Thoughts on Korean Business by Don Southerton

Day 28 I try to keep clients and friends informed of significant Korean cultural events. In fact, I feel one should be aware of Korea's cultural heritage. (Hint for Day 29). Here is some background on Chuseok-- a very important holiday. If needed, I can assist with how to best share with your Korean colleagues and VIPs. Thanksgiving is a holiday celebrated all over the world at different times of the year and in different ways. For Koreans , the traditional Thanksgiving Holiday is called Chuseok . This year is falls on October 2-4. Celebrated for centuries as the lunar-based (fifteenth day of the 8 th lunar month) Fall Harvest Festival , Chuseok is among the most important of Korean holidays. For many, it is a time filled with family and tradition. Millions of Koreans travel to join their family and celebrate traditional customs of Chuseok , including ancestral memorial rituals, followed by a day of special foods and family-focused activity. One of the most popular of the tr...

Day 27 More great news. We recorded another edition of Everything Korean. It's also the third Vodcast in a series explaining the new Korea 2.0 program. (If you missed the 2 previous they are available here-- Korea 2.0 and Korea 2.0, Part 2 ) In this new Vodcast we answer questions clients have asked about Korea 2.o, plus we share a few recommendations. Enjoy and onward.

Day 26 Another observation of the Korean workplace is hierarchy. Rooted in Korea's Neo Confucian past, social stratification is very apparent in many of Korea's top companies. The military regimes of the 1960s, 70s, and 80s added to this old model. One observation is high Power Distance, a term used in cross-cultural studies to note a conspicuous disparity or difference between senior management and teams . A number of workplace norms dictate (with lots of protocols) interaction between the teams and senior management. Essentially teams prepare reports and data for senior management to review, await approval for the executives, then implement. This top down management style works well in Korea, but as the nation has expanded globally, firms need to adapt to regionally norms. For example, local teams used to Low Power Distance norms in much of North American and Europe find Korea's top down management style a challenge. Coping and understanding Korean workplace norms can b...

Day 25 Spend time in a Korean office observing teams and you'll find many workers surfing the Internet. On one level, workplace norms require they be at their desk long hours--even if they have little workload or completed their projects. Surfing allows them look busy at their desk and pass the time. I have found that surfing is popular during lunch hour and in group meetings. That said, Koreans spend considerable time on the Internet. In a previous Blog posting I listed some top eMedia sources. (BTW Korea newspapers like in most global markets are finding paper edition sales dropping annually). Here are some interesting Korean Blogs to follow. DPRK Studies ( North Korea focused) Korea Vision ( Great insights by Leonid Petrov) The Grand Narrat ive ( Gender, advertising, and popular culture) Enjoy

Day 24 It's common in Korea for executives to review 3-5 newspapers first thing every morning. Many start very early--reading on the way to work, while exercising in the gym, or when getting to their office at 7 am. ( Director level and above start at 7 am, while their teams arrive at 8 am). I suggest you too review Korea media daily. Here are some top links (English versions). Yonhap New Agency Chosun Ilbo Korea Times Korea Herald JoongAng Daily Maeil Economic News Daily BTW In the next posting, I'll suggest top Blogs to visit.

Day 23 A Chosun Ilbo article notes: Lack of Cultural Considerations Is Repelling Foreign Students Rather than creating a positive impression of Korea, Seoul National University's foreign exchange program actually ends up making international students dislike the country.... The article goes on to note: In this age of global competition we need to be able to absorb foreign disciplines and technologies and increase our sphere of influence by spreading our knowledge and technologies abroad. In order to do that, we must create an environment where foreign professors and students can focus on their research and studies without inconveniences. The article cites a number of examples of how the SNU could improve its international exchange program. Most center on cross cultural sensitivity. This is a challenge, I feel not only for SNU, but most of us. Being mindful and understanding of other cultures doesn’t “just happen.” It takes training and skills. My work and focus is ...

Day 22 In the West, we tend to have many formal meeting to brainstorm, discuss, and decide on a course of action for a project or venture. Open discussion, points of view, and at times arguments can be parts of the process. With Korean ( and Asian) much of these occurs informally. Formal meeting tend to present details initially, and then share reports at times through-out the process, but as team updates. A final formal meeting usually provides lots of data and a recommendation to senior management once details are worked out. ( The senior often asks for more information, which can lead to long delays). It's then up to senior management to chose an option(s) and approve the project, which allows the team to move forward. BTW Throughout the process, much discussion with Korean teams occurs in a hallway, break room, or outside the building on a cigarette break. Frequent formal meetings are seen as time wasters. Understanding formal and informal meetings is important for westerne...

Day 21 Over the past month, I have shared numerous thoughts on Korean business. A long time reader notes: I have been following your thoughts of the day regularly,[it] makes for interesting reading. Economic situations is driving korean companies to go global with more sincerity also noting that korea tourism and encouragement for foreigners is increasing. (In India we can see the "Sparking Korea' advt often nowadays.) Still the challenge of cross training top global executives in korean companies remains. In search of 빨리 빨리 [balli balli- fast fast] results K overseas, the importance of the cultural synchronization [is overlooked] and end up losing more time instead. Great insight. I deal with this often. To recap, Failing to provide teams and management with Korean cross cultural training will only mean more stress, poor results, and high turnover to top employees. Providing teams with training and coaching reduces stress, builds teamwork, and increases productivity. ...

Day 20 In discussions with western management and teams over their interactions with Korean leadership, I stress the need to recognize generational differences exist. For example, on a recent visit to one of BCW's clients, an American executive noted the younger Korean expats were great, and worked well with the American team. (In the past, there were many conflicts with the expats.) I shared that the newly assigned expats were s hinsedae-- the New Generation. Ages 26-35, many of this group have studied abroad, worked most of their careers on overseas support and projects, are fluent in English ( and often another language or two), and have a global perspective. That said, these shinsedae expats are still not decision makers. In Korean based firms ALL key decisions are made by those Director level and above--who are, of course, an older and often Old School generation. BTW Check out BCW's new Korea 2.0 Vodcast

Day 19 We hope all is well. Over the past year, Bridging Culture Worldwide has been working on new workshop--Korea 2.0™ The program was designed for all firms and teams tied to Korean business. We're exciting about sharing Korea 2.0™, so we prepared a short video. Click here Korea 2.0 ™ Vodcast After reviewing the Vodcast, we would be happy to discuss some options. The BCW Team

#18 When interacting with Korean teams, work constantly to build the social relationship. Moreover strive to build and maintain a strong social network with your Korean contacts, colleagues, and friends. It's people over process in the Korean workplace and business world. Questions? Just email us at BCW. dsoutherton@bridgingculture.com

#17 In my daily crafting of this Blog for September, I like to review some of the 900+ BCW postings. This one stands out. It mentions LG, which does an exceptional job, but could apply to any of the Korean global brands. I have an Indian acquaintance, we often discuss Korea-based business with operations in India. He has worked with Korean teams. He is also very open to learning about Korean business culture. My Indian friend responded to the May 27 [2008] Bridging Culture Worldwide Blog regarding LG. I think the chat is very insightful and will benefit global teams. Hi Don, I read your recent post about LG becoming global. I was curious to know how the senior management chooses the non-Koreans for the major positions. Are they expected to know Korean culture along with the local culture/market they are working with. In case the foreigners don't know the Korean working methods wouldn't it take a longer transition time for them to settle into the organization and be productive? ...

#16 Adding to yesterday's thought--Korea 2.0 is a new BCW program that shares insights into where Korea is headed. For example, labor cost have forced much Korean manufacturing to China and Southeast Asia. Plus, the new generation of highly educated workers seek global white collar jobs. We also see a government focus on IT, technology, bio-tech,etc. I call this shift--Korea 2.0. Understanding where Korea is headed is vital for your management and team. BCW can provide needed insights and training.

#15 Provide your teams with updates on Korea. Most want to know about its economy and trends. Topics like North Korea are also popular. I can help, it's what Bridging Culture Worldwide does well and frequently. I suggest our workshop titled Korea 2.0 as a must do ! Korea 2.0 explains recent developments and trends that impact you and your firm.

#14 (Today's hint is some insights into the Korean car industry. Podcast to follow soon.) The Korea Society recently hosted a Business Roundtable titled Korean Cars Drive to the Top: A Look at the Korean Car Industry. Speaking to a distinguished audience, Don Southerton, author and Korean global business expert, shared insights into the Korean car industry, Hyundai and Kia Motors, and their amazing drive to the top of the market. NY, NY September 16, 2009 – The Korea Society recently hosted a Business Roundtable titled Korean Cars Drive to the Top: A Look at the Korean Car Industry. Speaking to a distinguished audience, Don Southerton, author and Korean global business expert, shared insights into the Korean car industry, Hyundai and Kia Motors, and their amazing drive to the top of the market. Southerton’s remarks centered on 3 main themes: Korean up-market consumerism; the high level of integration within Korea’s leading automaker –the Hyundai Kia Motor Group; and insights into ...

#13 Quite simply: learn the language, learn the culture. Cross-cultural differences exist. The best way to bridge the cultural gap is to learn as much as possible about another's culture. I find learning the language helps, so does reading about their history. Check out my posting from March 2008. The Path

#12 When dealing with Korean partners and teams, recognize some strong generational differences exist. Seniors leadership, middle management, and younger staff tend to represent different mindsets. For example, the younger teams have often studied abroad, obtained degrees in the US or Europe, etc. They are not only skilled in English but usually a second or third language, too. This group is representative of what I call Korea 2.0 . (Contact me to learn more about Korea 2.0 workshops and coaching). BTW How to interact with each group takes some deep insights into their life experiences, cultural norms, and the shifting business landscape of Korea.

Breaking from the past 10 days of hints, I thought I'd share some macro insights. With September's days passing quickly, a short update on Korea is timely. 1. It seems the Korean economy is recovering. In 2009, we might see the Korean economy only shrink 1.5%. This is considerably less than earlier economic predictions. 2. Although export volume is down ( 20 %), a weak Won has resulted in strong profits for many Korean global firms. (This always seems counter-intuitive, but remember a few years ago when the Won was strong to the U.S. Dollar? Profits plunged and many Korean firms were in a crisis mode with last Q budget cuts, etc.) 3. Many Korean global firms have recently seen record sales numbers. Analysts' note that Korean firms are among the few to make gains in markets--capitalizing on opportunity. (Remember early this year I stressed this would be an aggressive Korean strategy). 4. I'll continue to watch trends carefully and report. Meanwhile, please share with y...

#10 Offer both non-Korean and Korean management teams cross-cultural training. For Korean overseas executives, newly assigned to America (Europe, etc), cross-cultural, localization, and trust-building skills are essential. For new American management, insights into Korean culture, norms, and workplace expectations will reduce misunderstandings and improve productivity.

For the month of September I'll be posting some hints and thoughts on effective Korean global business #9 Korean culture training within your organization should be a constant and never ending process. In addition to providing new team members with awareness and skills, provide all team members and key management with coaching and ongoing training. In other words, just because a team member has worked in Korea, for a Korean-based firm, or on a Korean-based project they can still benefit from training. More significant, Korea is constantly changing--so staying current is vital.

For the month of September I'll be posting some hints and thoughts on effective Korean global business #8 I would not suggest hiring a high profile global management consulting firm that has no practical experience with Korea 2009 and contemporary corporate cultures to align, mend, or spur change in your organization. Many western consulting firms have an amazing record of success, but when working in Korea-based organizations they perform poorly. Expecting Korean teams to participate and embrace these programs rarely works. Building support from the Korean team takes special skills and insights.

LAST MINUTE REMINDER Korean Cars Drive to the Top: A Look at the Korean Car Industry By Don Southerton, President and CEO, Bridging Culture Worldwide Wednesday, September 9, 2009 11:30 AM-12:00 AM ♦ Registration 12:00 PM-1:30 PM ♦ Lunch and Presentation The Korea Society 950 Third Avenue @ 57th Street, 8th Floor (Building entrance on SW corner of Third Avenue and 57th Street) Upon their arrival in America during the mid-1980s, Korean cars were met with late-night comedians poking fun at their quality and durability. Such sentiments seem antiquated today with Hyundai and Kia ranking highly in quality and consumer confidence. The Hyundai Genesis even picked up the 2009 North American Car of the Year award. Add all of this to spectacular sales figures, and it's easy to see that Korean cars have come a long way. What has lead to such recent successes? Don Southerton, author and Korean global business expert, will share insights into the Korean car industry, Hyundai and Kia Motors, and ...

For the month of September I'll be posting some hints and thoughts on effective Korean global business #7 My suggestion is Korean focused organizations and teams strive to foster and embrace cross-cultural understanding. This does not occur without considerable insight, training, and coaching. In fact, expecting cross cultural understanding especially of Korea and Koreans by westerners (and visa versa) to unfold over time is an ineffective approach and leads to frustration and poor results. More shocking and damaging, is that some team members without training “never get it.” In addition, I see it vital to give teams skills to cope with their counterparts who lack cross-cultural understanding or a grasp successful global business practices.

For the month of September I'll be posting some hints and thoughts on effective Korean global business #6 Offer 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-cultural issues privately and confidentially.

For the month of September I'll be posting some hints and thoughts on effective Korean global business #5 Culture has a tremendous influence on how we communicate and interact with others. Cultures differ, some more than others. Cross-cultural understanding takes considerable effort, study, and time. For westerners, gaining cultural insights into Korean culture and its changing workplace can be a challenge. Different backgrounds, customs, and language compound the problem. Nevertheless, it is a very rewarding quest and vital if you wish to be successful in Korea-related business.

For the month of September I'll be posting some hints and thoughts on effective Korean global business #4 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.

For the month of September I'll be posting some hints and thoughts on effective Korean global business #3 It is critical to take into consideration Korea’s recent past when dealing with Korean partners. Moreover, one needs a deep understanding of current issues and trends--I call this Korea 2.0. Finally, be mindful and culturally sensitive.

For the month of September I'll be posting some hints and thoughts on effective Korean global business Thought #2 Now more than ever, understanding the mindset of Korean business is vital. I suggest you align your thinking to the core values that Korea, its leadership, and teams respect and embrace. Recognize that top Korean business leadership endured the limited resources of the post-Korea War era, rapid growth through the 60s, 70s, and 80s, only to fight for survival in the late 1990s with the IMF Crisis. Current leadership played key roles in the post IMF era restructuring of their companies. Over the long careers they made “ the impossible, possible.” See the current crisis as an opportunity for your firm to shine and stand out, while others retrench. BTW Be upbeat and forward thinking—maintain a “glass is half-full vs. half-empty” attitude. Show passion and enthusiasm.

For the month of September I'll be posting some hints and thoughts on effective Korean global business # 1 Before sending a team member, client, associate, future vendor, etc. to Korea for the first time, provide them with training. More specifically, go beyond the details of the project and ensure they have the skills and understanding of Korea 2.0. I'd also make sure they have some background on the Korean partner’s company culture. For example, Samsung is very different from Hyundai, which is different from Lotte. Norms even vary within the segments of the larger firms—some are more global while others are more rigid and traditional. Each requires a unique understanding.