Kt Chairman Hwang Chang-gyu gestures with tenant companies of the Gyeonggi Center for Creative Economy and Innovation, including Haebora CEO Shin Doo-shik, at a ceremony on investments and partnerships for nurturing K-champs at Kt’s Gwanghwamun building in downtown Seoiul on April 29.

Kt executives pose with heads of start-ups Kt has designated as its business partners at the 2nd Speed Dating for nurturing K-champs at Kt’s Gwanghwamun building in downtown Seoul on July 7. (Photos: Kt)

Haebora Co. is one of the start-ups the Gyeonggi Center for Creative Economy and Innovation (Gyeonggi ECCEI) is nurturing. Last April, the venture succeeded in raising $750,000 (about 850 million won) through the global renowned crowdfunding site Kickstarter. The Korea-based Haebora set a goal of raising $50,000 (about 57 million won) within 27 hours, which would have been the shortest-ever target timeline for a Korean company. In the end, the startup made it 15 times its goal. That makes Haebora one of the top startups in the country. 

What’s behind the success of Haebora Gyeonggi ECCEI and Kt have joined forces in supporting Haebora. For Haebora, the Gyeonggi ECCEI and Kt are not only working-level partners, but also strong patrons. They publicized Haebora’s crowdfunding over about 350 online, exposing it to more than an estimated 100 million viewers, while launching a PR blitzkrieg on social network services and in the media. 

Kt offered a consulting service that helped Haebora complement products customers want. The telecom provider also joined forces in buying up an initial batch of products. By offering a helping hand, Kt helped Haebora secure necessary funds, improve products and secure clientele. 

Last May, Kt unveiled a package of three support strategies to realize the creative economy and shared growth with start-ups and SMEs. 

They call for expanding direct investments and securing additional funds, strengthening business collaboration with startups that Kt is nurturing, and providing support to start-ups and SMEs’ exploration of markets in Korea and abroad. 

Kt has decided to invest 5 billion won — 2 billion won and 3 billion won, respectively, to Kirby and Tunid, which the telecom provider is nurturing, Kt officials said. Kt said it will raise an additional 20 billion won to provide financial support to startups at an initial stage. 

The telecom provider has a “speed dating” system in place to speed up business collaboration with cooperative startups. Kt CEOs and group executives lend an ear to the voices of cooperative startups and offer to mentor them. 

Kt turns to a field decision-making process. Under the first project, launched last April, Kt decided to lavish 370 million won to five cooperative startups.

Furthermore, Kt has launched a project to create a value chain of Kt-initiated projects. Kt has signed deals with five startups to conduct joint projects. 

The Gyeonggi CCEI offers space for startups that have finished a six-month childcare program to continue their commercialization. Kt has set up the so-called “K-Champ” centers after remodeling its office buildings across the nation. 

Kt purchased about 410 million won worth of an initial batch of products that the five startups have produced. 

The telecom provider also offers opportunities for the five startups to sell their products through such distribution channels as IPTV, mobile, and the internet via the online shopping mall K-Shopping, a subsidiary of Kt.