SUSTAINABLE ECONOMY SMART CITY ASIA JAEWON PETER CHUN

INDUSTRIAL REVOLUTION BY NOW Industrial Revolution: 1 st ~ 5 th 1 st 2 nd Mechanization Mass Production Water Power Assembly Line Steam Power Electricity 3 rd 4 th Computer and Cyber Physical Automation Systems 5 th ? 2

THE VISION OF THE GLOBAL SMART INDUSTRY § § § Everything is hyper-connected è O 2 O Big Data & Data Analytics Consumer Experience & Data-centric Service Disruptive technologies and Industry Transformation Expansion of Sharing Economy Smile Curve of Smart Industry Valueadded AI Electric Car Fin. Tech Media E-Commerce Fashion Traditional Manufacturing Industry R&D / Patent (Tech & Innovation) Design / Branding (Contents Industry) Traditional Manufacturing Supply Chain (Logistics) Marketing / Total Solution (System Industry) 3

INVESTMENT CYCLE ON TECHNOLOGY Repetition Lack of the highgrowth fund in Korea 4

GLOBAL STARTUP ECOSYSTEMS 1. Silicon Valley (USA) 2. London (UK) 3. Tel Aviv (Israel) 4. Los Angeles (USA) 5. Seattle (USA) 6. New York City (USA) SILICON VALLEY Age 36. 16 34. 12 Gender (F/M) 9% / 94% 10% / 90% Education (dropout vs. master * Ph. D) 3 : 7 1 : 2. 5 10. Chicago (USA) Serial Entrepreneur 47% 56% 11. Paris (France) Percentage of non-technical founding teams 11% 16% 12. Sydney (Australia) Working hours per day 9. 42 9. 95 13. Sao Paulo (Brazil) Percentage of founders who lived in SV 13% 100% 14. Moscow (Russia) Motivation (product vs. impact) 1. 5 : 1 15. Berlin (Germany) Customer (B 2 B vs. B 2 C) 1. 6 : 1 2 : 1 16. Waterloo (Canada) Market (new vs. niche) 4 : 1 7. Boston (USA) 8. Toronto (Canada) 9. Vancouver (Canada) 17. Singapore (Singapore) 18. Melbourne (Australia) 19. Bangalore (India) 20. Santiago (Chile) Source: Global Innovation Report 5

FEATURE OF THE KOREAN STARTUPS Mentor & Training Market Government Support (R&D, Startups) Mindset Investment Network Talent 6

REGIONAL STARTUP ECOSYSTEM (OTTAWA) 2 hrs 1 hr 2 hrs 7

THE MARKET IN FAR-EAST Within 2 hours by flight • South Korean market size: 52 M Russia, Mongolia • South Korean GDP(PPP) per capita: USD 44, 167 & North Korea • Chinese market size: 1. 4 B • Chinese GDP(PPP) per capita: USD 16, 231 • Japanese market size: 120 M • Japanese GDP(PPP) per capita: USD 44, 804 Japan • ASEAN market size: 671 M • ASEAN GDP(PPP) per capita: USD 8, 369 (120 Million) China & Mongolia (1 Billion) Comparing with … • European Union market size: 509 M • EU GDP(PPP) per capita: USD 38, 710 • USA market size: 331 M • USA GDP(PPP) per capita: USD 63, 676 Taiwan & Source International Monetary Fund 2018 estimates ASEAN 8

UNİTED KINGDOM 9

UK ICT MARKET 10

LONDON TECH CITY ▶ NOV 2010: TECHCITY ANNOUNCED BY PRIME MINISTER DAVID CAMERON ▶ FEB 2011: ERIC VAN DER KLEIJ APPOINTED CEO OF LONDON TECHCITY ▶ GOAL: GROW UK TECH CLUSTER AND REPUTATION GLOBALLY ▶ TODAY: OVER 15, 000 TECH COMPANIES IN LONDON ▶ 5 MAJOR POLICY CHANGES: INCLUDING IMMIGRATION AND TAXATION SUPPORTING SME COMMUNITY ▶ CISCO, FACEBOOK, GOOGLE, INTEL, MCKINSEY & COMPANY, BARCLAYS, KPMG, SILICON VALLEY BANK, AMAZON, BT, EE, QUALCOMM, BITCOIN, TRANSFERWISE, STREETBANK … ▶ CITY UNIVERSITY LONDON, LONDON METROPOLITAN UNIVERSITY, IMPERIAL COLLEGE LONDON, LOUGHBOROUGH UNIVERSITY AND UNIVERSITY COLLEGE LONDON 11

LONDON TECH CITY 12

LONDON TECH CITY 13

KEY ACCELERATORS 14

BUSINESS ANGELS, VC, CLUSTERS 15

GOVERNMENT FUNDING 16

START-UP LOANS 17

UK TAX INCENTIVE 18

WHY UK? 19

WHY LONDON? 20

$8 bn. INVESTMENT in global fintech forecast by 2018 46� GROWTH £ 20 bn in London tech sector since launch of Tech City projected annual revenue of fintech sector 51�GROWTH 9 MONTHS for London fintech firms to reach Yo. Y since 2008 in the UK $1 bnin 2014 UKFN I TECH 6 MONTHS for London fintech firms to reach $1 bnin 2015 24 MOST SUCCESSFUL companies on the fintech 50 LIST 135, 000 employed in fintech in the UK 3, 000+ fintech startups 53� of European fintech deals take place in London based in London 44, 000 fintech Employees in London

UK FINTECH MARKET - SUBSECTORS Ref. UK Government 2015 22

STRONG FINTECH HUB UK’s Fin. Tech sector is growing fast, it’s estimated to have expanded by 90% in 2015 to more than £ 1 bn and in 2016 it is expected to be worth £ 2. 4 bn 23

MAJOR EVENTS & MEETUPS FOR THE GLOBAL FINTECH INDUSTRY 24

FINANCIAL CONDUCT AUTHORITY (FCA) ▶ OCTOBER 2014: FCA ANNOUNCED PROJECT INNOVATE ▶ AUGUST 2014: LAUNCH OF INNOVATE FINANCE TRADE BODY FOR FINTECH ▶ LEVEL 39: NEUTRAL PLATFORM BETWEEN PRIVATE AND PUBLIC PLAYERS ▶ AUTUMN STATEMENT 2014: HM TREASURY ANNOUNCES PLANS TO REGULATE CRYPTOCURRENCY WORKING WITH BSI FOR STANDARDS ▶ MARCH 2015: 2 YEAR ANNIVERSARY LEVEL 39, NEUTRAL ROUNDTABLE VENUE ▶ PIONEERING REGULATORY FRAMEWORK: UK FIRST COUNTRY TO LEGALISE PEER TO PEER/CROWDFUNDING 25

COGNICITY OF LEVEL 39 6 Themes of ‘Cognicity’ ▶ Integrated Transportation ▶ Integrated Resource Management ▶ Connected Home ▶ Sustainable Buildings ▶ Automated Building Management ▶ Virtual Design & Construction 26