Thoughts on Korean Business by Don Southerton

As a trusted friend constantly reminds me, “Don, no one does what you do,” providing solutions as a highly respected Korean business advisor . This noted… Contracts, legal agreements, and negotiations go hand in hand with business. I was once told that in Korea the purpose of signing a contract or agreement was essential 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 terms in legal agreement in the West are seen as 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 changes to a Western company’s standard agreements ...

For those with ties to Korea as well as popular brands like Hyundai, Kia and now Genesis, we realize Korean business speed is critical — a competitive advantage used to leapfrog past more established rivals. Kia Motors' Stinger… one fast car Korean business speed means things need to get done today and now, not tomorrow. Others, too, have observed similar, and as Automotive News Asia Editor Hans Greimel pointed out in his 2017 article, “Hyundai Motor Group employees pride themselves on a frenetic corporate cadence dubbed Hyundai Speed, a kind of pedal-to-the-metal obsession with doing everything fast. Real fast.” http://www.autonews.com/article/20170812/OEM03/170819923/hyundai-speed-design-cycles I, too, have long found it as the driving force in Hyundai’s DNA. In fact, when quizzing seasoned Korean executives on wording for the title for my 2014 book, the term “Hyundai Speed,” was came up often and was strongly recommended. I noted in my book’s Forward… In t...

This week's read looks at Korean Business and, similar but different norms. For starters, I was asked last week re: my availability for Bookings & Requests. Best to email me, or call. That said,.. Following a recent C-level meeting, I had the opportunity to chat with the local subsidiary's Korean CEO. He hoped I'd shared with his team how the company in Korea and the US differed from the Group's many sister firms—many westerners wrongly assuming a high level of conformity across the Group. I assured him that "yes," I shared in mentoring how even within the Group I, too, had experienced that each company had its own unique culture. And, not only did sister companies differ but in some cases how the Koreans recruited and working at companies within the Group were different. On parting the CEO pointed out another key point to be shared was that Koreans dispatched to support the division's overseas operation over time came to see...

Earlier this week I was asked for a cross-cultural insight into the "why” behind Korean expatriates intervening in what some feel is the local decisions process. More so, these decisions may be one-sided, lack collaborative and mutual engagement and have consequences.  In turn, western teams see themselves consulted only to validate preconceived ideas or to implement directives from Korea.   This has to lead to in some cases local Western management seeing their input and expertise being marginalized-- more so with complex situations and long-term planning “drilling deeper” may uncover ramifications. In my experience due to the hierarchical Korean approval model, decisions take time--lots of time :)   That said, when Korean teams are under enough pressure they are driven to take immediate action.  With no ill intent and out of expediency, it can result in little local joint discourse related to potential trade-offs and risks in projects ass...

We have to admit US-North Korea talks top the list of newsworthy topics this week, although the Steel and Aluminum trade issues are not to be overlooked.  I do have my opinions :) All said, this read shares: “Ten Valuable Insights into Korean business.” This is something I often incorporate into advising and mentoring. As food for thought, I am not advocating we drop Western norms and practices. In fact, it was developed in collaboration with a senior Korea manager more as a reference. Specifically, we looked to share a perspective and explain to the local team the company culture in Korea — the Westerner employees lacking first-hand knowledge in the mother company and seeing the Company only in their local operations. Ten Insights • Trust There is a very strong trust within teams and in the company. This is often because of a legacy in achieving many bold accomplishments — often seemingly impossible tasks. • Family Traditional family norms permeate t...

I truly enjoy sharing the nuances of Korean business hints and culture—whether through an email, books, or media interviews/articles.  This includes one on one mentoring, too. Don Southerton Long part of my core business has been On-boarding individuals as well as the entire leadership team.  In fact, this week I have a number of engagements scheduled. On-boarding or, organizational socialization is where teams, from C-level to entry-level hires, acquire necessary knowledge, skills, and behaviors to be effective in their job.   In most cases for my work, this means Westerners employed by Korean companies.  It also includes those partners that provide services to Korean global firms, or a company wishing to do business in Korea.   A common false assumption taken by some is a company or project “will get” the cultural nuances without considerable support.  Korean Business hints: Don't be mistaken . I find the Struggl...

Relationships... amid disruptive market conditions perhaps the greatest ripple effect challenge to Korean global business is how best to maintain positive and collaborative working relations between Western and Korean teams. This March weekend read provides some recommendations. Relationships Matter From a cross-cultural perspective, Korean commerce is dependent upon relationships and interpersonal interactions. Western business, in contrast, leans toward process and procedure. Therefore when Korea-facing working relationships are strained, culturally, there is a heightened impact throughout the entire organization. Without discounting market conditions and intense pressure to meet aggressive sales goals, I see the impact of adapting to a rapidly changing and disruptive business landscape at the core of many strained relationships. As author Thomas L. Friedman points out in Thank You for Being Late : "As we transition from an industrial-age economy to a computer-...