AI startups, which have moved into “AI Yangjae Hub,” a technology start-up promotion agency in the AI (Artificial Intelligence) field in Seoul, are attracting attention with results in various fields such as attracting investment at home and increasing sales.
“AI Yangjae Hub” is the first AI technology start-up development institution in Korea opened in December 2017 by Seoul Metropolitan Government to create a “artificial intelligence specialized base” where AI talent and companies are concentrated.
It is operating one-stop corporate support programs such as funding, investment attraction, networking, and R&D, as well as a step-by-step curriculum to foster AI professionals.
As of early March 2022, there are about 100 AI start-ups in the AI Yangjae Hub, and about 50 companies have graduated so far. AI Yangjae Hub operates a “membership program” for non-resident companies to expand the base of the AI industry and is also striving to create a community ecosystem between more than 100 startups with AI technology and AI Yangjae Hub tenants.
Despite the ongoing severe COVID-19 situation, artificial intelligence-specific companies that have moved into AI Yangjae Hub are showing overall growth in terms of sales, investment, and employment. As of the end of FY21, tenant companies posted 81.9 billion won (about 80 million dollars) in sales, up 25 percent from the previous year. It is also notable that the amount of investment attracted has more than doubled compared to the previous year. In 2020, tenant companies, which recorded about 52.1 billion won in investment attraction, recorded a total of 116.7 billion won in investment attraction in 2021 with successive large-scale investment attraction due to steep growth. The number of workers more than doubled compared to the previous year, reaching 732 at the end of 2021.
Behind the growth of these AI startups is various corporate growth and collaboration programs unique to AI Yangjae Hub.
In the case of early start-ups, the factors needed for growth are different, but among them, investment is one of the most important factors in growth. Among the investment-related programs, the startup build-up program AI Seed Camp, which was conducted in cooperation with Infobank Co., Ltd., found five promising early companies as a result of its operation, two of which received direct investment support and one was finally selected as TIPS.
AI startup Demo Day ‘IR Runway’, an AI Yangjae hub investment attraction support program, focuses on recruiting investors with a lot of investment history in AI-specific companies and matches interested companies and investors to hold 1:1 customized investor meetings. In fact, a total of 81 investment meetings (mentoring) were held through the operation of the last demo day, and two companies achieved 2.4 billion won in investment attraction.
AI Yangjae Hub, where companies in the artificial intelligence field are gathered, is also attracting attention from various investors. One of the biggest advantages of the AI Yangjae Hub is that companies, investment companies, and institutions that want to meet artificial intelligence-specific companies can meet several tenants at once.
In addition, AI Yangjae Hub is providing a place for companies to create synergy through mutual collaboration by taking advantage of its own strengths where companies in the artificial intelligence field are concentrated. In 2021, tenant companies collaborated through the tenant company cooperation project to develop solutions to reduce food emissions in Seoul and pilot 10 workplaces.
Businesses are also operating to address difficulties in corporate management. AI Yangjae Hub’s management support service “AISSIST” expands the pool of experts in various fields such as tax and accounting patents, personnel, labor, and technology to solve various difficulties faced by hub companies when operating their businesses, and provides companies with continuous mentoring opportunities.
AI Yangjae hub companies are also actively entering overseas markets. This is due to supporting global market localization consulting and global market entry support programs. At this CES 2022, 11 companies affiliated with AI Yangjae Hub participated in the “Seoul Pavilion” jointly created and operated by AI Yangjae Hub, and two of them won the CES Innovation Award. In addition to the Seoul Pavilion, it won the top innovation award from one of the hub companies that participated in CES 2022 and the innovation award from four companies. Businesses that reflect companies’ demand for entry into the global market have also been actively underway since 2011, such as supporting lectures on strategies to enter the global market and characteristics of each country through cooperation with 500 Global, a leading private AC company in Silicon Valley.
Jong Yung Yoon, Managing Director of AI Yangjae Hub, said, “We are making efforts to provide practical support to companies and strengthen investment and technical support through organic cooperation with the private sector.” I hope that AI Yangjae Hub will come to mind when it comes to artificial intelligence in Korea,” he said.
In the near future, anyone who thinks of Korean artificial intelligence will naturally think of the “AI Yangjae Hub,” where various AI-specialized companies gather together to grow into a representative artificial intelligence company in the future, along with various support programs.
Asia Journal
