'Tips' from Food Giants on Open Innovation: "This is the Kind of Startup We Want"

(From left) Lee Hee-joon, Venture Investment Team Leader at CJ CheilJedang; Kim Seok, Head of the R&D Food Tech Lab at Shinsegae Food; Kang Young-jae, Manager in the Corporate Planning Team at Pulmuone / Photo=Choi Tae-beom

"Honestly, the line between collaboration and competition for large companies and startups is paper-thin. It would be difficult if the businesses are too similar, but if a startup can complement our weaknesses and create a win-win relationship, collaboration can be very successful."

Kang Young-jae, a manager in Pulmuone's Corporate Planning Team, said this on the 26th at the Seoul Center for Creative Economy and Innovation's open innovation talk show, 'Startup Open Antenna.' He added, "It's very helpful when a startup first specifies in their collaboration proposal what they can achieve with the large corporation."

'Startup Open Antenna' is an event where major domestic corporations and startups involved in open innovation share their experiences, future plans, and insights for companies preparing for future collaborations.

This was the second event since its launch in April. This time, CJ CheilJedang, Shinsegae Food, and Pulmuone participated. From the startup side, Dosigotgan, which operates an offline-based local curated side dish shop, and Deep.Plant, a meat data analysis system operator, joined the discussion.

Kim Seok, Head of the R&D Food Tech Lab at Shinsegae Food, advised, "Generally, large companies don't know much about startups, while startups know much more about large companies. It's crucial for startups to use the information they have to persuade us and capture our interest."

Kim added, "When we feel that a startup is approaching us with real passion, the large company also begins to contemplate how to create a positive path forward together."

Lee Hee-joon, Venture Investment Team Leader at CJ CheilJedang, emphasized that for a startup to collaborate with a large corporation, it must be proactive and remain true to its core business. He said, "Don't build your business just to attract investment or for open innovation. If you focus on what you do well, investors and large corporations will come to you."

Min Yo-han, CEO of Dosigotgan (left), and Kim Cheol-beom, CEO of Deep.Plant / Photo=Choi Tae-beom

They highlighted that a major advantage of open innovation is the ability to collaborate with the most suitable affiliate within the large corporation. Kang Young-jae stated, "Since the holding company manages our open innovation initiatives, we can match startups with the most appropriate team, whether it's an affiliate, a business division, or a specific team."

Kim Seok emphasized, "The Shinsegae Group's strength lies in its distribution network. If a startup develops a good relationship with us, it can not only commercialize products through Shinsegae but also connect with our affiliates. This creates a much better environment for business development."

Lee Hee-joon said, "We have many practical solutions to solve a startup's problems, such as connecting them with affiliates and providing PoC (Proof of Concept) support. Rather than just thinking of it as 'open innovation with CJ,' startups should see it as an opportunity to grow within the food ecosystem by collaborating with excellent ACs (Accelerators) and VCs (Venture Capitals)."

Min Yo-han, CEO of Dosigotgan, who has experience with open innovation with a large company, said, "Ultimately, it has to be beneficial for the large corporation as well, and we have to grow together. They don't see it as simply helping a startup just because it's a startup."

Min stressed the need for "clear communication." He explained, "When conveying opinions to a large company, communication often flows top-down. Sometimes, what was discussed at the top is not communicated to the managers at the bottom. You have to be explicit about what needs to be done and what can be provided."

Kim Cheol-beom, CEO of Deep.Plant, shared, "From a startup's perspective, the biggest fear is having your technology or product stolen. I had many concerns at first, but as we worked together, trust was built. We ended up gaining more, and they (the large corporation) also opened up a lot to us."

He added, "It's important to have a win-win mindset and be sincere about the business. The managers at the large corporation also put in a lot of effort and took on challenges to solve problems, and they had already considered many of the issues we were facing. Thanks to that, we were able to reduce a lot of trial and error."