Factory's Post 🇪🇺 #6

Factory's Post is back to deliver the insights you need for your business growth.💡 We've gathered the latest business trends, useful information for market entry, and hot news from the Korea-Europe ecosystem!

You’re my Soda Pop! 🤙🥤

This so-called “annoyingly catchy” song has been stuck in my head for days, and judging by the buzz, I’m not the only one.

From Squid Game to K-pop: Demon Hunters, the global ascent of Korean content(K-Content) is no longer just a cultural phenomenon. It is now a serious economic engine and a cross-border business opportunity. As the Korean government sets a bold target of 50 trillion KRW (~€33 billion) in K-Content exports, European startups and institutions would do well to recognise the momentum and the potential for collaboration.

📊 The Numbers Behind the Boom

The global breakout of Squid Game Season 1 created an estimated $900 million in economic value for Netflix, according to Bloomberg. With Season 3 now confirmed, the cumulative value of the franchise is projected to exceed $2 billion by 2027. But this is not just about streaming numbers—Squid Game has evolved into a multi-platform cultural IP. From game launches to immersive Seoul-based experiences during “Seoul Travel Week,” the series is now driving offline tourism, merchandise, and digital innovation.

Similarly, K-pop: Demon Hunters blends K-pop aesthetics with anime storytelling, garnering international fandom even before its full release. These hybrid, transmedia models demonstrate how Korean cultural products are now fueling ecosystems beyond entertainment, touching travel, tech, and even education sectors.

👾 Korea's Strategic Push and Why It Matters for Europe

The Korean government has launched a multi-agency effort to build the K-Content industry into a next-generation export pillar. According to the Korea Development Institute (KDI), the core drivers of growth include:

• A vertically integrated industry with strong upstream and downstream collaboration (from production to distribution)

• Aggressive investment in IP, AI-driven content creation, and global licensing

For European startups and cultural SMEs, this presents a unique opportunity:

• Content-tech startups can find co-development partners or licensing deals.

• Tourism, retail, and experience startups can tap into Korean city events centered around cultural IP (e.g., Seoul, Busan, Incheon).

• Municipalities and incubators can exchange best practices in city branding through content ecosystems.

Korean cultural IPs like Squid Game are no longer confined to screens; they’re becoming engines of experiential and economic value. From immersive offline events during Seoul Travel Week to game launches and cross-industry collaborations, Korea’s approach to OSMU (One Source Multi Use) shows how a single content property can fuel tourism, gaming, retail, and more. For Europe, this offers not just inspiration, but a blueprint for how creative economies can scale through strategic public-private alignment. The era of K-Content is not just a trend; it’s a model for global cultural innovation.

Industry

💄 K-Beauty by Non-Koreans?

K-Beauty is no longer just a product — it’s becoming a blueprint for global beauty innovation. Across Europe, entrepreneurs are launching local K-Beauty-inspired brands that borrow Korea’s approach to formulation, product development, and skincare philosophy. This shift reflects a move from importing Korean cosmetics to replicating the entire ecosystem, including fast product cycles, social media marketing, and advanced ODM(Original Design Manufacturer) production.

Take Germany’s Yepoda, founded by a Korean-German duo, which offers vegan, clean, and sustainable skincare made in Korea but tailored for European tastes. In Finland, Hwarang partners with Korean ODM firms and leverages storytelling rooted in ancient Korean beauty culture and has reached 1,191 stores across 16 European countries in just a year. Meanwhile, the UK’s Pure Seoul is curating 60+ Korean brands in immersive retail spaces that educate locals on Korean skincare routines, going far beyond simple retail.

Industry experts say the real growth of K-Beauty is now happening in Europe, where the entire business model is being localized. It’s not just about selling Korean-made products; it's about exporting how Korean beauty is conceived, manufactured, and branded.

📈 Unexpected Bloom: K-Beauty Defies the Funding Winter

While Korea’s startup ecosystem is facing a funding chill, K-beauty startups are seeing an investment surge. From January to June 2025, the beauty and fashion sectors recorded a 27.7% increase in funding. Venture capital firm The Ventures reported that beauty-related investment applications tripled year-on-year, now making up over 28% of its total investments.

This surge is supported by structural shifts in the market. Beauty founders are no longer focused solely on product sales but now build full-scale business models, including brand development and global distribution. The launch of Korea’s first public-private K-beauty fund, backed by Kolmar Korea and Cosmax, signals a new era of value chain-wide investment: from R&D to marketing and ingredient supply. As AI and deep tech face valuation corrections, K-beauty showcases how culturally-rooted, export-friendly sectors can remain investment magnets, especially when backed by a solid value chain and smart branding. For European founders, this signals a potential in localising proven Asian consumer models or partnering with K-beauty startups for market expansion.

🧓 The Silver Economy: Korea’s Aging Population Sparks a New Wave of Innovation

Korea’s ultra-aging society is no longer seen as a burden, but rather a booming market opportunity. With projections estimating the domestic senior industry to reach 168 trillion won by 2030, startups and conglomerates alike are diving into "AgeTech": from AI-driven wearables to smart housing solutions. Companies like CareDoc and Caring are transforming senior living through IoT-powered residences and health-focused service ecosystems, while platforms like CarePartner digitally match caregivers with patients, showing just how dynamic the space has become.

Large corporations are also joining the silver boom. Construction firms such as Hyundai are investing in large-scale senior residence complexes, while Samsung, Coway, and major hotel brands are rolling out products and services tailored to elderly needs. Insurance providers like KB are expanding coverage to support aging-related conditions, and AI solutions now support everything from dementia diagnosis to monitoring independent seniors at home.

Globally, the silver economy is rapidly gaining traction, valued at over KRW 16,900 trillion by 2030 across the U.S., EU, China, and Japan. Countries are now emphasizing digital inclusion and intergenerational engagement. Korea’s strategic pivot positions it not only to serve its own aging population but also to export its AgeTech innovations to meet growing global demand.

Markets

⚖️ Financial Rally and Fair Play Reforms

South Korean stocks have surged to a nearly four-year high, driven by financial shares and investor optimism surrounding President Lee Jae Myung’s market-friendly agenda. The KOSPI reached 3,133.74, fueled by policies promoting capital market integrity and growth. Financial firms saw major gains, though foreign investors remained cautious, causing the Korean won to weaken slightly.

In a decisive move, South Korea also launched a strict crackdown on illegal short-selling, reinforcing its commitment to fair markets. Regulators are introducing a “one-strike out” policy, with severe penalties for violators, including full forfeiture of orders and potential business suspensions. The initiative follows earlier fines on foreign banks and aligns with tightened listing standards and renewed transparency efforts.

These shifts demonstrate how regulatory clarity and political backing can strengthen market trust and unlock sector-specific momentum, even amid global uncertainty. For those eyeing Asian equity exposure, Korea’s evolving financial ecosystem offers both lessons and opportunities. Read the full news here.

Meet New Startups!

We'd like to take a moment to introduce you to some of the startups that will be joining us in the coming days. Today, we introduce you to TALOS, an AI-based healthcare startup.

🧠 Transforming Preventive Healthcare with Medical AI

TALOS is a medical AI company on a mission to reshape how we prevent and detect serious diseases. At the core of its innovation lies the use of advanced algorithms that analyse general health checkup data to assess individual risk, enabling both patients and healthcare institutions to take proactive, data-driven actions. With a specialised focus on conditions like cerebral aneurysms, TALOS offers ANRISK™, an AI-powered risk assessment service that delivers highly personalised reports and actionable insights without the need for additional testing.

Led by CEO Dr. Tackeun Kim, an experienced neurosurgeon and former professor of medical AI at Seoul National University, TALOS combines deep clinical knowledge with cutting-edge AI research. Dr. Kim’s background as both a medical practitioner and an AI scientist ensures the company’s solutions are grounded in clinical reality while pushing the boundaries of innovation. With a team of top-tier experts, TALOS is setting a new standard in predictive healthcare by increasing disease awareness and enhancing the screening efficiency across medical systems.

123 Factory, Now

🔔 123 Factory is Now Official Partner of ClimAccelerator!

Fry has been selected as the first Korean organization to participate in ClimAccelerator, a global program hosted by Climate-KIC, Europe's largest climate innovation network!

ClimAccelerator is a leading acceleration program for promising climate technology startups, and the 2025 program is designed in conjunction with the EU Green Deal and the Fit for 55 strategy.

Through this program, we will continue to provide comprehensive support, including mentoring, partner matching, investment pitching, and PoC connections, to help startups with climate solutions grow rapidly and advance in the European market.

We will notify our newsletter subscribers first as soon as recruitment begins. 🤩

If you are a company interested in ESG, climate tech, or the environmental sector, please look forward to this opportunity!

Upcoming Events

• Facilities Management Expo 
  30 July - 2 August | Seoul, Korea | Facilities 
  FM Expo is Korea’s largest exhibition for facilities maintenance, management, and repair. This event showcases solutions for cleaning, facilities, safety, security, energy, and more, helping improve efficiency and sustainability for building operations.

• Korea Display Exhibition 2025 
  7-9 August | Seoul, Korea | Display 
  Promotes the development of new products and technologies through exchanging information on new technology and market trends.

• CPhI Korea 
  26-28 August | Seoul, Korea | Pharmaceutical, BioTech 
  As part of the CPhI Worldwide, this event serves as a comprehensive exhibition for the global pharmaceutical, biotechnology, and health functional industry.

• World Climate Industry Expo 2025 
  27-29 August | Busan, Korea | Energy, ClimTech 
  International forum for addressing the climate crisis and achieving net-zero goals.

Thank you for reading Factory’s Post!
We’re always open to exciting news, promotions, and proposals to share with the 123 community. Feel free to contact [email protected], we’d love to hear from you! 😀