Hotbed korea be success(1)

Korea,

The NEXT Hotbed

for

Asia’s Entrepreneurs

Hyunwook James Jung

CEO of beSUCCESS

Korea,

Brief Overview

In Numbers

Let’s First Take a Look at Some Numbers

April 4, 2013 Tech in Asia, Singapore Korea, the Hotbed for Entrepreneurs

Republic of Korea is one of the hottest economies

in the world

•  In 2010, Korea was ranked 3rd in the world in terms of econo

my dynamism (Source: Newsweek, 2nd: US, 1st: Singapore)

•  Population of Korea: 50,991,003 (As of Feb. 2013)

•  GDP Per Capita: USD 23,679 (Source: IMF, 2011, 2nd in Asia)

•  Seoul is projected to be Top 25 Global Hotspots in by 2025 wi

th USD 55,000 GDP per capita (McKinsey, C.f., New York: 79K,

Tokyo: 49K, Beijing: 44K)

Let’s First Take a Look at Some Numbers


K-POP

Korea is HOT on Mobile, too!


Source: Korea Internet & Security Agency

Korea is all Connected! •  Internet-strong: 104.2% Internet Penetration •  32 MM Smartphone Users (As of Q4, 2012)

•  67% Smartphone Penetration (1st in the world)

•  35% Growth from 2011 (Source: Informa)

•  68.7% change smartphones less than 2 yrs

Korea is HOT on Mobile, too!


Source: Korea Internet & Security Agency

4G is Trending! •  44.6% of smartphones are 4G (LTE, up from 28.7% in the first half of 2012) •  15,890 4G smartphones •  4G traffic takes up about 46% of all mobile traffic

On Mobile User Behaviors


Source: Matrix

iOS is Tumbling Down! •  iOS M/S first dropped under 10% mark since the iPhone launch in 2009

•  It is estimated Android M/S now exceeds 90% mark, as of Feb. 2013.

Source: Korea Internet and Security Agency




SNG is Strong! •  79.7% of smartphone users is playing or have played SNG. •  Avg daily playtime is 54.4 minutes. •  Main player segment is teenagers (87%), however, 77.2% in 40s and 54

.3% in 50s •  Among the players, 69.8% Played casual games, 39.2% simulation gam

es, and 12.4% RTS/MMORPG * SNG: Social Network Game




10milion Downloads in 17 days in Google Play






Monthly Sales of Kakao Games

$ 4.7 milion $ 13.8 milion

$ 40 milion

2013.8 2013.9 2013.10

VC Activities


Source: Korean Venture Capital Association

VC Activities are increasing! •  It is commonly said that there are more than sufficient amount of venture capital

in Korean market. •  In 2012, 126 startup investments were made, up from 116 in the previous year. •  For the past 8 years, startup investments proportion to overall deal volumes pea

ked in 2011, at 19%. •  For total of 105 VC firms, the average number of new startup investments in 201

2 was 1.2, slightly up from 1.1 of 2011.

VC Activities


Trend Setters •  A noteworthy change in 2012 VC activities in Korea was the epiphany of VC firms (

funds) specialized in startup investments, namely:

•  The Government of Korea established a 1:1 matching fund for angel investments i

n order to increase angel investments.

VC Activities


(Foreign) Accelerators/Angel Investors •  In 2012, was the Renaissance of Korean angel investors and accelerators.

•  More Foreign and domestic accelerators were established.

Korea,

Payment

Infrastructure

E-payment


(Source: Statistics Korea, 2013)

Payment in online is still growing very fast

%Growth Total Volume (KRW Billion)

E-payment



Online E-commerce is still growing very fast

%Growth Total Volume (KRW Billion)

E-payment



Credit Card (combined with Debit Card) is the Dominant E-payment Method

E-payment


Oligopoly in Payment Gateway Market

Payment Gatekeeper (“PG”) Market: 80% M/S

Mobile PG Market: 99% M/S

E-payment


Large Corporations are Tapping E-Wallet Market

Telcos Retailers

…

Banks

Korea,

In Short

Wrapping Up


Very Fast and Interesting Culture

James Jung / [email protected]

Documents

Hotbed korea be success(1)