We’re rebooting our Korea 101 YouTube channel.
In this episode, I’ll share ten insights into Korean working teams’ DNA, norms, and mindset. The list was compiled by a Korean colleague who asked me to share it in my workshops and give others a better understanding of Korean work culture.
If you have a question or want more information … call, text, or email… and I’ll get back to you.
Dsoutherton@bridgingculture.com
310–866–3777
A game-changer introduces something with such significant added value that it stands out from the competition. Game-changers transcend traditional business boundaries, dominate their niche, and become the preferred choice for customers, clients, or followers. They become the go-to company, service, expert, or influencer.
Crucially, a first mover gains a competitive advantage by being the first to bring a new product or service to the market and establish strong brand recognition and customer loyalty.
Over the past few years, South Korean companies, from startups to conglomerates, have aspired to be game changers, often to break out of their secure and well-earned niches.
In the rapidly evolving global automotive industry, Hyundai Motor Group has emerged as a luminary, breaking away from its traditional role as a fast follower to become a trailblazing innovator.
In 1974 Hyundai tapped Giorgetto Giugiaro to design the Pony.
This transformation, marked by a bold pivot towards electric vehicles (EVs), autonomous driving technologies, and a wider range of mobility solutions, has positioned the South Korean giant at the forefront of an industry facing unprecedented disruption.
“Hyundai has made significant strides in elevating its design language, moving from functional and conservative aesthetics to bold, distinctive, and forward-thinking designs.”
The evolution of design by Hyundai has been a key factor in its transformation from a fast follower to an industry innovator as it has steadily reason through the ranks of the global automotive industry.
Over the past decade, Hyundai has made significant strides in elevating its design language, moving from functional and conservative aesthetics to bold, distinctive, and forward-thinking designs.
Hyundai initiated this shift by introducing the ‘Fluidic Sculpture‘ design philosophy in the late 2000s, which brought more dynamic and expressive forms to Hyundai vehicles. Originally conceived in 2007 by M.K. Chung and Oh Suk Geun, Fluidic Sculpture was a much-needed design platform that brought consistency among the brand’s models.
The company further refined its approach with “Fluidic Sculpture 2.0” and later, the “Sensuous Sportiness” design identity, which emphasizes harmonious proportions, dynamic silhouettes, and unique details that set Hyundai vehicles apart in the market.
Hyundai’s design evolution has not been limited to just the exterior of its vehicles. The company has also made significant advancements in interior design, focusing on creating spaces that are not only aesthetically pleasing but also highly functional and technologically advanced.
This holistic approach to design has been particularly evident in Hyundai’s electric vehicle lineup, such as the IONIQ series, where the absence of traditional powertrain components has allowed for more innovative and spacious interior layouts.
By integrating cutting-edge technologies seamlessly into their designs, Hyundai has managed to create vehicles that are both visually striking and highly intuitive to use, further solidifying its position as a design leader in the automotive industry.
Furthermore, Hyundai has revamped its overall design capabilities. The new division will spearhead the Group’s efforts to design all-electric vehicles and future mobility solutions, including purpose-built vehicles (PBVs), robotics, and advanced air mobility (AAM).
At the core of Hyundai’s success is a strategic metamorphosis. The Group has redefined its brand identity by venturing beyond traditional automotive manufacturing.
Its investments in Boston Dynamics robotics, Supernal urban air mobility, and Motional autonomous driving demonstrate a commitment to leading innovation across multiple technological frontiers. This approach challenges conventional industry paradigms and positions Hyundai at the forefront of future mobility solutions.
Generally, a fast follower closely watches and tracks a brand leader and then quickly emulates. This eliminates many risks. Significantly, fast followers benefit from substantial economic savings that game changers and the first movers must invest in new technologies, such as development costs and investments running into the billions.
“At the core of Hyundai’s success is a strategic metamorphosis. The Group has redefined its brand identity by venturing beyond traditional automotive manufacturing.”
On a more practical level, fast followers wait for a concept to be proven and issues to be worked out. Then, they can spare their customers from recalls, downtime, and inconvenience.
We also see Hyundai as a significant first mover. In highly competitive industries like automotive, the first mover brand leader holds a significant advantage and will be seen by customers as offering something new and exciting. This advantage can translate into new vehicle sales, which are the drivers for any OEM, as we have seen with Tesla.
While some manufacturers are content with a fast-follower approach, others are recognizing the potential benefits of being first movers in key technological areas. Companies that take the lead in these areas can potentially shape industry standards, capture early market share, and establish strong brand associations with innovation.
In the less occupied field of game changers, Hyundai looks to command a market-leading position as a first mover. One of the ways they are doing this is by implementing changes faster through a ‘Software-defined Everything’ (SDx) strategy, which involves redefining vehicles, fleets, and transportation systems with software and AI. The plan is to incorporate software development methods into the vehicle development process and mobility at a time when the industry is being disrupted.
This strategic shift has the potential to redefine how we interact with vehicles and reshape the entire mobility ecosystem.
As Hyundai continues to push the boundaries of innovation, the world watches with anticipation to see how this vision will unfold.
https://www.brandinginasia.com/kdif
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Hot topic…This week, I share two of my Korea-facing business perspectives—decision-making and approvals. Are you developing a high-priority project or business proposal? I can provide perspective to ensure success. Let’s talk.
Decision-making and Approvals: Korean Business Culture Insights
This week, I am sharing two of my Korea-facing business perspectives—decision-making and approvals.
In most Korean companies leadership decides on direction and major issues. In turn, the working and local team’s role is to gather and prepare needed information.
Then, if approved they will report back to HQ on implementation and progress.
In cases where overseas leadership and teams hope to offer an idea, new service, or program, local Korean management's role is often to gather information and then share it with the appropriate senior team members, who are often in Korea. The local opinion is valued, but review and final approval may come from Korea.
My suggestion...
When conducting a meeting where a decision must be made please recognize that your local Korean team(s) will have a considerable say in the outcome. This may include both the operations and finance teams.
First, since the topic and subject matter may be new to your Korean team, I recommend you share before the meeting any needed background documents (best provided in PPT format).
In addition, have an informal pre-meeting Q&A with the Korean team leader to brief and update them on any specifics. Note: they may need a day to review proposals and agreements, so timing is critical.
Even in the best cases, expect that the Korean team may want to postpone any decision until they can carefully review and perhaps confer with Korea. I suggest all documents and meeting PPTs be immediately forwarded to the Korean team. I'd create a sense of urgency with a timeline for execution and implementation.
Regardless, expect some delays and be patient. Over the years, I've found that Korean teams appreciate when their overseas co-workers recognize that the internal approval process takes time and be ready to offer as needed supportive data or documents.
The Approval
Within hierarchical business structures approvals usually require several people to "sign off" on a program before commencing the project. For those who are used to leaner organizations, the process can be seen as time-consuming and lead to frustration and delays.
First, once the go-ahead agreement to move forward on a project is reached within the local organization's team, the Korean team, too, often has its internal procedures that usually include both Operations and Finance approvals.
Depending on the size of the local organization and whether the project needs review by the Korea HQ, I've experienced projects requiring several "approvals" leading to a "final" approval.
For example, once the Korean team agrees to a project, it may mean their team has signed off, but the project must still go to senior management for their okay.
Once senior management has given approval, it may then go to a COO or CEO for "final" review.
I've found Korean teams can be rather vague in sharing the number of approvals in part because the approval chain may change with each project.
In other words, the Korean teams are aware there are several approvals, but depending on the nature of the project and the costs involved higher levels of approval might be required.
I recall a Korean team leader on one project rather humorously reporting approvals several times over a week and then upon receiving a final approval at the end of the week remarking that it was really the “final” approval.
In some cases, I've seen companies with several C-levels sign off, but the project still waits several more days for a senior CEO or their Board to approve.
In the best instance, these senior approvals go smoothly when senior leadership trusts the judgment and needs of the local organization's team.
However, in other situations, leadership may request additional specifics on the project. More concerning, I’ve witnessed senior leadership ask for modification, dramatically affecting previously negotiated terms and conditions of the agreement.
One example of CEO intervention that is not uncommon comes to mind. Several years ago, I was organizing and facilitating a 10-day Global Manager Leadership workshop in Korea for one of the Hyundai Motor Group's top divisions.
Participants from the U.S., Europe, the Middle East, India, and Asia-Pacific would be attending. Plans were set, dates confirmed, and approvals were obtained up to, but not including, the CEO, an approval thought to be just a formality.
To the surprise of some, the CEO asked the Korean team a number of pointed questions. Uncomfortable with the level of response and sensing the team was rather inexperienced at organizing a global event, he asked the workshop to be postponed with the team re-grouping and coming back in a few days with some data/metrics centered on outcomes from past events and specifically their impact on long term employee loyalty.
Take away
Be aware that projects might be ‘approved,’ and you will be expected to move forward but there may be the ‘Final Approval’ before a true engagement. In the best cases, I have witnessed a quick sign-off by a CEO. In the worst case, they will either want things restructured or postponed.
Are you developing a high-priority project or business proposal?
I can provide perspective to ensure success. Let’s talk.
Call or Text 310-866-3777 EM Dsoutherton@bridgingculture.com
It is no small effort to stay current on key issues with the many moving parts within a Korean Group and with Korea in general.
Knowing there are gaps in communications, I do my best to keep teams and leadership updated. I’d like to share some thoughts ….
From time to time, there are concerns in the overseas workplace over communications.
This can range from a perception of disconnect and being the last to know as global announcements are made or finding out important news second-hand.
This information gap can include working teams but is also felt by local leadership.
Team members may even feel that information was being deliberately withheld.
While there may be some truth in the disconnection, the feeling that Koreans are withholding information deliberately is most often not reality. What may be a surprise for Western overseas teams is that Korean staff in their home offices must make quite an effort to stay informed.
As one entry-level employee of a major Korean group lamented,
“If I did not spend an hour daily networking with fellow workers, I would be in the dark on issues major and minor that could have a significant impact on my work assignment and projects.”
For my work with Korea-based companies, nightly chats, frequent emails, and Kakao texts are required, or I too, would be “in the dark.” Still, I often find breaking news issues when checking my Kakao or running an early AM Google search. It is common when I ask a Korean colleague and even leadership on the news, their response is one of surprise—not in me asking, but this may be the first they had heard about, too.
This implies that silos within the company limit the sharing of information. More so, those not well connected are out of the loop or rarely given an advance heads up.
I find it interesting that colleagues within a company often remark and see me as well-connected—a very positive trait. As a caveat, teams try to keep their trusted friends, colleagues, and management well informed—even on sensitive and confidential issues. Savvy management continually seeks news on issues, projects, and forthcoming announcements from their colleagues and networks. This is not only to stay informed but to avoid being caught off guard or blindsided.
This network can play a critical role in one’s career and advancement. That said, for most Koreans facing international operations, the communication channel—informal and formal—between the Korean HQ and local subsidiaries is through expatriates.(The same goes for Western companies located in Korea, as Westerners there serve as expats.)
Roles vary within each company, but most frequently with Korean global business an expat’s primary role is to be the liaison between Korea and the local subsidiary.
Frankly, some expats are more open to sharing information than others.
Regardless, I feel this is less a deliberate withholding of news than a “filtering”—that is, a review of communications from the mother company and then a doling out of appropriate information. Filtering becomes an issue when information is withheld until the last moment, whether for clarity, to avoid confrontation, or to decide to best address a delicate situation.
Delaying communication often forces local operations to drop everything and deal with an issue that would have been less demanding and disruptive for the teams if conveyed promptly. In other situations, I found that information is often held back until a 100% certainty is reached on an outcome or upcoming event.
What appears to be silence on important news is often an attempt based on their years of experience working with the mother company to spare local teams from concerns that could and probably would change over time.
So instead of constantly having to return to the local team with a shift in plans, an expat may stay quiet until the last moment and have a firm confirmation.
This can mean little advance notification, as it is common for announcements first to need legal, PR, and then leadership’s “final” approval.
Workarounds There are workarounds, and one needs to recognize that much is strongly rooted in a company’s culture. Culture matters.
For starters, my best practices include: 1) Building a strong professional network—including colleagues local and overseas. Have set times to chat even nightly with Korea… I suggest by Kakao.
2) Maintain a reputation as one who can share and be shared information—with a high degree of trust and confidentiality when appropriate
All said, outside issues deemed as private, sensitive, and confidential, few will dispute the need for strong internal communications and updates—shared across the organization. Here as always.
If you have a question or inquiry on this topic or another, let’s set a time to chat.
I’m also available by Kakao at 310-866-3777 and Don Southerton, so join me…
(Kakaotalk is free, and best to download the app on your phone and access it).
Don
I am delighted to share my latest work, which explores global business trends and is featured as a Special Edition in the Incheon Free Economic Zone (IFEZ) Journal.
Along with my Special Edition article, I provided both the translation of the Journal into English and the editorial review.
It was an honor to be asked to share my insights, cultural understanding, and experience with Korea’s leading Free Economic Zone and the City of Incheon.
I’ve been asked how I support businesses… the short answer is I bring solutions to Korean global business, and global firms working with Korea.
I also seek exciting opportunities and challenges. If you encounter a deadlock, stalled work, or a potential issue that needs resolution, let’s discuss it.
Please enjoy the article. Don Southerton
Are you interested in learning more about IFEZ and the opportunities?
Dsoutherton@bridgingculture.com
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Two of Our Most Popular Books… Korea 101 and Hyundai Way: Hyundai Speed, The Third Edition
Korea 101: The Book https://a.co/d/4k0nNaQ
For over 20+ years, I have presented Korea 101 programs to more than 10,000 participants across the globe. Korea 101: The Book shares insights and experiences with my 'boots on the ground' in the classroom, boardroom, and, more recently, remotely."
Hyundai Way https://a.co/d/dHJdwYy
Building on the past, this revised edition, too, looks at the transition to Smart Mobility and the corresponding workplace overhaul to become an agile global player.
Have a Korea-facing question? Just ask dsoutherton@bridgingculture.com
Don
