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Investors flew to Korea
Korea was like the flyover states of the American Midwest: investors from everywhere flew over it on the way to India or China. Altos was an unknown venture firm, with no big conferences and no famous people around it.
Once its companies reached a certain scale and relevance, people started to seek them out. They wanted to talk to a company, were told to talk to the Altos people, and made their way over. Investors from Europe, China, Russia, and India flew into Korea to meet some of the companies, some of them in fancy private jets.
Altos didn't have to fly its entrepreneurs to Silicon Valley to meet venture capitalists. The venture capitalists came to them, and the networks kept growing as the businesses did.
Why do investors cluster in a few cities?
Economists call the benefit of being near others in the same industry agglomeration. AnnaLee Saxenian's 1994 book Regional Advantage compared Silicon Valley with Boston's Route 128 and found that open networks among firms helped the Valley grow faster. Investors in one place hear about deals through personal contacts and can meet founders quickly. Sand Hill Road in Menlo Park hosts many of the best-known venture firms.
What made Korea attractive to global investors?
Korea has one of the world's most connected populations, with among the highest rates of internet use. Coupang's March 2021 listing in New York raised about 4.6 billion dollars. Naver and Kakao had by then become large public companies. Samsung Electronics and SK hynix are two of the largest makers of memory chips in the world.