Korean founders told to prioritize profit over growth at Silicon Valley summit

Goodwater Capital Managing Partner Eric Kim speaks at the UKF 82 Startup Summit 2026 in Redwood City on January 12. AJP Park Sae-jin

SEOUL, January 15 (AJP) - South Korean startup founders hoping to break into the United States market were advised to abandon aggressive growth strategies in favor of proving their "unit economics," as investors at a major industry gathering here warned of a tightened global capital environment.

The advice was delivered at the UKF 82 Startup Summit 2026, held from January 9 to 12 at the Fox Theatre in Redwood City. The event drew approximately 4,000 participants, making it the largest gathering of South Korean entrepreneurs and venture capitalists ever held in North America.

Speakers at the four-day summit described a distinct shift in investor sentiment compared to the boom years of 2021.

Eric Kim, managing partner at Goodwater Capital, noted that the venture capital market in 2026 has moved away from rewarding sheer scale.

"Unlike in 2021, the market is now strictly dominated by performance and numbers," Kim said. "The IPO market shrinking to 70 to 80 percent of its peak is evidence of this."

Kim urged founders to focus on "unit economics"—the direct revenues and costs associated with a business model—rather than user acquisition at all costs.

Despite the stricter financial climate, Silicon Valley investors pointed to South Korea as a critical market for identifying future tech trends. Kim described the country as a "leading indicator" for the global industry, citing high population density and advanced digital infrastructure. He mentioned rapid-growth companies such as Coupang and Viva Republica, the operator of Toss, as examples of South Korean firms that successfully scaled in a competitive environment.

"Goodwater Capital currently allocates about 10 to 15 percent of its investments to South Korea," Kim said. "We see it not just as a content creator, but as an investment opportunity where trends often emerge before they hit the global stage."

Jeong Sae-ju poses for a photograph at the UKF 82 Startup Summit 2026 in Redwood City on January 11. AJP Park Sae-jin

The summit was organized by the United Korean Founders (UKF), a non-profit group that has expanded significantly since its inception.

Jeong Sae-ju, co-chair of UKF and executive chairman of Noom, described the organization's origins as a casual social gathering in 2018, where founders met in a living room to share "oden" (fish cake) soup and discuss their struggles in the U.S. market.

To acknowledge these roots, organizers set up a networking area at the venue styled after a "pocha," or Korean street food tent, serving fish cakes and spicy rice cakes to attendees.

"It started with founders eating oden soup and sharing their struggles," Jeong said. "It has now evolved into an ecosystem where global tech leaders, the government, and VCs collaborate."

The South Korean government also used the summit to announce expanded support for startups in the Bay Area.

Vice Minister of SMEs and Startups Noh Yong-seok speaks at the UKF 82 Startup Summit 2026 in Redwood City on January 9. AJP Park Sae-jin

Noh Yong-seok, the 1st Vice Minister of SMEs and Startups, attended the event to inaugurate the new Startup Venture Campus (SVC). The facility is designed to provide office space, housing assistance, and administrative support for early-stage South Korean companies entering the U.S.

Noh stated that the government is shifting its focus from indirect support to direct, on-the-ground assistance to help founders connect with local networks.
Park Sae-jin Reporter swatchsjp@ajunews.com

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