Thoughts on Korean Business by Don Southerton

One question I frequently get asked is " Should I tip for services in Korea?" I usually find it more common in the western-style hotels. But, like this Korea Times article notes, things are changing. Here are some guidelines. When Gary Barth, a 36-year-old freelance writer, first moved to Seoul in 1999 after marrying his Korean wife, there was one thing he kept doing by accident. I would absent-mindedly leave a thousand won or two on the table after dining out, and then owners would run after me to return the money, he said. I had to get used to the no-tip culture here. Like Barth from the U.S., many foreigners from Western countries say they were pleasantly welcomed by the no-gratuity culture in Korea, as the common idea here is that service shouldn't call for additional payment. However, the conventional understanding is slowly inching toward more Western, as more high-end service businesses are spreading the idea that a good tip follows good service. From hotels, rest...

I am frequently asked to recommend books on Korea and its culture. Understanding Korea's past is an important step in comprehending its business culture, norms, and common practices. A great place to begin is several books I've authored. The books will give you and your team some background on Korea's recent past. In fact, my focus is early Western influence in Korea, although I write on contemporary Korean culture, too. (Click title for link with more info) Non-fiction The Filleys: 350 Years of American Entrepreneurial Spirit Intrepid Americans: Bold Koreans--Early Korean Trade, Concessions, and Entrepreneurship The Sioux in South Dakota (Contributing author) Fiction A Yankee in the Land of the Morning Calm: A Historical Novel Book One, 1890-1895 A Yankee in the Land of the Morning Calm: Gold and Rail Book Two, 1895-1900 eBooks ( Complimentary) Coffee, Cars, and Corporations: Thoughts on Korean Business and Popular Culture More Thoughts on Korean Business and Popular Cult...

Status is a key theme of the Blog. With powerful roots reaching back into the Choson Dynasty, Korean society has strong status consciousness. Coffee, apparel. education, cars, and housing are status indicators. This Korea Times article does a great job describing housing and status. Apartments and Branding Now, it's about wearing Prada, driving a BMW and living in a Raemian or any other classy name... Dongbu Ichon-dong resident Kim Ji-na says her apartment value edged up about 20 million won (approximately $21,000) two summers ago at a time when the central Seoul, riverside area's overall real estate prices were at a standstill. What was the magic factor? ``The only recognizable change was that my apartment had gotten a brand facelift,'' she said. From plain ``Daewoo Apartment'' to ``Prugio,'' the Daewoo Engineering and Construction apartment buildings were slapped with fresh paint and a newly designed logo. Area realtor Kim Min-ja of Hangaram Realty sa...

A new Enhanced E verything Korean Podcast w/ pictures has been posted on the BCW website. This new Podcast gives a methodology for building cross-cultural understanding. To visit the site, click here. I hope you enjoy the new Podcast, compliments of Bridging Culture Worldwide. Don Southerton

Thoughts and Recommendations In Part 2 of my 2008 commentary, I will share some recommendations for 2008. Leadership Issues Do offer both your non-Korean and Korean management teams cross-cultural training. Encourage cross-cultural, management, and trust-building skills training for Korean overseas executives, especially those who are newly assigned to work with your team. Also, ensure your non-Korean teams have the skills to work closely with Korean teams. Don't fail to recognize that most people have little cross-cultural training—even those who have traveled extensively. Expecting executives to have cross-cultural skills, especially expecting non-Koreans to understand Korean culture and its changing workplace, is like throwing someone into a pool and assuming they will swim, not sink. Do offer key executives one-on-one coaching sessions and support in addition to training programs. Most executives benefit from (and appreciate) an opportunity to discuss work-related cross-cultu...

Great News Over the past years, I’ve posted hundreds of web-based articles and commentary. Last year bestselling author and agent of change Seth Godin suggested that I craft eBooks to showcase this aspect of my work. More Thoughts is Free to download, Free to post on your site... or Free to email your team and colleagues. The eBook is in PDF format and is 28 pages. Download More Thoughts on Korean Business and Popular Culture (The PDF will take a moment to download). I hope you enjoy this snapshot of contemporary Korean business and culture. Don Southerton

Visitors to this Blog, might recall my commentary on Seoul's Coffee Wars--rivalry between Starbucks, Coffee Bean and a number of competitors. Myeong-dong, one of Seoul's top shopping districts, hosts a growing number of doughnut shops. For example, Krispy Kreme has a very impressive multi-story location. This Korean Herald article describes Myeong-dong's top rivals. The chilly season makes people long for warm hot chocolate and coffee, but what is a cup of coffee without a doughnut? Myeong-dong, located in central Seoul, offers four different places at which one can enjoy these round delicacies. These four distinctive doughnut places offer slightly different flavors allowing customers to pick and choose their personal favorites. Dunkin Donuts Dunkin Donuts, launched in Korea in 1994, has become well known for their slogan ``Coffee and Donut.'' They accustomed Koreans to having doughnuts with coffee. Dunkin Donuts has around 490 doughnut shops nationwide, which is ...

First birthdays (called chut-tol) are very significant family events in Korea. Family, friends and co-workers are invited to the event. Some Insights A highlight of this celebration is a tradition where the child symbolically foretells their own future. For this ritual, the child is dressed in new traditional Korean clothes. The child is seated before a table of various foods and objects such as thread, books, notebooks, brushes, ink and money which have all been given to the family by friends and relatives. The child is urged to pick up an object from the table, as it is believed the one selected first will foretell the child's future. If the child picks up a writing brush or book, for example, he is destined to be a scholar. If he picks up money or rice, he will be wealthy; cakes or other food, a government official; a sword or bow, a military commander. If the child picks up the thread, it is believed he will live a long life. Following the ritual, family and friends sing and p...

For the past few weeks, I have been reflecting on 2007 and contemplating the future of Korean global big business. It was an interesting year. The election of Lee Myung-bak, pro-business South Korean president-elect, will spur much change in the new year. In this commentary I will share some trends for 2008; I will also share some recommendations. Trend #1 K-lobalization (or globalization with a K). Many non-Korean management teams look for a time when Koreans will do business “their way.” I have heard this for years. In past global ventures, Korean firms initially resisted local management guidance, performed poorly, and then yielded to the local teams. Times change. Unlike a decade ago, many Korean teams and management are increasingly global savvy. So in 2008, Expect some Korean firms to boldly promote their own unique management style and corporate culture. Look for organization-wide Korea directed management, policy, and training directives. I call this K-lobalization. Trend ...