[MUSIC] Hi, everyone. This is Yoon Yong Jin from KAIST. Now, we are in the first session of the fifth week of the Stanford Design Thinking and ASEAN Startup. Up to now, we go over the whole the process of the Stanford sesign thinking from the empathy to the test. Just please remind that the lectures last week, we study about the later part of the Stanford design thinking about prototyping plus test. We more focused on the prototyping with the introduction of the 3D printing technology and also like introducing about how to combine with the fourth Industrial Revolution. Emerging technology such as artificial intelligence or like some DfAM, Design for Additive Manufacturing or IoT or big data and blockchain, etc. And so now, I assume that you already go over the whole design thinking process together with the ASEAN startup process. Also, we study about combined process hybrid approach to proceed the startup activity. So as our like the class, keywords is the two keywords. There is one in the Stanford design thinking, the other ASEAN startup, global startup. So this week, we are going to like study about how we proceed their startup in Singapore ASEAN and also I want to introduce you to the, share my experience in the startup activity in Silicon Valley. And also like what kind of startup ecosystem is in the ASEAN area and the Silicon Valley area, also comparing with the Korea and then figure out how we really do the global startup with help of the distemper design thinking framework. So this is course is current content is that we start from the introduced about ASEAN global business ecosystem including the the Singapore case and also the other part of the ASEAN areas, such as Vietnam or Indonesia or Malaysia or other place. And second is I will share why the Singapore can be a global business platform for the Korean small and medium enterprise company. Why there is opportunity in Singapore, also in ASEAN area. And after that, I'm going to introduce about the Singapore startup ecosystem and government agency and incubators and what kind of support we can use to expand our business from the Korea to the ASEAN area. And the more that into it, the more detailed information about ASEAN global business platform which is about Korea Innovation LaunchPad Singapore Association and KILSA. And after that, I want to introduce you to the Silicon Valley Startup Ecosystem with my experience and also like my experience at that time was almost ten years ago and also I have activities with Silicon Valley now together with AI application startup. So what's the advantages? What's the disadvantages in the startup if we want to do the startup in the Silicon Valley comparing to the ASEAN and other area? Okay, let me start with the study to talk about why Singapore and ASEAN areas which in Southeast Asia. As you know in recently, President Moon is talking about the new thought and policy which is about like try to expand our Korean like some business opportunity to the ASEAN area from comparing to the 2016. The Korean ASEAN bilateral trade is around $120 billion, but try to increase that to the $200 billion which is more like doubled. Within the four years, try to double the volume now double for the volume of the this bilateral trade between the Korea and ASEAN area. As the President Moon say, I'm determined to the bring the Korea and ASEAN relations to a new height and of scare to the level of the bilateral cooperation. So the ongoing now, 2019 and 2020 is next year. And now, the there's a lot of activity is going on now between the Korea and ASEAN area. So to look at the roster business opportunity in the ASEAn area, this is the number we can look at. The first thing when you consider about startup, we definitely consider about our customer, right? Number of customer, which is about population and demographic are like some opportunity. So this population in ASEAN area is the third largest population in the world followed by the China and India market. And ASEAN area is around to 630 million people live there, including Singapore Malaysia Vietnam, Indonesia, Thailand, Philippines. Those are major countries in the ASEAN area. And other, there's a lot of other country too and I just summarized that those major country in the ASEAN area. So if you look at their like annual growth rate from the 2014 to 2018. And so they still shows the higher level, higher number of this growth rate around like 3% to the 9% something, depending on the area. And for example, Singapore, even their Singapore GDP is very high, two times higher than Korea shows that the high like growth rate. However, this year actually the Singapore shows the very low like growth rate too and the other country like Vietnam af you can see this, the average like or over the 6% growth rate. And in the overall like average of this growth rate in the ASEAN area these days is around the 5.03% percent of to the 2020. So as you see, the ASEAN is very big market as with big population 630 million people live there and with a big economy cider US dollar, 2.4 trillion US dollar market and then with the desires of the market and also growth rate is huge. So I can say there's a lot of opinions opportunity in the ASEAN area. How about technology? This is the technology and business. When you look at this global compact competitiveness of the ASEAN in 2017 to 2018 from the international monetary fund, IMF announced this information. If you look at the political stability and business environment and economic exchange rate, exchange risk and credit rating from the Indonesia to Vietnam. You can see the Singapore score the highest definitely among the ASEAN area. For example for the political stability is very good and business environment is top in the world and also economics is very good. And exchange risk, which is about how about the money comes in and the money out is very stable and credit ranking is also very high. In total in IMF, they ranked world number three in the world, Singapore, as one of the best place for doing the business in the world. And also Malaysia also shows okay, some ranking global competitiveness for the business too. And also in the technology-wise for the IT knowledge and technology and future readiness for the this technology, Singapore shows the top number one in the world in the digital competitiveness. Because I assume that our possible business item for this class, maybe we need to use a big data or the artificial intelligence, kind of some emerging technology about the fourth Industrial Revolution. So this digital technology readiness is very important. So however, Indonesia shows very bad record about IT knowledge and technology and future readiness. Malaysia and Singapore shows very good ranking for this three area so like this, the ASEAN has a lot of opportunity. However, from this previous slide and this slide, we can see the Singapore and maybe Malaysia can be our choice. We can choose those country as a starting point gateway to the ASEAN market. Because other place like Philippines and Thailand and Vietnam and Indonesia still is not ready, a lot of risk to do the business in that area. So my suggestion is that we can start our business from the very safe market in which is Singapore. And then by leveraging this Singapore opportunity, and then you can expand your business to the ASEAN market through the Singapore, this business platform. This Singapore business platform is very well made over the very long time. You can summarize the ASEAN countries' strengths and weakness from this Vietnam, Indonesia, Malaysia and Thailand and also Singapore. For the Singapore, the management of cities and technology readiness and technology regulation and wireless broadband is very well prepared. So these very good strengths in part for doing the some business related to the fourth Industrial Revolution like topics AI or other stuff. However, the immigrant laws and some female researchers and R&D productivity is kind of a weakness of the Singapore part. And also other country is also have their own strengths and weakness. So it's better to know what kind of the strengths and weakness is there among those ASEAN countries. And I summarize why Singapore? When you compare the Singapore and Korea with number, let me compare with, talk about the PPP, purchasing power per capita. You can think if you calculate with the people GDP and then so make money versus and then living cost. So the Singapore shows that this PPP is around 87/88K, one of the highest over the world and Korea shows there's a 35/36K. And then shows there are around 2.5 times difference, which means the Korean people make less money. And also they need more money to survive in Korea. In Singapore, people have more money, make more money, but the living cost is low. So in the end, the purchasing power is like this. So if you want to do some business whether we need to choose between the Singapore, Korea, then we definitely choose. I definitely recommend you to start your business in Singapore because there is much more purchase power in the Singapore. How about startup ecosystem value? Startup ecosystem value is almost four or five times different between the Singapore and Korea. So you can think about this fact that this is about how much the startup ecosystem, how much is there which means whether there is a lot of company can buy if you do the company. If you start your company, you want to sell your company sometimes, right, either IPO or either MNA from the big company. And Singapore, there's a lot of market, a lot of big company is ready to buy your company. Comparing to the Singapore, Korea there is not that kind of active market to the trade to the company so it may be very painful. It would be very painful the procedure if you do the startup in Korea. Now, the Korea also getting better. However, the Singapore is better environment to do the startup. How about global connection index? Each is also like the Singapore shows much higher than the Korea. Definitely, Singapore use the English as the official language. So that's why Singapore shows the better Global Connection index but not only for that, the cultural stuff and also a lot of different country people live in Singapore. So also not only for that, global education, the kind of stuff is Singapore shows much higher number in the Global Connection Index, which means what? If you want to do some global business, it's better to start in Singapore because you can start your startup with English-based. Also, there is a lot of global venture capital or Global MSCC headquarters are in Singapore. So you can have a more chance to expand your business to the global size if you start your business in Singapore. And also early stage funding for the startup also is higher than Korea too. So like this, Singapore shows a very good environment for doing startup. And there is our global startup ecosystem ranking from the global startup ecosystem report in 2017. This research shows that Singapore shows promise over the world and then the Singapore shows very vibrant startup ecosystem with those high ranking. Even you think travel fee is not that high but when you consider this ranking, is ranked with the every cities, not country. So there is a hundred and thousand cities over the world, among that is the Singapore ranking in terms in the world. Especially number one is the talent, talent ranking is number one, is very strange. Because Singapore is very small country with a very small number of people around 60 million people live there. However, they import very talented people all over the world. And so that's why they have a top ranked in the talent for there's a lot of opportunity. You can think in Singapore when you think about the global startup. For the Courier. There is no cities with record in the recent release of to the 30s like cities, but there is no Korean cities still out of the distal ranking. So like this as an Asian Asian cities Singapore is one of top cities in to the Startup Environment. So this those are the summarize of the the region for the why we launched the business in Singapore. The first is the a lot of funding. The Available Venture Capital size around to 24 billion US dollar. And also for the gateway to the access to the market or on 630 million people in the Austin area the world's third largest market in the world. So the Singapore can be a gateway to the go to the dead pig size of the market. And also business infrastructure from the like World Bank ranking number one in the world top four doing the business in the Singapore. So Singapore is a top ranked in the world. And also a lot of government support with a lot of women entrepreneurs. And there is more but those are the major reason why the we need to think about a Singapore as Startup platform for the business. How about Asean area? So potential of the Asean area I can summarize those three, is number one is big problem of the people. There are 630 million people in the 11 different country. This 11 different countries also, very interesting like Singapore is very developed country. However, there's many like a developing country around the Singapore in Asean area. So there's a lot of business opportunity you can think. Not only for the top technology like that kind of top-notch based business. But also you can think about very low-tech or mid-tech. Those kind of for example, like appropriate technology for the poor country that kind of business opportunity is there these days. Many social Ventures getting to the Asean market to expand their like Global Market like market share. Also number two is a tough five South Asean country shows the very big growth rate around 5.06% from the 2017 to the 2021. Which is much higher than the USA or the Europe. And third most important importantly importantly is that60% of the population is very young age population around 15 to 34 years old, which means you can start your business. The high-tech building is much easier than other place because other place many population kind of go to the elderly people. So elderly people is not that used to get news to the those kind of new technology. So those because those are the Asean area many population is young generation. So it's very easier to introduce those that like new like technology for example, smartphone based or other like some ARVR that kind of technologies. And in addition to this the southeast Asia is a fast-growing market and one of the unknown market. So that's why I emphasize that you need to think about Asean Market not only this region. But also if you're Korean because the now the Korean government like push more to the their economic the relationship trying to increase their economic relationship with South East Asia and also even you are not in the Korean like North Korean. You also can think about getting to the Asean Market because there is opportunity in the Asean area. This is the some Global the companies like some startup company. Now they become the big company they start from the start of company become the communication Network company. And then Unicorn company is around there like a valuation over the 1 billion US dollar and those are the Asean based global companies, which is Unicorn company I can say. Maybe grab and VNG and then Garena and Lazada and Indonesia Tokopedia. Those are the some startup company now already they hear the information is quite a little bit not that updated yet the group. He's already go over the much more than 1.5 billion valuation. So the you can do in Korea there is also those kind of startup company. However, due to the market like that kind of I'll population and also like a lot of Young Generation and also like English based. So they try the many Unicorn companies. Unicorn companies can the come out from these Asean area. So I hope you guys also like try to restart your business in the Asean area. Plus you can use a very well-educated like your partner's you can find easily well-educated partner in the Asean area easily too. So that's the also very important point when you talk about global startup like when you talk about doing the Global Startup, okay? This is the first session of the 50 of The Stanford design thinking and Asean Startup. So maybe we'll move on to the next session. Thank you for your attention and see you again.
