Korean Business and Year-End Norms

Year-end timing for organization-wide promotions, restructuring, and new assignments are part of Korean corporate culture.

Each year, high-level moves are the norm we see among the major Groups—the first of these we saw last week. We can assume there will be more senior-level announcements with new leadership taking the helm in their new positions and roles soon, while some leadership long in the ranks will be exiting or remain in advisory roles.

Top to bottom within Korean companies they follow this annual transition, with the changes to senior leadership happening first, and team level changes made known the weeks just before or between Christmas and New Year's Day.

After the Holidays, teams then report back to work. Some employees assume new roles frequently in departments in which they have little experience—requiring employees to acquire new skills—sink or swim.

Meanwhile, some Koreans currently in an overseas assignment may be returning back to Korea or be en-route to new assignments in another overseas operation. Still others at HQ may be asked to take a new assignment overseas; a challenge in adjusting to a new workplace and its norms for those working outside Korea for the first time.

In all cases, in the days that follow those employees who are shuffled brief their replacements, as the staff who remain in their jobs update new management teams on the status of projects and issues.

Some years we do see less re-organization of the teams, departments, and divisions—some years more. The later can be driven by leadership looking to “shake up” the organization to spur growth. All said, change is commonplace and an accepted side of Korean business.

Finally, for teams below Director level, time in rank promotions had in the past followed a decades-old seniority time in grade model—i.e. 3-4 years for each of the first tiers up to Manager. For each upper managerial level—Deputy General Manager and General Manager—5 years is a common tenure between each grade level.  

Now with many Groups flattening of ranks below Director level, to Manager and Senior Manager—and a more merit-based model—it will be interesting to watch and see how the new changes unfold.

Here as always—questions welcome.

Don