What Businesses Can Learn From Digital Innovation in South Korea

The Miracle on the Han River is still something that economists, scholars, and regular people talk about today. South Korea went from being one of the most impoverished and war-torn countries in the world, into becoming a real economic powerhouse.

It did all of this with few natural resources and limited outside help. In fact, as South Korea was pushing to develop its indigenous automotive industry, partner countries like the US advised against it. They advised them to focus on textiles instead. Now, Hyundai Motors is one of the top 10 automotive manufacturers in the world. 

Digital innovations power South Korea’s success and have pushed the small country to become an influential economic player today.

Here are a few key takeaways from the Korean economy that businesses around the world can learn from.

1. Don’t Be Afraid to Leapfrog Technologies and Practices

Many businesses hold on to the adage that you have to walk before you run. This isn’t true. In terms of technology, South Korea skipped the stages of technology development that was institutionalised in the west. 

The same also goes for industries like banking, services, and others but here’s another important part of this. When new opportunities open up, they don’t hold back because they’ve committed to “legacy architecture.” South Korean businesses and Government are always moving forward, even if that means not getting as much use from one technology investment as initially projected.

The same goes for business goals, established practices, and just about anything else. Embrace the advantages of being flexible. 

2. Cybersecurity is Integral 

Living so close to North Korea has naturally put South Korea on its guard. When some of the world’s notorious hackers are just north of you and looking to sabotage not only your Government, but businesses as well, you prepare for it.

Korean firms arm themselves with the latest cybersecurity tools. An example worth mentioning here is VPN. VPNs or virtual private networks protect and encrypt internet connections, making business activities more private and secure. This means they are not only effective for blocking North Korean hackers but can also be effective in warding off corporate spies.

In addition to this, Koreans use a large range of tools to integrate work devices and ensure holistic security. They use VPNs and other security tools even on personal devices to ensure there are no holes in their security armour. 

3. Government Support is Crucial 

The South Korean government knows firms can’t go it alone and so they are the first ones to assist them. This dates way back to the 1960s when the government set up Korea’s first science and technology school. While government support was originally associated with the largest Korean companies (known as Chaebols), it’s now been expanded to businesses of all sizes creating a vibrant and healthy startup community.

Small and medium-sized businesses prosper and use their technology resources to grow into giants.

Bonus: Connectivity Everywhere 

We’ve probably all had cell phone connection drop inside an elevator. Likewise, in some of the wealthiest cities of the world like New York City or Toronto, there’s absolutely no cell service or WiFi on the subway. In Korea however, there are extremely few places where you don’t have a strong cellular signal (and now 5G) and WiFi access. Whether you’re on a mountain top, inside one of the train tunnels that go 100 meters below the service areas, or anywhere else, you’ll be able to connect to the internet.

The result is immense productivity. Whether working from home, office, or while on-the-go, Koreans have the connectivity necessary to be effective. 

What You Can Learn From Korean Firms

Some of the characteristics that make Korea so successful aren’t up to you. While government assistance and enhanced connectivity are amazing, there’s little you can do to guarantee them for yourself. You can however, benefit from embracing innovation, leapfrogging, and cybersecurity. All of these investments naturally pay dividends and complement each other.

Are you ready to embrace the future? Be digital-first, tech-fluent, and flexible, and you’ll achieve the gains you’re after just like Korean businesses do.