ⓒ Bong Jin Cho Page 1 page 1 Bong Jin Cho, Ph.D. Editor in Chief, APJIE Professor of Marketing, Keimyung University July 2, 2010 ASTANA

ⓒ Bong Jin Cho Page 2 page 2 1.History of Business Incubation in Korea 2.Korean Government Policies on SME 3.IKED (Institute of Korea Entrepreneurship Development) 4.The Role Dynamics of the IKED, Supporting Institutions, and Incubation Centers in Korea 5.Outcomes of Business Incubation in Korea 6.Is it Transferable in Kazakhstan? Contents

ⓒ Bong Jin Cho Page 3 page 3 H History of Business Incubation in Korea  : Korean incubation activities initiated by KeTECH.  Mar. : First private incubation – Young Dong Business Incubator by Jungbu Industrial Consulting Inc.  Dec. : First public incubator – Ansan Business Incubator by SBC  IMF monetary crisis in : Business incubation activities were promoted by the government to create jobs and recover economy. The 330 Business incubators established by  Dec. : Incubation activities were combined by SMBA to enhance the quality and efficiency of the incubator management.

ⓒ Bong Jin Cho Page 4 page 4 H History of Business Incubation in Korea  The 279 Business Incubator established in  Recently : Incubation business is slow and Entrepreneurship is down - High failure rate and Slow return of venture investment - Social psychological atmosphere of not allowing the failure in venture business  : Encouraged the Second booming of technology based start-ups for the promotion of SMB by the Presidential Council on National Competitiveness (PCNC) 226 University 7 SMBC 22 R’ch Inst. 11 Local Gov’t 13 Others 279 Total

ⓒ Bong Jin Cho Page 5 page 5 K Korean Government Policies on SMB  Systematic package support according to the stage of the start-up business development - Education for commercialization of their idea - Financing and Grants - Support for factory establishment - Information support - Consulting - Display and public relations etc.  SMBA established the IKED to efficiently promote and execute entrepreneurship development

ⓒ Bong Jin Cho Page 6 page 6 I Institute of Korea Entrepreneurship Development (IKED)  Purpose of IKED

ⓒ Bong Jin Cho Page 7 page 7 T The Role Dynamics of the IKED, Supporting Institutions, and Incubation Centers in Korea

ⓒ Bong Jin Cho Page 8 page 8 I Institute of Korea Entrepreneurship Development (IKED)  Major Programs Promoted by IKED 1) Infrastructure Building Programs for High-tech Based Start-Ups The Programs Strengthening Entrepreneurship Entrepreneurship Education Program for College Students - 50 university entrepreneurship courses open; to strengthen start up capabilities - Support college and high school students who hold technologies and ideas for commercialization - Student’s Workshops to motivate and encourage the college student’s start-ups - Asian Students Exchange Programs and the Special Foreign Training for Global Leadership

ⓒ Bong Jin Cho Page 9 page 9 I Institute of Korea Entrepreneurship Development (IKED)  Major Programs Promoted by IKED Entrepreneurship Education Programs for the Public - The comprehensive package education program : Graduates can get the support of education, financing, office space, management and technology service - The on-line start-up education program - The Tech-based education program for the military retirees and persons released from prisons - The children’s start-up education program BIZ School for Youth - Education for nurturing entrepreneurs of the future - 85 high schools, 5 middle schools, 1 primary school - Start-up Campus and Workshops open during the summer vacation

ⓒ Bong Jin Cho Page 10 page 10 I Institute of Korea Entrepreneurship Development (IKED)  Major Programs Promoted by IKED The Entrepreneurship Festival, Korea - Providing Technology & Business information for Start-up and Newly Born company - Promotion for Start-up entrepreneurs - Buyers will be able to view various products and innovation of entrepreneurs under one roof - Overseas Marketing Information Seminars - June 24th ~26th, 2010 The Business Model Contest - For Public & College Students

ⓒ Bong Jin Cho Page 11 page 11 I Institute of Korea Entrepreneurship Development (IKED)  Major Programs Promoted by IKED BI Success Rate Enhancing Project Special Support for Commercialization - COBIAN website( Advertising and Selling items produced by the BI clients and graduates - The package support of One Center-One Company-One Manager : Offering expert management consulting service High-tech Specific Venture Company - Venture Company established by non-profit org. - Investment of funds, facility and equipment for Start-up based on the high technology

ⓒ Bong Jin Cho Page 12 page 12 I Institute of Korea Entrepreneurship Development (IKED)  Major Programs Promoted by IKED Program for Strengthening Incubation Authority’s Capabilities - Incubation authority : BI center directors, managers, and staff members - Workshop for the BI center directors and managers - Manager’s License Authentication System - A 20-hour management education program for the CEOs and directors of the BI clients Domestic and Foreign Network Development and its Operation - Incubators association system : - AABI, NBIA, GBIN, etc.

ⓒ Bong Jin Cho Page 13 page 13 I Institute of Korea Entrepreneurship Development (IKED)  Major Programs Promoted by IKED Start-up Research/Research and Analysis Identify the key success factors of start-ups Develop a model of strengthened capability and policy improvement 2) Special Programs for Lab-Based Start-ups Identify Supports with some portion of the expenses of the development stages of a company established under the plan.

ⓒ Bong Jin Cho Page 14 page 14 I Institute of Korea Entrepreneurship Development (IKED)  Major Programs Promoted by IKED 3) Idea Development Programs 4) Tomorrow’s Tech-Based Entrepreneur Development Programs Supports with one stop service, from commercialization to marketing, for the tomorrow’s entrepreneurs and the new start-up businessman within three years of establishment This program is designed by the universities and research centers as the major institution to support the entrepreneurs

ⓒ Bong Jin Cho Page 15 page 15 T The Role Dynamics of the IKED, Supporting Institutions, and Incubation Centers in Korea

ⓒ Bong Jin Cho Page 16 page 16 O Outcomes of Business Incubation in Korea Total Sales Graduates Tenants Incubators 269 4,441 5,780 $20billion ,532 6,337 $23billion ,770 7,572 $25billion 2009 Employees 22,56922,982 22,017

ⓒ Bong Jin Cho Page 17 page 17 I Is it Transferable in Kazakhstan? 1. Education and training for the government Officers 2. Education and training for the BI Mangers 3. Build infrastructure for Business Incubation centers 4. Promote entrepreneurship among people - students 5. Facilitate banks and venture capitals 6. Develop programs for Business Incubation 7. Some adjustment is needed …………base and change agent! WHY NOT IN KAZAKHSTAN!!

ⓒ Bong Jin Cho Page 18 page 18