Last weekend, I met one of my alumni, a CEO and co-founder of OneSoftdigm (USA) Inc. since the year of 2016. As a South Korean who studied abroad in United States, he has personally experienced two different regulatory and economic circumstances in South Korea and USA for the new startup businesses, making themselves grow from the very fledgling business ventures. As we had a deep conversation, he stated how hard it is for the startup companies not only to be assigned by Korean government and funded by other various investors to become the venture capital companies, but also to make themselves to gain a firm foothold in their industries. On the other hand, he also mentioned how different the situation in the United States of America and numerous benefits his startup
company could reap as a US firm.
As a CEO of a venture company, his personal remark on ongoing experience rings the bell. People need to consider, ‘what make the startup ecosystem status and the spirit of entrepreneurship different in two different countries’ as well as ‘how the regulatory system for beginning firms needs to be changed for further development in South Korea’.
To answer these questions, it is crucial to understand the core concepts of the positive and negative regulatory systems in terms of venture-business world. The positive regulatory system tell venture enterprises, ‘you can only
do these’, restricting them to make bold ventures through many different ways and only allowing in accordance of a set frame of regulations. However, the negative regulatory system tells, ‘you can do everything other than these’, which gives them the opportunity to venture into thousands
of ways other than some banned business paths. In this case, we can find that South Korea has the positive regulatory system and USA owns the negative regulatory system.
Therefore, the deregulation process, opening more opportunities to small venture firms is highly recommended to South Korea to create a venture-friendly environment. Fortunately, in recent days, the president ‘Moon Jae-in’ government seeks for an innovative growth and the Finance Minister said the government is targeting to aid creating over 100,000 startups in 2018 through expansion of financial support and investment funds.
The world is changing so fast. The best ideas win. Startups have a great potential. If more and more people be aware of the startups’ potential and supporting negative regulatory system, the better startup ecosystem would feed the needs of the startup companies, which would definitely become a cornerstone of the rapid growth of many countries including South Korea.
Surah Kim/ Tax Advisors for