Thoughts on Korean Business by Don Southerton

From February 2014 Demand for Professional Services Grows under the KORUS FTA   The KORUS FTA is also opening new avenues for professional services, including specialized business and management consultants, as U.S. businesses expand into the dynamic Korean marketplace. Between 2008 and 2012, U.S. business, professional and technical services exports increased 51 percent. Many success stories on U.S. Korea Connect point to the importance of understanding the Korean marketplace and finding the right Korean business partner as ways of increasing company's likelihood of success, making specialized consultants an increasingly important asset. In the United States, companies are also hiring Korean workers and discovering  immediate value in their expertise and existing professional networks. Korea's economy expanded at the fastest pace in nearly two years in the third quarter of 2013, and Bloomberg ranked Korea first among all nations in its Global Innovation In...

"Conclusions", my final article in the Hyundai Way: Hyundai Speed series, shares my personal thoughts and opinions.  I begin with the question, “Considering its strong Korean heritage and corporate culture, is the Hyundai business model globally sustainable?”  I tackle this question from a cultural perspective, leaving aspects of sustainability, such as the production network, consumer appeal and brand image staying power, for my colleagues in the automotive industry. In my 2012 book, Korea Facing: Secrets for Success in Korean Global Business I note that Korean global companies as a whole have prospered and adapted well to an expanded international scope. Specifically, I call this trend K-lobalization . To further define K-lobalization, I find Korean teams and management becoming increasingly global savvy. More significantly, following the global recession of 2009-10 when many international firms experienced staggering setbacks, the profits, sales and market s...

Management Styles Hyundai’s early management style was influenced by Founder Chung Ju Yung and his charismatic personal leadership, which was also strongly tied to Korean Confucianism. Management teams of the 1960s, 1970s and 1980s in turn, modeled their style after the Founder. In the wake of global expansion during the late 1990s and 2000s, Hyundai’s management style would evolve. In fact, today, there are a number of methods; a few are common and the most notable contrast autocratic and collaborative styles. All are part of what I see as Hyundai Way culture. The Role of Mentoring Looking back several years to a team building workshop, a senior Korean manager openly shared some insights on Korean management styles. Within his Korean division, teams were mentored by seniors in one of several styles. For example, some senior managers fostered a "soft" management style of collaboration, while others used a "hard…don’t ask questions and just do it” autocratic style. ...

Hyundai Way: Hyundai Speed Part 4, A Unique Corporate Culture, Old and New Part 4 links the Hyundai company’s heritage, culture, and values—old and new.   Stepping back in Hyundai history, values were shared through the company motto or in Korean, sa hoon.   While exact translations of the Hyundai’s sa hoon may vary, the message is consistent. Originating with the Founder Chung Ju Yung, these are time-honored, enduring company standards and qualities of diligence, prudence and harmony. In fact, incorporate offices of the Group in Korea or around the world, framed Korean calligraphy of the Hyundai values may be still prominently displayed. These values are a legacy well worth understanding and are strongly tied to the Hyundai Way. Hyundai Sahoon The first value is Diligence ( geun myeon ) 근면 In the workplace this translates to HARD WORK.   Hyundai team members recognize that achieving worthwhile goals requires commitment, determination—and,...