The establishment of the AEC and its implication for South Korea
According to the AEC blueprint 2025, part of the ASEAN 2025, the AEC rests on four pillars; a single market and production base; a competitive economic region; equitable economic development; and integration with the global economy.
The AEC has been expected to draw huge attention from the international society ever since it came into the world. It isn’t too much to say that agendas of the AEC blueprint 2025 such as elimination of tariffs, facilitation of skilled labor mobility, liberalization of investment and promotion of connectivity have been greatly valued to the global community.
The establishment of the AEC and its implication for South Korea
10 ASEAN members are faced with their own weighty political or diplomatic issues as mentioned. However, all countries may share their uniformed look at the 'AEC(ASEAN Economic Community)'.
It is because the AEC came to the 2nd year of its ambitious inauguration 47 years after the establishment of the ASEAN in 1968. Along with the ASEAN Political-Security Community and the ASEAN Socio-Cultural Community, the concept of the AEC was born from the ASEAN 2025 adopted by the leaders of the ASEAN.
The establishment of the AEC and its implication for South Korea
The ASEAN(Association of Southeast Asian Nations), the 7th largest economy in the world, seems quite noisy in the wake of the new year, 2017. Assassination at the airport of the capital city of Malaysia triggered huge fury from all over the world as the North Korean regime is suspected of the mastermind of the incident.
While Myanmar is under international criticism for the massacre of its minority group, Indonesia sees social conflict with controversy of the majority religious party’s alleged attempt to exercise influence on the political sector.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
Local startup founders have made unanimous voices that success stories of mainland Chinese startups have inspired them a lot. It is a shame that Korean startups are rarely mentioned for role models of Southeast Asian young entrepreneurs.
Beginning with promising industries including fintech, education and mobile games, now is the right time for Korean startups to hit the digital road hard in Southeast Asia.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
With the exception of Singapore, capital markets and legal and institutional systems for startups in the region aren’t well devised and developed as well.
However, venture capitals, symbols of adventurous money would remain indifferent unless they feel confident of more gains than losses by stepping into the digital frenzy in Southeast Asia. This also holds true to Korean startups and venture capitals gearing up to carve out the Southeast Asian market.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
This could explain why global investment experts have been paying close attention to this area where youngsters covering around half of the overall population are jumping on the brand new era of digital economy.
There are yet pending issues to tackle in startup fever in Southeast Asia. Poor IT infrastructures in non-urban areas, shortage of high-skilled work forces and widespread financial illiteracy have chronically taken roots in most parts of Southeast Asia.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
The number of internet users in key countries of Southeast Asia like Vietnam and the Philippines has been increasing the fastest in the world. According to an article from the Wall Street Journal, whopping 120,000 online users are newly reported in the region on a daily basis.
There is further prediction that 480 million people almost nearing the entire population of the EU (European Union) will be accessed to internet in Southeast Asia by 2020.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
This is no exception to Korean investment firms. As centered on Indonesia and Vietnam, two countries in the region respectively representing the maritime and the continental Southeast Asia, news of Korean venture capitals eagerly exploring lucrative investment opportunities are heard now and then.
Why startup markets in Southeast Asia are much spotlighted? High growth potential in the region would be singled out above all things.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
For example, attempts to introduce mobile technology to region-specific circumstances have been drawing huge attention. To name a few, startups aiming for improving the productivity of aquaculture industries or producing eco-friendly shopping bags to provide customized solutions for Southeast Asia where primary industries still considerably counts are loomed large.
In addition, indigenous family conglomerates have joined the startup wave by setting up venture capitals and navigating business chances.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
Lazada, an e-commerce platform in Singapore and Gojek, an Indonesian app-based ride-hailing service provider are presentable cases. It is mainly young Southeast Asians equipped with experiences of studying in Western countries who initiated startup craze in the region.
As more and more young generations across the region rush to kick off their own companies, business models of startups are getting shaped up in a various way.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
According to Tech in Asia, a Singapore-based online technology media, startups in Southeast Asia received as much as $7.9 billion in investment in 2017. This figure is more than tripled than the total startup investment of $2.5 billion in 2016.
This is far alarming because investment in Southeast Asian startups failed to reach even $1 billion in 2013. Consequently, unicorn startups, privately held startup companies valued at over $1 billion has been emerging one by one.
High Time for Korean Startups to Ride on Digital Fever in Southeast Asia
Startup boom can be named as one of the hot issues in Southeast Asia this year. This may not sound familiar to most Koreans except for those involved in the IT industry or venture capital sectors. However, startup markets across Southeast Asia have been rapidly gaining momentums.
In fact, locally born leaders of digital economy such as Grab in Malaysia which recently acquired the Southeast Asian business unit of Uber have been acclaimed for changing the conventional industrial map in the region.
