Thoughts on Korean Business by Don Southerton

This year the Lunar holiday falls from Monday, February 4 to Wednesday, February 6 (Korea time).  The celebration usually lasts three days: the day before the Korean New Year, Korean New Year itself, and the day after the Korean New Year. On a cultural note, Lunar New Year or Seollal is a highly celebrated traditional holiday in South Korea. Korean New Year generally occurs in January or February on the second new moon after the winter solstice.     It does not only mark the passage into a new year, but it is also a time for families to catch up with each other, pay respect to ancestors and celebrate with traditional foods and gifts. For us working with Korean teams, it’s a great time to re-connect. For your Korean colleagues (in Korea), you can wish them “Happy Lunar New Year” by phone, text, or email, on  Thursday, January 31 (so, Friday i...

It's easy for those new to Korea business to make quick assumptions.  I often have to remind myself lessons learned, too. Over time those engaged in projects find there are complexities often rooted deep within in the culture—requiring context, recent and past.  This is a normal learning process.  As an example, I’ve also found it very valuable over the years to work with a number of Korean Groups, and the affiliates companies.  (I define an affiliate is one of the many family controlled subsidiaries that chaebol typically operate across diverse industries. These can include in-house IT, Marketing, Construction, Design, Sales, and Financing.) What stands out is how the Culture vary between the Korean Groups—and even within a Group and it affiliates. Perhaps moving among Groups and affiliates sometimes in a single day, I see and experience the subtle differences more than most.  This can range from the tangibles like buildi...

Korean facing global business requires colleagues of different cultures to work together on a daily basis. How we see others culturally is often in the differences and similarities. I like to focus on the later; as differences pull us apart and similarities brings us together. Particularly for western teams engaged in Korean operations, I believe in the importance of deep learning about the workplace in Korea — the 2019 norms, practices, and day-to-day life. The same learning goes for Korean teams assigned to support overseas’ operations. They need to become savvy in local practices. These insights allow us to better understand our mutual teams’ thoughts and expectations. As I note above, recognizing similarities is one of the most powerful cross-cultural bridges. In other words, how can you relate to the nuances in communications and day-to-day life? This requires identifying the local beliefs, values, expectations, traditions, and culture. Outcomes Although th...

My Korea perspective on best business practices and norms has been honed over several decades. As a colleague shared to his Seoul based team with regard to this Korea experience, “Don has lived many lives.”   There are best practices as well as common missteps.  I have witnessed both firsthand over the past 40 years. False assumptions due to limited understanding lead the list. Korea’s ever changing business culture and expectations only adds another layer.  It’s a time-learned process, more art than science.   This Weekend Read is for leadership responsible for Korea facing business as well as team members in the day-to-day operations.  Commonly, western companies and anyone new to Korea tend to quickly jump in and attempt to tackle the challenges—learning as they go and often making assumptions based on what worked for them in the past. Korea can throw some curve balls. Those of us long engaged in Korea recognize that the ability ...

This commentary explores trends impacting Korea facing business. South Korea moves fast.  Government mandates shift often and Korean technology leapfrogs. Against this backdrop, a few developments are notable.      Don Southerton   1. South Korea's economy  The current flat economy may level out in the first half or early part of the second half of 2019. As in 2018, and hopefully going into the new year, strong export growth will continue to offset the contraction in domestic consumption and prop up the economy. (BTW South Korea based auto exports were down as production is now distributed more global for the Hyundai Motor Group. In Korea tech and semiconductors production, for example, as the main drivers of exports.) As always when there is a discussion on the Korean economy, jobs matter-- more so despite the efforts of President Moon and the administration.  His push for a “fair economy” has yet to create more jobs within th...