AI start-up is in the top 100 globally.<\/p>\n
\u201cThe conglomerates, like Samsung, SK, LG and Hyundai which all have acceleration programmes, say they care about start-ups, but they don\u2019t really believe in start-up technologies. They think \u2018why do we have to collaborate with them?\u2019,\u201d he said.<\/p>\n
He said talent from renowned companies want to set up start-ups outside of Korea because it\u2019s easier to get funding, noting Axiata, Ooredoo and Etisalat invest in more start-ups than SK Telecom and KT, the country\u2019s two largest mobile players.<\/p>\n
More support
\nHe insisted efforts in Korea to support newcomers are insufficient: \u201cThey are trying hard, but they have to try harder,\u201d adding many companies have the notion that talent in start-ups is not as good as in big companies.<\/p>\n
5G can accelerate things like AI development, but \u201cdeveloping a 5G platform is not enough,\u201d he said. In addition to incubation and acceleration of promising companies, they also need hands-on financial support.<\/p>\n
Baek said the government also needs to ease regulations and complained the regulatory sandbox in the country is not flexible enough.<\/p>\n
InterVest, with $1.2 billion in assets under management, is the fifth largest VC company in Korea. The Korean VC sector is growing rapidly, with about $3 billion invested in 1,400 companies last year, with most of the funds going into non-tech ventures.<\/p>\n","protected":false},"excerpt":{"rendered":"
APAC 5G LEADERS’ CxO SUMMIT, SEOUL: South Korea can’t support venture capital funds focused solely …<\/p>\n
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