South Korean Startups Build Internal Software to Cut SaaS Costs

What changed

South Korean startups are increasingly building internal business software instead of paying for SaaS subscriptions. One startup replaced a workplace platform costing about 12 million won ($8,200) a year, while another is developing ERP software to cut subscription fees of about 5 million won a month.

The target is often narrow: accounting, HR, electronic approvals and expense settlement. AI-assisted natural-language coding and reverse engineering are making those focused replacements quicker to build.

Why it matters

This is a direct challenge to the SaaS pricing model: companies may no longer need to buy an entire platform when they use only two or three features.

The first startup combined electronic approvals and expense settlement with performance reviews and work updates, putting HR tasks in one system. That saves money, but the larger shift is about control. A company can shape a tool around its own workflow instead of adapting its workflow to a vendor’s product.

The outlook is uncertain. Internally built software may not match SaaS products on reliability, security or integrations. Copyright questions may also arise when developers reproduce existing software’s functions, though individual internal projects can be difficult for software companies to identify.

The likely pressure point is the middle of the market. Simple, self-contained tools may become harder to sell as subscriptions. Products with strong internal and external ecosystems, such as Slack, have more to defend because their value extends beyond a checklist of features.