Kim Won-hyo [YouTube channel 'Jangsa Geonmulju Kang Ho-dong']
Kim Won-hyo [YouTube channel 'Jangsa Geonmulju Kang Ho-dong']

Comedian Kim Won-hyo, 46, who has tried his hand at a range of businesses, shared his thoughts on why celebrities so often fail as entrepreneurs.

A video titled "I poured 10 years into it… Kim Won-hyo, who went bust after 'Gag Concert' and ultimately struck gold in business" was posted Sunday on the YouTube channel "Jangsa Geonmulju Kang Ho-dong," a business and real estate show hosted by entertainer Kang Ho-dong.

Kim said he had attempted several ventures over the years — a kimbap restaurant, an underwear business and even selling bottled air from Jirisan — and has recently launched an offline group-buying market.

On why he has been focusing on business rather than broadcasting, Kim said, "I want to be on TV too, but appearing on TV isn't something you can just decide to do. You have to be invited."

Yet business has proven no easier. "I learned that doing well in business isn't just about your own effort," he said. "You have to keep learning."

Kim identified the first reason celebrities fail in business as the exceptionally high earnings they are used to from their entertainment careers.

"When you calculate what entertainers earn from broadcasting by the hour or by the day, the efficiency is extraordinarily high," he said. "Singers can perform a few songs at an event and walk away with tens of millions of won, or emcee for an hour or two and pocket several million won."

Business, by contrast, offers a sobering reality. "Even if sales top 100 million won ($75,400) a month, once you subtract all the costs, there's not much left," he said. "At that point, celebrities start thinking, 'Why grind away all month when one event pays better?' and they go back to what they know."

Kim said those who push through that stage find the tables eventually turn. "The income from one store may be less than what you earn in entertainment, but once the profits from multiple stores add up, it can grow to a point where your entertainment income cannot keep pace," he said. "The problem is that most people never get that far."

The second reason, he said, is the tendency to lend only a name or a stake to a business rather than getting directly involved.

"Many celebrities participate by licensing their image rights or taking an equity stake in order to avoid the risk of being on the hook if things go wrong," Kim said. "Even with just a stake, you can succeed if you engage actively — but that rarely happens." He added, "Even if it's just 100,000 won ($75) or 500,000 won of your own money on the line, the fact that it's yours makes you work that much harder."


paq@heraldcorp.com