1 00:00:00.250 --> 00:00:03.780 Today, we are very happy to have a distinguished guest 2 00:00:04.930 --> 00:00:08.640 A widely recognized CEO, Gangnam-gu in Korea 3 00:00:09.440 --> 00:00:13.980 CEO Gangnam-gu is the founder of Jaksim Study Cafe, 4 00:00:14.080 --> 00:00:17.970 a fast-growing education brand in Korea 5 00:00:18.520 --> 00:00:21.350 Under his leadership, the company has secured 6 00:00:21.400 --> 00:00:24.189 more than $22 million in funding 7 00:00:24.989 --> 00:00:29.639 and launched over 1,000 franchise branch nationwide 8 00:00:30.760 --> 00:00:32.339 Building on their success, 9 00:00:32.739 --> 00:00:34.769 he recently launched Pico Partners, 10 00:00:35.069 --> 00:00:39.899 an innovative unmanned store management software 11 00:00:39.949 --> 00:00:44.069 and QSYS system, which is now being used under 12 00:00:44.119 --> 00:00:44.959 I'll do it again 13 00:00:44.959 --> 00:00:47.200 Why is it so hard to speak? 14 00:00:47.200 --> 00:00:48.040 You can do it! 15 00:00:48.040 --> 00:00:49.480 It's hard to move on 16 00:00:49.480 --> 00:00:50.320 I'll do it again 17 00:00:51.320 --> 00:00:52.520 I'm almost done 18 00:00:52.920 --> 00:00:54.039 Let's do it again 19 00:01:01.700 --> 00:01:02.570 Welcome 20 00:01:03.020 --> 00:01:06.230 Today, we are very happy to have a distinguished guest 21 00:01:06.980 --> 00:01:10.889 A widely recognized CEO, Gangnam-gu in Korea 22 00:01:11.980 --> 00:01:16.049 CEO Gangnam-gu is the founder of Jaksim Study Cafe, 23 00:01:16.599 --> 00:01:20.069 a fast-growing education brand in Korea 24 00:01:20.769 --> 00:01:21.860 Under his leadership, 25 00:01:22.060 --> 00:01:26.489 the company has secured more than $22 million in funding 26 00:01:26.760 --> 00:01:30.879 and launched over 1,000 franchise branch nationwide 27 00:01:31.879 --> 00:01:33.289 Building on their success, 28 00:01:33.689 --> 00:01:35.829 he recently launched Pico Partners, 29 00:01:36.279 --> 00:01:40.399 an innovative unmanned store management software 30 00:01:40.599 --> 00:01:43.680 and QSYS solution, which is now being used 31 00:01:43.680 --> 00:01:46.919 in more than 3,000 locations all over the country 32 00:01:47.919 --> 00:01:50.760 In addition, he has recently appeared 33 00:01:50.760 --> 00:01:53.519 on popular Korean variety show, 34 00:01:53.919 --> 00:01:56.760 establishing himself as a true celebrity 35 00:01:57.760 --> 00:02:00.879 Today, we will be talking with CEO Gangnam-gu 36 00:02:00.879 --> 00:02:04.180 about the kind of dynamic nature of the markets 37 00:02:04.630 --> 00:02:08.320 and what it's like to run your startup 38 00:02:08.520 --> 00:02:10.109 in such an environment 39 00:02:10.759 --> 00:02:13.839 From now on, this session will continue in Korean, 40 00:02:13.839 --> 00:02:18.250 but English subtitles are available when you turn them on 41 00:02:18.500 --> 00:02:20.400 Are you ready? Let's begin 42 00:02:21.979 --> 00:02:23.479 Hello, Mr. CEO 43 00:02:23.479 --> 00:02:24.479 Hello 44 00:02:24.479 --> 00:02:27.079 Thank you for coming despite your busy schedule 45 00:02:27.479 --> 00:02:28.529 Thank you for inviting me 46 00:02:28.779 --> 00:02:32.129 Could you briefly introduce yourself? 47 00:02:33.429 --> 00:02:35.479 I'm CEO Gangnam-gu of ING Story, 48 00:02:35.479 --> 00:02:38.379 and I run Jaksim, a premium study cafe brand 49 00:02:38.379 --> 00:02:39.479 Nice to meet you 50 00:02:40.379 --> 00:02:47.529 How did you start your startup? 51 00:02:49.229 --> 00:02:52.379 I have to go back to my school days 52 00:02:52.729 --> 00:02:56.429 My parents had a hard time running their business 53 00:02:56.579 --> 00:03:00.479 I wanted to start my own business, 54 00:03:01.229 --> 00:03:03.729 but I didn't know how to do it in a short period of time 55 00:03:03.729 --> 00:03:06.729 I was thinking about what I could do 56 00:03:06.829 --> 00:03:09.179 to support my family in the long run 57 00:03:09.729 --> 00:03:12.679 When I was young, I thought I could do anything 58 00:03:12.679 --> 00:03:14.679 if I started a business 59 00:03:14.979 --> 00:03:17.479 So I dreamed of starting a business when I was young, 60 00:03:17.479 --> 00:03:19.479 and when I became an adult and had a chance, 61 00:03:19.479 --> 00:03:21.129 I started my own business 62 00:03:21.479 --> 00:03:23.479 Is there a particular reason 63 00:03:23.729 --> 00:03:28.529 why you chose the study cafe as one of the many items? 64 00:03:29.479 --> 00:03:31.879 At the time of my startup, 65 00:03:33.029 --> 00:03:35.479 old bookstores were disappearing, 66 00:03:35.479 --> 00:03:37.329 and they turned into coffee shops 67 00:03:37.479 --> 00:03:41.479 Just like the process of a shopper turning into a convenience store, 68 00:03:41.579 --> 00:03:43.079 the old bookstores, 69 00:03:43.429 --> 00:03:46.429 the bookstores that were like tables 70 00:03:46.479 --> 00:03:48.479 that were made by suppliers, 71 00:03:48.479 --> 00:03:50.479 respected the diversity of supplies 72 00:03:50.479 --> 00:03:55.379 and were designed and made in various forms 73 00:03:55.879 --> 00:03:57.529 That's how I got to know the market 74 00:03:57.779 --> 00:03:58.929 So I thought, 75 00:03:59.179 --> 00:04:01.779 this market is going to grow, 76 00:04:02.279 --> 00:04:04.929 so I jumped into this industry 77 00:04:05.779 --> 00:04:10.129 We are very close to the study room, 78 00:04:10.629 --> 00:04:14.079 but other countries don't have this model 79 00:04:14.079 --> 00:04:16.680 Can you briefly explain what it is? 80 00:04:17.480 --> 00:04:21.480 In Korea, not only do people study at home 81 00:04:21.480 --> 00:04:23.880 or in libraries, 82 00:04:24.480 --> 00:04:26.680 but there is also a special space 83 00:04:26.930 --> 00:04:30.930 where you can only study like a cafe 84 00:04:31.480 --> 00:04:35.880 So you can think of it as a study room 85 00:04:36.280 --> 00:04:40.780 where you can study like a cafe 86 00:04:41.480 --> 00:04:44.230 So it's been around for a long time, 87 00:04:44.480 --> 00:04:48.080 but has the situation changed 88 00:04:48.380 --> 00:04:49.730 since you joined the market? 89 00:04:50.130 --> 00:04:51.130 Yes, that's right 90 00:04:51.480 --> 00:04:54.480 At first, there was a study room 91 00:04:54.480 --> 00:04:56.230 about 30 to 35 years ago, 92 00:04:56.480 --> 00:04:57.830 but at that time, 93 00:04:58.030 --> 00:05:00.030 it was designed as a space 94 00:05:00.280 --> 00:05:02.280 centered on suppliers 95 00:05:02.480 --> 00:05:05.480 that can maximize profits 96 00:05:05.480 --> 00:05:07.480 So we put as many seats as possible 97 00:05:07.480 --> 00:05:09.380 in the one-person room, 98 00:05:09.380 --> 00:05:12.630 without respecting the convenience of the customer, 99 00:05:12.880 --> 00:05:16.330 and made it possible to maximize profits 100 00:05:17.030 --> 00:05:19.480 Some of you may like a more enclosed space 101 00:05:19.580 --> 00:05:22.630 centered on suppliers, 102 00:05:22.880 --> 00:05:25.480 and some of you may like an open space 103 00:05:25.730 --> 00:05:28.480 I think it's a study cafe 104 00:05:28.480 --> 00:05:30.480 that is developing 105 00:05:30.480 --> 00:05:32.230 as a study space 106 00:05:32.480 --> 00:05:34.130 That's why I started this business 107 00:05:35.630 --> 00:05:39.480 So it's not just you, 108 00:05:39.480 --> 00:05:41.480 but other people and companies 109 00:05:41.480 --> 00:05:43.480 have seen it, right? 110 00:05:43.480 --> 00:05:44.480 That's right 111 00:05:44.580 --> 00:05:46.580 Can you explain 112 00:05:46.580 --> 00:05:49.480 how the market was at that time 113 00:05:49.480 --> 00:05:52.380 as a player? 114 00:05:54.830 --> 00:05:57.680 When I thought I had to do this business, 115 00:05:58.130 --> 00:06:00.130 before I opened the first store, 116 00:06:00.380 --> 00:06:02.380 the biggest competitor 117 00:06:02.480 --> 00:06:05.680 already had more than 200 stores open, 118 00:06:06.280 --> 00:06:08.480 and hundreds of billions of won 119 00:06:08.480 --> 00:06:10.480 were invested in a large office fund 120 00:06:11.080 --> 00:06:12.730 And other competitors 121 00:06:13.080 --> 00:06:15.480 were invested by Korean medium-sized construction companies, 122 00:06:15.480 --> 00:06:18.230 and friends from prestigious universities founded the company 123 00:06:18.480 --> 00:06:19.480 In addition, 124 00:06:19.480 --> 00:06:21.480 dozens of competitors 125 00:06:21.480 --> 00:06:23.480 were already looking at the market 126 00:06:23.480 --> 00:06:25.480 and making it first 127 00:06:25.830 --> 00:06:28.480 That's how I became a successor 128 00:06:29.080 --> 00:06:32.330 So you didn't have any competitive advantage 129 00:06:32.380 --> 00:06:33.380 Right 130 00:06:33.480 --> 00:06:35.480 You didn't have any experience 131 00:06:35.680 --> 00:06:36.830 I didn't have any capital, 132 00:06:37.130 --> 00:06:41.580 and I didn't have any special social experience 133 00:06:42.030 --> 00:06:44.230 That's when I boldly became a successor 134 00:06:44.480 --> 00:06:47.480 Is there a strategy 135 00:06:47.480 --> 00:06:50.680 to get out of the business? 136 00:06:50.680 --> 00:06:52.080 Is there anything like that? 137 00:06:52.480 --> 00:06:54.130 First of all, I didn't have any capital, 138 00:06:54.230 --> 00:06:55.380 and what I thought was that 139 00:06:55.730 --> 00:06:58.130 if we don't differentiate perfectly, 140 00:06:58.480 --> 00:07:01.080 we won't even get attention and we'll just die 141 00:07:01.480 --> 00:07:03.130 That's what I thought 142 00:07:03.230 --> 00:07:05.430 So I first looked at 143 00:07:05.480 --> 00:07:07.930 what the players in the market were doing 144 00:07:08.130 --> 00:07:10.130 The first thing I paid attention to 145 00:07:10.480 --> 00:07:12.380 was that most of my friends, no, all of them, 146 00:07:12.530 --> 00:07:15.030 were doing modern-concept interiors 147 00:07:15.230 --> 00:07:16.680 But on the other hand, 148 00:07:16.780 --> 00:07:19.430 there must be friends who like classical music 149 00:07:19.480 --> 00:07:20.480 So I thought, 150 00:07:20.480 --> 00:07:23.230 why don't I bring all the demand to modern-concept interiors? 151 00:07:23.380 --> 00:07:24.380 So I thought, 152 00:07:24.480 --> 00:07:27.480 since everyone else is doing modern-concept interiors, 153 00:07:27.480 --> 00:07:30.130 let's do classical-concept interiors 154 00:07:30.380 --> 00:07:33.330 That's how I differentiated the market 155 00:07:33.330 --> 00:07:34.330 Also, 156 00:07:34.480 --> 00:07:35.580 most of my friends 157 00:07:36.080 --> 00:07:39.130 opened their first branch in an area where 158 00:07:39.480 --> 00:07:41.480 they were highly educated 159 00:07:41.630 --> 00:07:43.330 And they expanded their business 160 00:07:43.630 --> 00:07:44.630 On the other hand, 161 00:07:45.130 --> 00:07:48.780 I thought, no, this isn't Daechi-dong, Mok-dong, or Bundang 162 00:07:48.780 --> 00:07:50.180 in Gyeonggi-do, Seoul 163 00:07:50.380 --> 00:07:51.380 So I thought, 164 00:07:51.530 --> 00:07:52.980 there must be places outside the city 165 00:07:53.080 --> 00:07:55.230 that are highly educated 166 00:07:55.380 --> 00:07:58.030 and require education 167 00:07:58.630 --> 00:08:02.280 So I opened my first branch in an area where 168 00:08:02.480 --> 00:08:06.230 the education in the city is highly competitive 169 00:08:06.480 --> 00:08:08.280 instead of others 170 00:08:08.480 --> 00:08:10.480 And on the other hand, 171 00:08:10.480 --> 00:08:12.480 I expanded my business 172 00:08:12.480 --> 00:08:14.130 in Seoul, Gyeonggi-do, 173 00:08:14.130 --> 00:08:17.130 and came up with a strategy to penetrate the competition 174 00:08:18.180 --> 00:08:19.180 There was no competition 175 00:08:19.330 --> 00:08:20.080 No 176 00:08:20.430 --> 00:08:21.580 There was no competition 177 00:08:21.930 --> 00:08:26.630 It was all a dark, supply-oriented reading room 178 00:08:26.980 --> 00:08:28.480 Seoul is already changing a lot, 179 00:08:28.480 --> 00:08:30.230 but the region hasn't changed yet 180 00:08:30.480 --> 00:08:31.829 But the key here is 181 00:08:32.479 --> 00:08:34.429 that I didn't try to do it, 182 00:08:34.479 --> 00:08:35.479 but naturally, 183 00:08:35.479 --> 00:08:38.329 since the rent is cheaper in the region than in Seoul, 184 00:08:38.479 --> 00:08:40.629 should I say it's the payback rate? 185 00:08:40.879 --> 00:08:42.479 To pay back the cost 186 00:08:42.479 --> 00:08:44.479 of investing in the facility, 187 00:08:44.479 --> 00:08:46.479 how much do we have to receive 188 00:08:46.729 --> 00:08:48.479 when we measure the cost? 189 00:08:49.079 --> 00:08:52.079 If I opened a branch in Daechi-dong, Mok-dong, or Gyeonggi-do, 190 00:08:52.479 --> 00:08:54.479 which is the key area of Seoul, 191 00:08:55.029 --> 00:08:56.429 the rent is expensive here, 192 00:08:56.479 --> 00:09:00.429 but since the client was able to pay a high cost, 193 00:09:00.479 --> 00:09:02.829 the payback rate 194 00:09:02.829 --> 00:09:05.079 doesn't have a big impact 195 00:09:05.529 --> 00:09:07.229 But if I open a branch in the region, 196 00:09:07.679 --> 00:09:10.129 the client has to pay a higher cost 197 00:09:10.479 --> 00:09:12.479 than the Gyeonggi-do client, 198 00:09:12.479 --> 00:09:14.229 and it's a burden to use it, 199 00:09:14.479 --> 00:09:16.929 so I had to lower the start-up cost 200 00:09:17.279 --> 00:09:18.479 So naturally, 201 00:09:18.879 --> 00:09:20.729 if the average cost 202 00:09:20.729 --> 00:09:23.479 to build a branch is, for example, 203 00:09:24.479 --> 00:09:25.879 4 million won, 204 00:09:26.079 --> 00:09:28.079 if I don't set up a start-up cost 205 00:09:28.279 --> 00:09:30.279 at a 50% discount 206 00:09:30.479 --> 00:09:32.479 at half the price, 207 00:09:33.479 --> 00:09:36.579 there's no competitiveness in the first place 208 00:09:36.579 --> 00:09:39.629 So naturally, I came up with a strategy 209 00:09:39.729 --> 00:09:43.079 to reduce the start-up cost 210 00:09:43.179 --> 00:09:45.329 and make it faster 211 00:09:46.479 --> 00:09:49.829 That's how you expanded the region 212 00:09:50.079 --> 00:09:50.829 Yes, that's right 213 00:09:51.129 --> 00:09:53.779 And then you opened a branch in Seoul 214 00:09:54.029 --> 00:09:54.929 That's right 215 00:09:55.129 --> 00:09:57.329 If I started competing in Seoul, 216 00:09:57.479 --> 00:09:59.029 I didn't have competitiveness, 217 00:09:59.129 --> 00:10:01.479 so I raised the brand awareness in the region, 218 00:10:01.529 --> 00:10:03.429 and now I'm in Seoul, Gyeonggi-do 219 00:10:03.629 --> 00:10:06.179 So when you opened 220 00:10:06.379 --> 00:10:08.179 in Seoul, Gyeonggi-do, 221 00:10:08.679 --> 00:10:10.629 did you have competitiveness? 222 00:10:10.829 --> 00:10:11.429 That's right 223 00:10:11.429 --> 00:10:13.579 For example, the most important thing is 224 00:10:13.629 --> 00:10:15.779 whether the brand has been evaluated 225 00:10:15.979 --> 00:10:17.479 by the market with the item 226 00:10:17.779 --> 00:10:19.379 called the reading room 227 00:10:19.679 --> 00:10:21.229 If so, I experienced the possibility 228 00:10:21.351 --> 00:10:22.801 that it could be done 229 00:10:22.929 --> 00:10:25.429 in Seoul, Gyeonggi-do 230 00:10:26.829 --> 00:10:28.829 Secondly, if the cost is the same, 231 00:10:28.979 --> 00:10:30.429 the response is the same 232 00:10:30.579 --> 00:10:32.729 the profit margin was much higher 233 00:10:32.897 --> 00:10:34.597 to make our own brand 234 00:10:34.845 --> 00:10:36.846 So with that advantage, 235 00:10:36.896 --> 00:10:38.646 we opened a branch in Seoul, 236 00:10:38.796 --> 00:10:40.496 and then there was a immediate response 237 00:10:40.616 --> 00:10:43.366 The principal recovery rate was also significantly higher 238 00:10:43.579 --> 00:10:45.429 That's how the word spread 239 00:10:45.729 --> 00:10:47.279 Now, every year, 240 00:10:47.329 --> 00:10:49.479 we sell 100 items 241 00:10:49.579 --> 00:10:51.279 and become the No. 1 brand in Korea 242 00:10:51.279 --> 00:10:52.379 Congratulations 243 00:10:52.579 --> 00:10:53.529 Thank you 244 00:10:53.729 --> 00:10:56.129 When you opened in Seoul, 245 00:10:56.629 --> 00:11:00.579 how did the competitors react? 246 00:11:01.079 --> 00:11:02.129 It was simple 247 00:11:02.229 --> 00:11:03.779 At first, they didn't want to admit it, 248 00:11:04.029 --> 00:11:06.129 they might thought theirs would be overwhelming 249 00:11:06.129 --> 00:11:08.529 cause they have their own brand power 250 00:11:08.729 --> 00:11:10.129 But I thought it was simple 251 00:11:10.979 --> 00:11:12.279 If you live in a big house, 252 00:11:12.279 --> 00:11:13.429 it's uncomfortable to live in a small house 253 00:11:13.629 --> 00:11:15.079 If you drive a big car, 254 00:11:15.279 --> 00:11:16.629 it's too small to drive a small car 255 00:11:17.629 --> 00:11:20.329 Like that, we paid half of the startup fee, 256 00:11:20.679 --> 00:11:22.279 so we don't have to pay the same money 257 00:11:22.329 --> 00:11:24.129 and make 100 seats 258 00:11:24.529 --> 00:11:25.879 If we have the same money, 259 00:11:25.879 --> 00:11:27.379 we only need to make 50 seats 260 00:11:27.507 --> 00:11:29.357 Still, it is possible to recover the principal 261 00:11:29.579 --> 00:11:31.379 Then we can use the desk 262 00:11:31.579 --> 00:11:33.579 of a friend who used 263 00:11:34.079 --> 00:11:36.079 a 100-centimeter desk 264 00:11:36.479 --> 00:11:38.429 and a 150-centimeter desk 265 00:11:38.429 --> 00:11:41.829 I thought there was a difference in convenience 266 00:11:41.929 --> 00:11:44.229 But once the customer used our desk, 267 00:11:44.579 --> 00:11:46.779 we invested a lot 268 00:11:46.929 --> 00:11:49.829 in the size of the desk and the chair 269 00:11:49.979 --> 00:11:52.129 that the self-guided students needed, 270 00:11:52.229 --> 00:11:55.379 and we won the competition 271 00:11:56.929 --> 00:11:59.279 Did the competitors collapse? 272 00:12:01.529 --> 00:12:02.479 Yes 273 00:12:02.579 --> 00:12:04.579 So the first thing we did 274 00:12:05.229 --> 00:12:09.929 was to put our brand next to the biggest store in the market 275 00:12:10.479 --> 00:12:12.279 It was a strategy 276 00:12:12.479 --> 00:12:14.479 To put it simply, 277 00:12:14.479 --> 00:12:17.029 it was like opening a coffee shop next to Starbucks 278 00:12:17.429 --> 00:12:19.429 Because the startup fee 279 00:12:19.579 --> 00:12:21.379 was the most expensive 280 00:12:21.479 --> 00:12:23.479 and the brand was well-known, 281 00:12:23.679 --> 00:12:25.979 the startup fee had to be expensive 282 00:12:26.179 --> 00:12:27.879 As a result, 283 00:12:27.979 --> 00:12:29.979 the size of the seat naturally decreased 284 00:12:30.129 --> 00:12:32.079 If you don't make a lot of seats, 285 00:12:32.129 --> 00:12:33.629 you can't get the money back 286 00:12:33.779 --> 00:12:37.029 On the other hand, we lowered the startup fee by half 287 00:12:37.179 --> 00:12:39.729 and made the seat 1.5 times bigger 288 00:12:40.029 --> 00:12:42.379 so that all customers could absorb it 289 00:12:42.701 --> 00:12:45.451 So we only placed it next to the top brand 290 00:12:46.279 --> 00:12:48.029 That's impressive 291 00:12:48.429 --> 00:12:50.729 I heard that you launched 292 00:12:50.779 --> 00:12:54.729 a brand called Pico Partners 293 00:12:55.779 --> 00:12:57.929 Can you briefly introduce it? 294 00:12:58.779 --> 00:13:00.679 When you open a coffee shop, 295 00:13:00.779 --> 00:13:02.479 the machine that you must use 296 00:13:02.479 --> 00:13:04.129 is a coffee machine 297 00:13:04.329 --> 00:13:07.529 Because you have to make coffee with that machine 298 00:13:07.679 --> 00:13:10.429 In order to open a study cafe, 299 00:13:10.579 --> 00:13:13.279 the customer management program is a must 300 00:13:13.829 --> 00:13:15.829 For example, you have to develop 301 00:13:15.829 --> 00:13:17.829 admin, application, 302 00:13:18.279 --> 00:13:19.929 and automated kiosk 303 00:13:19.979 --> 00:13:21.779 so that it can be operated without people 304 00:13:22.079 --> 00:13:23.479 I thought these three were 305 00:13:23.579 --> 00:13:25.779 the veins of the study cafe 306 00:13:26.629 --> 00:13:28.579 Because this is a must, 307 00:13:28.979 --> 00:13:31.079 we don't just do the study cafe 308 00:13:31.479 --> 00:13:33.029 We need to develop software 309 00:13:33.329 --> 00:13:35.829 which is the blood vessel that the market needs 310 00:13:36.279 --> 00:13:38.279 so that the market can 311 00:13:38.329 --> 00:13:39.929 eventually take the money 312 00:13:40.129 --> 00:13:42.129 We grew the hardware 313 00:13:42.179 --> 00:13:44.429 but there is a limit to the growth of the hardware, 314 00:13:44.579 --> 00:13:46.179 so we developed a software 315 00:13:46.379 --> 00:13:48.379 called Pico Partners 316 00:13:48.529 --> 00:13:50.529 so that we can take the data 317 00:13:50.776 --> 00:13:53.126 of people who does self-directed learning 318 00:13:54.229 --> 00:13:56.129 Who supplied the software 319 00:13:56.129 --> 00:13:58.079 when you opened the study cafe? 320 00:13:59.979 --> 00:14:02.429 The lighting company is really interesting 321 00:14:03.129 --> 00:14:04.929 because if you use the lighting, 322 00:14:05.729 --> 00:14:08.429 the green, gray, and pink software 323 00:14:08.879 --> 00:14:11.729 that was made 30 years ago 324 00:14:11.929 --> 00:14:13.979 was provided for free 325 00:14:14.229 --> 00:14:16.629 We used it, too 326 00:14:16.979 --> 00:14:18.629 It's a fancy interior 327 00:14:18.729 --> 00:14:19.929 when it's shown on the outside, 328 00:14:20.179 --> 00:14:22.179 but the software is completely old 329 00:14:22.479 --> 00:14:24.479 We were using the software 330 00:14:24.479 --> 00:14:26.279 that the study cafe was using in the past 331 00:14:26.779 --> 00:14:29.879 But you're going to go in and develop it 332 00:14:29.929 --> 00:14:30.629 Right 333 00:14:30.929 --> 00:14:32.479 Then the employees will say, 334 00:14:32.779 --> 00:14:34.479 We're not that kind of company 335 00:14:34.479 --> 00:14:35.979 Why do you do that? 336 00:14:36.079 --> 00:14:37.379 How do you overcome that? 337 00:14:37.529 --> 00:14:39.279 One of the most frequently asked questions is, 338 00:14:39.279 --> 00:14:40.229 Let's just use it 339 00:14:40.379 --> 00:14:42.579 It's not a big market, but even if you develop it, 340 00:14:42.579 --> 00:14:43.929 you'll have a lot of development costs, 341 00:14:44.179 --> 00:14:45.229 so how much will you use in the market? 342 00:14:45.379 --> 00:14:47.779 Those were the main reason for the adverse opinions 343 00:14:48.079 --> 00:14:49.729 Investors, employees 344 00:14:50.019 --> 00:14:51.669 But I didn't think like that 345 00:14:52.019 --> 00:14:54.079 No, in the end, 346 00:14:54.229 --> 00:14:56.179 the online education market 347 00:14:56.679 --> 00:14:59.329 is growing fast in Korea 348 00:14:59.729 --> 00:15:01.779 In order for the online education content to grow, 349 00:15:02.029 --> 00:15:03.529 the self-guided learning space 350 00:15:03.679 --> 00:15:07.629 that consumes of the education content has to grow, 351 00:15:08.329 --> 00:15:11.029 in order to make the online education content will grow, 352 00:15:11.179 --> 00:15:14.279 and then the self-guided learning space will grow eventually 353 00:15:15.179 --> 00:15:17.079 So I told them, I think we have to invest 354 00:15:17.350 --> 00:15:19.600 chance in the market will follow in the end 355 00:15:19.850 --> 00:15:21.100 At that time, I was like, 356 00:15:21.200 --> 00:15:22.879 I don't know how much I'll make 357 00:15:23.029 --> 00:15:24.179 but let's make it first 358 00:15:24.329 --> 00:15:26.329 When no one was developing at the time, 359 00:15:26.479 --> 00:15:28.079 I invested in it 360 00:15:28.229 --> 00:15:29.079 and made it 361 00:15:29.279 --> 00:15:31.279 Are you monopolizing 362 00:15:31.429 --> 00:15:33.429 the kiosk market 363 00:15:33.879 --> 00:15:35.879 and unmanned management software market? 364 00:15:36.229 --> 00:15:38.229 We are number one in the market 365 00:15:38.829 --> 00:15:40.829 It's not a complete monopoly, 366 00:15:40.929 --> 00:15:43.979 but market share is number one in the market 367 00:15:44.229 --> 00:15:46.229 The study space is number one, 368 00:15:46.479 --> 00:15:48.479 and the software is number one 369 00:15:49.029 --> 00:15:49.979 There are two markets 370 00:15:50.079 --> 00:15:50.729 Right 371 00:15:50.879 --> 00:15:52.179 You're doing both at the same time 372 00:15:52.279 --> 00:15:52.929 Correct 373 00:15:53.629 --> 00:15:55.979 Has the status changed? 374 00:15:56.279 --> 00:15:57.929 At first, 375 00:15:57.929 --> 00:15:59.829 people saw the company 376 00:15:59.879 --> 00:16:01.679 only as a franchise model, 377 00:16:01.729 --> 00:16:03.729 so they thought 378 00:16:03.779 --> 00:16:05.779 that 1,000 stores would be the end, 379 00:16:05.879 --> 00:16:07.629 and that 1,500 stores 380 00:16:07.729 --> 00:16:09.529 would no longer grow 381 00:16:09.779 --> 00:16:11.529 No, in the end, 382 00:16:11.779 --> 00:16:14.029 we'll create a new marketing channel 383 00:16:14.129 --> 00:16:16.379 that could target local-based marketing 384 00:16:16.479 --> 00:16:18.229 like Carrot Market, 385 00:16:18.552 --> 00:16:20.429 by spreading a new software system 386 00:16:21.079 --> 00:16:23.879 and to go further, as a no.1 company 387 00:16:24.129 --> 00:16:27.779 that brings in the most customers to the study cafe, 388 00:16:27.979 --> 00:16:29.977 we will become a platform 389 00:16:30.079 --> 00:16:32.794 that provide a customized service 390 00:16:32.894 --> 00:16:36.544 And now, we can prove that we are enabling all that 391 00:16:36.944 --> 00:16:37.979 So the value of our company 392 00:16:38.029 --> 00:16:39.929 became higher than before, 393 00:16:40.029 --> 00:16:41.779 the time when we focused on offline business 394 00:16:41.879 --> 00:16:43.529 And they are stepping stones for our potential growth 395 00:16:43.729 --> 00:16:45.979 Is the Pico Partners program being applied 396 00:16:46.229 --> 00:16:48.229 to other areas as well? 397 00:16:48.779 --> 00:16:51.579 Yes, as it's being expanded, the study cafe, 398 00:16:51.829 --> 00:16:53.829 the study room reservation system 399 00:16:54.279 --> 00:16:56.279 can be used in a shared office, 400 00:16:56.579 --> 00:16:58.729 and if you customize it a little, 401 00:16:59.179 --> 00:17:01.129 it can be used in a shared warehouse, 402 00:17:01.279 --> 00:17:03.279 and it's being used as an expansion concept 403 00:17:03.429 --> 00:17:05.429 in table tennis courts 404 00:17:05.579 --> 00:17:07.229 and badminton courts 405 00:17:07.379 --> 00:17:10.729 that are becoming unmanned, more and more 406 00:17:11.529 --> 00:17:13.879 Did you expect this from the beginning? 407 00:17:14.229 --> 00:17:15.929 Or did it just happen? 408 00:17:16.179 --> 00:17:17.279 I didn't expect it at all 409 00:17:17.629 --> 00:17:19.629 When I first started the study room, 410 00:17:20.029 --> 00:17:22.029 I didn't think it would evolve 411 00:17:22.179 --> 00:17:23.779 into a study cafe, 412 00:17:23.979 --> 00:17:25.329 and I didn't know 413 00:17:25.429 --> 00:17:27.329 that this was some kind of software that we had to do, 414 00:17:27.429 --> 00:17:28.679 and I didn't know how to do it, 415 00:17:28.779 --> 00:17:29.929 but as I did it, 416 00:17:30.079 --> 00:17:31.879 there were inquiries from the market, 417 00:17:32.029 --> 00:17:34.029 and I learned that 418 00:17:34.257 --> 00:17:35.457 there will be a change 419 00:17:35.579 --> 00:17:37.679 there would be possiblility of expansion 420 00:17:37.879 --> 00:17:39.279 to the study room reservation system 421 00:17:39.379 --> 00:17:41.179 and the meeting room reservation system 422 00:17:41.429 --> 00:17:43.529 and the shared office reservation system 423 00:17:43.798 --> 00:17:46.548 I realized that as I run it 424 00:17:47.529 --> 00:17:49.529 So, to sum up, 425 00:17:49.729 --> 00:17:51.479 you entered the study room industry 426 00:17:51.629 --> 00:17:53.429 when it changed 427 00:17:53.779 --> 00:17:55.229 from a traditional industry 428 00:17:55.429 --> 00:17:56.629 to a new industry, 429 00:17:57.029 --> 00:18:00.779 but the market is now very competitive and saturated 430 00:18:00.979 --> 00:18:02.979 so you started a little 431 00:18:03.179 --> 00:18:05.179 from the outside to the inside, 432 00:18:05.303 --> 00:18:07.203 by building brand image 433 00:18:07.479 --> 00:18:09.179 but you didn't stop here, 434 00:18:09.379 --> 00:18:11.229 but you developed a system 435 00:18:11.279 --> 00:18:13.679 called Pico Partners, an unmanned automated system 436 00:18:13.829 --> 00:18:15.679 to develop a new market 437 00:18:15.929 --> 00:18:17.879 You didn't plan this process, 438 00:18:18.079 --> 00:18:20.079 but you kept coming up with ideas, 439 00:18:20.235 --> 00:18:22.029 which makes it all possible, right? 440 00:18:22.029 --> 00:18:24.529 That's right 441 00:18:24.529 --> 00:18:27.029 One of the things that investors always said when I went to get investment 442 00:18:27.279 --> 00:18:29.379 was that if Kakao, 443 00:18:29.379 --> 00:18:30.879 which is a huge Korean company, 444 00:18:31.074 --> 00:18:33.975 if go global, it can be google or facebook, meta 445 00:18:34.129 --> 00:18:36.179 becomes a competitor, 446 00:18:36.379 --> 00:18:38.279 how will you compete with them? 447 00:18:38.279 --> 00:18:39.829 That's the question I got from them 448 00:18:40.229 --> 00:18:42.129 But how do you beat them? 449 00:18:42.229 --> 00:18:43.579 What I thought was 450 00:18:44.479 --> 00:18:47.029 that if they come in and spend huge amount of capital, 451 00:18:47.229 --> 00:18:48.529 I might not be able to win 452 00:18:48.929 --> 00:18:50.829 but rather than doing business themselves, 453 00:18:50.929 --> 00:18:52.429 they can invest in themselves 454 00:18:52.529 --> 00:18:54.229 or make them think that 455 00:18:54.229 --> 00:18:56.979 it is much more efficient to acquire us 456 00:18:57.179 --> 00:18:59.179 So, when I entered this market, 457 00:18:59.479 --> 00:19:02.029 it merely seemed like a hardware business 458 00:19:02.079 --> 00:19:04.679 when I only did the franchise model 459 00:19:05.529 --> 00:19:07.529 but when I entered this business 460 00:19:07.529 --> 00:19:10.929 and provided software to the study cafe, 461 00:19:11.229 --> 00:19:14.729 I thought that I could create value in the study cafe, 462 00:19:15.079 --> 00:19:16.829 and when I actually opened the software, 463 00:19:16.929 --> 00:19:18.029 I didn't just open it, 464 00:19:18.229 --> 00:19:20.429 but I had to create an entry barrier, 465 00:19:21.279 --> 00:19:23.079 so I signed a 10-year contract 466 00:19:23.179 --> 00:19:24.679 when I signed the contract 467 00:19:25.029 --> 00:19:26.729 But when people heard it, they said, 468 00:19:26.829 --> 00:19:28.479 who would sign a 10-year contract? 469 00:19:28.479 --> 00:19:29.129 They are not idiots 470 00:19:29.379 --> 00:19:30.179 But I thought 471 00:19:30.529 --> 00:19:32.429 The 20-year contract 472 00:19:32.429 --> 00:19:35.079 has no intention of harming the self-employed 473 00:19:35.079 --> 00:19:36.779 who use our program 474 00:19:37.079 --> 00:19:38.829 What I thought was 475 00:19:39.029 --> 00:19:41.079 that when Kakao and Naver entered this market, 476 00:19:41.629 --> 00:19:43.629 they shouldn't be harmed 477 00:19:43.779 --> 00:19:45.479 when they take away 478 00:19:45.579 --> 00:19:47.479 the business that I made with all my effort 479 00:19:47.679 --> 00:19:49.229 So, if they explain it 480 00:19:49.379 --> 00:19:51.079 and said, closing the store 481 00:19:51.229 --> 00:19:53.179 or if there's situation where it's not working well 482 00:19:53.379 --> 00:19:55.379 we'll not gonna charge you penalty for breach of contract 483 00:19:55.546 --> 00:19:58.446 However, only if it has been transferred to the same type of business 484 00:19:58.746 --> 00:20:03.446 Even transferring our program free of charge under the same conditions is totally okay 485 00:20:03.879 --> 00:20:05.979 but there is a penalty if a competitor 486 00:20:06.279 --> 00:20:08.279 suddenly comes in to replace the program 487 00:20:08.517 --> 00:20:10.267 for the rest of the remaining contract days 488 00:20:10.545 --> 00:20:12.295 So, they made a contract with us 489 00:20:12.495 --> 00:20:14.445 cause our rule was so reasonable 490 00:20:14.629 --> 00:20:15.679 As expected, 491 00:20:16.579 --> 00:20:18.279 Nexon and Netmarble entered this market 492 00:20:18.415 --> 00:20:19.415 Is that so? 493 00:20:19.878 --> 00:20:21.628 Korean market is really interesting 494 00:20:21.828 --> 00:20:24.378 Nexon and Netmarble together hold 495 00:20:24.378 --> 00:20:27.878 about 55% and 45% of the PC café market share as an affiliated company 496 00:20:28.329 --> 00:20:30.179 So, if they want to distribute games, 497 00:20:30.279 --> 00:20:32.179 they can't supply games to Korean PC rooms 498 00:20:32.279 --> 00:20:34.429 if they don't work with Nexon and Netmarble 499 00:20:34.840 --> 00:20:36.479 So after I knew that market, I thought 500 00:20:36.579 --> 00:20:38.079 When the market of the study cafe grows, 501 00:20:38.229 --> 00:20:40.479 big companies will monopolize it 502 00:20:40.629 --> 00:20:42.579 So, before they come in, 503 00:20:42.679 --> 00:20:44.279 let's take this market first 504 00:20:44.479 --> 00:20:47.479 So, we got invested and entered this market 505 00:20:47.629 --> 00:20:49.179 As expected, and happily, 506 00:20:49.179 --> 00:20:51.429 the big companies came into this industry 507 00:20:51.439 --> 00:20:53.739 They've now fallen behind in the competition 508 00:20:53.929 --> 00:20:56.629 so we don't even consider them as competitors anymore 509 00:20:56.879 --> 00:20:58.529 Because of the entry barrier 510 00:20:58.679 --> 00:20:59.629 That's impressive 511 00:21:00.229 --> 00:21:02.829 So, to the students who are preparing for the startup 512 00:21:03.029 --> 00:21:05.029 and watching this lectures, 513 00:21:06.479 --> 00:21:08.479 what is the most important thing? 514 00:21:08.479 --> 00:21:10.179 If you have anything to say, 515 00:21:10.479 --> 00:21:12.129 please tell us 516 00:21:13.229 --> 00:21:14.479 First of all, 517 00:21:14.619 --> 00:21:15.619 Hard working is a base line 518 00:21:15.679 --> 00:21:17.479 Working hard is a default 519 00:21:17.679 --> 00:21:19.879 It is kind of needless to say 520 00:21:20.029 --> 00:21:22.186 I think that's very important to do something sedulously 521 00:21:22.336 --> 00:21:24.836 I think that is the most important thing 522 00:21:25.179 --> 00:21:26.879 So, of course you'll be anxious, 523 00:21:27.179 --> 00:21:28.729 but working hard is a default 524 00:21:28.929 --> 00:21:30.479 And persistence 525 00:21:30.479 --> 00:21:31.829 That's important 526 00:21:31.929 --> 00:21:33.179 And another thing is 527 00:21:33.929 --> 00:21:36.979 if the industry grows, 528 00:21:37.429 --> 00:21:39.679 you'll definitely run into big companies 529 00:21:39.829 --> 00:21:43.029 There are so many students who don't prepare 530 00:21:43.279 --> 00:21:45.079 even though they know 531 00:21:45.079 --> 00:21:47.329 they'll run into big companies 532 00:21:47.479 --> 00:21:49.279 But I think that's stupid 533 00:21:49.479 --> 00:21:51.679 When I was invested, 534 00:21:51.729 --> 00:21:53.229 I got a lot of questions like that 535 00:21:53.429 --> 00:21:55.429 If I didn't prepare in advance, 536 00:21:55.429 --> 00:21:56.779 I would have lost everything 537 00:21:56.779 --> 00:22:00.029 But I prepared in advance and made a hypothesis 538 00:22:00.179 --> 00:22:03.079 that I could be a competitor and a partner with them 539 00:22:03.229 --> 00:22:06.629 I think that's why we can be competitive now 540 00:22:07.129 --> 00:22:09.129 It seems to have laid the foundation 541 00:22:09.329 --> 00:22:11.579 to make even major corporations give up 542 00:22:11.779 --> 00:22:13.229 when they tried to enter 543 00:22:13.579 --> 00:22:14.779 So, I want to tell you 544 00:22:14.879 --> 00:22:16.889 You must be prepared even when you succeed in your job 545 00:22:16.889 --> 00:22:18.589 Most people only prepares for the failure 546 00:22:18.789 --> 00:22:20.629 but that's what everyone thinks 547 00:22:20.779 --> 00:22:22.629 If you don't prepare when you succeed, 548 00:22:22.679 --> 00:22:25.679 you can collapse again when you succeed 549 00:22:26.079 --> 00:22:28.079 I think you can collapse 550 00:22:28.079 --> 00:22:30.079 faster than anyone else 551 00:22:30.879 --> 00:22:32.879 Thank you for your good words today 552 00:22:33.546 --> 00:22:34.646 Hi guys 553 00:22:34.646 --> 00:22:37.946 We hope it was very valuable time, full of insight 554 00:22:38.839 --> 00:22:41.889 That wraps up our conversation with CEO Gangnam-gu, 555 00:22:42.742 --> 00:22:44.732 Thank you so much for watching