Thoughts on Korean Business by Don Southerton

Chapter 5 Revise and Amend   I was once told that in Korea the purpose of signing a contract or agreement was essentially to formalize the partnership. Over time terms would be subject to change and re- negotiation. My Korea facing experience has been that the contract fundamentally solidifies the working relationship.   However, to maintain the partnership contractual obligations the contract will require on-going changes to reflect business conditions. In contrast a legal agreement in the West is immutable. Challenges Major differences in how Korean and Westerners perceive legal agreements can   surface during the negotiation stage and even after the contract is in place. In particular, requests by Korean teams for change after change and alterations to a Western company’s standard agreements and contracts can cause considerable frustration, especially for their legal counsel. In the West some “red lining” of a document may take place but legal teams may ...

Building on Chapter 4's theme Short on Feedback.... Withholding   Amid growing tensions between a joint U.S and Korean launch team in a US-based facility, the first US venture for the Korean company, I was asked to conduct a series of cross-cultural coaching sessions. Polite consensus by the leadership was that the problem was “cultural”—Koreans not understanding Americans and visa-versa.   Most of the American team were well seasoned —handpicked because they had been top performers in their previous jobs. Likewise, the Korean team members were highly experienced—but this was their first overseas’ assignment. What surfaced during our discussions was that the new American management had been searching for documented policies and procedures to guide them in decision-making and day-to-day work. For example, those who had been former Toyota staff looked for a model similar to the Toyota Way , while others who had worked for Ford Motor Company sought manuals of stand...

Chapter 4 Short on Feedback Sharing their feedback from a request for comments, a client noted:   “ My experiences on major projects have been frustrating at times as HQ’s review process is much too long, bureaucratic & short on feedback..." The most common frustration in the overseas workplace is tied to communications between the Korean HQ and local operations. In the best cases, teams in local offices feel somewhat disconnected; in the worst cases they feel information is being deliberately withheld. What may be a surprise for overseas teams is that even the Korean staff must make an effort to stay informed. As one entry-level employee of a major Korean group lamented,   “If I did not spend an hour daily networking with fellow workers, I would be in the dark on issues major and minor that could have significant impact on projects.”    For my own client work with Korea companies, nightly chats via phone and frequent emails and texts are required o...

Another preview of the new "work in progress."  Questions and comments welcome. Chapter 3   Place, or   no two equal Part 2 Two Scenarios Hierarchical status driven interactions, communication norms, and the day to day situations that surface can dramatically impact the overseas’ workplace.   On a number of occasions I have been tasked to assist clients in overcoming impasses. Most often I see a common thread--one rooted in a mismatch in status, title and position. For example, a major American brand was negotiating with a large Korea retail group interested in a licensing arrangement.   Time had passed with little progress to the dismay of the American CFO/ COO who had felt initial talks with the Korean company’s CEO would lead to a solid agreement. When I quizzed the American executive on the negotiation channel for the potential partnership, he indicated that all communication was with a Ms. Shin. The US executive quickly added he had never perso...