High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(2)

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(1)

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.

High Time for Digital Cooperation between Korea and Indonesia(8)

High Time for Digital Cooperation between Korea and Indonesia

What Korea has experienced in the last 20 years in becoming a global digital leader can be valuable asset to the Indonesian journey heading for the digital society. 

Beginning with promising fields including the fintech and the education, now is the right time for young startups in both countries to join hands with each other and hit the digital road hard.

 

High Time for Digital Cooperation between Korea and Indonesia(7)

High Time for Digital Cooperation between Korea and Indonesia

What COVID-19 has showed to the Indonesian society has served a wake-up call to this irreversible trend of the digital Indonesia. There are yet pending issues to tackle in startup fever in Indonesia. 

Poor IT infrastructures in non-urban areas, shortage of high-skilled work forces and widespread financial illiteracy have taken roots in many parts of the nation. This is where digital cooperation between Korea and Indonesia can take a meaningful step forward. 

High Time for Digital Cooperation between Korea and Indonesia(6)

High Time for Digital Cooperation between Korea and Indonesia

As the world’s biggest archipelago with 17,000 or so islands, Indonesia has been comprehended to have little choices but to rely upon online or mobile platforms powered by ICT (Information and Communications Technology) to have more people advantaged from the convenience and efficiency of the digital economy. 

In this regard, starting from the e-commerce field followed by sectors like the co-working space and the online travel, young and ambitious startups have been playing prime roles in taking initiatives to bring digital technology into reality.

 

High Time for Digital Cooperation between Korea and Indonesia(5)

High Time for Digital Cooperation between Korea and Indonesia

Actually, a growing number of venture capitals and startup accelerators have sensed exceptional business opportunities of Indonesia especially in terms of the market size. 

This favorable viewpoint has led to produce thousands of startups and 5 unicorns across the country. Against this background, it may not be too much to say that Indonesia will remain as a critical pillar of the regional digital ecosystem. 

High Time for Digital Cooperation between Korea and Indonesia(4)

High Time for Digital Cooperation between Korea and Indonesia

The fact that 9 out of 11 unicorns in Southeast Asia are headquartered either in Singapore or in Indonesia proves the significance of the two countries in the ASEAN digital economy. 

It seems that Indonesia has caught eyes of the global investment experts more actively than Singapore in the regional competition of startup waves. The potential for growth in the country's digital industry has made it attractive to investors and entrepreneurs alike. 

High Time for Digital Cooperation between Korea and Indonesia(3)

High Time for Digital Cooperation between Korea and Indonesia

Consequently, as many as 11 unicorns, privately held startup companies valued at over $1 billion, have emerged from various industries such as the mobility, the e-payment and the online game. It is Singapore and Indonesia which has been spotlighted the most for the startup frenzy in Southeast Asia. 

The two countries have been in the forefront of the development of the digital economy in the region. Singapore has been recognized to incubate the advent of the digital era with its strong commitment to innovation while Indonesia has been viewed to beef up the digital fever based upon its presence as the most sizeable playground. 

High Time for Digital Cooperation between Korea and Indonesia(2)

High Time for Digital Cooperation between Korea and Indonesia

Digital cooperation spearheaded by startups in both countries can be a new topic of the time when the deadly COVID-19 pandemic has further spurred the necessity of the digitalization of the Indonesian society. In fact, startup boom deserves named as one of the hot issues in Southeast Asia since mid-2010s. 

Startup markets across Southeast Asia have been rapidly gaining momentums. Local leaders of the digital economy such as Grab in Singapore which acquired the Southeast Asian business unit of Uber in 2018 have been acclaimed for changing the conventional industrial map in the region.

 

High Time for Digital Cooperation between Korea and Indonesia(1)

High Time for Digital Cooperation between Korea and Indonesia

Indonesia, the largest economy in ASEAN (The Association of Southeast Asian Nations), is one of the key counterparts of the New Southern Policy initiated by the Korean government.  

Bilateral relations between Korea and Indonesia have been continuously improved and were finally elevated to a special strategic partnership in 2017. Now the two countries have their 75th Independence Day, Korea on Aug 15th and Indonesia on Aug 17th, come just around the corner. 

 

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(8)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

This also holds true to Korean startups and venture capitals gearing up to carve out the Southeast Asian market. 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(7)

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia

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. 

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.