Thoughts on Korean Business by Don Southerton

A recent trend in Korea has been new, more contemporary corporate logos. This article from Chosun Ilbo notes what is driving this change. Softening the image Corporate logos are becoming gentler as the caring corporation continues its improbable march across the business landscape. Not a few people were puzzled by the Hanwha Groups new logo, saying it looks like a squiggle. It certainly marks a radical break with the past in everything from shape to color. Other corporations have also abandoned the hard, bold initials or designs their founders cherished. The new corporate identities are all lower case and soft lines, predicated on an emotional approach to customers rather than dignity and strength. In Hanwhas new symbol, three scribbled circles hover over the corporate name in small letters. SK last year unveiled a new logo featuring a delicate fluttering butterfly. The Kumho-Asiana Group early this year discarded its old symbol, a brutal white KA stamped on a red background. SK Group ...

The Hyundai Santa Fe (left) and Huanghai Automobile’s SUV When I talk with my Korean colleagues, concerns over China are often discussed. Knock-off of Korean goods is a huge issue. Most often I hear of Koreans sharing technology and skills with a Chinese partner. Eventually the partnership dissolves, usually after the Chinese partner has learned the skill needed... Other concerns over Chinese knock-off include big ticket items...What's interesting with this Chosun Ilbo article and the Chinese copying Hyundai-Kia SUVs is that both Hyundai and Kia have strong operations in China--operations that require a Chinese partner. Chinese Copycat Car Stuns Korean Carmakers Hyundai Motor is considering legal action against a Chinese carmaker that presented a SUV that in parts looks identical to the new-model Santa Fe at the 2006 Beijing Auto Show. The altercation is the most serious spat in the car industry between the two countries over knock-off brands yet. Industry insiders are convinced ...

Once again the dynamics of Korean status surfaces... Toyota and other foreign carmakers are accused of using a two-tiered pricing system that sells vehicles in Korea at higher prices than in other countries, notably the United States, industry sources noted. They say that this pricing system is employed partly in consideration of wealthy Korean customers who prefer expensive cars. Among the imported cars sold at much higher prices than in the U.S. are Toyota Motor KoreaÂ’s Lexus series, premium sedans and sports utility vehicles. If the consumer price of Lexus 350 here were priced at 36 million won ($39,000), the same as Hyundai MotorÂ’s Grandeur TG, KangnamÂ’s wealthy residents would not buy it, a foreign carmaker representative said. Koreans consumers are buying the Lexus ES350, introduced in the domestic market last year, for 63 million won. It is being sold in the United States for 31 million won ($33,200). It seems that Toyota prefers higher margins by targeting wealthy minorities...

My academic interests focus on Korean big business. An aspect of this study is historic, which includes the opening of Korea to the West and the origins of Korea's global conglomerates. (BTW My new historic novel on Old Korea will be available in December). An acquaintance of mine is Dr. Andrei Lankov. Professor Lankov is a historian who was born in Leningrad (now St. Petersburg), Russia, and now teaches at Kookmin University in Seoul. His article in Korea Times on the founder of Samsung is worth reading... Samsung and Its Founder Like it or not, but the industrial growth of Korea over the last four decades or so has been driven largely by huge family-owned conglomerates known as chaebol. A handful of these groups produce a large part of the nation’s industrial output, and in recent decades their names are heard everywhere across the globe. For most of this period, the most prominent of all Korean conglomerates was Samsung, founded almost 70 years ago by Lee Byung-chull, a young s...

I found this article informative. As I have often noted the Korean car industry continues to move up market. Chosun Ilbo Korean automakers and importers will introduce some 50 new models next year. Korean domestic brands will launch large, high-end sedans, while cheaper models costing between $20, 000 and 30, 000 will come from abroad. Koreanl brands The most noticeable new model is Hyundai Motor’s high-end sedan codenamed BH, the successor of the Dynasty. The new model will be introduced in two versions, 4,500 cc and 3,800 cc. Hyundai says the BH will be the firm’s first sedan to be equipped with a rear-wheel drive to improve comfort of the rear seats. In terms of performance and convenience, the model rivals the Mercedes-Benz S-Class and the BMW 7-series, the firm says. The BH is expected to replace the Equus, the preferred sedan for corporate CEOs, and appeal to corporate customers. The prices range between $40,000-50,000. Ssangyong Motor will release the successor of its luxury Ch...

McDonald's Korea announced yesterday the opening of its new flagship store in Pocheon, Gyeonggi Province. The McDrive Pocheon restaurant is state-of-the-art containing everything from new kitchen technology to 24-hour service, said Ray Frawley, managing director of McDonald's Korea during a news conference. The 594-square meter restaurant rests on a 3,300-square meter lot and features a parking lot large enough to fit 43 vehicles. It provides 24-hour drive-thru service and has a playground and party room - following the common McDonald's store model in the North American market. The branch is also the first McDonald's outlet to be established on the outskirts of a city, along a provincial highway. The company said the flagship branch reflects the changing needs of Korean consumers influenced by an improving standard of living, such as by the wider adoption of a five-day workweek. Frawley said the company is now finalizing deals on several additional restaurants using th...

According to the Lunar calendar it's officially winter in Korea. Recent weather in Seoul has been rainy. The mountain areas have also seen a dusting of snow.

Coming Soon: A historical novel centered in Korea at the dawn of the Modern Era. An early December 2006 release is planned.