Although major South Korean companies have long had a strong presence in the U.S. — especially across electronics and automotive industries — tech startups have had a more challenging time replicating that success.
Recent rivals include Noom, the psychology-powered digital health platform; Neofect, pioneering gamification in stroke rehabilitation; KonoLabs, which offers AI-driven productivity tools; and CarVi, a digital driver assistance system.
These companies are part of a growing wave of Korean startups breaking into the American market. But this success isn’t always so smooth, and many challenges abound. What’s holding founders back from scaling their businesses in the U.S.?
Language and presentation are some of the main obstacles. Darlene Chiu Bryant, founder of GlobalSF, points out that Korean entrepreneurs face difficulties in communicating their ideas.
“They are too technical,” Bryant said. “They need to learn how to pitch their technology in a way that resonates with American investors.”
In Silicon Valley and beyond, where pitching is a critical skill, Korean founders struggle to adapt their communication style to the U.S. investors expectations.
“It’s about your ability to tell a compelling story,” says Toan Huynh, Managing Partner at Alinea Ventures.
Korean founders often enter the U.S. market without local contacts that could help secure capital, according to Huynh. “Investing is relationship-based,” Huynh explained. “When you come into a new region, you need an advocate who knows the ecosystem that you’re trying to get into.”
As Bryant notes, “Korean startups need someone who knows the ecosystem to be successful.” The Korea Trade-Investment Promotion Agency (KOTRA), Mustard Seed Accelerator, and other organizations connect startups with local experts and networks.
By focusing on specific outcomes such as proof of concepts (PoCs) and tradeshows, they offer a platform where founders can showcase their products to potential U.S. partners and investors.
Alexis Wong, co-founder of Amec Partners, underscores the need for South Korean startups to understand the U.S. market’s unique demands. “You can’t transplant a solution that works in Korea and expect it to succeed in the U.S.”
Whether it’s consumer expectations or industry-specific regulations, the U.S. market requires local expertise.
Some startups may also be targeting the wrong destination for what they have to offer American customers and investors. While Silicon Valley has long been the main ambition for Korean entrepreneurs, New York is emerging as a compelling alternative.
As Huynh notes, New York’s venture capital scene is increasingly focused on operational excellence and profitability – areas where many Korean startups are highly efficient.
Silicon Valley investors are known for backing disruptive early-stage startups, but New York’s status as a global financial hub gives founders an advantage of partnerships across banking, insurance, and other major industries.
While Silicon Valley is synonymous with cutting-edge innovation and new market creation, the East Coast is fostering applied innovation, particularly in areas like AI.
“There are still plenty of unsolved problems in industries like retail, banking, insurance, climate, and the arts,” Huynh said.
For South Korean startups focused on solving real-world problems in these sectors, grounding their technology in the current landscape of U.S. industries could be the key to success. And for many, New York may be the ideal launchpad.
