Key Players
- Gennolab

Please tell us about your company.

We are primarily focused using AI to improve the efficiency of accounting, offering tools that companies can integrate seamlessly into their everyday operations. Our parent company, Douzone Bizon, has around 1700 employees.

In June 2024, we officially established our Japanese subsidiary in Sapporo, starting with a small team of five and now aiming to grow to 30 employees. Our main product is an ERP (Enterprise Resource Planning) system tailored to Korean companies, and now we’re adapting it for a Japanese market.

What made you choose Sapporo as a prime location for your business?

Our choice of Sapporo was influenced by two main factors: firstly, Douzone Bizon is headquartered an hour away from the capital, in Gangwon Province, where the climate is quite similar to Sapporo’s. The cooler weather in Sapporo makes it a great environment for operating data centers, which was a big selling point for us as we plan to set up data centers here in the future. The natural environment, cooler weather, and relaxed atmosphere of Sapporo mirrored our home base, making it an appealing choice for our team.

Secondly, we saw a huge potential in Sapporo’s talent pool, particularly with the presence of prestigious universities like Hokkaido University on our doorstep, aligning with our plan to hire both local and international talent, a key element in supporting our expansion.

What does your company do specifically in Sapporo?

Sapporo will be our hub for adapting our ERP system to fit Japan’s legal and financial regulations, as well serving as a base for research and development to ensure our solutions meet Japanese standards. We view Sapporo as our base for broader global expansion, and we are currently increasing the number of Japanese staff, particularly people with Korean language skills.

You mentioned that Gennolab has received support from local government agencies. Could you elaborate on that?

Both the Sapporo and Hokkaido governments have been very accommodating and supportive, from the initial planning stage up to after our expansion. One notable example is the rent subsidy — for companies hiring AI specialists, the Sapporo City government covers 50% of the office rent for two years (Subsidy for IT, Digital Content and Biotechnology companies setting up in Sapporo), which was very helpful. Since we are also considering setting up a data center, we see the Support for Capital Investment in the Sapporo Area as a great advantage.

How would you describe the support and advice you received before coming here?

We had great advice and support from Sapporo City Economy Strategy Promotion Department, both over the phone and via email, and received practical information about subsidies and grants. I found it incredibly useful to be able to receive this support from abroad, since I’m partly based in South Korea.

Now, companies like ours can receive guidance and hands-on assistance for international expansion through the Sapporo Transnational Expansion & Partnership (STEP) service desk, which was recently established specifically to support foreign businesses entering the market. This initiative provides a dedicated contact point for international companies, streamlining the setup process significantly and helping us to proceed smoothly.

What strengths does your company bring to Sapporo?

South Korea has a vibrant IT industry and is a global leader in digital transformation. By expanding our company to Sapporo, we hope to share our digital transformation expertise and experience with Japan. In order to connect with potential partners and collaborators, we have been looking forward to attending events and networking opportunities in Sapporo. For instance, I recently attended the Hokkaido Business Expo and made several new connections there.

How did you navigate the process of setting up in Sapporo?

One of the most competitive advantages of setting up in Sapporo is the supportive local ecosystem. The government’s incentives for technology companies are excellent. The only challenge we’ve faced has been with handling administrative procedures, such as visa applications. Japan still relies quite heavily on paperwork and is catching up with the global digitalization movement. However, with Sapporo, we were able to sort most of the process out online, without having to keep traveling to Japan and back.

Why did you decide to begin with Sapporo instead of a larger market like Tokyo?

We did consider Tokyo as an option at first, but Sapporo’s cost of living is significantly lower than Tokyo’s, making it easier for us to attract and retain talent here. Sapporo offers higher quality of life for the same amount of money as Tokyo, and this is becoming increasingly important for employees as they seek new employment opportunities.

Additionally, the city’s size and layout allow for a comfortable urban lifestyle in harmony with nature. This is a considerable advantage when trying to create a business environment that’s conducive to a good work-life balance.

How do you see potential collaboration with local community here in Sapporo?

We’re currently exploring partnerships with several universities in Sapporo. Our goal is to work with local research teams on AI development, and to work with personnel who are familiar with Japanese law to help us localize our ERP software to fit Japanese legal standards.

We are also thinking of introducing internship programs with universities, which could lead to us hiring local graduates with the specialized skills we are looking for. With internship programs, we can find new colleagues who fit the needs of our team, and who enjoy working with us too. Our hope is to create a sustainable pipeline of talent that will strengthen both Gennolab and the Sapporo economy in the future.

What would you say to other foreign companies who may be considering expanding to Japan or to Sapporo?

Sapporo is rapidly developing its international business presence as an up-and-coming hub for foreign companies. Local officials here are very proactive in their support for international companies, and we have also experienced the benefits of this during our expansion. I would suggest making the move to Sapporo as soon as possible, as right now you can receive excellent support from the local government.

There are also competitive financial benefits to expanding to Sapporo, as the cost of living is low in comparison to cities like Tokyo or Osaka, and the quality of life is high. Sapporo is a market with great potential and a supportive business environment. Plus, Sapporo’s blend of urban convenience and natural beauty makes it an excellent location for setting up a business.