By Don Southerton
I am a strong advocate for Korean global business. I see tremendous opportunities and am passionate about helping Korean brands succeed overseas and enabling international brands to thrive in the Korean market.
As I have shared, Korean and global companies must recognize the considerable upfront support and investment required to enter markets outside their home countries.
I want to share what I see as best practices for 2025.
Step 1: Do your homework
Invest time and resources in discovering the local market. Seek an expert knowledgeable about the local market and business sector to conduct an objective, detailed competitive analysis. The report should identify the strengths and weaknesses of the competition within the market, strategies that will give you a distinct advantage, the barriers that may hinder your entry into the market, and vulnerabilities in the competition that can be exploited.
Too often, I see a company scratch the surface of its market discovery. Sometimes, this controls initial investment costs by assigning in-house teams to work remotely and conducting research via a Google search.
In other cases, the headquarters staff dispatches a team to do “field work,” attend trade shows and perhaps arrange to visit a few potential partners.
These fall short of a legitimate competitive analysis.
Step 2: Get in front of the right people
For highly recognized U.S. or global brands, setting up meetings is less of a barrier because product or service name recognition does open doors. This recognition at least generates enough interest for a potential partner to want to learn more.
Korean brands entering an overseas market need significant effort to establish credibility upfront.
Arranging solid introductions involves an upfront cost and can be very time-consuming for both international and Korean market entry.
Furthermore, anyone with the skills, savvy, and reputation to facilitate introductions, especially with decision-makers, should not be expected to do so as a favor.
Step 3: Present the brand, product, and service as if it were a first date.
Although this was best done in person in the past, I recognize that introductions and first contacts today are often “virtual.” Any content presented at this stage should be high-quality and well-localized.
I often see repurposed PDF and PPT presentations — not unique, custom-tailored content.
Then, double-check the grammar, spelling, and punctuation of a native speaker and ensure the pages are free of format glitches.
At the very least, interested parties will Google a company—and often you personally—before any meeting, so it's advisable to have a professional website. Even better are postings by third parties, such as press releases and media articles, that showcase the company as a legitimate business.
Step 4: Share the Vision
During their screening and selection process, global companies will select a top candidate among potential partners based on criteria, the foremost of which is the partner’s solid vision and business plan in the market. They will ask if the local partner has performed a detailed competitive analysis (see Step 1) and then ask for a comprehensive Go-to-Market Business Plan. As a best practice, the Business Plan needs to be detailed, not a three—or four-page company overview.
Like the PDFs or PPTs shared during introductions, the Plan must be free of glitches, poor grammar, and spelling errors. The documents should present an appealing and solid business opportunity.
By the way, a Company PDF highlighting your brand is fantastic, but most potential partners are primarily interested in a solid business and go-to-market plan.
These four steps are best practices that can lead to a successful Letter of Understanding, clarifying in writing the terms that may have been discussed via email and in conversation.
These steps require time, resources, and commitment — there are upfront costs, unlike past and current practices in Korea that traditionally required less investment or were absorbed by the company.
Experts like BCW, with a proven track record, rarely work on a contingency basis. They seek a retainer to cover their time and expenses, with a bonus when a deal is signed or a development fee transaction occurs.
Regarding local market legal support, navigating the cultural and legal nuances of contract negotiations and drafting, and regulatory frameworks, “A little money carefully spent at the front end of market analysis, and during initial negotiations will always save a lot more money later in the process.” — as a trusted legal colleague has noted.
Frankly, global business presents challenges and risks. The effort requires embracing a new model and taking bold actions by committing resources to a project that leads them into uncharted waters, even when a more practical approach seems to involve tackling each stage as it unfolds.
I am open to talking with you about any questions.
I’m also happy to steer you in the right direction.
Plus, we can provide the support and resources needed for your market entry.
Dsoutherton@bridgingculture.com
www.bridgingculture.com
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