Thoughts on Korean Business by Don Southerton

  This week I'd like to share my recent article in Haps Korea. It's a Foodie article but shares some cultural insights, too. With few COVID restrictions, the international franchise business is set to boom. The Food and Beverage industry was greatly restricted under COVID, not only with shutdowns, limited hours with closing at 9 p.m., and limits on the number of diners. International travel, too, was non-existent for those in the industry seeking new brands. The simple fact, too, is that when interested in a food brand, it requires you to experience first-hand the food, ambiance, and business model — something outside the scope of a video conference. In fact, only a few brands opened in new markets during this time — and those deals were often arranged prior and/or, if launched visiting teams endured lengthy quarantines. Most new launch projects were instead postponed, or at least their rollout of multiple locations was curtailed. For example, although the agreement was signed ...

                      Images Courtesy of CNN, The Washington Post, and New York Post My recent article in  Hapskorea.com . I look at the proposed jump to a 69-hour workweek and, unsurprisingly, Korea‘s pushback.   https://www.hapskorea.com/the-69-hour-korean-workweek/ OPINION & INSIGHT The 69-Hour Korean Workweek Don Southerton March 22, 2023   A recent story that has made worldwide headlines was not on North Korea, but a 69-hour workweek. For those of us long tied to Korea, the Korean workweek has changed much over the years. I can recall a time I’d be onsite at 8 a.m. and leave at varying times early in the evening only to meet a few minutes later for a team dinner. Those days are mostly gone. Including, no more working ½ days on Saturdays. Many companies are also considerably more flexible — some workers arrive at their desks at 9 a.m. and, in some cases, by 10 a.m. to avoid the commute rush hours. Five years a...

  A hot topic recently has been...1) What exciting brands would Korea be interested in… In the past, this has ranged from COSTCO, IKEA, and more recently, trendy Shake Shack and Blue Bottle Coffee (Long time success, Starbucks, did a very soft start initially)… BTW one, I often get requested is In-N-Out Burger, which still wants to focus on the U.S. market.  That said, please share what U.S.(or EU) brand may be interesting in Korea’s dynamic market. Again this can be a Brand, product, Food and Beverage, or service... And 2), have a Korean brand or company in mind for the U.S. market? I would be very interested in your thoughts. Dsoutherton@bridgingculture.com ###

  I was once told that in Korea, the purpose of signing a contract or agreement was 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's contractual obligations, the contract will require ongoing 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 negotiations 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. Some document “redlining” may occur in the West, but legal teams may see unprecedented levels of questioning the most basic “boilerplat...

 I am a strong advocate of Korean global business. I see great opportunities and am passionate about seeing Korean brands succeed overseas, as well as seeing international brands thrive in Korea.  However, as I have shared before, my experience is that companies, Korean and global, need to recognize the considerable upfront investment required to enter markets outside their home countries. In this White Paper, I would like to share what I see as best practices. Step 1: Do your homework Invest time and resources in the Discovery of the local market.  Seek out an expert knowledgeable in both the local market and business sector to perform an objective, detailed competitive analysis. The report should identify the strengths and weaknesses of the competition within the market, strategies that will provide you with a distinct advantage, the barriers that may prevent you from entering your market, and weaknesses in the competition that can be exploited. Too often, I see a compa...

Most western executives hired to run Korean business divisions are veterans of their industry. They know the business. They are experts. Sadly, they often assume they know but frankly understand little of Korean business practices and norms.     Most often feel their past work knowledge is sufficient. SUBSCRIBE    https://www.linkedin.com/pulse/critical-support-korea-facing-business-2023-don-southerton   Even more significant, I found that some western executives feel that,  if just given enough time , they will get their Korean teams to do business  their way .  In some cases, a business model and methods they polished and acquired working for other firms—often a U.S., Japanese or German company.    Contrary to this hope and recognizing the considerable work practices and corporate structure changes underway in Korea, such as dress codes, fewer hierarchical titles, and a more balanced workday, I do not see Korean firms changing muc...