Minbook
KO
Korea Build Trap
Strategy & Economics Active 4 posts

Korea Build Trap

Korea's paradox — #1 in R&D / GDP, #51 in software spending / GDP (WIPO GII 2025). Korean SaaS firms detouring through Japan, AI's build resurgence, and the structural jump Korea faces. 4-part series.

About this series

WIPO GII 2025 lists two numbers for the same country: #1 in R&D and #51 in software spending relative to GDP. Korean SaaS grew by detouring through Japan, and the AI era is shifting advantage back to builders — leaving Korea with a jump-or-freeze question.

Written for operators and investors in Korean SaaS and AI, PMs evaluating Japan or SEA expansion, and analysts who want to see Korea's structural ceiling and ceiling-break together. Built on primary sources (WIPO, OECD, KOSA) so you can stress-test hypotheses against the data.

Read in order: Pillar (the map) → Part 1 (history) → Part 2 (cost) → Part 3 (future). Pull the primary-source data into your own hypothesis — that's the highest-leverage way to use this series.

4 episodes

  1. 00
    Anchor post

    Why Korea Doesn't Buy Software — A Build/Buy/Assemble Reframe of Korea's AI B2B Market

    Korea's software spending sits at 0.3% of GDP (rank 51) vs. R&D at 5.0% (rank 1). The series thesis reduces five 'peculiarities' of Korea's market to one root cause.

  2. 01

    How We Got Trapped — Government SW Pricing, Hancom, and 30 Years of SI Outsourcing

    How public SW pricing, Hancom/groupware NIH, and 30 years of SI outsourcing produced Korea's build lock-in.

  3. 02

    The Cost of Being Trapped — How LINE WORKS, Younglimwon, and RSUPPORT Detour Through Japan

    Korean SaaS companies blocked by SI and on-prem walls at home, then taking #1 positions in Japan — a natural experiment in Korea's build lock-in.

  4. 03

    Will AI Free or Cement Korea — Deregulation × AI Build × SI Inertia

    Three forces (deregulation × AI build × SI inertia) producing three scenarios for Korea's software market — Korea Vindicated, Double Loss, Bifurcation. The real branching point.