The emergence of platforms like OTT, YouTube, and TikTok has shattered the unwritten rules of the media era, where the three major broadcasting networks held a virtual monopoly on video content. Kroma Entertainment is an agency startup that produces high-quality 'video content' in the rapidly evolving new media market.

Founder and CEO Kim Yo-han decided to start the company based on his experience as the director of KUBS, the campus broadcasting station at Korea University. The Startup Supporters 2nd Generation Journalism Team met with CEO Kim, who is challenging business model innovation in the content field by producing diverse content for corporations and government agencies while developing original content IPs.

Q1. Could you please introduce Kroma Entertainment?

“You know the 'Chroma' in Chroma-key, right? Chroma-key (Chroma-key) is when making videosgreen and blue backgrounds like refer to the color key. In other words, it means 'color.' The name Kroma embodies our vision to bring out the most vibrant colors for every company and brand. As a side note, if you change the prefix to 'Kr,' it becomes KROMA (Korea Original Media Agency). You can think of us as an agency startup that develops a wide range of original Korean media content. Currently from their 20s to 30s are gathered here in a startup that handles everything from planning and filming to editing content directly.”

Q2. Media startups are somewhat uncommon. What motivated you to start a business in this field?

“The 'grammar' of the media era has vanished. The broadcasting industry is weakening, and the center of gravity has shifted to new media like YouTube and Instagram, with TikTok following as the next step. There’s a term called 'broadcasting grammar'—a set of conventions for what to do and how to behave to make a show successful. But these have become meaningless, and the new media market in Korea began to explode in 2018. I wondered: would people in their 40s and 50s who succeeded in traditional broadcasting really grasp the vibe of YouTube, or would the younger generation? If traditional broadcasting were still the mainstream, we wouldn't have had a chance. Veterans with 20 years of experience would obviously be better.

But with the restructuring of the content market, I realized that 'who can handle new media best' is a completely different game. I saw a real opportunity if we could gather people with the right instincts and elevate the quality of our work.”

“To be honest, I'm someone who enjoys 'planning' itself, so I don't intend to limit myself to just video. That's why I gave the company an 'Entertainment' name with a larger vision. The reason we are focusing on video content right now is The reason is that what I honed in college was video production. In Silicon Valley they say, "If you want to start a company, go sell lemonade first." I felt we needed at least a small performance built with our own hands before taking investment to try something bigger. For now we are doing our best with the skills we have, seeing how far we can grow, then expanding the content business in the next stage.

Q3. What are your specific plans for business expansion?

“Content is a service, not necessarily a lucrative field on its own. After all, people don't usually pay just to watch a video. That's why most aspiring entrepreneurs I meet dream of platform startups and seeking investment; there aren't many in the content industry. The most well-known business model is film, but even movie theaters are seeing a decline. Content is a service, but in reality, it's at the bottom of the value chain. It often becomes just a means to gather people—a trigger to get them to buy merchandise or attend concerts—rather than being the source of the business model itself. These limitations are very clear in this industry, and there are two ways to solve this.

First is receiving royalties or selling distribution rights overseas through IP (Intellectual Property). Examples include 'Squid Game' or Pinkfong's 'Baby Shark.' This is why most production industries are obsessed with content IP.

Second is creating various value chains that can generate the added value I mentioned through content. I don't think there's a settled system for this in the Korean market yet. Regardless, to reach these two stages, it's crucial to first stand out in the video industry where I am currently working.”

Q4. Is there a specific reason why Kroma Entertainment chose both original content production and a multi-player role?

“First, original content requires massive production costs, making investment essential. However, that means sharing part of the copyright with external investors. Instead of seeking outside investment, we are building our own cash flow to create a self-sustaining system, investing about 10% of our operating profit into original content production. Second, to stand out in outsourced projects with partners, being a multi-player is essential. This means building a team where members can handle planning, filming, and editing. Having a basic understanding of all these sections ensures smooth communication with our partners.

Ultimately, as the content market becomes increasingly specialized, there will be teams that excel at filming and others at editing. I believe the multi-players who can encompass all these teams will be at the top of the content industry pyramid.”

Q5. What were you like during your Korea University days? Did you receive any help from the school?

“I served as the director of KUBS, the campus broadcasting station. In fact, you could say it was the main 'culprit' (laughs) behind me starting this business.

KUBSSchool funding helped somewhat, but events like the Korea-Yonsei games live cost a lot, so as station head I had to raise operating funds — promoting KUBS radio to sponsors like Megastudy and building original IP through YouTube covers like Mamma Mia and cheer songs.

As a side note, during my time as director, the 'Public Relations Hall'—used by campus media and the College of Liberal Arts—was demolished to build the Humanities and Social Sciences Building. Facing issues regarding 'space,' I drew bird's-eye views and met with interior contractors, which helped lay the foundation for my business. Thinking about how to communicate with school officials to secure a satisfactory space, and realizing that the basis of space configuration is ultimately the organization's vision—those many concerns have become a great inspiration for me now when doing sales or structuring the organization.

A decisive moment of help from the school was the 'Startup Credit Substitution System' I learned about through the Crimson Startup Support Group. I was running a private business during my undergraduate years and incorporated in my final semester. Thanks to the credit substitution, I could fulfill my remaining credits while focusing on the startup and successfully graduate.

Q6. Which content is most memorable to you?

“Paradoxically, the most memorable content is the very first video I made at KUBS in 2017. At the time, romantic web dramas by 'Love Playlist' were popular, but perhaps because I tend to go against the grain, I made a web drama about 'friendships' instead. Surveys showed that human relationships were the number one concern for college students, yet they rarely felt comfortable talking about 'friendship issues' with friends. That piqued my interest—a desire to touch upon a somewhat forbidden area (laughs). So I decided to make a web drama based on college relationships and upload it to YouTube. The title was 'In the Name of a Friend.' Even though not many people watched the campus station's channel, it hit nearly a million views and became a huge success. That video opened the door for many outsourced projects at KUBS.

Looking back, the quality is low, but it's the most memorable because of its purity. While I'm still having fun and feeling proud, today's videos always involve 'budget' issues. I started making videos because I loved it, but now it's all about quotes, operating costs, and production fees... So those early days of filmmaking remain in my heart with a sense of cuteness, like Fu Bao at Everland.”

Q7. Any team-building stories? Do you have tips for building a team in a startup?

“I think the number one requirement for a team member is someone who can cover your weaknesses. As an ENTP, I enjoy challenges and debates, but I can sometimes be too intuitive and go off track. And sometimes, that intuition isn't always right. So I needed a team member who could hit the brakes and question if my judgment was truly correct whenever I stepped on the gas—and that person is still by my side today.”

Q8. Did you face any difficulties starting or operating the startup? How did you overcome them?

“Since we decided not to take investment, we initially needed partners to secure operating funds. I had worked as a freelancer for broadcasting stations and done various jobs, but I hadn't spent 10+ years as a full-time employee in this market. If I had worked at a large company for a long time, I might have brought clients with me, but I didn't have that, so it was like hitting my head against a brick wall. To secure partners, I participated in many public institution biddings and gave numerous presentations (PTs).

“Actually, my second dream is to be a writer and presenter. In competitive PTs, second place means nothing; you have to be first, and I found the strategy of winning to be very exciting. Once, while on vacation in Kota Kinabalu, I briefly met a colleague for a webtoon project. Coincidentally, I had to do a PT from there. We were competing against about 15 companies, including Gyeongin Broadcasting (OBS), for a cultural heritage video project. I was in the middle of the order, which is quite disadvantageous. I needed a strategy to make a memorable presentation in just 10 minutes. As soon as I started, I said, 'With so many competing teams, you must be tired.' Then I suddenly showed them the sea in Kota Kinabalu. 'I'm probably the furthest away of any company today,' I said, raising a question mark, and continued, 'I'm here in a foreign land to promote Korean content, and it's an honor to do a PT related to cultural heritage today. Please look at the blue sea, shake off your sleep, and focus.' I spent almost 20% of my time on that bold intro—and we won first place. Another time, I was the first presenter out of 19 companies. Worried I'd be forgotten, I started by saying, 'Please evaluate all the companies that follow based on our standard. If you think the first team was better while comparing, choose us.' I repeated that at the end, and we successfully won that bid too.”

Q9. What is the long-term goal of Kroma Entertainment?

“While the content industry is in the spotlight, many say it lacks a future. Despite the rise of K-content, few scenes besides K-pop stand out business-wise. This means it's not profitable from a business perspective, but I believe there might be a model where money can be derived from content. I'm developing one that doesn't exist in Korea yet, inspired by cases like Echo Marketing or Blank Corporation's content commerce. But those are essentially just advertising to 'induce consumption.' I want to study a model that creates value from content to generate cash flow.”

Q10. Could you express your message to juniors wanting to start a startup in ten characters (Korean)?

“It's something CEO Choi Won-jun of MyMusicTaste told me: 'Execute first, then change direction.' It means don't just worry; execute first and change direction whenever you hit a hurdle. Many people just worry and never take action when starting a business or trying something new. It's not easy, of course. But I believe the lessons learned from trying once and navigating through countless variables and obstacles are immense.

Lately, some people seem to view starting a business as just another line on their resume. Honestly, just saying 'I started a business' doesn't have much merit. If you're going to do it, you should at least experience the 'Death Valley' for 2-3 years. Otherwise, it might be better to gain experience in established institutions and come out when you have your own know-how and vision.”

Source: KU Startup Korea (https://kustartup.korea.ac.kr)