Hancom is a reputation ubiquitous to Koreans as Samsung and LG.

As one in all South Korea’s oldest software program firms, it’s recognized for its Hangul phrase processing utility, the nation’s reply to Microsoft Phrase. Hangul launched in 1989 and is until at this time the second most used phrase processing utility behind the US firm. Hancom actually stands for “Korean and Pc.” As of 2021, Hancom was price round $350 million on the Korean inventory market.

Right now, Hancom CEO Kim Yeonsu, has an bold objective: to make the Hancom identify ubiquitous exterior of South Korea as nicely.

“My need is for each respectable software program developer on this planet to know Hancom, even earlier than I meet them face-to-face after I go overseas,” she mentioned, who turned CEO of Hancom in August 2021 and is heiress-apparent to the enterprise group. She joined Hancom Group in 2012 and rose by the ranks to take up key government positions, largely answerable for mergers and acquisitions, in addition to administration of subsidiaries, earlier than taking the highest job of the group’s flagship.

In response to Yeonsu, Hancom has began a shift from its earlier installation-based software program enterprise mannequin to a cloud-based, subscription service enterprise mannequin. The corporate is providing its Hancom Workplace in software-as-a-service (SaaS) format, which is getting used increasingly by international audiences each day, the CEO mentioned.

The South Korean software program firm has additionally been aggressive in acquisitions to increase globally. Its Singapore-based subsidiary Hancom Alliance will full the acquisition of Taiwanese SaaS agency KDAN Cell to increase in North America, Europe and Asia. Hancom can also be contemplating making a strategic funding in Southeast Asian HR SaaS firm Swingvy. “We plan to shortly increase within the international cloud market by acquisitions of promising SaaS firms like KDAN.”

“Hancom is at the moment valued at round 400 billion received; my objective is to extend this to 4 trillion received. I’m assured that this may be achieved.” In her first-ever interview, completely with ZDNet, Yeonsu, soft-spoken but agency, was sincere about Hancom’s challenges forward, but additionally bullish when it got here to the way forward for the corporate.

A TABLE SET FOR DEVELOPERS

The CEO and her prime executives are planning to participate in Cell World Congress 2023 kicking off later this month. Yeonsu says she can be on the lookout for new enterprise alternatives and partnerships with builders.

And the primary providing can be Hancom’s SDK, or software program growth package, for all of the applied sciences and software program on Hancom Workplace, the corporate’s personal model of workplace suite that features Hangul phrase processor, spreadsheet, presentation, and PDF editor.

“Our technique since final 12 months could be summed up in a single phrase, development,” the CEO mentioned, “and collaboration with international builders is crucial to that.” To make use of an analogy, Yeonsu mentioned Hancom can be setting a desk full of varied meals for builders in North America and Europe to decide on every in line with their tastes.

“To go international, we realized that we won’t present software program filled with numerous capabilities that clients could or could not need. So we’re splitting what now we have into items of applied sciences in order that the purchasers have the liberty to decide on.”

Final 12 months, Hancom turned a shareholder of Taiwanese software program firm KDAN, which gives options for cell PDF, e-signature, and animation. The Taiwanese agency additionally has its personal AI doc administration service that competes with Adobe Inventive Cloud. “We have now power as an editor, however the totally different codecs we’re enhancing, from phrase to PDF, current totally different eventualities. Our experience within the PDF format was comparatively weaker. KDAN had that experience in PDF.”

Roughly 80% of KDAN’s income and clients are from North America and Europe, Yeonsu mentioned, offering Hancom with an entry level for these markets as a part of its international enlargement plan. KDAN, based in 2009, additionally has recorded over 100 million downloads for its app in Taiwan and is a well-established model there, she added, permitting Hancom to increase there as nicely.

Hancom’s international enlargement will deal with North America and Europe as markets there usually have excessive spending in software program, the CEO mentioned. Alternatively, conventionally, Asian markets require numerous customization from the software program supplier to suit the native market, Yeonsu mentioned, which requires a comparatively giant native workforce for system integration. “So we need to present the applied sciences now we have first, then discover out what our clients’ wants are. That means, we are able to choose the applied sciences which are appropriate for additional growth which we are able to really feel assured about.”

This blueprint for international enlargement largely stems from Yeonsu’s expertise from Hancom’s acquisition of Belgium-based PDF resolution agency iText in 2015 and later promoting the corporate in 2018 to non-public fairness Crescendo Fairness Companions. After the sale, Yeonsu continued to handle iText as CEO and chair of the board for 3 years.

“Throughout my tenure at iText, we tried to discover a position within the Asian market as nicely. What we realized was that we could not simply promote the companies of iText to those markets however wanted to supply consulting companies as nicely. So this expertise formed how I feel a Korean software program firm ought to method increasing globally. ‘We have now these numerous applied sciences; that is our licensing coverage,’ and assist clients discover what they want.”

Moreover increasing overseas, by way of the South Korean market, Yeonsu mentioned that the corporate was on the lookout for new enterprise alternatives by using the amassed information from offering the Korean language phrase processor utility Hangul for 32 years. “For us this amassed doc, or information, is an asset. We’re considering of varied eventualities, comparable to a comparability of how the Korean language was utilized in an older doc to a newer one. We additionally need to enhance the Hangul format itself.”

This utilization of information, which AI can help in, may be very a lot an ongoing homework for the CEO.”We offer an editor: a instrument to doc data in numerous codecs, from phrase to PDF. Now greater than ever, we’re our editor as a container of knowledge.

“So one of many issues we take into consideration is the way to extract what data and the way to apply it in order that we are able to remedy clients’ issues. AI is without doubt one of the instruments we use for this, however AI or not, we expect extra by way of what worth the applying of a selected know-how can present for the purchasers.” Yeonsu burdened that forming SDK collaboration with builders may even give Hancom entry to extra information.

CULTURE SHIFT

Yeonsu’s expertise overseas and managing overseas firms has additionally formed her administration fashion. She sums up her personal fashion as pragmatic and to the purpose. Her executives that I talked to described her as an entrepreneur who stresses the significance of overcoming challenges, freedom, fast decision-making, and private duty. Communication appears to be one in all Yeonsu’s prime agendas: quickly after she was nominated as CEO, in November 2021 Hancom despatched its first shareholder letter.

Most Korean firms nonetheless are very hierarchical. Most workers name one another by their final names mixed with their positions, that are normally given primarily based on seniority and age. The Korean language additionally has honorifics, the place somebody speaking to a different that’s older or of upper standing makes use of particular nouns and verb endings.

Hancom below Yeonsu has performed away with a lot of this and workers name one another by their full names with out their positions. Yeonsu herself known as Yeonsu by her subordinates. Workers use honorifics between one another no matter place, which is taken into account extra well mannered than not utilizing any honorifics. This units an environment of respect for people however with boundaries.

“My experiences in North America and Europe have modified how I method convincing and changing into pleasant with folks,” the CEO mentioned. “That is additionally the identical for my workers. Once I negotiate with them, after I persuade workers to work with me, it’s actually about discovering frequent floor.”

As a substitute of a top-down construction, Yeonsu strongly prefers forming a consensus. “I feel how a lot consensus a objective has inside the firm correlates to how efficiently the objective was achieved.”

Conventional Korean firms, just like their counterparts in Japan and China, have additionally up to now demanded workers to place the nice of the corporate earlier than themselves, however this work tradition has shifted tremendously across the previous 5 years by the worldwide debate over work in addition to the pandemic, and Hancom has additionally been impacted by these societal developments.

“Since I began my profession in Korean firms, I’ve additionally had the mentally of ‘every thing for the job’ and anticipated the identical from colleagues up to now. I now not method administration this fashion.”

“Even earlier than I turned the CEO, there was a rift between the older technology and the youthful technology, culturally talking, and there have been efforts to bridge this hole by the corporate even earlier than I took the helm. So I might say the Hancom tradition at this time was shaped partly from my path and the pure evolution of notion about work in South Korea.”

However Yeonsu additionally stresses the significance of private duty that every worker should have, if they need the so-called work and life steadiness. “The corporate’s position is to set a transparent commonplace of method to the worker and between workers. Additionally, an organization should give clear roles and duties to the person. However after that, it’s as much as the person.”

“We have now to consider the top objective. The top objective of setting a piece tradition is to speak and work higher collectively.”

Beginning this 12 months, Hancom can also be planning to implement a brand new course of the place the corporate and workers on a mutually accepted objective that can be evaluated at 12 months’s finish. This course of was examined in small items final 12 months however will now be applied in Hancom headquarters in South Korea.

With regards to tradition and HR, nevertheless, the CEO mentioned this additionally must be primarily based on the place a sure operation is predicated. For instance, Taiwan can have its personal HR; South Korea its personal as nicely; there may even must be a International HR, Yeonsu mentioned.

One other change the CEO made was what Hancom’s personal builders deal with and the way they method work. “Prior to now, our personal builders largely targeted on applied sciences associated to Hangul. However to coincide with our enlargement, I’ve given them extra freedom to decide on and develop the applied sciences they need that finally match our finish objective of offering worth to clients. Failure is OK, so long as there’s something we are able to be taught from it.”

“We have now software program builders with many years of expertise. We have now legacy property as a software program service supplier that operated for many years. I might say we’re but to totally make the most of these to their full potential and we’re at all times considering of the way to take action.”

FOR THE ALLIANCE: MORE ACQUISITIONS

Yeonsu mentioned that Hancom is making ready for extra acquisitions of firms that match into the corporate’s total technique. “It’s important to have a look at what you have got as an organization earlier than you concentrate on acquisitions. What we’re good at and the place that may take us.”

The CEO additionally shared her ideas on how she chooses candidates: “Most essential is the folks. Who I work with. I additionally keep away from firms which are on the lookout for a public sale.

“With regards to acquisitions up to now, most of it got here organically by our executives working nicely with their executives.”

Yeonsu mentioned after an acquisition, she provides clearly outlined roles between Hancom and the newly acquired firm. “Generally Hancom will have the ability to purchase a brand new area from the acquired firm. Generally Hancom will work with the acquired firm to safe new arenas.”

“For instance, KDAN can be utilizing our Workplace SDK to launch a KDAN Workplace in Taiwan. We wrapped our workplace engine and gave it to KDAN, which added UI and UX that match higher with the native market.

Hancom arrange a subsidiary referred to as Hancom Alliance in Singapore final 12 months in September, an organization that can be on the lookout for strategic investments and partnerships with firms like KDAN.

The Hancom Alliance model can be subservient to the model of acquired or partnered firms which are nicely established of their respective sectors, Yeonsu mentioned. “I feel extra model worth is created from having a number of manufacturers, as an alternative of getting totally different manufacturers comply with one model,” CEO mentioned, which is markedly totally different from most South Korean conglomerates that prefer to unify totally different firms below one model, comparable to Hyundai or SK.

She additionally makes it clear that the profitability of an organization is essential. “The software program sector generally will get numerous enterprise capital funding. However to me, how enterprise capitals can spend money on firms with broad losses is kind of frankly a thriller. I feel it comes from [them] at all times on the lookout for the outlier of their perspective. In that sense, I assume the margin price I would like from Hancom and the businesses it really works with could be perceived as above the market common.”

On the identical time, Yeonsu says how she appears to be like at profitability, income, and valuation total is nuanced. “Income could also be excessive proper now for an organization. However I feel now we have to take a look at future profitability and development. An organization with an excellent resume is not at all times worthwhile. Regardless of the state of affairs is, an organization’s worth is decided I feel by the way it convinces its inside employees and exterior stakeholders of its visions and targets.”

The discharge of SDKs, the cultural shift, and acquisitions all have the top objective of propelling Hancom’s development. “We’re recognized for the Hangul Workplace in South Korea. I feel there have been many doubts about whether or not Hancom had room for development.

“So what we’re altering is promoting our Workplace applied sciences, discovering totally different values from the doc resolution we already posseses, and my job is to persuade the inner employees that we are able to increase.

“Prior to now, since most of our clients got here from the general public sector, we had little incentive to search out out the wants of consumers. However now our precedence is to search out out deeply and precisely the wants of our clients. This may assist us construct a wholesome ecosystem round our SDK.”