"Now, we are in an era where we must be chosen by foreign workers, rather than choosing foreign workers to work with us. We must help foreign workers, who struggle with language and cultural differences, settle in and move toward a harmonious multicultural society."Cho Seong-gon, chairman of Kwork Partners
Last year, the proportion of foreigners among the resident population of South Korea exceeded 5%, making it the first 'multiracial, multicultural country' classified by the Organization for Economic Cooperation and Development (OECD) in Asia. Excluding some countries in North America and Europe that accepted immigrants early on, there are few countries worldwide where the proportion of foreigners exceeds 5%.
According to estimates by the Korea Employment Information Service, the additional industrial workforce needed by 2032 is expected to reach 900,000. However, due to low birth rates and an aging population, the working population continues to decline, and the younger generation tends to avoid difficult jobs, leaving the influx and coexistence of foreign workers as the only realistic alternative.
On the 9th, in an office located in Myeongdong, Seoul, Cho Seong-gon, chairman of Kwork Partners, launched Korea's first comprehensive foreigner living support platform, 'Kstart,' in December last year. Kstart provides a variety of tailored services needed by foreign workers and students who have entered from 17 countries, including Vietnam, Indonesia, Cambodia, Nepal, and Uzbekistan, with which South Korea has signed labor dispatch agreements, by consolidating living support, financial services, insurance shopping, and more.
Chairman Cho previously served as the head of project financing (PF) at Citibank Korea and as the representative of Citigroup's subsidiary, Citibank Financial Sales Services. In 2015, he established the specialized platform and distribution service company Enable Korea Co., Ltd., and founded Kwork Partners in January of last year.
Kwork Partners has been selected for the TIPS program led by the Ministry of SMEs and Startups and has made achievements by attracting initial investments from major institutions such as the Chungnam Creative Economy Innovation Center, Jeju Creative Economy Innovation Center, KAIST Startup Fund, and V&TG. Below is a Q&A with Chairman Cho.
—What was the motivation for the business idea?
"It was about 4 to 5 years ago when I was in charge of managing a company that operated an electric scooter. There was a factory in Changwon, but we couldn't find employees. Even after relocating the factory to Pocheon, Gyeonggi Province, there were still no job seekers. I then invested in Vietnam to establish a factory, but it failed when COVID-19 hit. After returning to Korea, I set up a business site in Siheung, Gyeonggi Province, close to Seoul, but there were no Koreans willing to work even when offering a salary of 4 million won. Ultimately, I had no choice but to fill all production positions with foreign workers.
One day I went on a trip to Jeju Island with my employees, and during honest conversations, I learned in detail about the realistic difficulties they faced. Many employees could not even manage basic living conditions due to language and cultural differences. From that point on, I realized that there was a need for a platform that could effectively assist foreigners in settling in Korea.
—Are there any platforms like 'Kstart' in the market?
"Foreign workers and students have very limited access to Korean living information. Therefore, most of them rely on brokers or administrative agents for assistance from their arrival to daily life. Kstart was the first platform that consolidated the services that were previously provided individually."
—What efforts did you make to launch the service?
"We interviewed about 300 foreigners for 3 to 4 hours each, asking about the hardships of life in Korea. They had no way to obtain reliable job information and were often exposed to illegal job sites or brokers. They also frequently faced situations requiring expert assistance, such as wage arrears and visa issues.
Moreover, most foreigners had never taken out loans due to complex procedures, and their understanding of insurance was low. We synthesized these findings to create three fundamental guidelines: 'providing services in native languages', 'offering close support in all situations', and 'mobile platform'."
—What services does Kstart support?
"We operate our own call center and AI chatbot, allowing users to inquire about anything they are curious about or need information on in their native language and also receive phone consultations. If they need to make appointments or require assistance with documentation or translation, we connect them with experts. We have also created a community where they can share living information and foster friendships.
In the financial sector, we provide a service that allows foreigners to compare loan information and bank deposit benefits they can receive in Korea. To this end, we acquired 'Bank Partner,' the country's first financial comparison platform exclusively for foreigners last year. In insurance, we have partnered with Samsung Fire & Marine Insurance to provide tailored services for foreign tourists and workers. In the future, we are also preparing to support employment through foreign job fairs and offer educational services to learn Korean."
—Are you working on other businesses as well?
"In addition to Kstart, we are working on a currency exchange platform called 'Kexchange.' It's a service that allows customers to book online and exchange currency at a time of their choosing. The inside of the exchange office has also been designed to provide core services necessary for tourism, such as communications, insurance, and storage.
Kexchange currently has four branches in Hongdae and Myeongdong and plans to expand to 40 locations nationwide this year. We also have plans to enter the Japanese market, where there is a lack of foreign exchange infrastructure."