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  • Investing in Korea's Tech Sovereignty: Architecting the Future of Global Technology and Investment

    Commissioner Taehyung Kim opened the Invest Korea Summit 2024 with a compelling narrative of Korea's technological evolution, highlighted by AI's unprecedented recognition with two Nobel Prizes in Neural Networks and Chemistry Structure Prediction. This achievement underscores Korea's position at the forefront of technological innovation and its readiness to lead the next wave of industrial advancement. Foundation in Semiconductor Excellence Korea's technological supremacy is built on its 32-year leadership in semiconductor technology. Since Samsung's pioneering introduction of the 64MB DRAM in 1992, Korea has maintained undisputed market leadership, now controlling 95% of global High Bandwidth Memory (HBM) production. This dominance in critical AI-enabling technology positions Korea as a crucial hub for future technological development and investment opportunities. Manufacturing Powerhouse and Market Leadership The country's manufacturing excellence is evidenced by its 24.3% GDP contribution from manufacturing in 2023. Korea holds commanding positions across multiple high-tech sectors: DRAM: 70.5% global market share (95% in HBM) OLED Displays: 74.2% Shipbuilding: 24% Battery: 23.1% (48.6% excluding Chinese market) Smartphone: 19.4% Automotive: 8.5% Strategic Industrial Development and Investment Opportunities The cornerstone of Korea's future growth strategy centers on 12 Advanced Strategic Industrial Complexes, supported by a $470 billion investment from Samsung and SK Hynix over two decades. These complexes focus on four key sectors: Semiconductor Mega Cluster World's largest semiconductor ecosystem Complete supply chain integration Advanced R&D facilities State-of-the-art manufacturing capabilities Display Technology Hub Building on OLED market leadership Next-generation display development Integration with AI and IoT technologies Biotechnology Center Research-driven development Novel therapeutics focus Global collaboration opportunities Battery Innovation Complex Advanced energy storage solutions Electric vehicle battery development Sustainable energy integration Supporting Infrastructure and Ecosystem Ten specialized Materials, Components & Equipment Complexes complement these major industrial hubs, offering: Streamlined permitting processes Guaranteed utilities access Tax incentives for foreign investment R&D collaboration opportunities Integrated transportation networks Advanced telecommunications infrastructure Global Market Access and Trade Strategy Korea's comprehensive trade strategy includes: FTA expansion targeting 90% of global GDP by 2027 Enhanced Global South partnerships through $7.0B ODA commitment by 2030 Leadership in international partnerships (MSP and IPEF) Supply Chain Stabilization Fund growing to $7.4B by 2025 Protection of 300 critical economic security items Sustainability and Green Technology Leadership Korea's commitment to sustainability is demonstrated through: 40% emissions reduction target by 2030 (vs 2018 levels) Net-zero commitment by 2050 Carbon-free energy targets for 2038: Nuclear: 35.6% Renewable: 29.1% Total carbon-free energy: 70% World's largest liquefied hydrogen plant (30,000 tons/year) Leading hydrogen fuel cell vehicle market (37,000 vehicles as of September 2024) AI Innovation and Digital Transformation Korea's AI strategy encompasses: 70% public sector AI adoption target by 2030 $47.5B private sector AI investment support First nation to receive IAEA approval for AI Safety Standards Advanced AI technologies: High Bandwidth Memory (HBM) Processing in Memory (PIM) Neural Processing Units (NPU) Investment Support and Protection Foreign investors benefit from: Regulatory Framework Transparent investment procedures Strong intellectual property protection Equal treatment guarantees Efficient dispute resolution Government Support Single-window clearance Investment consulting services Location selection assistance Regulatory compliance guidance Talent Development Industry-led training programs International recruitment support Access to skilled workforce World-class technical education Practical Investment Considerations Investors can enter the Korean market through: Direct manufacturing investment Joint ventures with Korean companies Technology licensing partnerships R&D center establishment Regional advantages include: Strategic East Asian location Advanced logistics infrastructure Strong domestic market Export-oriented economy Future Outlook and Commitment Korea's transformation from one of the world's poorest nations to a global technology leader demonstrates its potential for continued growth and innovation. The government's comprehensive support for foreign investment, combined with strong technological capabilities and market access, makes Korea an attractive destination for long-term investment in high-growth industries. The country's commitment to fostering global partnerships, continuous innovation, and quality excellence positions it as a crucial player in shaping the future of global technology and industry. For investors seeking opportunities in advanced technology, sustainable development, and innovation-driven growth, Korea offers a unique combination of established expertise, future-focused development, and comprehensive support systems.

  • Inside Korean Tech Ecosystem: Why Silicon Valley VCs Are Investing Now

    Introduction & Background John Yang, Vice President at Riverwood Capital, brings a unique perspective to the Korean startup ecosystem. A native of Busan who graduated from Stanford University with distinction in Economics, Yang has built an impressive career in investment banking and private equity. Before joining Riverwood Capital, he served as an Associate at Pegasus Capital Advisors, focusing on sustainability and wellness sectors, and worked in mergers & acquisitions at Bank of America Merrill Lynch, specializing in technology and consumer sectors. Riverwood Capital: A Global Technology Investment Leader Established in 2008, Riverwood Capital has positioned itself as a partner of choice for proven technology and tech-enabled mid-size companies at inflection points for accelerated growth. The firm has demonstrated remarkable success, managing $6.0 billion in assets and achieving a impressive 37% revenue CAGR across its portfolio companies. With 83 investments to date and 41 fully or partially realized exits and liquid investments, Riverwood has established a strong track record of successful technology investments. The firm's investment strategy is distinguished by several key characteristics. They typically invest between $25-250 million in each portfolio company, focusing on proven businesses or profitable companies with attractive unit economics, rather than early-stage venture investments. This approach is supported by a team of 56 dedicated professionals who bring deep expertise in technology investment and operations. Riverwood's portfolio spans across multiple technology sectors, showcasing their strategic diversification: Cybersecurity: Investments in companies like Netskope and PlexTrac Sales & Marketing Tech: Notable investments including Spryker and Fullpath Data Intelligence: Portfolio companies such as SmartDeer and Cortex Retail & Logistics SaaS: Investments in VTX and Shippo FinTech Infrastructure: Supporting companies like Nymbus and Conductor Enterprise Infrastructure: Including notable names like Nutanix and Legion HRTech: Investments in greenhouse and Papaya What sets Riverwood apart is their "Business Builders" mindset, where they act as active and relevant shareholders, maintaining consistent mission and investment strategy since inception. The firm has built a network of over 360 investors with experience in investing, operations, and technology, offering their portfolio companies partners for scalability through their RSP (Riverwood Scale Partnership) program. The firm's culture is characterized by hard work, partnership mentality, high ethical standards, and access to a broad ecosystem. This approach has enabled them to create a permeated culture that supports their portfolio companies' growth and success across various technology sectors and market cycles. Current Market Landscape The technology investment market, particularly in growth-stage software, has shown significant stabilization and recovery following the peak years of 2020-2021. Despite initial concerns about market correction, the software investment sector has demonstrated remarkable resilience, with private markets activity showing a 59% increase in Q3 2024 compared to Q3 2023, and a year-to-date increase of 9%. This momentum suggests that 2024 is on pace to exceed 2023's investment activity levels. A notable trend in the market is the evolving dynamics of software growth-stage deals. The data shows an interesting pattern in capital invested and deal count over recent quarters. After experiencing a peak in both metrics during 2021, the market went through a period of adjustment. However, the current quarter has seen a significant spike in valuations, particularly driven by later-stage companies tapping the market at valuations exceeding $1B, as these companies seek to avoid raising capital during what could be a protracted period of market uncertainty. The median pre-money valuations and deal sizes have also shown interesting patterns. While there was some volatility in these metrics following the 2021 peak, recent quarters have shown signs of stabilization. The deal dynamics suggest a more measured approach to valuations compared to the heightened levels seen during the peak, indicating a return to more sustainable investment practices. This recovery in the growth-stage software market is particularly significant as it demonstrates investor confidence in the sector's fundamentals, despite broader market uncertainties. The increased activity levels, combined with more strategic approaches to valuations, suggest a maturing market that has found a better balance between growth potential and sustainable business metrics. The Evolution of AI Technology The artificial intelligence landscape has undergone a fundamental transformation, evolving through three distinct phases: Pre-Deep Learning, Deep Learning, and Generative AI. This evolution represents a shift from basic analytical capabilities to sophisticated creative functions. Understanding AI Types and Applications Analytical AI (Traditional AI) Traditional AI focuses on specific task-oriented applications, including: Fraud Prevention Contents Recommendation Spam Filtering Generative AI The newer generation of AI demonstrates creative capabilities such as: Writing poems Coding programs Generating presentation scripts Why Now? The Four Pillars of AI's Evolution Chips & Processing Power OpenAI was the first to use 10,000 GPU supercomputer to train a single model Significant increase in computing capacity (GPUs) MSFT is building supercomputers with networks of processors Internet + COVID Impact on Training Data The size of parameters has exponentially grown from 64 million parameters in 2018 to 100 billion parameters in 2020, and now to 1+ trillion parameters Advanced Training Techniques Implementation of Reinforcement Learning from Human Feedback (RLHF) Development of Low-Rank Adaptation (LoRA) for efficient fine-tuning AI systems now generate outputs with human markup Multi-Modal Capabilities Models now incorporate different types of data Integration of text, images, video Capability to generate personalized content and designs Historical Evolution of AI Phase 1: Pre-Deep Learning (Pre-2011) Characterized by Symbolic AI ("GOFAI") Augmented by inference engines Limited by brittle, expensive, and narrow use cases Focused on symbolic representation of problems and logic Phase 2: Deep Learning (2011-2017) Marked by the onset of neural nets at significant scale Coincided with the advent of GPUs Enabled "self-learning" from large data sets Rise of cloud computing for large-scale training Phase 3: Generative AI (2017-Today) Dominated by transformer models Capable of classification and generation use cases Utilizes massively parallel compute with large training data sets Handles both content and long language sequences Multi-modal capabilities Notable for being harder to explain (black box nature) This evolution represents not just technological advancement but a fundamental shift in how AI systems interact with and generate content, moving from simple pattern recognition to sophisticated creative processes. The convergence of improved hardware, vast data availability, and advanced training methods has created an unprecedented opportunity for AI applications across various domains. Market Adoption and Sustainability Challenges Artificial Intelligence represents the next era in the technology evolution cycle, demonstrating a remarkable pattern of adoption that differs significantly from previous technological waves. The data presents an interesting contrast between initial adoption rates and long-term engagement metrics. Unprecedented Adoption Speed The evolution of landmark application adoption shows a fascinating progression across different technological eras: PC Era: Required 120-150 months to reach 100M MAUs Internet Era: Applications like Facebook needed 60-80 months Mobile Era: Apps like Instagram achieved it in 30-50 months AI Era: Has dramatically compressed this timeline, with AI applications reaching similar user bases in just months This acceleration in adoption rates represents a fundamental shift in how new technologies are embraced by consumers. The AI era has shown the fastest user acquisition in technology history, significantly outpacing even the rapid adoption seen during the mobile revolution. Sustainability Challenges However, this rapid initial adoption faces significant sustainability challenges, as evidenced by two key metrics: One-Month Retention Rates Traditional applications show significantly higher retention rates AI applications demonstrate lower retention compared to established platforms The gap between initial adoption and sustained usage is particularly noteworthy Daily Active Users to Monthly Active Users (DAU/MAU) Ratio Established platforms maintain higher DAU/MAU ratios, indicating more consistent daily engagement AI applications show lower daily engagement relative to monthly users This metric suggests that while users may return monthly, daily habitual use remains a challenge The Value Sustainability Question These metrics highlight a critical challenge in the AI sector: while generating initial interest and adoption is achievable, maintaining consistent user engagement presents a more complex challenge. The data suggests that while AI applications can attract users rapidly, converting this initial curiosity into sustained, valuable usage patterns remains a fundamental hurdle for the industry. This dichotomy between rapid adoption and retention challenges raises important questions about: The long-term viability of current AI application models The need for evolving value propositions that encourage regular engagement The importance of developing use cases that integrate more naturally into daily workflows The balance between novelty and practical utility in AI applications In the current landscape, successful AI companies will need more than just attractive user interfaces built around third-party models. Yang emphasizes that sustainable success requires either proprietary technology development or a deep understanding of specific user needs coupled with excellent workflow solutions. Companies that can effectively integrate AI capabilities while solving real customer pain points are more likely to succeed than those pursuing overly ambitious visions without clear problem-solving focus. Korea's Competitive Position Korea stands in a uniquely advantageous position in the global AI and technology landscape. The country boasts some of the world's most skilled engineers and product managers, combined with a strong sense of aesthetic and design as demonstrated by the success of K-content globally. The competitive pricing of engineering talent, coupled with a well-established venture capital community, creates a robust foundation for startup growth. Key Strategic Implications The path forward for Korean startups in the AI era can be broken down into three critical areas: Gen-AI as a Table Stake Companies must recognize that AI integration is no longer optional but essential for future competitiveness Key focus areas should include: Natural language query capabilities as an alternative to traditional UI/UX Seamless integration with existing database systems through RAG (Retrieval-Augmented Generation) Development of additional modules and experiences that enhance core functionality Fundamental Business Principles Remain Unchanged The core principle of business success remains constant regardless of AI adoption: Success depends on building businesses that solve critical pain points for customers A Gen-AI "wrapper" alone won't save companies that don't meaningfully improve customer workflows or efficiency Valuation will ultimately reflect the real value delivered to customers, not just AI integration Strategic Approach to Innovation The presentation emphasizes a crucial philosophy: "Dream Big, but Focus on Solving a Problem vs. Simply Dream Big for the Sake of Dreaming Big." This means: Maintaining ambitious vision while ensuring practical problem-solving focus Prioritizing meaningful customer impact over technological sophistication Developing solutions that address specific market needs rather than pursuing technology for its own sake Balanced Implementation Approach Success in the global market requires a carefully balanced approach: While AI integration is necessary, it should be implemented thoughtfully and strategically Focus should be on enhancing existing strengths rather than completely replacing working systems Startups should identify specific inefficiencies or pain points they can effectively address Solutions should demonstrate clear value proposition beyond mere AI implementation Competitive Advantages to Leverage Korean startups can capitalize on several unique advantages: Strong technical talent pool with world-class engineering capabilities Established track record in product development and design Deep understanding of both Asian and global market dynamics Strong existing technology infrastructure and digital ecosystem Proven ability to create globally appealing products and services The key to success lies not in merely adopting AI technology, but in leveraging these existing strengths while thoughtfully integrating AI capabilities to solve real customer problems. The focus should remain on creating sustainable value through meaningful innovation rather than pursuing technological advancement for its own sake. Future Outlook: Korea's Path to Global Technology Leadership Foundation for Success The future for Korean startups shows exceptional promise, built on a foundation of three critical elements identified by Yang: World-Class Technical Foundation Some of the world's best technology talents while maintaining cost competitiveness Strong technical capabilities particularly suited for AI and enterprise software Proven track record in product development and innovation Mature Support Ecosystem Robust ecosystem of venture capital and growth capital Established organizations like NextRise supporting startup growth Continued and substantial government support Well-developed infrastructure for technology companies Growing Global Recognition Increasing interest from top global investors Potential for creating a "flywheel effect" of successful startups Building belief that Korean startups can compete with the best globally Strategic Implementation Path Yang emphasizes that success in this promising future requires a balanced approach: Problem-Solving Focus Priority on identifying and solving specific customer pain points Avoiding the trap of pursuing grandiose visions without practical application Maintaining focus on creating real value for customers Strategic AI Integration Thoughtful integration of AI capabilities into existing solutions Focus on enhancing rather than replacing functional systems Using AI to solve specific problems rather than as a marketing tool Competitive Advantage Creation Leveraging Korea's unique combination of technical excellence and cost efficiency Creating an "unfair advantage" for global expansion Building on the success of established Korean global companies Path Forward The convergence of these elements creates a unique opportunity for Korean startups to establish themselves as significant players in the international market, particularly in enterprise software and AI sectors. The key to capitalizing on this opportunity lies in: Balanced Growth Approach Maintaining ambition while focusing on practical problem-solving Building sustainable business models rather than chasing short-term trends Creating genuine value through innovation Ecosystem Leverage Utilizing the growing network of successful Korean global startups Taking advantage of increasing global investor interest Building on strong government and institutional support Market Position Establishing leadership in specific technology sectors Building on Korea's reputation for technical excellence Creating sustainable competitive advantages in global markets Conclusion Yang's insights suggest that Korean startups are at a unique inflection point. The combination of world-class technical capabilities, a mature venture capital ecosystem, and growing global recognition creates an unprecedented opportunity. However, success will depend not on pursuing technology for its own sake, but on maintaining a laser focus on solving real problems while effectively integrating advanced capabilities like AI. As the global technology landscape continues to evolve, Korean startups have the potential to not just participate in but help shape the future of technology, particularly in enterprise software and AI sectors. The future is indeed bright for Korean startups, but realizing this potential will require balancing ambition with practical execution, maintaining focus on customer value, and leveraging Korea's unique advantages to create sustainable global businesses. This combination of factors, properly leveraged, could establish Korean startups as leading players in the next generation of global technology companies.

  • "Will Your Company Survive 2025? The AI Revolution's Wake-Up Call"

    As the tsunami of AI revolution strikes every industry, corporate survival strategies have entered a new phase. At a recent Hunet CEO Forum 'Foresight Korea 2025', Vice President Jae-sun Hwang of SK Discovery Lab delivered a sobering message that put executives on high alert. "Companies that fail to adapt to the AI era will quickly disappear." This statement particularly resonated with me, working at Inspirio, an AI-based B2B SaaS company. Our company provides EPOSO, a solution that dramatically reduces the opacity and inefficiencies in IT project outsourcing through AI. Working with various clients, I've witnessed firsthand both the urgency and confusion companies feel about AI adoption. I've seen organizations yearning for improved efficiency while struggling to implement AI technologies effectively. In this context, I had high expectations for VP Hwang's insights. Hwang's warning goes beyond mere crisis rhetoric. The explosive growth of generative AI, led by ChatGPT, is fundamentally reshaping business management paradigms. AI is no longer just a tool – it's becoming our new colleague and, sometimes, our competitor. In this article, based on VP Hwang's incisive presentation, we'll delve deep into core transformation strategies and practical approaches for businesses to survive and thrive in the AI era. How will our companies navigate the powerful waves of the AI revolution? We'll explore the answers to this critical question. "Adapt or Disappear": The Law of Corporate Survival in the AI Era The business management paradigm is undergoing rapid transformation. While digital transformation dominated discussions over the past 3-4 years, we've now entered the age of AI transformation. ChatGPT's emergence represents more than technological innovation – it's become a watershed moment that could determine corporate survival. This is no longer optional; it's a prerequisite for business continuity. History offers us a stark lesson. Of the Fortune 500 companies from the 1950s, only 59 survived until 2020. This means 88% of companies vanished from the market in a relatively short span of 70-80 years. These shocking statistics vividly illustrate the fate of companies that fail to adapt to changing times. If we compare businesses to living organisms, the AI era represents perhaps the harshest period of natural selection yet. While changes in the PC and mobile eras were gradual, the AI-driven transformation is unprecedented in both speed and scope. Startups are threatening established companies with AI as their weapon, and those who fail to respond risk rapid obsolescence. Even more alarming is the acceleration of these changes. AI technology is advancing exponentially – today's innovations could become yesterday's relics by tomorrow. This creates an intensely competitive environment demanding continuous and rapid adaptation, where even a moment's complacency could prove fatal. "Your New Colleague, AI": The Evolution of Generative AI and the Business Revolution The advancement of AI, particularly generative AI, isn't just changing the business environment – it's revolutionizing it. The emergence of tools like ChatGPT is redefining the essence of knowledge work, much like how the Industrial Revolution replaced handicrafts. Employees are now experiencing firsthand that AI isn't merely a support tool but sometimes a colleague that can surpass their own capabilities. This isn't just a trend; it's becoming a decisive factor in corporate survival and prosperity. AI's evolution is exponentially accelerating the pace of industrial evolution. While traditional companies took decades to progress through mechanization, systematization, and intellectualization stages, AI is compressing this process into just a few years. Looking at office environment changes alone, the transition from paper documents to PC, internet, and mobile each took 15-year cycles. AI is now driving all these changes simultaneously and at an even faster pace. The capabilities of generative AI are already challenging human abilities in many areas. In text generation, image creation, voice synthesis, and code writing, AI is surpassing human creativity and efficiency. Even more startling are expert predictions: by 2025 – just 1-2 years away – it will be difficult to distinguish between AI-generated and human-created content. This implies that many professions and industries will inevitably undergo fundamental restructuring. Companies must now consider not just how to utilize AI, but how to survive in an AI-driven era. "AI, Your Superpower": Real-World Applications of Generative AI The penetration of generative AI into the business environment goes beyond tool adoption – it's redefining the nature of work itself. In nearly all knowledge work areas – writing, translation, idea generation, meeting minutes, customer service, coding – AI isn't just complementing human capabilities; it's sometimes replacing them. This represents an automation revolution in knowledge work, similar to how the Industrial Revolution mechanized physical labor. Real-world examples demonstrate the depth and breadth of these changes. In shared home services, AI handles customer complaints faster and more accurately than humans. In manufacturing, AI creates work hazard assessment reports, significantly reducing safety incident risks from human error. Furthermore, AI that instantly learns vast internal regulations and manuals is evolving into a 'super employee,' providing immediate responses to staff questions 24/7. "Using generative AI can improve employee productivity by 40-80%." This shocking figure isn't mere speculation – it's the result of McKinsey's empirical research. Companies that have implemented generative AI experienced an average productivity increase of 40-80%. This clearly shows that AI is no longer a future technology but a core competitive advantage that can determine corporate survival right now. Particularly in software development, AI tools have reported 20-40% productivity improvements. This means companies that fail to properly utilize AI won't just fall behind in competition – they risk complete market obsolescence. "The Human-AI Symphony": Birth of a New Work Paradigm Gartner's definition of our era as the 'LLM (Large Language Model) era' goes beyond mere technology trend prediction. It starkly reveals how rapidly our reality is changing. AI is no longer a future colleague but a present reality, sitting right beside us and performing tasks. This AI colleague can handle not just simple tasks but sometimes outperform humans in complex operations. Changes in work methods are already visible everywhere in our daily lives. Just as restaurant kiosks completely transformed the ordering process, AI is fundamentally reconstructing all business processes from the ground up. This represents not just an improvement in efficiency but a revolutionary change in business models and organizational structures. For office workers, this transformation is a double-edged sword. Just as the Industrial Revolution replaced physical labor with machines, the AI revolution will replace a significant portion of knowledge work. However, this doesn't signal the end of human labor. Rather, it's an opportunity for unprecedented levels of productivity and creativity through human-AI collaboration. The challenge lies in the speed of this change. AI capabilities are developing exponentially, and individuals and companies that fail to adapt risk rapid obsolescence. Therefore, what we need now isn't fear or rejection of AI but serious consideration and preparation for effective collaboration with AI. AI is no longer optional – it's essential. We've entered an era where AI collaboration skills determine the competitiveness of both individuals and companies. AI Transformation: The Last Chance for Survival AI transformation is no longer a future task but a critical challenge that determines corporate survival right now. The current crisis is more serious than ever, and companies are already in a race against time. Revolutionary Changes in Outsourcing: AI is fundamentally restructuring traditional outsourcing areas. The gap between companies that have adopted AI and those that haven't in areas like financial accounting, education, and IT is already becoming an unbridgeable chasm. This isn't just about efficiency differences – it's becoming a core competency that determines corporate survival. Urgency of Internal Innovation: Companies no longer have the luxury of gradual change. They need immediate and revolutionary AI adoption in at least one area among products/services, business models, customer touchpoints, or work processes. While this process of changing corporate DNA is painful, it's an inevitable choice for survival. Urgency of AI Infrastructure Development: Digitalizing legacy systems, organizing data, and strengthening security are tasks that can't be postponed. Without this foundation, AI adoption becomes impossible, which means market obsolescence. Particularly, increasing organizational AI acceptance isn't just about education – it requires fundamental transformation of corporate culture. Urgency of Problem Definition: It's crucial to bridge the gap between field-level problems and executive vision using AI. This isn't just about improving efficiency – it's about redefining corporate survival strategies. Problems that can't be solved through AI will soon become critical weaknesses for companies. AI transformation is the last chance for corporate survival. This goes beyond mere technology adoption – it's about redefining the very way companies exist. Organizations that fail to prepare for the new era through AI collaboration will fade into history. If we don't act now, there won't be a tomorrow. This is the harsh reality that the AI era presents to us. This isn't just about efficiency – it's about redefining corporate survival strategies. Problems that can't be solved through AI will become critical weaknesses. The time to act is now – tomorrow may be too late.

  • AI Evolution: A New Era of Business Transformation

    AI technology is evolving at the speed of light. The emergence of generative AI, in particular, demands more than just technological innovation—it requires fundamental changes in management strategies and business models. We are entering an era of transformation comparable to how the Industrial Revolution completely transformed the artisanal society. How should companies respond to this era of transformation? A lecture by Oh Soon-young, former head of KB Bank's Financial AI Center, at the HUNET CEO Forum 'Foresight Korea 2025' provides clear answers to this question. His presentation outlines the new business landscape that AI will create and details the strategies companies need to survive and thrive in this new world. We now stand at the peak of AI's massive wave. Will we ride this wave into the future, or will we be swept away by it? Through Oh Soon-young's insightful lecture, we can find answers to this question. AI: Moving Beyond Science Fiction Imagine robots helping with housework, AI assistants understanding and responding to your words and actions, and smart devices monitoring your health in real-time. Just a few years ago, these scenes were distant future stories found only in science fiction movies. But now, they're becoming reality. AI is no longer just a data processor. The emergence of 'spatial intelligence' means that AI can now understand and interact with our three-dimensional world. When you say "make the lighting brighter" in your living room, AI doesn't just execute the command—it considers the current time, external weather, and your activities to adjust to the most appropriate brightness. This is the power of spatial intelligence. Even more remarkable is that humanoid robots are on the horizon. NVIDIA CEO Jensen Huang predicts practical humanoid robots will emerge within 2-3 years. This isn't mere speculation—companies like Boston Dynamics and Tesla are already accelerating their human-form robot development. Soon, we'll see robots working alongside humans in factories, hospitals, and even homes. AI in Action: Real-World Transformations These changes aren't limited to specific industries. The financial sector is already at the forefront of the AI revolution. Morgan Stanley's case vividly shows how AI can innovate business. Their AI assistant has evolved beyond a simple chatbot—it analyzes complex financial data to create investment reports, responds to customer inquiries at an expert level, and even suggests personalized investment strategies. Perhaps most interesting is Morgan Stanley's 'Debrief' system. Can you imagine automatically recording and summarizing over a million meetings annually? Previously, this required significant time from high-level personnel. Now freed from these repetitive tasks, they can focus on more creative and strategic work. This represents a revolutionary change in optimizing human resources beyond simple efficiency improvements. Nike's case demonstrates AI's potential in creative domains. Nike uses AI to design and develop products based on athlete data. According to Oh Soon-young, this process has reduced product design development from months to just hours. Specifically, Nike inputs various data into their AI system, including athletes' movements, physical measurements, and performance data. The AI analyzes this data to suggest optimal designs. For example, it can generate customized shoe designs by analyzing a specific athlete's foot shape and running patterns. This goes beyond simple task automation. AI can generate and evaluate thousands of design options instantly and might suggest innovative ideas that human designers haven't considered. This allows designers to focus on more creative aspects of their work. Strategic Approach to AI Adoption AI adoption isn't simply about implementing new technology—it's a major strategic decision. Oh Soon-young presents key strategies for AI adoption: Clear Goal Setting: A vague notion that "AI might be good to have" isn't enough. Companies need to clearly define what problems they want to solve and what effects they expect. This becomes an important criterion in determining necessary resources and personnel. Data Preparation: AI grows on data. Without sufficient quality data, AI cannot function properly. He advises companies to check if they have the necessary internal data and, if not, start preparing it now. He also emphasizes the importance of converting historical data into AI-readable formats. Establishing Collaborative Structures: AI projects aren't just for the technology team. They require cooperation between various departments, including business units, IT infrastructure teams, and data scientists. Business unit participation is particularly crucial—their knowledge and experience must be reflected in the AI system to create truly useful solutions. Start with Pilot Projects: Don't try to implement on a large scale from the beginning. Start with smaller projects to verify effectiveness and increase organizational acceptance. Since each company's environment is different, going through the process of direct testing and verification is necessary. Building AI Governance: Companies need to establish ethical and legal guidelines for AI use and ensure transparency and accountability in AI decision-making. The AI governance team should be separate from AI-related organizations, positioned similarly to an audit organization. Real-World Challenges in AI Implementation Anyone who has attempted to implement AI solutions in the field will deeply empathize with the concerns and difficulties mentioned by Oh Soon-young. "Shouldn't we implement AI now?" Projects that start with this simple question from management often face numerous obstacles. Field practitioners are well aware of how many challenges arise: executives hesitating before investment decisions, middle managers questioning "Do we really need to go this far?" and staff worrying "Won't this just create more work?" These concerns are far from trivial. Cost optimization is a hot topic for many companies. Questions flood in: "How much will AI implementation cost?", "When can we expect to see results?", "What about our existing systems?" While it's easy to say ROI should be thoroughly evaluated, making large-scale investments in unproven technology is never simple. Talent acquisition and development is another major challenge. Companies grapple with questions like "Where can we find AI experts?" and "Will our employees know how to use this?" Companies are engaged in fierce competition to recruit the few available AI experts while simultaneously wrestling with how to enhance existing employees' capabilities. Integration with legacy systems is a headache for many companies. "How do we change a system we've used for over 10 years?", "How do we handle data compatibility?" How can you harmoniously integrate systems and data built up over years with new AI systems? This is a complex challenge that demands not just technical solutions but organizational culture changes. Building New Competitive Advantages What creates competitive advantage in the AI era? Oh Soon-young offers an unexpected answer: UI/UX. While AI technology's performance is important, the key lies in how easily and conveniently users can interact with it. Another crucial point is the importance of AI literacy. This goes beyond technical ability to use AI—it's about understanding AI's possibilities and limitations and being able to utilize it effectively. This AI literacy will become a core competency for both companies and individuals in the future. The introduction of AI will inevitably bring changes to work environments and job functions. However, this doesn't simply mean job losses. Rather, it's an opportunity to focus on more creative and valuable work by moving away from repetitive tasks. Preparing for the AI Future The key is preparing for these changes. Companies need to invest in employee retraining and job reassignment. They also need to improve employee perceptions of AI. It's important to create an organizational culture where AI is seen as a helpful partner rather than a threat. AI is no longer optional—it's essential. However, successful AI adoption depends not on the technology itself but on how it's utilized and managed. Oh Soon-young's lecture provides both a big picture of the changes AI will bring and a practical roadmap for how companies should respond to these changes. Moving forward, companies need to recognize AI not just as a tool but as a core element of a new business paradigm, and build appropriate strategies and organizational cultures accordingly. To become winners in the AI era, companies need technical preparation, organizational transformation, and, most importantly, learning how to work alongside AI. This is the core message Oh Soon-young aims to convey.

  • Strategies for Recession Marketing: Brand Growth During Downturn

    At HUNET's 'Foresight Korea 2025' forum, discussions centered on corporate future strategies and innovation approaches. Among the notable presentations, the lecture on "Marketing Strategies in Times of Economic Downturn" by Ki-seok Seo, CMO of Life4Cuts, garnered significant attention from business leaders. Ki-seok Seo brings extensive marketing expertise from his roles as IKEA Korea's CMO, GM's Head of Strategic Planning, and Kakao Mobility's Brand Director. Currently serving as CMO at Life4Cuts, a global self-photo studio brand with over 700 locations worldwide, he focuses on promoting K-photo culture globally. Brand Essence: Beyond Logos and Images The lecture began with insights into the fundamental value of brands. Seo defined brands not merely as logos or images but as promises to customers and valuable assets. "During economic downturns, what ultimately endures is the brand," he emphasized, noting that price competitiveness alone cannot sustain growth. In today's intensifying global competition, brand strength has become crucial for corporate survival and growth. Capturing Customer Mindshare, Preference, and Purchase Points Successful brand building requires three critical elements: Mental Availability, Desirability, and Physical Availability. First, Mental Availability refers to how easily a brand comes to mind for consumers. For instance, when thinking of cola, if a particular brand immediately comes to mind, that brand has achieved high mental availability. The significance of this element is underscored by the fact that "in any category, consumers typically recall no more than five brands naturally." Second, Desirability encompasses brand preference and desire. It includes how much consumers love, trust, and perceive the brand as trendy. This goes beyond mere awareness to create emotional connections. Third, Physical Availability refers to actual purchase accessibility. Nike's case illustrates the importance of this element well. Their excessive focus on D2C (Direct to Consumer) strategy led to reduced product availability in retail stores, which hindered brand growth. These three elements are closely interconnected, requiring balanced development. When evaluating brand performance, three key questions emerge: "Does our brand naturally come to mind in its category?", "Do consumers genuinely prefer our brand?", and "Can customers easily access our products when they want to purchase?" Beyond Short-term Sales: Sustainable Brand Growth Marketing serves two main purposes: 'sales' for short-term revenue growth and 'brand growth' for long-term value creation. Sales-focused marketing concentrates on immediate revenue generation. While this contributes to immediate corporate performance, it's insufficient for sustainable growth. The true value of marketing lies in long-term brand development. Brand growth marketing focuses on increasing mental availability and desirability in customers' minds. "To remain memorable to consumers, continuous engagement is necessary, and to earn genuine love, excellent content and products must be consistently delivered." The concept of 'Incremental Customer' is particularly noteworthy. This involves attracting new customers who previously didn't consider our brand. Effective marketing discovers potential customer segments and converts them into actual customers. Furthermore, it presents the innovative perspective that "marketing is the customer." This means marketing isn't just a corporate department but an integrated activity encompassing all customer touchpoints. Marketing's ultimate goal is to ensure brands remain beloved and chosen, requiring a customer-centric, integrated approach. Five Marketing Strategies to Navigate Economic Downturns 1. Sustained Strategic Marketing Investment: During downturns, marketing budgets are often the first to be cut. "When revenue drops, companies typically cut marketing budgets first, increase sales pressure, and finally reduce benefits." However, this can be a fatal mistake. Research supports this view. Companies that increased marketing investment by 48% during downturns doubled their market share, with 60% achieving 10-17% additional revenue growth compared to competitors. Reducing marketing investment leads to a decline in 'Share of Voice,' weakening long-term corporate influence and revenue. 2. Differentiated Brand Positioning: 'Liquid Death' has emerged as a new powerhouse in the U.S. water market. Within three years of its 2019 founding, it achieved a $700 million valuation, with 2022 revenue tripling to $130 million. This success demonstrates the effectiveness of differentiation through punk and heavy metal imagery. Running shoe brand 'On' has maintained an 85% average annual growth rate since 2010, reaching $1.2 billion in revenue in 2022. Their 2023 campaign featuring Zendaya as brand ambassador led to a 32% increase in brand preference among Gen Z consumers. When product differentiation is challenging, marketing and communication can create 'Perceived Distinctiveness.' 3. Strategic Pricing Policy: 84% of discount campaigns actually result in reduced profitability. IKEA's "Our Lowest Price" strategy succeeded because it aligned with the brand philosophy of "providing good products to more customers at reasonable prices" rather than simple price reduction. Pricing policies should reflect brand values and philosophy. 4. Customer Loyalty Strategy Development Community building should extend beyond simple CRM or membership programs. IKEA 'Family' and Adidas and Nike's 'Members Week' provide unique brand experiences beyond mere benefits. McKinsey research shows that providing differentiated value to loyal customers is more effective than simple price discounts. 5. Brand Experience Innovation Chipotle and Taco Bell's successful brand recoveries began with returning to fundamentals. Marshall's case demonstrates the value of maintaining core brand values while expanding into new categories. Continuous innovation in delivering brand uniqueness to customers is essential. These strategies focus on building long-term brand value rather than short-term performance. An integrated approach is essential for surviving downturns and emerging as a stronger company. Conclusion: Customer-Centric Marketing Mindset A "Market-oriented Mindset" isn't just a slogan but essential for corporate survival. Marketing extends beyond flashy advertising or promotions, beginning with understanding customers and thinking from their perspective. "The moment you enter the company, you're no longer a customer." This provocative statement accurately points out a common trap for corporate insiders. Even experienced executives can become trapped in an insider's perspective, missing genuine customer voices. Walmart's legendary founder Sam Walton stated, "There is only one boss. The customer." Customers aren't mere consumers but true corporate decision-makers. They have the power to 'fire' companies by taking their wallets elsewhere. The importance of customer-centric thinking becomes more prominent during downturns. According to a 2023 Harvard Business Review study, companies that strengthened customer-centric strategies during the 2008 financial crisis outperformed the S&P 500 index by an average of 25% over the following three years. McKinsey's recent analysis shows that companies in the top 25% for customer satisfaction achieved three times higher Total Shareholder Return (TSR) than lower-ranked companies, even during downturns. Notably, Forrester Research found that companies ranking high in the Customer Experience Index (CX Index) showed five times faster revenue recovery than lower-ranked companies during the 2020 COVID-19 pandemic. This proves that a customer-centric strategy isn't just an ideal but a core driver of corporate survival and growth during crises. Ultimately, the key to overcoming economic downturns lies not in short-term cost reduction but in continuously strengthening brand value. This isn't merely a marketing tactical issue but connects directly to fundamental business philosophy. Only companies that recognize customers as true bosses and create value from their perspective can achieve stronger growth beyond economic downturns.

  • Why You Can't Truly 'Own' a Patek Philippe: Exploring the True Meaning of Luxury Timepieces

    "You merely look after it for the next generation." This was during a training session with representatives from other countries at Nestlé's headquarters in the small town of Vevey, about an hour's train ride from Geneva, Switzerland, in 2013. Despite it being May, the Alps across Lake Geneva were still covered in white snow. As I was eagerly storing this picturesque scene in my mind's eye, a voice broke the peaceful atmosphere. "It's already 8:45. Aren't we going to be late for the 9 o'clock meeting?" Her words made all of us first-time visitors to the Swiss headquarters tense up. That's when Vinay from India, who had been observing the situation with a relaxed expression, spoke in a calm tone. "You know what? The Swiss are obsessed with punctuality beyond your imagination. Looking at my watch now, the tram will arrive in exactly 2 minutes." His smile showed such strong confidence that it was hard to dismiss his words. Amazingly, the tram did arrive exactly 2 minutes later. This is my vivid memory of the Swiss obsession and philosophy about time. This Swiss fixation on time naturally led to their expertise in watchmaking. Perhaps it's no coincidence that many watch brands, especially the world's top three luxury watchmakers - Patek Philippe, Vacheron Constantin, and Audemars Piguet - all have their roots in Switzerland. This national characteristic may have given birth to these Swiss watch brands. Among them, I'd like to introduce Patek Philippe, which boasts the highest value in the world among the watch brands born from this obsessive attention to time. Polish War Refugee Falls in Love with Watchmaking In 1812, Antoni Patek was born into a noble family in Poland. During his youth, Poland was in a chaotic situation under Russian rule. At the age of 16, he joined the Polish army that launched an armed rebellion against the Russian Empire's rule and participated in the November Uprising of 1830. The young man not only participated but also received the highest honor from his homeland. However, the following year, the Polish army was defeated by the Russian garrison, and Patek and his comrades were forced to migrate to Western Europe. Patek settled in Paris, but due to Russian pressure on the French government, immigrants like Patek had to pack up again. Patek moved to Geneva, Switzerland, a decision that would change not only his life but also the history of watchmaking, though he couldn't have imagined it at the time. After settling in Geneva, he was amazed by the watchmaking artisans he saw. Then he met François Czapek, a Polish watchmaker of Bohemian origin. Impressed by Czapek's watchmaking skills, Patek made a proposal. "Czapek, how about we try to make the best watches in Geneva together?" In May 1839, the two with a common interest in watches started Patek, Czapek & Cie. in Geneva, Switzerland. The Meeting of Patek and Philippe Patek, Czapek & Cie. attracted a lot of attention from the start. However, as the business thrived, differences of opinion between the two widened, and when their six-year contract ended in April 1845, they went their separate ways. Although the skilled watchmaker Czapek had left, Patek couldn't shake off his passion for watches. That's when he remembered Jean Adrien Philippe, another watchmaker he had met at the Industrial Expo in Paris a year earlier. Philippe had won a gold medal at the Paris Industrial Expo for his innovative keyless winding mechanism, which allowed pocket watches to be wound without a key by using a crown. Until the mid-19th century, winding the mainspring of a pocket watch required inserting and turning a dedicated key. Patek made him an offer. "Philippe, I want to create watches that don't exist in the world with a watchmaker like you who constantly tries new things! Won't you join me?" Responding to his enthusiastic offer, Philippe immediately left Paris and joined Patek in Geneva. Patek's proactive recruitment of talented individuals with skills he lacked is reminiscent of Steve Jobs recruiting the genius developer Steve Wozniak. That's how Patek & Cie. was established in May 1845. Wait, something's not right. The brand name we know is 'Patek Philippe', but only 'Patek' is here. In fact, the company operated as Patek & Cie. for the first six years. However, as Philippe was the core technician, he demanded that his name also be included in the company name. "Patek, no matter how I think about it, my role in the company is quite significant, and I find it hard to understand why my name is not included in the company name. Include my name in the company name right away!" "Philippe, changing the company name is not such a simple matter. It will be changed soon, so please wait." Philippe decided to wait for now, but nothing changed as time passed. Then, just before an exhibition in London, Philippe delivered an ultimatum. "Patek, I can't wait any longer. If the company name isn't changed by the London exhibition, I'm leaving." Patek could no longer postpone Philippe's request, and in 1851, Philippe's name was finally included in the company name. At the London exhibition, a female customer purchased a pendant watch from Patek Philippe & Cie. She was none other than Queen Victoria, who led the British Empire at its peak, known as 'the empire on which the sun never sets'. Thus, Patek Philippe established itself as a watch brand that royalty and high nobility desired to own. Even Patek Philippe Couldn't Avoid Generational Change In 1875, Patek's anemia was getting worse, and his health was not what it used to be. At the same time, he feared that if he died, the company he had devoted his life to might be in jeopardy. To prepare for any eventuality, three employees, including Singria and Köhl, participated in a capital increase and became co-owners of the company. In 1877, Antoine Norbert de Patek, the founder of Patek Philippe & Cie., passed away at the age of 65. He had a 20-year-old only son, but he wasn't interested in the company. Instead, he gave up his right to run the company in exchange for a lifelong pension. Thanks to this, he received a pension for the next 50 years until he died at the age of 70. Patek's vacancy was filled by Jean Adrien Philippe's son-in-law, Antoine Benassy-Philippe. Interestingly, to show that his children were the legitimate heirs of Patek Philippe & Cie., Antoine Benassy-Philippe had his six children take their mother's surname instead of his own. Despite these efforts, by the mid-20th century, not a single descendant of the Patek and Philippe families was working at Patek Philippe. The other founder, Jean Adrien Philippe, also couldn't escape the passage of time. Two years before his death, he passed his position to his youngest son, Joseph Emile Philippe. In the same year, Köhl left the company, and Singria also gave up his shares. Due to the nature of the partnership organization, which could naturally dissolve when the contract period expired, Philippe changed the company to a corporation to avoid following the same path as Patek, Czapek & Cie. After that, the company continued to grow smoothly, releasing new products one after another, but it faced an unexpected crisis. The Emergence of the Stern Family When the aftermath of the Great Depression that started in the United States in 1929 spread worldwide, existing customers couldn't fulfill their payment obligations for purchases, and Patek Philippe was severely affected. The management wanted to prevent the situation where the company would be acquired by a competitor and lose its unique brand identity. It was the Stern brothers, Charles and Jean Stern of the Stern family, who reached out at this time. The Stern family was a trusted company that had been the sole supplier of dials, which can be called the face of the watch, to Patek Philippe for a long time. The Stern family, who had always held the products manufactured by Patek Philippe in high regard, couldn't bear to see a watch brand of the century with a world-renowned reputation disappear. Thus, the Stern family came to own Patek Philippe, now without Patek and Philippe. Charles and Jean Stern had never disagreed when making watch dials, but they had different opinions on the direction for Patek Philippe. Eventually, Charles Stern became the chairman of the board of Patek Philippe and entrusted the operation of Patek Philippe to Jean Pfister, a respected watchmaker at the time, who was recruited from another watch brand, Tavannes, until his retirement in 1958. Charles Stern's son, Henri Stern, established the Henri Stern Watch Agency in New York in 1946 and took charge of Patek Philippe's U.S. market distribution. When Jean Pfister retired, he was appointed as the chairman of the board and CEO of Patek Philippe. Charles Stern was interested in unique and rare watches and collected them, and his collection later became the foundation for the Patek Philippe Museum in Geneva. He had a son, Philippe Stern, who had just turned twenty. Philippe Stern spent his childhood in the United States and was very interested in the family business, but he was also interested in IT. He actually tried to pursue a career in the IT industry, but whether it was due to his father's persuasion or not, he started working at the Henri Stern Watch Agency, which his father had established in New York, in his mid-20s. Three years later, in 1966, he joined the Patek Philippe headquarters in Geneva, but at that time, he didn't have professional knowledge about the watchmaking process. As quartz watches, which operate on batteries instead of spring mechanisms, became mainstream in the market with plummeting prices in the 1970s, Philippe Stern was tasked with a watch-making project for the younger generation like himself. As a sports enthusiast, he wanted to add a casual touch to the existing elegant Patek Philippe watches. The result was The Nautilus Ref. 3700/1. The slogan at the time was "One of the world's costliest watches is made of steel." Upon its release in 1976, it received a very hot response in the market and is still considered a classic and essential Patek Philippe watch to this day. The following year, Philippe Stern was appointed CEO of Patek Philippe. Philippe Stern thought that to compete with quartz watches, which were more accurate and cheaper, they needed to introduce more high-end technology while also incorporating artistic value to make watches that collectors would want to own. He recruited engineers to advance Patek Philippe to the next level. He aimed to systematize and standardize the manufacturing process that previously relied on a few artisans. If the same parts could be standardized, productivity could be increased, and customers could use their watches for longer as certain parts could be replaced for repairs. "If handcrafting by artisans is better than machines, we'll choose handcrafting. But if machines can assist the artisans' work, we won't blindly stick to tradition." Moreover, Philippe Stern considered complete independence from external factors as an essential prerequisite for ensuring the quality of the company's products. The manufacturing process was carried out very autonomously, with only minimal parts sourced from external partners. In 1993, Henri Stern finally passed the chairmanship to his son, Philippe Stern. The following year, Philippe Stern's son, Thierry Stern, also joined the company, making it the fourth generation to be part of Patek Philippe. Until then, Patek Philippe's workspaces had been scattered around Geneva, but with the establishment of a new factory, the manufacturing process could be carried out in one place. This was in 1996, which marked 20 years since Philippe Stern became the CEO. Meanwhile, the number of employees had grown from 300 to 600. 1996 was memorable not only for the factory establishment but also for another monumental event. Patek Philippe's famous slogan, "You never actually own a Patek Philippe. You merely look after it for the next generation," was first introduced to the public. In 2001, Philippe Stern finally opened the Patek Philippe Museum to the public, which had been prepared for a long time since his father's era. Thousands of rare watches that captured the changes of the times, collected over 40 years, were displayed here. Not stopping there, to ensure that watch innovation continued within Patek Philippe, he established the Patek Philippe Advanced Research department and actively invested in developing Patek Philippe's unique and progressive technologies. In 2005, the first work of Advanced Research, the Annual Calendar 5250, incorporated silicon-based parts, which was considered a very innovative attempt at the time. This part is lightweight, with a density of only 1/3 that of steel, and has low inertia, resulting in low energy consumption. It's also harder than steel, has excellent wear resistance, is non-magnetic, and insensitive to magnetic fields. Moreover, it's shock-resistant and elastic, allowing for self-recovery even if twisted, making it seem like there couldn't be a better material. Patek Philippe later applied this part to the balance spring in the Annual Calendar 5350, gradually increasing its utilization to improve energy efficiency and extend the overhaul (maintenance) cycle. Remembering the Past and Looking Forward to the Future Philippe Stern's son, Thierry Stern, joined the company in 1994 and started learning the basics of watchmaking, gaining experience in all departments of Patek Philippe. He then took charge of the Belgium, Netherlands, and Luxembourg markets before becoming Patek Philippe's creative director, contributing to setting long-term strategies for Patek Philippe. In 2009, Thierry Stern succeeded his father Philippe Stern as the chairman of Patek Philippe. After that, Patek Philippe embarked on another adventure: independence from the Geneva Seal. The Geneva Seal was established by law in 1886 by the Geneva cantonal government to officially guarantee the quality of watches made by Geneva-based watchmakers. The more fundamental purpose was to prevent the outflow of specialized skills and knowledge of watchmaking as many watchmakers were leaving Geneva at the time. However, Patek Philippe judged that even the Geneva Seal, with its 100-year history, was insufficient to represent Patek Philippe's long tradition and innovative technology. So, Patek Philippe created its own certification. This is considered a quite bold and symbolic measure that defines the Patek Philippe brand. It's too limiting to define Patek Philippe as just a watch manufacturer given the dazzling technological innovations they've consistently shown. It's hard to imagine what it's like to directly shape the future of a field with such overwhelming technological prowess. Finally, I'd like to conclude this long article with the words left by Thierry Stern: "A company composed of passionate and good people cannot easily collapse. Patek Philippe is an endless story of creation and innovation. I cannot imagine a day when ideas for better watches will be exhausted. Watch designs will become more intricate and complex, but technological advancements will make our imagination a reality. Patek Philippe will continue to move towards the future through endless creation and innovation."

  • "Does the Rise of AI Signal the End of Creative Marketing?"

    The advancement of artificial intelligence (AI) is transforming every aspect of our lives, and marketing is no exception. At the HUNET CEO Forum "Foresight Korea 2025," LG U+ Executive Director Kim Tae-hoon delivered an insightful presentation on "AI Marketing New Trends 2025," exploring AI's impact on marketing and how businesses should prepare for the future. Let's examine the marketing trends of the AI era and how companies can strategically respond. AI: Knowing What Customers Want Before They Do AI and machine learning technologies are revolutionizing personalized marketing. The era of rule-based personalization is over. Advanced AI predictive modeling not only accurately understands customer needs but also predicts and suggests latent desires that customers themselves haven't yet recognized. "Most customers are unaware of their potential needs," explained Executive Director Kim. AI-based predictive modeling captures these latent desires and transforms them into memorable customer experiences. For instance, when AI predicts a customer's likelihood of purchasing baby formula, targeted advertising reaches them immediately. This capability far surpasses traditional rule-based systems. The 2022 Salesforce "State of Marketing" report reveals a notable shift: the percentage of marketers using AI surged from 29% in 2018 to 68% in 2022. LG U+'s experimental results are equally impressive, with AI-based predictive modeling boosting ad click-through rates by up to 38%. These results demonstrate AI's profound ability to analyze customer data and develop effective personalized marketing strategies. Creating $200,000 Ads for One-Third the Cost: How AI is Transforming Production LG U+'s pioneering use of AI in advertising production is reshaping industry standards. Starting with their first attempts in 2023, they've continued to evolve their AI advertising capabilities in 2024, capturing market attention. The most striking change is the maximization of production efficiency. After implementing AI, advertising production costs and time have been reduced to just one-third of previous levels. For example, projects that once required $200,000 and three months to complete can now be finished much faster and more economically using AI. AI isn't just improving efficiency - it's entering creative territories. In fact, LG U+'s AI-powered advertisements garnered 13 million views, generating enthusiastic audience responses. Accenture's 2021 research supports this trend, finding that 84% of companies that adopted AI gained a competitive advantage, largely because AI automation of routine tasks allows creators to focus on higher-value creative activities. However, human creativity and judgment remain crucial for successful AI implementation. While AI is a powerful tool, industry consensus holds that human expertise and insight are essential for its effective utilization. Consumers and AI: The New Content Creation Partnership AI technology is completely transforming the content creation paradigm. The UCC (User Created Content) era is giving way to the UACC (User and AI Co-Created Content) era. The age of UACC - "User and AI Co-Created Content" - is rapidly approaching. Recently, a viral Volvo car advertisement and GTA-style gaming footage created by an individual using AI demonstrated UACC's unlimited potential. IDC's 2021 report presents an even more striking forecast, predicting the global AI market will reach $500 billion by 2024. This highlights how rapidly AI technology is permeating across industries. These changes bring new challenges and opportunities. Companies must now provide platforms and tools that enable customers to create creative content alongside AI. This will expand brand experiences and strengthen customer relationships. Global Brands That Said No to AI While AI technology holds revolutionary potential, its implementation requires careful consideration. The cases of Lego and Dove demonstrate the crucial importance of finding harmony between AI technology and brand identity. Lego completely halted its use of AI after determining that AI-generated images were damaging their brand identity. This decision was accelerated by strong consumer backlash against AI-produced content, with critics arguing that it had lost the quintessential Lego creativity and warmth. This vividly illustrates the potential clash between core corporate values and AI technology. Similarly, Dove boldly rejected AI technology, stating, "We won't use anything unrealistic in depicting beauty." These cases send a clear message: AI technology shouldn't be adopted indiscriminately just because it's trendy. Companies must carefully examine their brand values and identity when implementing AI technology. AI adoption goes beyond mere technological application. It's deeply connected to a company's strategy, culture, and human resources. Therefore, when adopting AI technology, companies must comprehensively consider various aspects including brand value, corporate culture, and talent development. This balanced approach is essential for sustainable growth and maintaining competitiveness in the AI era. Strategic wisdom is more crucial than ever - maximizing AI technology's potential while preserving the company's unique values and identity. How Can Marketers Survive in the AI Era? AI technology's advancement is fundamentally changing the role of marketers. Now, marketers must go beyond simply using technology; they need to develop skills that harmoniously blend AI and human creativity. The key is effectively expressing corporate identity through AI technology while producing superior results. LG U+'s case proves this vividly. During the process of generating and reviewing 200,000 advertising frames using AI, it became clear that human curation and refinement of AI-created content was crucial. Rather than merely relying on AI, human judgment determined the final quality of the output. Marketers must effectively utilize AI tools while maintaining brand essence and authentic customer communication. Additionally, their role in reviewing and filtering AI-generated content will become increasingly important. LinkedIn's 2023 "Jobs on the Rise" report highlights interesting changes. AI and machine learning specialists, data scientists, and digital marketing experts are among the fastest-growing job categories. This clearly shows new challenges and opportunities opening up for professionals, including marketers. Five Recommendations for Successful AI Marketing Executive Director Kim's presentation provides crucial insights into the future direction of marketing in the AI era. He presents the following key strategies: Be cautious of indiscriminate AI adoption; consider the company's actual needs and readiness level Leaders must improve their understanding of AI technology and make strategic decisions Accurate predictive modeling and personalization strategies based on customer data are essential Prepare for the UACC era by providing platforms where customers can create creative content with AI Maintain harmonious integration between brand identity and AI technology utilization "AI trends are not absolute." This single statement encapsulates everything. Only careful AI adoption tailored to a company's situation leads to success. AI is not a magic wand but a powerful tool, and how it's utilized will determine a company's success or failure. The conclusion is clear. Marketing in the AI era must achieve harmony between technological innovation and human creativity. Companies must effectively utilize AI technology while not losing sight of their brand essence and authentic customer communication. To become a winner in an AI-driven marketing environment, one must find the balance between technology and humanity. This requires strategic wisdom that goes beyond simple technology adoption, weaving together corporate core values and AI's potential into a unified strategy.

  • A Guidebook for Entrepreneurs Filled with Doubts

    "Why Startups Fail" by Thomas Eisenmann In 2021, while working as an external journalist for the Korea Institute of Startup & Entrepreneurship Development, I encountered a wide variety of startups. They ranged from those experiencing rapid growth to others that had been treading water for over seven years. When talking with founders of slower-growing startups, I expected to see the typical fatal flaws or risks often associated with entrepreneurs. However, these weren't readily apparent. Many of these founders had impressive track records at their previous companies and were often talented individuals who had left promising careers at major corporations. With such diverse backgrounds and personalities, it was challenging to pinpoint the exact reasons for their startups' slow growth. Recently, I came across a book that helped me understand why identifying the causes of startup failure is so difficult. Humans tend to oversimplify the reasons behind both good and bad outcomes. Philosophers call this the "single cause fallacy." For example, people might attribute a presidential candidate's loss to "failing to win over swing voters," or a sports team's poor season to "losing a star player to injury." In reality, such outcomes result from a complex interplay of numerous factors. It's overly simplistic to blame startup failure solely on the founder or employees. To truly understand the situation, we need to consider the intricate web of relationships between various stakeholders involved in startups. Fortunately, the author, Thomas Eisenmann, was able to objectively analyze a diverse group of entrepreneurs thanks to his research and lectures at Harvard Business School, where he met many HBS graduates who had become founders. While most existing books on startups and entrepreneurship rely on theoretical models, econometric analyses, or large-scale surveys, Professor Eisenmann gathered information through meticulous case studies and in-depth individual interviews. He didn't just listen to founders' stories but also interviewed investors to understand why startups they had founded or funded failed to succeed. Professor Eisenmann has counseled many entrepreneurs facing the decision to shut down their businesses and witnessed countless times what happened after they made their choices. During conversations with the author, these founders openly expressed raw emotions like anger, guilt, sadness, shame, and regret. Some couldn't accept the reality of failure and displayed deep frustration. Who could blame them for their shattered dreams, damaged relationships, and crumbling self-esteem? Overcoming the emotional and professional losses from company failure is no easy task for entrepreneurs. In his book, Professor Eisenmann addresses how entrepreneurs can face failure, providing guidance on managing emotions, facing reality, and using these insights to plan their next steps. When I was asked to review this book by BusinessBooks, I initially hesitated. Many translated books often suffer from mistranslations or awkward phrasing that distort the original meaning. However, "Why Startups Fail" reads as naturally as if it were originally written by a Korean author. While reading, I never once doubted whether the message accurately reflected the author's original intent. Personally, this is the most satisfying and relatable translation I've encountered since "Bernie Sanders' Political Revolution" and "The Brain Sell." This book is a must-read for all entrepreneurs dreaming of creating a Korean unicorn, whether they're facing a crisis or looking to expand their success. Had they read this book in advance, entrepreneurs might have been better equipped to navigate difficulties without panic and find paths with lower risk of failure, thereby increasing their chances of success.

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