KAIST 경영대학 startup

As a cradle of entrepreneurship, KAIST’s College of Business has played a leading role in producing IT service startups. More recently, its graduates have been making notable contributions to the game industry, O2O, and knowledge-based ventures. Alumni serving as heads of online game companies include Byung-kwan Kim, the founder of Webzen; Sung-kyun Na, the founder of Neowiz; Yong-hoon Kim, the chairman of Daum Games; Kye-hyun Cho, the chairman of Engine; Chang-hyun Guk, the chairman of WeMade Entertainment, and Young-jun Lim, the chairman of YD Online. Alumni CEOs of knowledge-based ventures, which provide strategic consulting services on S&T policies for the government, are Technovalue’s Yun-cheol Im, Knowledge Works’ Cheol-won Lee, and Technovation’s Jae-ho Hyun. Also worth mentioning are Sang-hyuk Lee, the founder of Yello Mobile, recognized as a unicorn in O2O; Jeong-seok Noh of 5Rocks; and Dave Park, who completed the PhD program in management engineering and founded the big data company Recobell. In the venture capital sector, there are CEO Jeong-seok Goh of Ilshin Venture Capital, CEO Yong-in Park of Donghoon Investment, CEO Sang-du Lee of Wooshin Venture Investment, CEO Yeong-min Yun of Kolon Investment, CEO Jae-jung Kwon of K Run Ventures, and Beom-seok Seo, the former CEO of Hoseo Venture Capital.   In the early days, those with a PhD in management engineering accounted for a high proportion of startups founded by the College of Business alumni. This trend changed in 1995, when the MBA programs were diversified. KAIST MBA graduates who had gained experience working at major companies also began to launch startups. They include Jin-hwa Jang, who graduated from the Techno MBA program and founded SPK Inc., and Gyu-yeol Choi, the founder of Techxen; Jae-gyu Mun, who completed the information media MBA and founded Ziness Communication. Recent startups by alumni have been focused on AI, IoT, and blockchain, which are considered key technology of the fourth industrial revolution. Some examples are Seong Yun, who majored in finance and founded the blockchain company FANTOM; Seok-tae Goh, who has an MBA in information media and founded the AI consulting firm MINDs n Company; Hyun-cheol Kim, who completed the EMBA program and founded the smart IoT solution company HK Networks; Han-kwan Kim, who graduated from the professional MBA program and founded the VR simulator company Lighthouse; and Kyung-tae Lee, who has an EMBA and founded the smart frame blue canvas company El Factory.   Many alumni have come under the spotlight in the food service industry. They include Sang-jae Park, who completed the Techno MBA program and founded the kombucha brewing company Brewguru; Si-du Ryu, who earned his master’s in information management and founded the insect food company Edible Bug; Sang-hun Bae, who completed the information media MBA and founded Young Butcher; Dong-yeop Lee, who has a degree in green business and founded COFFEEMANN; Jae-won Im, who has a master’s in management engineering and created the one-person wood fired pizza market with GOPIZZA; and Hong-hee Park & Yeon-mi Gwak, husband-and-wife Techno MBA degree holders and co-founders of Ugong’s Strawberry Garden.

All three founding members of Recobell graduated from KAIST, where I earned my PhD in management engineering. Since my days in the PhD program, I have focused improving sales and customer retention based on data analysis. I conducted research on key technology for businesses, and chose the path of an entrepreneur after graduation. I have always dreamed of creating new value for mobile users, making use of the country’s well-developed mobile internet environment. My continued interest in this subject has allowed me to develop feasible technology and services. I did not earn my PhD degree to launch a startup, but many people perceived this positively as there were not many entrepreneurs who were doctoral degree holders. It was easier for Recobell to enter the market because our academic background contributed to enhancing the company’s reputation. When our business was focused on B2B consulting, we had neither experience nor brand value. As such, potential clients evaluated us mainly based on individual qualifications. We were able to meet the expectations they had of young doctoral graduates, and enjoyed rapid growth in the process. Recobell is an IT venture company that provides personalized recommendation services to its clients. Different products are presented to one million online users depending on their individual preferences. In just a year and a half since establishment, we have grown into a company with the most clients, including major companies. We have applied our personalized recommendation technology to not only online shopping malls, but also e-mail and app push notifications. Our key clients include WeMakePrice, Amore Pacific, Ticket Monster, Shinsegye, E-mart, Kyobo Books, Wizwid, and Galleria. We are also working on partnering with overseas companies. Let me share with you the story behind Recobell’s rapid growth. We are the only company in Korea to implement the principle of “no performance, no pay.” In particular, we are the first to adopt the AB test, which assesses recommendation-based outcomes. We divided client servers into half, and compared sales between the existing system and a modified system integrated with Recobell’s personalized recommendation technology. We promised to not receive any pay if sales did not improve or stabilize, and managed to pass the break-even point in a year. We continued to enjoy high profits even without external investment, and were later acquired by Yello Mobile. Our key to success was in delivering higher sales to clients, rather than emphasizing Recobell’s advanced technology. As can be seen from our vast portfolio and sales, we are undeniably the No. 1 company in the local industry. However, instead of remaining satisfied, we plan to expand and enter overseas markets. With the support of Yello Mobile, we have exerted efforts to enter the Indonesian market. What’s interesting is that Recobell is largely unknown, even though most people have used our services through our clients. Our goal is for people to use Recobell’s services at least once a day, and to take the top spot in mobile advertisements in Korea and throughout the rest of Asia. Working at a large company, research institute, or university is a good choice, but creating a company that people would love to join is more meaningful and exciting. The College of Business will prepare you for any business undertaking, raising your chances of success in finance, IT, strategizing, and organizational development. I believe that graduates of the College of Business are essential for IT service companies, especially in developing cutting-edge technology and creating new markets. I hope that more students will be inspired by Recobell, and strive to attain greater heights.

I have never imagined quitting my job and doing something new, but opportunity and change come unexpectedly. A few years ago, while serving as the head of an overseas branch of LG Display, my former supervisor came all the way to the United States to propose a new display business. I can still recall his enthusiasm and ambition, and how excited I was that he had approached me. I soon quit my job to join him in the new venture. I had given up a stable career to do something that made my heart come alive. For more than 20 years, Korea has maintained its reputation as a global leader in displays. However, the industry at large is facing stiff competition from China, which has made significant investments in related fields. It has become increasingly difficult for countries to differentiate themselves in hardware due to the standardization of technology. I realized that the key to leading the display industry is to develop a future-oriented business model with platform-based innovation. The smart frame business was born from integrating human emotions, art, and technology into advanced displays. The ultimate goal is not simply to expand smart frames as a hardware business, but to establish a platform that connects and creates value for participants. For this purpose, we have been meeting various partners to discuss a possible future together. My business model has been built on extensive experience with an existing system. While this may be different from your circumstances, what’s clear is that you must have a clear purpose. Why business? By asking this question, you can decide on your business direction and philosophy. It is only after this step that you can start to develop a business model in an area that you are good at. Ideas will come naturally, and if they show promise, you will find yourself surrounded by supporters. On a side note, I proposed a digital photo frame as a graduation souvenir for the KAIST EMBA. It was a fresh idea at that time, and the skills I have learned are applicable to marketing activities even today. In fact, anything you do in school, no matter how small it may seem, may end up being helpful in the long run. These days, it is getting more difficult to succeed on your own. You have to meet good partners and establish strong ties with people more talented than yourself. I believe in having a humble attitude in learning, even towards your juniors. Be eager to learn at every moment, and don’t be ashamed of asking others for help. This will open up more opportunities to a brighter future.

Recently, a growing number of startups have been formed by alumni of KAIST’s College of Business. A good example is Brewguru, a beverage company founded by Sang-jae Park of the Techno MBA program and his peers. After succeeding in starting a craft beer company, Park launched a kombucha brewing company. The co-founders are Hyun-jin Chu of the same program, and Hyung-jin Kim, who completed the PhD program in management engineering. Their stepping stone to success was KAIST’s College of Business, where they got to know one another. They were featured in a news article for giving up 100 million won in annual income to embark on a startup adventure. Park said that he met reliable, talented colleagues at KAIST’s College of Business. He described the school as a place to meet well-prepared talent who demonstrate good character and initiative.

A few years ago, Korea fell in love with Reply 1988, the third of the Reply anthology television series. The drama featured props, clothing, and songs from the 1980s, evoking in viewers a sense of nostalgia. If the anthology continues with a series set in the early 2000s, it would depict how we grew with the internet, best represented by iLoveSchool, Freechal, Daum Café, and Cyworld’s mini-homepages. I joined the PhD program in management engineering at KAIST in 1999. At that time, Korea was undergoing economic reform to overcome the IMF crisis. The government launched a project called Cyber Korea 21, and made investments in IT industrial development and infrastructure. The advent of the internet resulted in the birth of many venture companies. Upon admission to KAIST, I joined an internet startup club called EBIZ, and later founded Cyworld with fellow students Dong-hyung Lee, Yong-jun Hyung, and Jeong-tae Lee. At first, we focused on the Cyworld club service, but faced challenges due to stiff competition from Freechal, iLoveSchool, Naver, and Daum. The social network was reorganized in 2000 into an online community portal, featuring PIMS, community bulletin boards, chatting, and online polls. However, the response from users was not as good as expected. CEO Dong-hyung Lee launched the mini-homepage project in 2001, shifting the focus to personal websites. The mini-homepage project reflected the growing demand for personal websites among female users in their 20s and 30s. After Cyworld merged with SK Communications, Dong-hyung Lee was appointed as the CEO of Cyworld Japan in May 2005. He asked me to join him in Japan, but I chose to teach after completing the PhD program. Dong-hyung Lee left SK Communications in February 2008, and he regretted going to Japan over the United States. If the founding members of Cyworld had stuck together until the end, we might have enjoyed greater success than Facebook. Regardless, many young entrepreneurs today find motivation in the pioneering attempts of Cyworld.

I was inspired to launch iLoveSchool from living in a dormitory and working with others in the laboratory while enrolled in KAIST’s College of Business. Many innovative ideas were produced from daily interactions with fellow students in graduate programs. KAIST was one of the first to offer campus-wide internet connectivity, and this was another factor that helped with brainstorming and collaboration. It was around mid-August 1999 that I came up with the idea of connecting people. Participating in group projects and learning under experienced faculty in the early days of the internet were what laid the foundation for my entrepreneurial career. My advice on startups is to get into it when you have an idea. Since it is impossible to prepare everything on your own, you need a group of people you can rely on and work with. The startup environment is much better these days, with more opportunities to network with others and attract venture capitalists. Your startup item should be something that is not limited to Korea. I would like to see your idea expand and serve others all across the world. KAIST is a place that inspires and drives entrepreneurial growth. By sharing your thoughts with fellow students and getting valuable feedback in the process, you will be able to turn your ideas into effective action.

I decided to start my own company after getting involved in a hacking incident when KAIST’s Techno MBA was established in April 1996. I was supposed to be kicked out, but thanks to Professor ByungChun Kim, I was only suspended instead. I didn’t have much to do since I wasn’t attending classes, and just then a senior suggested launching a security company together. I launched my first startup Inzen in 1997, and this was an opportunity to gain knowledge and experience on business opportunities and decision-making. In particular, I learned most of what I know today from KAIST alumni, who were also the company’s executives. Today, I am running two companies, one on virtual reality (VR), and the other on machine learning. Because the VR industry is still in the early stage, I have not yet decided on a specific direction for the company. I remember how Professor ByungChun Kim used to say that “learning is the most efficient when you have the desire.” The same applies to entrepreneurial activities. You should have a startup item you’re passionate about, as well as a strong desire to make it yours. For schools to support startups, it is essential to create an environment where students can learn about real-world business contexts. For example, like the talent used in the Bible, students can be given KRW 5 million and asked to freely generate profit. You need to have confidence in yourself, and the courage to take the path less traveled. You discover the most effective solutions when you ponder over the best approach without being influenced by general beliefs and conventions. Stanford University has produced many successful entrepreneurs, but this was not simply because of its entrepreneurship education. When a fellow graduate enjoys success from entrepreneurial activities, it influences others to take similar risks. When the founder of Ticket Monster rose to fame, the Korean students whom he studied with at Wharton School also attempted to create their own startups. Launching a successful startup is highly challenging, and you will have to adopt smart, innovative strategies. Even the smallest mistake or incompetency can lead to failure. If competent KAIST students are interested in startups, it is our duty to provide them with the necessary support. KAIST and the government are key players in creating a healthy startup ecosystem, and I would love to do my part.