Startup Alliance, a Korean startup policy research organization, has proposed that Korean startups entering the US market should receive the same level of government support as domestic corporations.
Startup Alliance held a seminar titled "The New Normal for Korean Startups' US Expansion" at D.CAMP in Mapo-gu, Seoul, on Thursday. Lim Jung-wook, co-CEO of Startup Alliance, who delivered the keynote, said, "We need a paradigm shift to view successful Korean-origin entrepreneurs as assets of Korea."
Lim cited SK Group Chairman Choi Tae-won's previous remarks that "AI startups should have dual citizenship," emphasizing that "policy support criteria should be expanded from corporate domicile to founder identity."
Startup Alliance argued that startups headquartered in the US can still make significant contributions to the Korean economy. According to the organization, there have been 193 cases of Koreans founding companies in the US or Korean startups converting to US corporations through "flips." Of these, 83% established their companies in the US from the start, while 17% flipped their existing Korean entities.
"The biggest reason Koreans want to start businesses in the US is the desire to operate in a larger market, followed by the goal of attracting larger investments from global venture capital firms," Lim noted.
Startup Alliance pointed out that while Korean entrepreneurs are increasingly expanding to the US, blind spots exist in government support. Lim outlined key policy priorities: including overseas corporations in government support programs, easing restrictions on domestic VC investments abroad, deferring capital gains tax for founders during flips, and supporting connections with overseas Korean entrepreneurial communities.
"Nvidia, founded by a Taiwanese-born entrepreneur, serves as a cornerstone for Taiwan's AI ecosystem, and Wiz, founded by Israelis, contributes to Israel's tax revenue," Lim said. "Korean-origin startup founders achieving major success in the US could create a virtuous cycle for the Korean economy."
