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Showing posts with label startup. Show all posts
Showing posts with label startup. Show all posts

Tuesday, April 20, 2021

From zombie maeul to seed village - from fake startup communities to real Communities-as-a-Startup

As far as train wrecks go, the demographic ones are the easiest to predict. And Korea's bullet train is not exactly slowing down.

Last year, the nation officially posted its first negative growth on record, but COVID-19 had little to do with it. Yes, the pandemic claimed over one thousand lives and that's far too many, but that's also only a fraction of what most countries experienced. Yes, it hindered Foreign influx, but it also drew many members of the Korean diaspora back to the motherland. Yes, it will also impact future births, but last year only prolonged distressing trends: 2020's record low fertility rate (0.84) was preceded by an already scary one (0.92 in 2019).

If you think 2020 was bad, 2021 starts even worse...

... and the previous years already showed how bballi bballi Korea was aging even before the pandemic

In this sub-zero-sum game, the only regions that progressed spectacularly, Sejong and Gyeonggi-do, did it often at the expense of Seoul: the former benefiting from the transfer of governmental administrations, the latter from suicidal real estate policies that further accelerated the capital's decline (now well below the 10 M threshold it passed for the first time in 1988). Yet in March 2021, even Gyeonggi-do posted its first population decrease since the 1980s.

All over the nation, more rural localities are facing extinction*, and Korea continues its urbanistic nonsense, adding more dwellings to an already overflowing market because decision makers don't know any other translation of 'make homes more affordable' (what it needs) than 'build new homes' (which it doesn't need). I'll just repost below part of the rant I wrote five years ago (see "Seoul summerscapes: death, taxes, and budongsan" - 20160917, and all previous posts related to demography):

Now, the pandemic did act a bit like a catalyst at some level. If, so far, the nation hasn't implemented a real lockdown (except for Daegu), many have experienced remote working or remote learning at home in confined conditions. Like everywhere, many are dreaming of individual homes, more private space, a greener environment, many are reassessing their priorities, the rat race. And like everywhere, more city dwellers are considering rural lives. 

Of course, if there's always been a market for the Larzac / flower power fringes, most people wouldn't give up a certain level of services. And the 'winning' regions end up losing their souls when they pour concrete over their pristine shores to lure more city slickers (e.g. Jeju).

Can and should all rural communities be saved? I don't think so. But rural desertification can and should be prevented where it makes sense in a sustainable way.

Spontaneous grassroots initiatives can work, but local authorities can also play a role. What matters is that no one should play it selfishly, or with a short-term vision. Regional and national authorities an also help, particularly in order to mutualize and share resources and to make sure that as few people as possible fall out of the grid on key services and infrastructures.

Take the digital divide, for instance. Broadband coverage being strategic, it has become rather common for regulators and local authorities to push for network sharing schemes between operators, just like SK Telecom, KT Mobile, and LG U+ did last week: the government selected 131 rural and coastal areas which will then be covered by all 3 players, even if it wouldn't have made economic sense for any of them otherwise.

That's a good example on how a macro approach can help prioritize and focus the efforts. Local authorities should also pool to help prevent the closure of such essential infrastructures as hospitals or schools, which often accelerate the down spiral and seal the fate of several localities.

Education is paramount, and recent innovations and changes of habits could help change the equation for endangered institutions. We know that remote learning can become part of the mix, but also that some level of physical presence is essential for pupils. In order to maintain schools with a good level of education, why not have for instance confirmed teachers teach in parallel in different classrooms, with a junior assistant in each? 

Some worry about the absence of cultural life, but in Korea, I've already seen artists move their studios to very rural settings, or an old, remote industrial site converted into an art residence. And more fundamentally, there is no such thing as a cultural desert where a community is alive. Involving existing communities guarantees a cultural continuum, a transmission of the knowledge of the land and its history, but this is the ideal opportunity to bring more diversity. In Europe, quite a few rural communities have been revived by Foreigners who came to love them, and felt the love in return. A dying Italian village was repopulated with refugees and there as well, essential services could reopen. 

To help tilt the balance in the right direction, authorities can subsidize essential services. It's good to make sure that within a certain radius there's at least one store that can also provide basic postal / logistical services (not just a mini local platform for the pervasive delivery services). Once you enter a virtuous cycle of organic revival, other infrastructures can be envisioned - e.v. charging station, mini shuttle operations...

You don't want to build something as artificial as these cult-like life-on-Mars simulator bubbles, but grow reasonably ambitious, sustainable, local, impact projects. Transform zombie villages into seed villages where you want to enjoy life and why not, have kids. 

I realize that the concept of 'seed village' is already used for something very different, less inclusive. I was also into startup references. When I observe Korea's and not just Seoul's startup ecosystem, I see a lot of zombie startups that don't make sense, have no business model or future, and only exist and survive because they know how to milk the blind cows of public subsidies (and more than a few private funds, mind you).

I strongly believe that every region claiming to be the next startup magnet (in other words, this being Korea, all regions) should devote a portion of its startup budget to not-necessarily-tech, communities-as-startups approaches. If they manage to build clusters that's great, but in parallel it would be nice for Korea to build a grid of such CaaS (not Containers as a Service but Communities as a Startup). A human network, a community of communities sharing best practices instead of local authorities competing with each others.

It shouldn't be just a Bring-your-own-job party for young entrepreneurs, but an attractive alternative for people of all backgrounds and vocations. And the perfect occasion to fulfill overlooked yet strategic land-oriented missions: for instance, Korea needs to improve its forest maintenance, and to reduce its agricultural goods / food dependency through a more sustainable farming.

Now seems the time to seriously give it a try.


Seoul Village 2021
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* see interesting data about the local extinction risk index in "Korea Is Aging Rapidly" (The Dongguk Post 20210412)

Monday, May 21, 2018

Riding along 'horizontal verticals' in Magok District (Part II)

This is the second part of my focus on Magok District:
    1. Framing Magok (Part I - Location)
    2. Magok's horizontal verticals (Part II - Cluster)
    3. Magok's lifespace (Part III - Environment)


***


2) Magok's horizontal verticals

In the first part we saw how, by its simple location and connectivity, Magok District enjoyed key assets for a business hub. In the third one, we'll see if its environment can, as advertised, attract researchers and creative minds. Here, we'll focus on the innovation cluster promise.

The signature used in recent advertorials sounds familiar, and as usual with previous Korean projects sharing similar ambitions in the past, 'Korean Silicon Valley Magok' ("한국의 실리콘밸리 마곡") is supposed to create a haven where big fish and small fry cohabit. But as usual, chaebol struggle to envision innovation clusters beyond proprietary ecosystems, which can become a major hurdle for diversity and creativity (see "Redrawing Korean Maps - Innovation Clusters").

Magok doesn't aim at aggregating value around business 'verticals' like the Sangam DMC, conceived as the name suggests for media and entertainment, or even Songdo, when it was desperately looking for a way to reboot and better market itself. Here, we're into 'convergence and fusion technology', more in the Pangyo Techno Valley vein, but with a stronger industrial - manufacturing touch.

As the first big fish to sign for this former swampy rice paddy area, LG Group set the tone for 'convergence and fusion', pooling Research and Development teams from key subsidiaries (LG Electronics, LG Chem, LG Display...) in its LG Science Park complex (18 buildings, capacity of 25,000 employees) to better tackle such challenges as robotics or A.I.. Similarly, Lotte Group is looking for new synergies between Lotte Food, Lotte Confectionery, Lotte Chilsung Beverage, and Lotteria...

Should we dub this higher stage of chaebolism 'horizontal verticals'?


Clockwise, the site of Tadao Ando's future LG Art Center / LG Science Hall, LG Science Park's ISC (Integrated Support Center), Kolon One and Only Tower.
LG Science Park Integrated Support Center (www.instagram.com/p/Bi8rK-slfWJ)

LG also provides the neighborhood with a cultural venue designed by Tadao Ando. The new LG Art Center will open in 2020 on Magokjungang 10-gil, across the LG Science Park and next to the park itself. The group will operate the theater for thirty years before offering it to Seoul city.




It's way too early to judge this new ecosystem, particularly since, like in the DMC, small players are supposed to join after the big ones. Urbanism and architecture can give us clues about the potential, though. For instance, LG Science Park can look like series of containers from a distance, but many buildings are porous, with atria and green walkways, giving the ensemble a campus-like touch, more open to its surroundings than other, more monolithic centers.

Unlike the actual Silicon Valley, where most companies of all sizes and shapes settled in existing urban or peri-urban environments, this research complex consists of contiguous lots, most of which will be developed by one powerful player. So if you're having a coffee in the Eastern half of Magok District, chances are it will be in a building owned by one of those, which may alter the way you pitch your startup over a cup of java.



***

If Magok District will welcome garage startups, they are not its main target. The aim is to boost innovative research in industries that do have fuzzy edges, but also complex cores and cycles, and it already signed enough significant players to succeed. More will want to join in a site ideally located for logistics and within the capital city, but quality of life will also be a factor. Ideally, Magok's environment must stimulate creativity, but in not necessarily too 'speedy' and disruptive ways. 

Is it likely to deliver? That's what we'll check in our last part of this focus.

 
Seoul Village 2018
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Wednesday, August 10, 2016

What's cooking, Korea?

In a recent focus on the decline of home made banchan in Korea*, Korea Joongang Daily mentioned busy schedules, and the boom in HMR (Home Made Replacement) products, new online services (e.g. The Banchan, about to be purchased by food major Dongwon Group), or restaurants proposing home food (jipbap).
Korea's tradition of homemade banchan is vaning. Many new products and services indeed (20160810 - twitter.com/theseoulvillage/status/763151485890809856)
To me, even more than the arrival of hypermarkets, the emergence of SSM or Super-SuperMarket  (dominated by the same oligopoly: Lotte Super, HomePlus Express, E-mart everyday) accelerated changes in HMR variety and packaging, particularly when it comes to targeting specific demographics, like single households. And as all the major producers seeked for differenciation, the HMR offer evolved from classic dishes to more creative recipes. 

Yet that creativity has yet to emerge for banchan in the Korean distribution, even online.
If theBanchan is more a food market before than a banchan specialist, it does offer a wide range of banchan, but without revisiting the classics. Furthermore, big food groups taking over this kind of potentially disruptive players doesn't bode well for diversity in the future.
I'm less worried about fewer Koreans preparing their own banchan - a logical trend - than about Korean palates being exposed to fewer kinds of banchan. And over the past few years, the decline in diversity for side dishes offered in Korea's mom and pop restaurants has been very spectacular. If it's linked to their struggle to stay in business in these times of crisis, old customer habits don't help: many remain reluctant to pay a fair price for Korean food (yet ready to pay way too much for mediocre Foreign food). 

The good news is that Korea, as usual experiencing societal changes at bballi bballi speed, seems to be rediscovering cooking way sooner than other nations. And not just young girls asking family recipes from their halmoni: people of all ages opening creative eateries, granddads venturing into the kitchen, food becoming a key driver in the startup ecosystem...

So be not afraid, Korea, and keep surprising us!

Seoul Village 2016
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* "Rise of pre-made banchan may herald end of an era: Busy schedules deal blow to culture of Korea’s quintessential side dishes" (KJD 20160810)

Tuesday, July 28, 2015

Non-Centers = No Innovation, No Creative Economy

This map shows what's wrong with innovation in Korea: each "Center for Innovation and Creative Economy" is led by one chaebol, but the startup ecosystem demands actual clusters* and truly open approaches.


Korea innovation centers* too chaebol-centric. Startup ecosystem needs real clusters
* koreajoongangdaily.joins.com/news/article/article.aspx?aid=3007182 (KJD 20150729)
The contradiction is obvious, but the Korea JoongAng Daily article this map came from ("Outside Seoul, new centers have a sleepy feeling" - 20150729) doesn't even mention it as a reason why these centers fail, like all attempts from previous administrations.

Again (see my essay on "Heralding cultural diversity - a stronger and more sustainable Korean wave" - particularly part III, on the business dimension), the chaebol seldom act as true cultural leaders, and that's a drag for the nation.

Yet change is coming to Korea. In spite of the inability of most chaebol to truly adapt, and of governments to push for true reforms. And if these changes are not necessarily positive, they make Korea Inc.'s posture even less sustainable.

As expected (see "The Bigger, The Bitter"), the money recently poured over the nation by Google and many major international V.C.s to put a lock on the most promising startups is at the same time fueling the local and global bubbles, and weakening the chaebol sphere of influence. Now being the only new kid on the block isn't enough, and the time Yellomobile could purchase dozens of startups for a song has ended.

One of the most positive side effect could be the evolution of mindsets towards enterpreneurship and startups. The fear of failure, a major impediment to innovation in Korea (see "Too proud to fail? Not so simple."), is on the vane. 

And that's not just blind belief in the latest tech bubbles: more among the nation's brightest students prefer to give it a try rather than join Samsung and Co. even if they know chances are not on their side. They welcome failure as a positive experience, and they know that it's better to start with it, that they will learn more during these 'wasted' months or years than by following the mainstream lemming race.

Now Korea also needs a couple of greatly successful failure stories, and a fairer balance between the conservative and the disruptive.

I'm feeling certainly more optimistic than a couple of years ago, and I've met more than a few young brilliant minds trying promising things. They know they can't expect much from the big fishes or from the government, but it wouldn't hurt if said big fishes and said government actually decided to prove them wrong.

Seoul Village 2015
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* and it's not just about bringing everybody on the same place either (see "Redrawing Korean Maps - Innovation Clusters")

Monday, August 2, 2010

Business Start-up School - 3rd Session (September)

After the March-April 2010 and June 2010 editions, the Seoul Global Center Business Start-up School is back ! About the event :
Seoul Global Center Business Team welcomes expats to the 3rd session of our Business Start-up School. Together with a business counseling service, this program will offer expats in Seoul a chance to learn from helpful courses and network with colleagues, to make their business bigger and better. (※ The Business Start-up School is a free program run by the Seoul Metropolitan Government) General Information · Who: Future Entrepreneurs (International Residents in Seoul) · When: Monday, September 13, 2010 ~ Friday, October 1, 2010 · Where: Seoul Global Center - Seminar Room (5F, Press Center Bldg.) Course & Instructors Description · Basic course: 10 courses, 20 hours · Instructors: Nationals and International experts in the field of Foreign Direct Investment (KOTRA, Seoul Development Institute, Small and Medium Business- Administration, SBA Business Support Center, Korea Development Institute etc...) Selection · 20 students will be selected · Business Plan Reviewing - Candidates with business ideas that have a higher chance of success and show other established readiness (interest, knowledge, etc.) will be selected first - Successful candidates will demonstrate an established capacity to start a business (capital, experience, qualifications)
=> Download application form For more information and updates, contact 'Eva': 02-2075-4139 / letsgoeva@sba.seoul.kr More about Seoul Global Center services : - on their website (
global.seoul.go.kr) - on Seoul Village (including this focus : "Invest in Seoul, Seoul is already investing in you !") Seoul Village 2010

Thursday, May 6, 2010

Business Start-Up School Program and other Seoul Global Center events

In the mood for starting your own business in Seoul ? You have until May the 20th to apply for the next Business Start-up training provided, free of charge, by the Seoul Global Center, always eager to stimulate the international business ecosystem in the capital city. In order to cope with its success (ie last edition in March, see "Business Start-Up Education Program - Seoul Global Center"), the program will welcome four times more trainees and feature new lectures from prestigious institutions. This new and improved edition combines 'Basic Course', 'In-Depth Course', and 'Field-Trip' courses depending on the 'Desired Business Type' selected in your application form, which you can download here. Period: June 14 (Mon.) ~ June 28 (Mon.) Time: about 3 hours everyday (from around 18:30) Also organized by the Seoul Global Center : - 2010 Information Fair : When ? May 8th and 9th, 2010 (Sat-Sun), 12:00-19:00 Where ? outdoors, between the Seoul Finance Center (Taepyeongno 1-ga, Jung-gu) and Cheonggyechon. Take City Hall Station exit 4 (Lines 1 & 2) or Gwanghwamun Station exit 5 (Line 5). About 40 organizations will provide a wide range of useful information to international residents : Global Village Centers, Public Service Organizations, International communities, Language schools, Medical Services, Sports / Beauty, News / Magazines, Settlement Support, Cultural Events, Travel, Transport Services, Finances / Communication, Housing / Residential Services... Also : cultural exchanges in connection with the 2010 World Festival / Friendship Fair. - 2nd Foreigner's Flea Market : When ? May 29 between 1 and 5 pm Where ? at the Seoul Folk Flea Market in Sinseol-dong, Dongdaemun-gu - take Sinseol-dong Station (Lines 1 & 2) exit 6, 9, or 10. Something for sale ? Expats can register as vendors (it's free of charge) on SGC's website. More about Seoul Global Center services : - on their website (global.seoul.go.kr) - on Seoul Village (including this focus : "Invest in Seoul, Seoul is already investing in you !") Seoul Village 2010 ADDENDUM 20100514 The program is now available on global.seoul.go.kr. Note that the session will eventually run from June 14 to July 3 (different packages of 4 to 19 courses). The application can now also be downloaded on SGC's website. For more information, contact 'Eva' (Tel: +82.2.2075.4139 - email: letsgoeva at sba.seoul.kr)

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