Thoughts on Korean Business by Don Southerton

Visit an American university and you will see scores of Korean students( more so, in California). I know this well, since I'm based in Southern California and spend considerable time on campus. This detailed article by educator John C. Weidman points to some reasons for Korea's emphasis on schooling.... Weldman notes... It may be surprising to many that, according to the Institute for International Education (IIE), only the two most populated countries in the world, India and China, sent more students to study in postsecondary programs in the United States during 2005-2006 (76,503 and 62,582, respectively) than South Korea (58,847). [ But, one should note South Korea's population is only 48 million.] The number of South Korean students studying abroad has been increasing dramatically since the start of the new millennium and the United States is just one among the more than 80 countries in which they have chosen to study. Table 1 shows the enrollment patterns since 1985. To...

One of Korea's top export sectors is automotive. This includes the Hyundai-Kia Motor Group, which has a huge global infrastructure. In addition to manufacturing, sales, and marketing, Hyundai-Kia operates a massive logistics, distribution, and parts network. I work closely with many of the Hyundai-Kia affiliates including MOBiS--the parts supplier. I thought this article in Korea Herald provides a great snapshot of the auto parts supplier. Hyundai-Kia Automotive Group, the world's sixth largest automaker, is a company that places strong emphasis on globalizing its operations. The group's chairman Chung Mong-koo stresses the need to establish overseas production bases and sales networks at every opportunity and has set in motion a series of projects that will take the group into the ranks of the world's five largest automakers by 2009. In line with Hyundai-Kia's globalization strategy, the group's affiliate and its largest auto parts supplier Hyundai Mobis Co. ha...

To give some perspective on global SK FTA talks and the auto sector... In EU talks, I see South Korea more concerned with the EU than with the US regarding the auto sector since MOST of the cars imported to Korea are Audi, BMW, MB, VW, etc.... (Lexus and Honda are popular, too.) Why? Few affluent Koreans want American made cars currently imported to Korea...wealthy Koreans buy European cars since they are icons of status....younger wealthy and single Koreans feel the imports help attract women, too. BRUSSELS, July 17 (Yonhap) -- South Korea and the European Union are struggling to narrow differences on tariffs and safety regulations on automobile trade as they try to forge an ambitious free trade agreement, a top South Korean negotiator said Tuesday. "Now, we're going through the EU's proposed tariff reductions on cars, but we need more time to decide our stance," Deputy Trade Minister Kim Han-soo said on the second day of the two sides' second round of free trad...

I enjoy watching the Korean domestic car market. It's changing rapidly. For one, it has moved up market rapidly in the past year. As noted in my past postings, many Koreans seek larger luxury cars or foreign brands--both indicators of status. For example, the Hyundai Grandeur (Azera) is very popular, while Audi, VW, Honda, Volvo, and Saab have gained ground. I found this Chosun Ilbo article interesting and accurate. (Amazingly, few Koreans seek out American made cars...). Import Cars Get Cheaper as Domestic Car Prices Soar Korea is seeing something of a price reversal trend where expensive import cars become cheaper while relatively cheap domestic ones get more expensive. Car importers have either been cutting their price or introducing mid-range models; domestic carmakers, on the other hand, are raising their prices by W1-2 million (US$1=W938) for partially changed models. As a result of the shrinking gap, the two now increasingly compete in the same field. ◆ Premium import cars ...

Coming Soon.... My new novel, the second in the A Yankee in Land of the Morning Calm series, will soon be available. He's an preview.... Despite ill-fated romance and disappointment on his first sojourn to the Land of the Morning Calm--Korea, Connecticut Yankee Josh Gillet longs for high adventure and travel. Josh returns to late nineteenth century Korea just as American concessionaires and influence make huge new inroads. Asserting his individuality, Josh is shaped by experiences in this ancient land, bold American entrepreneurs who bring progress, and a new relationship. It is here in Book Two, A Yankee in the Land of the Morning Calm: Gold and Rail, that Josh’s saga continues… About the Author... Don Southerton has held a life-long interest in Korea and its rich culture. His previous non-fiction books centered on American entrepreneurialism and early U.S.-Korean business ventures. Southerton also writes and comments on modern Korean business culture and its impact on global ve...

An announcement… A new Enhanced Podcast w/ pictures has been posted on the BCW website. This new Podcast is a commentary on modern Korea, June 2007. I also offer some suggestions for your organization. To visit the site, click here . I hope you enjoy the new Podcast, compliments of Bridging Culture Worldwide. Don Southerton BTW If may have to download the latest version of Quicktime to view the new enhanced Podcast format. If so, go to http://www.apple.com/quicktime/download/