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The global expansion of startups is accelerating and becoming a major trend, often described as the ‘destiny of startups’. In light of this, JCCEI has begun promoting global open innovation for startups aiming to help them enter foreign markets and develop joint business models. They plan to offer comprehensive support and foster cross-border collaboration through partnerships with FreeD Group, K-Style Hub, and Seoul Unniedeul, particularly given their experience in entering the Chinese and Southeast Asian markets. What vision and strategy will JCCEI and its partners use to successfully drive global expansion? We have discussed this topic.
Representatives of Global Open Innovation partner companies discussing strat egies for overseas expansion.
Global Expansion of Startups, Why Now? Jae-Hyeong Lee We have some key partners here who are working with JCCEI on global expansion. We’ll discuss various topics related to global expansion. To start with, let’s look into the various reasons why the domestic startup industry prioritizes global expansion and the features of local markets. Min-Gyu Lee I think the main issue is the size of the market. While we are seeing some unicorn companies emerge, I don’t think we’ll see any decacorn companies. That’s why I believe that overseas expansion is crucial for the development of the startup ecosystem in Jeju Island and our nation as a whole. When speaking to investors, many often assess the potential for global expansion. They tend to favor startups that have already gone international. Saet-Byeol Park I agree that going global is the key to accessing larger markets. Korean companies’ technology and product power are being globally recognized, so startups have enough qualifications to go global. However, they cannot simply rush into it without careful consideration. It is necessary to thoroughly analyze and measure the PMF(Product-Market Fit) of new business models. Tests in various aspects, including both online and offline, are required because the reactions of buyers and consumers can differ. Jae-Hyeong Lee As you pointed out, the pre-investigation and analysis stage is important, but it can be burdensome due to the costs and time involved. There may also be doubts about whether it is worth taking risks and expanding globally without a guarantee of success. Min-Gyu Lee It can be quite challenging for Korean companies to enter the Hong Kong market because it is an expensive city and both English and Cantonese are spoken. Nevertheless, I recommend targeting the Hong Kong and even the Chinese market, as they are lands of opportunity. A notable example is that Hong Kong imports over 95% of its food and agricultural products from abroad. This means that there is a great need for products from overseas brands. We have a great chance for success if we develop exclusive content and implement a premium approach. Moreover, as a large market with connections to the Guangdong Province, including Shenzhen, China, it could serve as a stepping stone for Jeju companies looking to enter the Chinese market. Yun-Jeong Park Southeast Asian market is similar yet a little different. Korean dishes like japchae, tteokbokki, and galbi soup are becoming popular. However, since Indonesia is primarily composed of islands, it’s difficult to sell ready-to-eat products like meal kits due to high logistics costs. There are many alternative ingredients that are locally available that can replicate the flavors of Korean tteokbokki. Therefore, startups need to come up with their own innovative ideas.
Min-Gyu Lee, Group Director of FreeD
Advice for Success in Global Expansion Jae-Hyeong Lee Since the global market is unfamiliar and unpredictable, startups thinking about global expansion will have many things to consider. We’d appreciate your insights on what to prioritize based on your experience with global expansion. Saet-Byeol Park Analyzing the market you want to enter is a fundamental step. A product that’s popular in one country might not succeed in another. Just as Korea, China, and Japan have different cultures, countries like Indonesia, Thailand, and Myanmar have their own unique culture. A different strategy must be developed for each country. Jae-Hyeong Lee What about taking a simpler approach to accessing the global market? Would using a global commerce platform to sell the products overseas be sufficient, without needing to establish a local entity? Yun-Jeong Park Of course, that’s a good way to test the marketability in advance. However, for the continuous scale-up of a startup, it’s inevitable to establish a local entity. Even in a country like Indonesia, where there is active investment in startups, the target is mainly local entity companies, not foreign companies. In many cases, local ownership is required for incorporation, so it’s recommended to work with a trusted local partner from the beginning. Saet-Byeol Park The Southeast Asian market is diverse, with each country having its own specific process for incorporation. Given the limited time and resources, managing all these processes alone can be challenging for a startup. In case setting up a local entity is unavailable right away, it’s beneficial to cooperate closely with partner companies to secure the market, and then establish a local entity as the market expands. Jae-Hyeong Lee Many startups have been making attempts to enter the global market, and some are now starting to show some positive outcomes. How would you assess the overall performance of Korean startups in the overseas market? Min-Gyu Lee In Hong Kong’s downtown Tsim Sha Tsui, Korean brands have a strong influence. Especially Korean chicken brand stores are so popular that people are waiting in line for more than an hour to get in. Chinese companies are also creating and promoting similar Korean food. It is highly competitive. Saet-Byeol Park The K-beauty market has a similar trend. Four to five years ago, large companies dominated the market. However, in the past two or three years, independent brands such as Beauty of Josun and Huxley have grown rapidly. The 2024 Beauty & Healthcare Show, taking place in Incheon, will feature mostly independent brands in the beauty category. Jae-Hyeong Lee As pointed out, the results of Korean startups entering the global market are becoming noteworthy and are being shown in different ways. There has been a growing number of consumers searching for small brands, which indicates that there are more chances for niche markets. We should also talk about the reasons behind these accomplishments. I wonder whether the market’s needs and supply just happened to fit together or if startups have carefully and strategically pursued overseas expansion. Min-Gyu Lee I believe that both factors were essential. Korean content, like K-pop and dramas, has gained remarkable popularity. There has been an increase in the global consumption of Korean culture. Startups can address those needs. They are focused on resolving the issues we are facing. That’s why startups show more apparent accomplishments in global expansion. Yun-Jeong Park Large companies have longer decision-making processes and procedures, so it’s difficult for them to keep up with trends. Startups, on the other hand, can execute something quickly if the reason for action is reasonable and there are enough ideas.
Saet-Byeol Park, CEO of Seoul Unniedeul
Strategic Partnerships for Global Success Jae-Hyeong Lee JCCEI started global open innovation with the idea that different strategies are needed compared to existing global expansion support projects. So, the primary necessity for us was partners who had a deep understanding of the global market. Thanks to these amazing partners, our global open innovation targeting Hong Kon and Southeast Asia is moving forward smoothly. I am interested to learn what motivated you to collaborate with JCCEI. Min-Gyu Lee First of all, Jeju has a wealth of unique content. In e-commerce, the top three products usually make up 70% of total sales. But these products are also sold in other places because of the nature of e-commerce. Therefore, to increase competitiveness, companies must either lower prices or improve their content. The fact that Jeju has unique content is the most appealing aspect. Moreover, when I travel to Hong Kong and China for business, I notice that Jeju is being mentioned more often and locals are showing a lot of interest in it. If we bring the unique content of Jeju startups to Hong Kong, both Jeju and Hong Kong will benefit. Most importantly, I was also convinced that we could effectively promote Jeju’s content if we utilized the closed mall operated by the FreeD Group. We’re getting a great deal of support from JCCEI and IMM Investment Hong Kong, and we really want to present good results. Yun-Jeong Park As K-beauty continues to dominate the Southeast Asian market, the industry is gradually expanding to include health functional foods. Products from Jeju, known for its clean nature, are becoming more competitive in this trend. The visa-free entry for Indonesian citizens is a major benefit for Jeju. It allows tourists to visit Jeju easily and freely share their experiences on SNS. Marketing to those tourists would be effective. Since now is the right time to promote Jeju’s products in Indonesia, we decided to support Jeju startups entering the Indonesian market Jae-Hyeong Lee I understand the representatives Yun-Jeong Park and Saet-Byeol Park are currently organizing an exhibition to showcase the products of Jeju startups as part of this global innovation. I want to learn what further roles you will play as a cross-border entity, beyond just offering sales channels and promoting the products. Saet-Byeol Park Seoul Unniedeul has started preparations to establish the ‘Global Online Jeju Goods Store’ in Singapore, Thailand, Indonesia, and Myanmar. You can think of it as the next phase of global open innovation. We are focusing on two major aspects. First, it serves as a test bed to evaluate the consumer response to B2C Jeju beauty products. Second, conducting offline buyer showcases will be an opportunity to assess the potential of the local buyers. The support doesn’t stop here. We regard all 30 companies that participated online exhibition, including the 5 startups that joined the JCCEI Global Open Innovation, as our customers and plan to provide continued support with entry, buyer discovery, and marketing in the coming and following years. Yun-Jeong Park K-Style Hub has been selected as a distribution partner for the Jeju Special Self-Governing Province Economic and Trade Promotion Agency’s Jeju Product Global Offline Support Project. We will be launching the offline flagship store of the Indonesian Unnies beauty app in Jakarta this October. Here, we will operate a Jeju offline store at the same time. This would be the opportunity to introduce the products we promoted online through Seoul Unniedeul directly to consumers and buyers offline. We will provide comprehensive support that covers both online and offline, including consulting and matching.
Yun-Jeong Park, CEO of K-Style Hub
Envisioning Sustainable Growth for Jeju Startups Jae-Hyeong Lee Lastly, do you have any advice for startups seeking to expand globally? Min-Gyu Lee I’m sure everyone would agree that global expansion provides a lot of benefits. However, it’s also quite challenging. It’s a difficult time to succeed as a startup, even in the domestic market. The global market requires twice or three times the effort. Please keep in mind that you need to invest a lot of time, funds, and personnel. Consistently contemplating and preparing for the best strategy that meets with your business model and vision, as well as identifying reliable partners to help you achieve this strategy, will surely result in favorable outcomes. Yun-Jeong Park I’d like to share two points. First, don’t neglect the domestic market even after expanding globally. Some businesses fail to perform domestically and then look for opportunities abroad, but having a solid foundation domestically increases the chances of success in global markets. Second, look at things from a long-term perspective for at least 1-2 years. You’d agree it’s not easy to succeed in a different language and culture in a short period of time. Patience is the key, as many cases show success after long-term efforts. Saet-Byeol Park Jeju is now home to many notable startups and products. These companies have succeeded in product development, design, and marketing. Brands with strong global competitiveness are being created in many places. Jeju’s local value and brand power can be an advantage. However, I suggest that those planning to expand overseas use the element to the fullest extent possible but not limit themselves to Jeju alone. Jae-Hyeong Lee When entering a new market, we must remember that it involves deeply understanding local culture and consumer needs, and developing strategies accordingly. We also saw that Jeju’s unique culture and content have global competitiveness and many new opportunities. We hope that all partner companies and startups collaborating with the JCCEI will succeed in global expansion, through which the creative and innovative ideas of Korean startups, including those in Jeju, will be widely recognized worldwide. Thank you.
Jeju Startups Taking on the Global Stage
JCCEI embarked on a trip to Hong Kong to build local partnerships for the operation of Global Open Innovation Matching Day. During the 4-night 6-day trip, they gathered background knowledge to understand the overseas market and support overseas expansion, and confirmed the potential for global expansion of GCCEI nurturing companies and Jeju companies.

June 4th-5th New Connection between Jeju and Hong Kong

#1. FreeD, the main partner for entering Hong Kong
The first schedule of the Hong Kong trip was a meeting with Min-Gyu Lee, a director of FreeD Group, which is an investment company of IMM Investment, JCCEI’s global partner, and a partner company for the Global Open Innovation program. The discussion was about the entry of JCCEI nurturing companies and Jeju companies into Hong Kong based on the network of FreeD Group, which has its headquarters in Hong Kong. In particular, the progress of the Hong Kong entry project was shared, which is being jointly undertaken with Jeju-based company Tamrain (CEO: Deok-hoon Ko).
#2. Cyberport, the IT startup nurturing organization After the meeting with the FreeD Group, we visited Cyberport, a business park that supports various IT startups in Hong Kong, including artificial intelligence and big data. In the startup business park located in southern Hong Kong, various technology-based startups, such s artificial intelligence and big data, are being fostered. There are over 1,200 venture capital and startup companies, with a total of over 2,000 member companies.
#3. InvestHK, the government investment promotion agency In the afternoon, we visited InvestHK. It is an official investment promotion agency under the government, actively seeking to attract various global companies by emphasizing its simple tax system and open market. In Particular, Hong Kong’s reliance on food imports (95%) creates a promising F&B market for local startups utilizing Jeju specialty products. It also provides services such as legal advice, visa support, and networking to aid foreign companies sustain their operations in Hong Kong.
#4. LX Pantos, the global logistics company
A gateway to a wider world, JCCEI laid the foundation for Hong
In May, the Korea Accelerator Association and Korea Early Stage Investors Association merged to form the Korea Startup Accelerator and Early Stage Investors Association. With the merging of the two associations, what vision and goals will they create and how will they cultivate the investment ecosystem? Hwa-Seong Jeon, the CEO of CNT Tech and the president of the Startup Accelerator and Early Stage Investors Association, and Byeong-Seon Lee , the director of the JCCEI, sat down to discuss the current state and future of the investment ecosystem.
Hwa-Seong Jeon, President, of the Korea Startup Accelerator and Early Stage Investors Association & Byeong-Seon Lee, Director of JCCEI

Driving the Ecosystem Forward with the Integration of the Two Associations

Byeong-Seon Lee Hello. First of all, congratulations on your appointment as president of the Startup Accelerator and Early Stage Investors Association. The merger of the Korea Accelerator Association and Korea Early Stage Investors Association is anticipated to generate greater synergy. It must not be an easy task to achieve integration beyond collaboration between the associations. Hwa-Seong Jeon ‌In February, I was appointed as the 4th president of the Korea Accelerator Association. Even before that, there have been calls for the integration of the two associations. As there are still many issues in Korea’s accelerator industry, there have been a lot of requests for us to work together. The merger was entirely based on this need. In addition, since I was part of both associations, the integration process was not too complicated. Byeong-Seon Lee What will change because of the integration of the two associations? I’m also curious about the aims of the recently established Startup Accelerator and Early Stage Investors Association. Hwa-Seong Jeon ‌ ‌The most significant change is that we have enlarged the scope of accelerators. In preparation for the integration, we carefully contemplated whether to incorporate only those with accelerator licenses or also include CVCs (Corporate Venture Capital) and VCs (Venture Capital) that also perform accelerator functions. From a wider perspective, all participants are players in the accelerator industry, so it was collectively decided to work together. We have decided that starting next year, if it is related to ‘seed money investment’, ‘pre-A investment’ and ‘acceleration’, we will consider it as part of our industry. We are also striving to expand the mother fund and increase commissioned projects based on the expertise of accelerators.

Strengthening Global Presence through the Operation of Overseas Bases

Byeong-Seon Lee Recently, one of the major issues in the startup industry is global expansion. To expand the startup ecosystem, businesses need to go abroad, and accelerators play a vital role in this process. What preparations do the Startup Accelerator and Early Stage Investors Association make for the global expansion of startups? Hwa-Seong Jeon ‌The Startup Accelerator and Early Stage Investors Association is also making efforts in various ways for global expansion. One of the ways is operating local bases in countries such as China and Vietnam. We are assisting startups and member companies so that they can reduce the expenses and expand their networks when entering foreign markets. We are also interested in overseas startups that aim to enter Korea. I personally believe that inbound strategies are important in the age of population cliff. We also utilize each of the local bases to promote inbound strategies to overseas startups. We are promoting the professionalism and passion of the Korean VC ecosystem and the benefits of relocating headquarters to Korea. Last year, we were able to do a reverse flip of a Singaporean company, and we are currently working on TIPS. Recently, we have been reviewing a reverse flip of a Vietnamese startup as well.

CNT Tech, a leading accelerator in Korea

Byeong-Seon Lee Besides being the president of the Startup Accelerator and Early Stage Investors Association, you are also the CEO of CNT Tech. Particularly, CNT Tech holds the record for the most investments by an accelerator in Korea. I’d love to hear how you started the business and what contributed to its growth. Hwa-Seong Jeon ‌I think I’ve had an entrepreneurial spirit since I was a student. The company I started back then managed to exit on a small scale, and with those funds, I founded CNT Tech in 2003. We began as a B2B platform aimed at streamlining food orders. After participating in the ‘Go Venture Forum’ led by Chairman Young-ha Ko of the Korea Business Angels Association in 2012, many startups started asking for mentoring. The primary challenge was a lack of funding. In 2013, with a focus on mutual support, I made my first investment. Fortunately, after five years, I was able to retrieve an amount that was about 2.5 times the total investment. Back then, I was more interested in expanding overseas, and accelerating was just a minor task. With the outbreak of COVID-19 the following year and the overseas expansion being halted, we shifted our focus to accelerating. Last year, we invested in around 80 projects, and this year, we anticipate investing in more than 90 projects. It appears that we have reached this point by just putting in the effort. Byeong-Seon Lee We look forward to seeing more successful investment and exit cases. Among the numerous startups you have invested in, which one stands out the most in your mind? Hwa-Seong Jeon ‌I would say, Cookat. CNT Tech initially invested in it in 2013. This startup manages food-based media channels, and in 2022, it was sold to GS Retail for 55 billion won and achieved an exit. I believe the secret to Cookat’s success is the humble attitude and efforts of its CEO, Moon-ju Lee. In business, you can face risks at any moment. Moon-ju Lee always stayed humble, even during rapid growth and tough times. From what I’ve seen, these are the people who usually end up being successful. Byeong-Seon Lee A while ago, you held the ‘2024 C-Forum’, which brought together investors and entrepreneurs to share their experiences and insights. It gained attention as Young-ju Oh, the Minister of SMEs and Startups, was also present. Hwa-Seong Jeon ‌After hosting the first one last year, we collaborated with Chosunbiz to organize the second 2024 C-Forum in July of this year. This knowledge forum brought together government officials, startup founders, investors, and experts from the startup ecosystem to discuss ways to foster a healthy startup investment and revitalize the venture and startup ecosystem. We plan to continue this event annually. Byeong-Seon Lee I think the reason behind your numerous accomplishments is your unique management philosophy as an entrepreneur. Hwa-Seong Jeon ‌The management philosophy of CNT Tech is ‘Business is people’. It is a saying by the famous merchant Sang-ok Lim of the late Joseon Dynasty. While we had to adjust our foodtech operations due to the COVID-19, we opted to train our existing workforce and set up a new accelerator organization rather than resorting to downsizing. I believe that when you put people first, the performance comes naturally.

The Future of Jeju Startup Ecosystem

Byeong-Seon Lee As an accelerator and investor in the startup ecosystem, what are your thoughts on the JCCEI as a builder of the local ecosystem? Hwa-Seong Jeon ‌The creation of innovation centers in every region of the country, linked to large companies or their subsidiaries, has led to many achievements. As public accelerators, they play a crucial role in the overall startup ecosystem, including investment, nurturing, and the creation of funds. They are important players in Korea’s startup ecosystem. Their role in the local startup ecosystem is particularly significant. Byeong-Seon Lee Some people claim that creating and investing funds by innovation centers overlaps with the role of private accelerators. Hwa-Seong Jeon ‌I believe that there are more opportunities for the innovation centers and private accelerators as co-GP. The innovation centers are in the public sector, so it’s easy to use infrastructure and also have a network with large companies. Most innovation centers also view co-GPs positively. Byeong-Seon Lee JCCEI has been striving to create a unique and innovative startup and investment ecosystem in Jeju over the past 10 years. I’m also interested in how you view the Jeju startup ecosystem. Hwa-Seong Jeon ‌Jeju has always been a place of interest for us, and we have been investing in companies like Haenyeo Kitchen, SGMA, Uh Shin, Air Deep, and Remedy for quite some time now. We would love to work with JCCEI as Co-GP if there’s a chance (laughs). We believe that companies in Jeju have a lot of potential for success. The unique environment, cultural content, and pristine nature only in Jeju provide great business models for startups. Being a company from Jeju gives a brand a positive image. I anticipate that there will be many promising startups emerging from Jeju in the future. Byeong-Seon Lee Thank you for making time to speak with us, even though you have a busy schedule following the launch of Startup Accelerator and Early Stage Investors Association. Is there anything you would like to say to the entrepreneurs who are working tirelessly today? Hwa-Seong Jeon ‌I would like to say to the entrepreneurs in Jeju in particular. I have met many of them, and they are very passionate and dedicated. They have a strong entrepreneurial spirit, and I want to give a Bir applause to all the entrepreneurs in Jeju, not just the companies that we have invested in, but all of them, regardless of whether they have succeeded or failed. We will continue to back you up in the future.
Strong Early Investment and Nurturing Form the Foundation of the Startup Ecosystem
Yulip is an eco-friendly lipstick brand that exclusively uses organic ingredients and components sourced from 100% natural origins, ensuring its safety for all users. Founded in 2017, the brand was launched in 2021 and within two months of entering the US Amazon, it became an Amazon Choice and achieved the Bestseller ranking. What makes Yulip so appealing? We interviewed Hye-seong Won, the CEO of Yulip, to learn more about it.
Hye-sung Won, CEO of Yulip
Q. I understand that you had a career as a beauty editor. Could you share what motivated you to start your own business?
A. It wasn't in my original plans to start my own business. I was dedicated to my previous job, but after getting married, pregnant, giving birth, and becoming a mother, it became difficult to continue working in the same way. As someone who has always taken on new challenges and lived life with intensity, I was kept very busy during my seventh month of parenting. It was during that time that I began to explore different business ideas. Instead of jumping into a field I know nothing about, I decided to create a business with items that I am familiar with. I came across Google’s Campus for Moms - a startup education program designed for mothers. After joining this program, I started my business.
Yulip's eco-friendly packaging, considering the environment.
Q. What are the values of your business, and what are the features of your products?
A. ‌In line with our brand value of envisioning a future where people and the planet live in harmony, all of Yulip's products are made from 100% eco-friendly materials sourced from nature. To make lipsticks that are safe for children to use, we use seed oil from Hippophae rhamnoides, camellia oil, evening primrose oil, shea butter, and borage oil as the base, and we make pigments from natural inorganic dyes, purple sweet potato, purple radish, and red iron oxide. The color of the raw materials may change slightly depending on the harvest due to the use of natural pigments, but it is safe for anyone to use because no chemical additives are added. We also receive a lot of positive feedback that lip troubles or skin health has been improved after using our product. It is a healthy and eco-friendly cosmetic that does not harm our skin.
Q. You are continuing your business under the slogan of a 100% natural, vegan beauty brand. Can you explain why you adhere to the same philosophy?
A. ‌Our philosophy is centered around ensuring a sustainable future for women, children, and the Earth. In today’s world, the mere act of eating, sleeping, and living leaves a negative impact on the environment. Additionally, cosmetics often contain chemicals that harm the user's health over time. An article has pointed out that a mere 2% of lipsticks in Korea are free from tar dye. It’s because tar dye is essential for vivid and intense colors. Nevertheless, it is not feasible to immediately eliminate products that make our lives more convenient, so we must think deeply about a sustainable future. Yulip is the result of careful thought and consideration. Our business is driven by the idea of developing cosmetics that are suitable for all ages and genders, and can be used for a long time, as well as products that are safe enough for our own children to use. Cosmetics marketing is a highly competitive field and it is difficult to aim for a sustainable future, but we often recall our initial intention when making important decisions.
Meeting to discuss product development for global marketing
Q. Your business quickly became an Amazon bestseller after launching. Could you please share the story?
A natural lipstick that can be used by mothers and children