Thoughts on Korean Business by Don Southerton

By Don Southerton, BCW Editor, Over the years, I've shared much on business norms and expectations with Korean, American, and global teams and management. I, too, have learned much in exchange. In fact, I've been fortunate to have a number of senior Korean leadership share their opinions and thoughts.  Last year I was asked by a Korea client to find out if a successful and high profile American brand was interested in the Korean market. If so, the Korean firm would like to be considered as a potential partner.   After talking to the American brand's founder and CEO, he politely shared that their plans were to focus on the US market. Any Asia expansion would not be for at least 2-3 years. Several month's later while they were visiting the US, I hosted the Korean client's Chairman and his wife at a VVIP lunch meeting. Over the meal, the Chairman's wife quizzed me on my progress with the American brand. I explained that the US brand's founder and CE...

By Don Southerton, BCW Editor In this week's Korea Facing update we look at approvals, and the challenges. BTW why not subscribe to Korea Facing. http://forms.aweber.com/form/88/1499178088.htm In the Korea Facing article on Decision Making, we pointed out that in most cases leadership made key decisions and teams implemented.  Getting these approvals in itself can be a challenge, time consuming, and should take into account such subtleties as senior management's mood. At times, teams can wait days for an approval. This can be because senior Korean management is out of the office and traveling.  But, it can also be that Korean teams try to be sensitive to their boss' mood, well-being, and workload, along with an awareness of pressing issues impacting the company and their division.  In other words, if senior management is dealing with a major challenge, or looks stressed, team leaders may delay requesting a meeting that day. In contrast, if their senio...

By Don Southerton, BCW Editor Stretch Goals and the Seemingly Impossible Companies like Samsung, Hyundai, Kia, SK, and LG have a reputation for setting huge goals that look to many outside the organizations unrealistic. Most often it's stretch goals for sales, which I've witnessed not only throughout the Hyundai Motor Group, but with other major Groups, from smart phone sales, to food services, to the Korean retail golf market. What I have found interesting and quite different from the West is that when stretch goals are announced Korean teams and management never openly voice that the task is impossible, even if leadership and most of team don't have a plan... Why? It's thought that although you may not have a plan or solution...someone, perhaps the most junior employee may either know of a way, or someone has a friend in their personal network who has a solution.  It's felt that it is never productive to share even with close co-workers that...

By Don Southerton, BCW Editor Once again we have received considerable feedback on a weekly posting. See the previous "Korea Facing: Countermeasures" post. Readers have noted that the topic was  "timely," "great insights," "....come to the same general conclusion very painfully through trial and error," and "Again, your consultation and advice is invaluable!!! Keep it coming." I'd like to share Jennie (Chunghea) Oliver's well presented comments. Jennie is a regular contributor to Korea Facing. She brings out some interesting points. ( BTW your feedback is always welcome, too.) Dear Don, Thank you for sharing your post! As a person who grew up in Korea and participated in the Korean workforce, I can understand why Korean participants in the discussion mentioned that they will prepare at least three counter-measures for senior leadership.     At the same time, I can also understand about the approach that American ...

By Don Southerton, BCW Editor When I first began coaching at both Hyundai and then Kia Motors a few of the older highly experienced industry veterans got some satisfaction in pointing out "issues." More so, if they had previously warned the Korean team what would happen if the company took a certain approach and it ultimately failed to meet expectations. It's no surprise that tensions ran high. My strategy to improve relations was to persuade the American team that pointing out "issues" wasn't culturally productive. It was obvious to all when mistakes and poor judgements surfaced. Moreover, Koreans often took a trial and error approach. What was needed were "counter-measures," an English term the Korean teams were using. This mindset was reconfirmed a few years later while conducting a team building leadership workshop. In the discussion, one of the Korean participants pointed out that they looked for at least 3 options to solve a situation. ...

By Don Southerton, BCW Editor As noted in 3 previous Korea Facing hierarchy articles, ( see Link below)power in Korean companies is often very centralized and only people at the highest level have the right to decide on issues. In Korea, the working team's role is to implement or gather needed information.  In other cases where overseas leadership and teams hope to offer a new service or program, local Korean management's role is to gather information and then share with the appropriate senior team members, who are often in Korea. The local opinion is valued, but review may come from Korea.  My Suggestion... When conducting a meeting where a decision must be made please recognize that your local Korean team(s) will have considerable say in the outcome. This may include both the operations and finance teams. First, since the topic and subject matter may be new to your Korean team, I recommend you share prior to the meeting any needed background documents (best ...