Thoughts on Korean Business by Don Southerton

Coming off the Memorial Day Weekend Holiday here.  I use holidays as a time to write, read, recharge and re-focus. This means opting out perusing Facebook and Twitter, as well as checking emails.  I’m happy this year both the American holiday and Buddha’s Birthday (a legal holiday in Korea) fall together.   I was again asked what’s been on my reading list.  I recommend for starters, Brian Grazer’s (the Hollywood producer and with creative partner Ron Howard founded Imagine Entertainment) new book A Curious Mind A second Book:  T he start-up of YOU , by Reid Hoffman, co-founder and Chairman of Linkedin And, Hatching Twitter , by Nick Bilton All three give some great insights into the varying aspect of American business--behind the scenes and sub-cultures. This brings us to today’s topic—these recognizing diverse sub-cultures.  To often like an iceberg what is seen on the surface only shares a potion of a business and in...

In this week’s Everything Korea my thoughts again turn to discussing why some Korean businesses do well outside Korea, while others struggle. A caveat is tied to last week’s episode where although Korea entrepreneurs have and continue to launch some amazing new startup concepts—few ever gain the stellar funding and success achieved by similar startups the US in the past or now with concepts like Periscope, Meerkat o r my favorite Super.me. Frankly what works well in Korea may not work well outside Korea and with regard to the Startup Model even work within Korea. Same thing goes for global brands, what works well in each respective country or region needs some if not substantial localization—localizations a catch phrase that everyone agrees to but few truly embrace. In particular, I see with Korea brands looking outside Korea to often the same missteps re-occurring. In my recent case study “A Global Approach: For Korea Management Teams” I address many of the challenges. See t...

Summary and Links Just back from NYC, so I wanted to share the link to The Korea Society presentation.  Nikita Desai and the team did a wonderful job hosting and then professionally producing and uploading the event.  You’ll want to set aside some time to watch the recorded session.  I have included the YouTube link in week’s copy. The topic of Korean startups seemed to come up lots last week.  We touched upon it in The Korea Society interview, but it was a subject of discussion in several of my high level meetings while in the City. I feel it is a “talking point” that I will be elaborating more on in the next few weeks, but frankly entreneurialism and the roots of Korean style entreureurialism has long been a subject of my study, writing and work.  In fact, my first book was titled, The Filleys: 350 Years of American Entrepreneurial Spirit A second book Intrepid Americans: Bold Koreans—Early Korean Trade, Concessions, and Entrepreneur...

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Contracts, legal agreements and negotiations go hand in hand with global business. 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...

Two topics, first I’ll be working from NYC this week. I’ll be sharing the Korea Society presentation once their very professionally team produces the video series and uploads to YouTube.   Please Stay tuned.   That said, much of my professional work is providing strategy and consulting to the top Korean brands globally.   This includes working with non-Korean firms, leadership and audiences to explain the dynamics and nuances in Korean business. During a long day that can often extend into the evening, I tackle client issues. A common question both in media interview and by clients is “ Don, how did you get interested in Korean business?”   My Korea focus and experience are actually rooted in Korean martial arts. I began martial arts in the early 1970s, receiving my Cho Dan (1st Degree Black Belt) by the mid 1970s, opened my first school in 1976 and tested for Sabom Master Instructor in 1987.   In 2013, I was inducted into the Taekwondo Hall o...