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 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(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 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 Korean Startups to Ride on Digital Fever in Southeast Asia(6)

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

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. 

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.

 

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.

 

Recent startup boom across Southeast AStartup fever in Southeast Asia and its implication for India to improve indispensable public services(16)

Implication of Southeast Asia's startup fever for India to improve public services

This result clearly demonstrates the homework lying in the bottom of the Indian society. Startups armed with progressive social awareness can play significant roles in dissolving the messy fundamental public services especially those in education and health for the future of their country. 

This is none other than a right time for startups in India should open their eyes to Southeast Asia and try to learn the best lessons from their neighbors.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(3)

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

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. 

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. 

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 Korean Startups to Ride on Digital Fever in Southeast Asia(4)

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. This is no exception to Korean investment firms.

High Time for Korean Startups to Ride on Digital Fever in Southeast Asia(3)

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(8)

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(7)

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(6)

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(5)

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(3)

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(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 Korean Startups to Ride on Digital Fever in Southeast Asia(7)

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

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. 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.