HR tech companies in South Korea are now expanding their business to the recruiting sector, using business card scanning service providers and anonymous professional networks.
As the market for recruitment platforms grows, startups are expanding into the recruitment solutions and advertising market for monetization.
According to SaramIn’s IR report and the Pickool team’s analysis, the market volume for recruiting platforms totaled $121 million in 2015 but grew to $251 million within five years.
Due to the positive outlook in the recruiting platform market, these startups are now entering the market.
The recruiting platform consists of outbound recruiting and inbound recruiting. Outbound recruiting means the Company makes contact, while inbound recruiting is about enabling candidates to find your Company.
Legacy vendors focused on inbound recruiting, but startups now focus on outbound recruiting with their database and internal analytics expertise.
Drama & Company, the creator of the Remember business card scanning service, launched its Remember Career recruiting service last November.
The Company has attracted 700,000 users to the service and made 10,000 hires within six months. The Company offers two types of products: one for businesses and one for recruiters.
Drama & Company runs its advertising products for inbound recruitment based on its database classification, allowing advertisers to select their target audience by industry, vertical, job level, and company size.
Another startup, Team Blind, launched an outbound recruitment service in February this year through its South Korean subsidiary, Alfred HR.
Unlike other players, Alfred announced that the service would list candidates currently hired by competing companies. Alfred’s introductory document states that the acceptance rate is nearly 50%, higher than competitors. For inbound recruitment, Team Blind directly runs advertising products.
However, the COVID-19 pandemic has affected this area as well. Companies are canceling or postponing the hiring process due to the pandemic, which means that the overall pie of the hiring platform market is getting smaller.
LinkedIn also announced it would cut about 960 jobs, or about 6% of its workforce, in light of declining demand for recruiting services. Yet, despite the challenges, HR tech startups in South Korea are still trying to grab a piece of the growing recruitment platform market.
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