Thoughts on Korean Business by Don Southerton

In this last BCW post of 2007, a year end poll conducted by Hankook Ilbo gives some insight into hopes by many Koreans for the future. The results are no surprise. They reflect common ongoing concerns. Hankook Ilbo More than 60 percent of Koreans prioritized economic growth as the most important item for President-elect Lee Myung-bak's government to tackle, according to a survey Monday [December 31, 2007]. Creating jobs came next as 55 percent picked it in the multiple-choice questionaire on 1,000 adults conducted by the Hankook Ilbo and its sister paper The Korea Times. Thirty-five percent answered the curbing of housing prices is an urgent mission for the next government to be inaugurated on Feb. 25. South Koreans also laid great hope for economic development on Lee, former CEO of Hyundai Engineering and Construction, as 56.8 percent of respondents said the new government will likely solve the issue well. About 13.5 percent and 5.6 percent said expanding employment and cutting ho...

Like most Asian countries, South Korea has two different New Years—one that follows the solar calendar and one that uses the lunar calendar. Traditionally the lunar New Year's, called So-nal, has greater cultural and familial significance (In 2008 it will be celebrated on February 7). Both are legal holidays. As for the solar New Year’s celebration, in 1896, as part of reforms instituted to Westernize and modernize Korea, the Gregorian calendar was adopted, along with some of the West’s holidays such as the January 1st New Year’s celebration. Today I find Korea’s celebration of New Years similar to celebration in America. For example. Koreans make New Year’s resolutions where they promise to exercise regularly or eat fewer sweet things—such as chocolates and candy. A popular resolution every year is to study harder to improve English language skills—a skill seen as crucial in the workplace. It’s appropriate to wish your Korean colleagues a seasonal greeting prior to the holiday, j...

Year-end means 2007 rankings of Korea's top conglomerates. A number of rankings will surface in the next few weeks. This chart lists Korean Groups that posted the strongest gain in market value this year among stocks of top 10 conglomerates, according to the Korea Exchange. The market value of Hyundai Heavy Industries and its affiliate Hyundai Mipo Dockyard increased 199 percent to 39.9 trillion won ( about $40 billion) since the beginning of this year. Analysts attribute the stocks' strength to steep rises in global demand for shipbuilding in connection with China's trade growth. Look for more ranking....

For the past year I've watched the South Korean presidential race. Lee Myung-bak was always a top contender. Now that Lee has won, I've had a number of people ask, "What can we expect ?" Here are some of my thoughts. 1. Former Hyundai executive Lee Myung-bak’s recent landslide victory in South Korea’s presidential election should be good for the Korean economy, especaially Korea’s conglomorates, and their global affiliates. ( Look for lots a de-regulation). 2. For the past decade, two prior South Korean presidents with strong activist ties, tended to focus on regulating Korean big business and looked to build stronger ties with North Korea. (Relations with the U.S. tended to be lukewarm.) 3. Voters seeing a need for change hope Lee Myung-bak will boldly address issues like economic growth, education, and Korea’s place in the global market. (Expect stronger ties to the U.S. and support for the FTA). 4. Moreover, many feel Lee’s strong leadership style (honed as a Hy...

Seasons Greetings As the holidays approach, you may wish to greet Korean colleagues with: Sae hae bok man i ba deu say yo! (Seasons Greetings) (I’ll modify the Romanization for easier pronunciation). Hint: Break the greeting into: sae hae bok—mahne—bah deu say yo In South Korea, the government recognizes Christmas as a public holiday. Christians, who make up about 30% of the population, celebrate the occasion as a religious holiday. Like in the West, both Christians and non-Christians may engage in some holiday customs such as gift-giving, sending Christmas cards, and setting up decorated trees. Children have embraced Santa Claus, whom they call Santa Grandfather. Each year I see more signs of commercialism with stores and buildings displaying Christmas decorations and offering holiday sales. Sae hae bok man i ba deu say yo! works well both in person, in a card, or an email. It is a common seasonal greeting into the new year. For those wanting to send someone Merry Christmas us...

Global Car Color Trends and Korea, some insights I watch Korean popular culture and its impact on the market. I found this article on trends in car colors interesting. Note Koreans see Silver as a sophisticated color. Status drives much in Korea. Hanguk Ilbo notes... . Silver is no longer the people's choice as their favorite car color in the U.S., Europe and Japan, but despite the global fadeout, a recent report says the shimmery hue is still selling strong in Korea. The 2007 Global Automotive Color Popularity Report released by DuPont, a leading maker of automotive paints and coatings, said silver _ the most favored color for the past seven years worldwide _ has been toppled by white in some of the biggest car producing countries. An iridescent version of white accounted for the color of 19 percent of vehicles built in North America this year, beating out silver by a small margin of 1 percentage point. Although the gap isn't significant, industry watchers emphasize the ch...

Just when you thought I was only an expert on Korea… one of my published articles on American West history has been featured in a new book— The Sioux in South Dakota History . My work is one of 13 essays on the Sioux Indians. Like my current academic focus on Korea, this article looks back into early twentieth century cultural interactions—in this case between Anglos and the Lakota Sioux. BTW My mother was raised and her parent's homesteaded in rural South Dakota in the 1920s on land bordering the Lakota Pine Ridge Reservation. In five themed sections, the book examines the tremendous changes the Sioux experienced during the twentieth century. The book is available though South Dakota Historic Society Press at: http://www.sdshspress.com/index.php?&id=180&action=912 A PDF of the Introduction is available at: http://www.sdshspress.com/index.php?&id=247&action=960 Regards, Don

I was a little surprised to see South Korea as the Number 1 investor in China. Until recently, Japan had held a strong lead over South Korea. On second thought it makes sense, historically, Korea has always had its strongest ties to China--a relationship that reaches back eons. In fact, until, the twentieth century and the opening of Korea to the West most of Korea's trade was with China. Interestingly, most of that centuries-old trade was via Korea's "High Road to China" which led to the Yalu River border with China. ( see my novel A Yankee in the Land of the Morning Calm: Gold and Rail ) Today, similar trade still occurs between China and North Korea. I also see other factors contributing to South Korea's hefty growth in China (notwithstanding lots of lingering animosity between many Japanese and Chinese). Foremost, South Korea conglomerates have bolstered their investments in China...these include Hyundai-Kia, LG, and Samsung. I've found that most of th...