SNUbiz News
Creating a Sustainable Business Model Using Shrimp By-Products: Interview with Young-in Seo, CEO of MFM
1. Please introduce us to MFM and yourself.
Hello, I am Young-in Seo, the CEO of MFM. We are a startup that operates a sustainable business model in developing countries. We currently produce fertilizers using shrimp by-products to reduce soil salinity in Bangladesh, Vietnam, and India.
2. What makes MFM unique?
We are a startup business that runs development cooperation projects to address climate and environmental challenges in developing countries with rapidly growing economies. Rather than simply providing a temporary solution, we offer innovative, long-term commercialization solutions that integrate business models, technology, and capital. For this, we receive various funding from the Korean government, local governments, and international development organizations (including KOICA and the UN).
We are focusing on producing fertilizers using shrimp by-products from Bangladesh and Vietnam. We plan to tailor the products for South Asia, especially in countries like Bangladesh, India, and Vietnam, where shrimp farming thrives due to rising sea levels, which, in turn, has led to higher levels of soil salinity, resulting in declining agricultural production and an imminent food security crisis. We have an innovative solution based on our proprietary technology to address shrimp waste, declining agricultural production, food security crisis, and climate change in the Bay of Bengal region. We have been selected as a SEED 1 team for KOICA’s Creative Technology Solution (CTS) Program and have also served as an official partner to World Vision.
3. How did you start MFM?
I was first introduced to the Sunny Global NPO Startup (GNS) program, which is run by “Sunny,” SK Happiness Foundation’s social change lab for talented youth, by Professor Euiyoung Kim at the Department of Political Science and International Relations. By participating in this program, I had the opportunity to develop and organize solutions based on the UN’s sustainable development goals (SDGs) with a Bangladeshi student studying in Korea.
Initially, my goal was to address the labor exploitation of Bangladeshi women, and I learned that the exploitation of female labor was most prevalent in the shrimp industry. So, I designed a project that could make a social impact by promoting the employment of Bangladeshi women in the industry that processes shrimp by-products. We also attempted to develop pet food using shrimp shells. However, after discovering this did not work, we chose to produce fertilizers.
South Asian countries near the equator, such as Bangladesh and Vietnam, typically have only slight differences in their sea levels and land elevation, so even a slight rise in sea level can result in the salinization of the coastal areas. This leads to the salinization of large tracts of agricultural land. Recently, this has become a global issue because the salinized soil hardens, making it difficult to harvest crops.
To address this issue, we developed a technology that reduces the salinization of the soil using chitin from shrimp shells, and we are utilizing this technology to produce fertilizers that decrease soil salinity. Existing fertilizers from animal sources are full of protein but cannot reduce salinization, whereas plant-based fertilizers do lower salinization but require an extremely high temperature for manufacturing. Using chitin, a solid animal-based substance that complements the shortcomings of both fertilizers, we gained the technological edge to manufacture an effective fertilizer quickly.
Furthermore, because Vietnam is a country with highly concentrated agricultural and industrial areas, it was easier to secure basic resources as by-products. The country’s advanced logistics and distribution network also allowed us to produce fertilizer at a lower cost than local fertilizer producers. The Vietnamese government supports the restoration of salinized soil to advance its agricultural sector further, so we received many incentives from the national government.
Thanks to these technological and cost advantages, as well as incentives, we can now effectively apply appropriate technology to various requirements. In addition to technological cooperation, we have also directly employed R&D personnel to develop our own agricultural application technologies for mass production.
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4. What were the challenges of starting your own business, and how did you overcome them?
In 2024, a coup d’etat in Bangladesh led to prolonged political instability and the suspension of our business there. To navigate this crisis, we quickly sought opportunities in other countries, leading to our expansion into Vietnam. We are now establishing local production facilities in Vietnam and collaborating with the agricultural sector, with plans to set up our Vietnam subsidiary in the first half of this year.
As you can see, the business environment in developing countries differs from that in Korea, presenting both advantages and challenges. The trust in Korean companies and technology, along with the positive perception of Korea, is hugely beneficial. However, there is a possibility of political instability, and building rapport with the locals as foreigners is a challenge. Developing countries, in particular, generally prefer in-person communication over conducting business online through paperwork. There may be many reasons for this preference, but they seem to prefer having face-to-face meetings and establishing authentic and trustworthy relationships rather than becoming subcontractors. This is why I spend about 70% of my time in Vietnam working with the affiliate firms and continuously monitoring the sites. I spend about three weeks each month overseas.
Furthermore, there are cases in which online contracts are not fulfilled. To prevent this from happening, we have to manage the contract details meticulously and be prepared to deal with any problems that may arise. In fact, there were cases where we visited a site after signing the contract, only to find that the company did not exist, or we ordered shrimp by-products from Korea, only to discover that they had all gone bad. This led to a considerable loss, but it was a learning experience for us to establish a thorough business structure. When managing a multinational business, it is crucial to conduct comprehensive research on the local market and establish networks with local companies based on trust.
5. What is MFM’s business model (1. customers, 2. product/service, 3. sales channels), revenue model (1. direct, 2. indirect (advertisements, etc.), and strategies (1. growth, 2. funding)?
What distinguishes MFM is that it adopts a sustainable business model that directly addresses the rising sea level and climate change that developing countries now face. Because solving such development challenges in developing countries is an area that requires capital and technology, funding and investment are available from many public institutions and private investors that support development cooperation. It is also thanks to the fact that “climate tech” has recently become such a hot issue.
We are primarily a startup that achieves growth not only through our products but through various support and investments in “commercializing development cooperation.” Our ultimate goal is to find solutions to “development challenges” that developing countries cannot address locally. So, in a small sense, our customers are the local agricultural distribution networks and customers that purchase our fertilizers, but in a broader context, our customers are institutions that strive to solve development challenges concerning climate change, such as KOICA, local NGOs, and local governments.
We received approximately three hundred million won from KOICA through the CTS program. Besides the grant, KOICA supports us throughout our search for local sellers by allowing us to specify that our “products are created with the support of KOICA.” We aim to develop our business model further and use this know-how to grow into a startup that can solve other challenges in development cooperation.
6. What are the unique selling points for MFM to secure external investment?
The market for fertilizers that reduce soil salinity is still relatively nascent, so no conglomerates are currently involved. However, due to the global interest in this issue, we are at the collaboration stage rather than competing with other groups. I believe there is huge potential for us to grow further.
7. What is your company’s vision and your personal vision?
First, the company’s vision is to expand into all of South Asia, including India, to encompass the Bay of Bengal coastline. Furthermore, we plan to increase our influence in international development cooperation to impact our diplomacy positively.
Personally, my dream is to establish a global network that can provide education for solving global issues. So far, this has mainly been done through cooperation between developed countries, leading to a lack of networking with developing countries. To address this, I would like to create an infrastructure that can provide education on international cooperation business in Korea and other developing countries I have worked with.
8. Do you have any words of advice for Business School students?
First of all, you might be unfamiliar with the structure of development cooperation projects. However, I think this is one of the easiest ways for students without expertise or technological knowledge to start a business because it allows you to collaborate with other companies that have the necessary technology and resources. I am also running a tech-based company as a non-science major. In particular, many developed countries, including the United States, Japan, China, and South Korea, support development cooperation startups. Due to the nature of development cooperation projects, it is essential to have flexible and tailored strategies; networking, in particular, can lead to increased investment and support.
I hope more entrepreneurs in Korea consider developing countries. Many people seem hesitant to start their businesses there, mostly due to an unconscious fear related to safety, language, and culture in those regions. Numerous fields exist beyond the familiar IT and AI-related sectors in the global ecosystem, so I think it is necessary for us to look for opportunities with an open mind.
Moreover, each country is different. In Bangladesh, it is easy to communicate in English, but because the industry is not hugely advanced, it is primarily led by nonprofit organizations and NGOs. In contrast, Vietnam’s logistics and industry are advanced, and the private sector is enormous, but it is difficult to communicate in English. As such, I recommend that you have a clear understanding of each country’s characteristics when planning to expand your business overseas.
The Stories from the Entrepreneurship Center section features interviews with current and former students majoring in Business Administration in Entrepreneurship, as well as startup teams that participated in the Center’s programs, sharing the journeys of young entrepreneurs. If you are interested in this section, please send emails to snustartup@snu.ac.kr.
