During the five years David and Charlotte Cho lived in South Korea, friends and family were always asking them to bring back their favorite beauty products when they visited California. Turns out they loved the local brands, but couldn’t find them anywhere they shopped in the U.S.
Surprised that no entrepreneur had hit upon the idea of importing the sought-after skincare lines, the Chos founded Soko Glam in Seoul but focused on the U.S. market. Their company immediately took off, garnering great reviews in fashion magazines like Allure and Marie Claire.
Charlotte eventually quit her job at Samsung in Seoul, David finished his service in the U.S. Army, and they moved to New York City in 2013 to focus on gaining traction for their startup.
As they talked with more people, it turned out that starting a company is still considered to be a risky move in South Korea. Things are slowly changing, but the mindset is that it’s a safer bet to get a good job at an established corporation.
So the Chos decided to encourage would-be entrepreneurs by providing internships for college students born in Korea. David Cho says he emphasizes that they’re going to get hands-on experience.
“I tell them, ‘You’re not going to come here and make coffee and print copies,’” Cho says. “‘You’re going to do real work. I want to give you a real startup experience.’”
Cho, a WeWork NoMad member, recalls a conversation he had with a few of his interns in their early twenties. They said they couldn’t join a startup because they’d never be able to get married.
“They care so much about what job they’re going to have,” Cho says. “Not for the title, but because they think, ‘I want to get married. I can’t get a proper girlfriend if I don’t have a job. Nobody is going to marry me if I don’t have money to get an apartment.’”
The positive feedback he’s received from interns is enough to keep them reaching out to the younger generation in Seoul. It’s an eye-opening experience for them because most had never worked at a startup.
Cho’s advice is simple: “Bottle up that feeling when you go back to Korea.”
Building bridges
Other entrepreneurs are also building bridges between Seoul and New York City. Young Kim’s startup Kicea, which has space in WeWork Times Square, provides internships and skills training for students in Korea.
The program aims to give Koreans a sense of the U.S. job market, even if they end up working for a multinational corporation in Seoul. He says it’s a struggle to try to break out of the mold when you’re a millennial in South Korea.
“Many students want to get a job at a conglomerate in Korea because of safety and security, but I want to expand their horizon in terms of professionalism,” he says. “I don’t want them to be dedicated to just getting a job at a conglomerate. I think Kicea could help them open their eyes.”
Seoul-born MJ Kim, founder of 3Claps, a fashion-forward children’s clothing company, says many older Koreans are still wary about their children striking out on their own.
“My father’s generation had a bad image of startups because they see having investors as losing shares,” he says. “But what they didn’t understand is you’ve got to give up something to grow to the next level. Korean startups are starting to understand that.”
Kim says it helps that government programs are popping up that promote newly launched businesses.
“The Korean government is pushing a policy of changjo gyungjae, or ‘creative economy,’ that puts money towards entrepreneurs who are starting creative businesses,” he says.
South Korea’s startup culture is still less than a decade old, points out Sang Lee, founder of DarcMatter, a technology platform for asset managers. As salaries at startups have risen, parental pressure to take more secure jobs at established companies has diminished.
“A broader stigma of being in a startup has been lifted, and the lifting occurred because more startups can pay close to market salaries in Korea,” Lee says. “Five years ago, it was pretty much impossible for Korean startups beyond co-founders to survive without pay.”
What also helps foster camaraderie in South Korea’s startup scene is removing the emphasis on traditional work hierarchies and instead focusing on being part of a team.
“I always tell Koreans they should get rid of titles at companies,” says Lee, a WeWork Chelsea member. “In Korea, people think CEO and founders are very important, but a lot less emphasis is placed on how important the team really is.”
Photo: Lauren Kallen