Thoughts on Korean Business by Don Southerton

By Don Southerton, BCW Editor, Localization and understanding the market is key in overseas' expansion.  My work centers on assisting with both Korean brands entering the US market and visa versa.  This recent feature in Yonhap and Korea Times shares my views along with others involved in Korea business.  I note that trends in Korean consumerism are changing. For example,"Korea's white collar consumers demand quality, innovation and design appeal. In addition, I see the trend toward 'green' and well-being an aspect." (Yonhap Feature) For brands, becoming Korean is key for success By Jeff Liebsch Contributing writer SEOUL, Feb. 22 (Yonhap) -- On a typical morning, 17-year-old Do Sang-hoon gets ready for school. He eats a bowl of cereal for breakfast, puts on his North Face jacket, turns on his iPod Nano and heads out the door. On the weekend, he heads to McDonald's for lunch with his friends and Indian food for dinner with his family. Scenes like...

By Don Southerton, BCW Editor This column has long followed the Korean car market. Imports are often a topic. This  Korea Herald article points out a younger consumer is seeking imports. The Nissan Cube, Golf 2.0TDI, the Mini Cooper, and Audi A4 2.0 TFSI Quattro seem most popular. Female drivers of imports is on the increase, too. BMW Mini Cooper Korea More Koreans in 20s Buy Import Cars Import car sales to consumers under 30 increased while the percentage of young customers in the overall market including Korean carmakers dropped last year. According to the Korea Automobile Manufacturers Association, combined car sales by local and foreign automakers to consumers in their 20s stood at 140,777 units in 2011, down 6.4 percent from a year earlier. Further, sales to consumers under 20 declined by 17.4 percent to 1,897 units. As a result, the percentage of consumers under 30 dropped by 1.3 percentage to 10.9 percent. The KAMA attributed the sagging sales to young consum...

By Don Southerton, BCW Editor This past week we saw the current Korean administration's opposition seek to "axe" KORUS FTA. In response supporters are pressing to get the FTA enacted ASAP. As reported in Yonhap News Agency, “We believe that the U.S.-Korea free trade agreement is in the interest of the United States, of the Republic of Korea, and of the relationship between our two countries,” A State Department official further noted. “The U.S.-Korea free trade agreement represents a historic opportunity to increase exports, support job creation, bolster both our economies, and strengthen a vital strategic alliance in the Asia-Pacific.” So what's the delay? Here's my update... On a positive note following the 2011 amended agreement for the Korea-U.S. Free Trade Agreement (KORUS FTA) and ratification both by the U.S. Congress and Korean Assembly expectations are that the treaty will be implemented in the first quarter of 2012. Advocates and many critics alike...

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By Don Southerton, BCW Editor It's no secret. I'm a huge Kia Motors' supporter. I like the brand and its people. Their ads, created by David and Goliath , are always so cool and edgy, too.

Specialized in global recruitment, human resource development, and cross-cultural consulting, KoreaPros’ focus is Korea-facing companies and investors entering U.S. market.  For Immediate Release Denver, Colorado, January 29, 2012—With the success of brands like Samsung, LG, Hyundai, and Kia along with solid investment by Korea-based companies in new state of the art American production facilities demand is high for qualified U.S. workers. To best meet this demand, KoreaPros has launched a comprehensive recruitment, HR, and consultancy service. LA-based KoreaPros’ CEO S.K. Moon notes, “Our role is to consult and assist Korea-facing companies, and investors entering U.S. market, with their various human resource needs. We have a worldwide partnership network, and offer a wide variety of human resource initiatives to support international clients.” Don Southerton, KoreaPros’ Senior Advisor and Korean global business expert points out, “Korean brands and products’ sell, wheth...

By Don Southerton, BCW Editor In 2008, I had the opportunity to visit the Hyundai Kia Namyang R&D Center with a group of VVIPs. We test drove a Fuel Cell Electric Vehicle (FCEV), and even got to fuel the prototype SUV with hydrogen. ( I'd previously watched a hydrogen fueling in Chino, CA at the HATCI facility where I was teaching classes and consulting the American and Korean teams). Last week when at Kia Motors America I was given the opportunity to road test one of their FCEV. Very smooth drive, with lots of low end torque. Hope to see more FCEV in our future as infrastructure is built to support the technology. Don Southerton w/ Kia FCEV

By Don Southerton, BCW Editor This year Korea will celebrate their annual Lunar New Year holiday on Sunday January 22,  Monday January 23, and Tuesday January 24. Regarding the holiday, I have some recommendations. For your Korean colleagues (in Korea), you can wish them Happy Lunar New Year by phone, or email on Thursday, January 19 in the late afternoon. ( Friday in Korea). For Koreans working in the U.S. or globally you can wish then Happy Lunar New Years on Friday January 20 (pm) or Monday January 23. Here is the formal greeting-- Sae hae bok mani ba deu say yo. I suggest you also share with your non-Korean teams the significance of the holiday. Here is some info to share with the team: The 2012 Lunar New Year celebration ( Seol) is Jan. 22-24. This is the year of the Dragon (actually the Black Dragon.) This year is considered especially lucky... Along with Chusok (the fall harvest festival), Lunar New Year is the most important of traditional Korean ho...

By Don Southerton, BCW Editor Time to update the cover art for my upcoming book-- The Hyundai Way . The current cover art ( see below) was a mock up-- with a plan that we'd update prior to publication. Last week, we posted this question on FB with some great feedback. Cover art needs a 2012 update. FB question. What 3 models (Hyundai and Kia ) need to be used? To fine tune (pun intended), take a moment and vote on which 3 models should be used on the cover. http://www.facebook.com/TheHyundaiWay Many thanks, Don

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By Don Southerton, BCW Editor DETROIT —The Hyundai Elantra and the Land Rover Range Rover Evoque on Monday were named North American Car and  Truck  of the year by a panel of independent automotive journalists after the opening ceremonies of the 2012   North American International Auto Show . Big win for Hyundai and the team. We've been supporting the Hyundai Motor Group teams for years. 

By Don Southerton Each new year, I share thoughts for the upcoming months in an executive-level commentary. Looking back at 2011, South Korea’s export economy saw a robust year—familiar names like Samsung, Hyundai, and Kia continuing to grow global market shares—demand driven by a mix of product quality, value, and design appeal, along with Japanese brands suffering set-backs from the devastation of the tsunami and threat of catastrophic nuclear meltdown. Tempering the demand for top Korean cars, electronics, and consumer goods were deep concerns over the EU fiscal crisis—worries that still linger. On a positive note following an amended agreement for the Korea-U.S. Free Trade Agreement (KORUS FTA) and ratification both by the U.S. Congress and Korean Assembly expectations are that the treaty will be implemented in the first quarter of 2012. Advocates and critics alike see the FTA boosting annual commerce between the two nations into the billions of Dollars. Looking...

By Don Southerton, BCW Editor Like most Asian countries, South Korea has two different New Year days—one that follows the solar calendar and one that uses the lunar calendar. Traditionally the lunar New Year's, called So-nal, has greater cultural and familial significance (In 2012 it will be celebrated on January 22 - 24).  As for the solar New Year’s celebration, in 1896, as part of reforms instituted to Westernize and modernize Korea, the Gregorian calendar was adopted, along with some of the West’s holidays such as the January 1st New Year’s celebration.  Today I find South Korea’s celebration of the Jan. 1 New Year similar to celebration in America. For example. Koreans make New Year’s resolutions where they promise to exercise regularly or eat fewer sweet things—such as chocolates and candy.  A popular resolution every year is to study harder to improve English language skills—a skill seen as crucial in the workplace.  It’s appropriate to wis...

Happy Holidays 20 11 As the holidays approach, you may wish to greet your Korean colleagues with: Sae hae bok man i ba deu say yo ! (Season's Greetings) (I will modify the Romanization for easier pronunciation). Hint: Break the greeting into:  sae hae bok—mah ne—bah deu say yo In South Korea, the government recognizes Christmas December 25 as a public holiday. This year it falls on a Sunday, so most are back to work on Monday. Christians, who make up about 30% of the population, celebrate the occasion as a religious holiday. Like in the West, both Christians and non-Christians may engage in some holiday customs such as gift-giving, sending Christmas cards, and setting up decorated trees in their homes. What may surprise some is that public and company Christmas trees and decoration stay up way past the holiday. In fact, many stay in place to the Lunar New Year in late January. Sae hae bok man i ba deu say yo ! works well and is a common seasonal greeting.  For those wa...

By Don Southerton, BCW Editor New Urbanism: Smart, Sustainable Growth -- Fantasy Vs. Reality Guest Post By Don Southerton As mentioned in a previous Forbes guest article, I live in Belmar, a new urbanism community in Colorado. With today’s global and often virtual workplace, about half my day centers on Korea. Between trips to Seoul and being highly involved in Korea-facing business I’ve long observed Korean trends toward quality of living, green and sustainability. For example, trendy Korean Starbucks asks patrons to separate their trash from hot liquids—not trashing unused coffee with the paper waste—soggy paper is hard to re-cycle. I also support Korean manufacturers like Hyundai and Kia Motors. I see them striving to produce the next generation of green and sustainable cars: Outside the hybrids, eCars, and Fuel Cell Electric Vehicles (FCEV), the materials now used in the assembly of the vehicles are increasingly eco-friendly along with a bold program for the recycli...

By Don Southerton, BCW Editor Lots of interest in my new book  The Hyundai Way .   Here is a FAQ that shares some common questions I'm often asked by friends and colleagues. Lots of interest in US, globally, and in Korea, too. Q-Where can I get a copy of the book?  A-Not yet, I’m still writing. To connect with readers, I’m been sharing the process over the past year through emails, blog posts and social media like Facebook, Twitter, and LinkedIn. I’m also circulating early drafts to get feedback and comments. Q-Then, when will the book be released?  A-Lots depends of funding. So far, I’ve covered research and writing costs. If funding can be obtained from the Hyundai Motor Group or similar interested party, I can dedicated more time and effort.  Q-Can we see an outline of the book?   A-Sure. Dedication Acknowledgements Foreword Chapter 1 Quest Chapter 2 Korea and its Culture Chapter 3 Hyundai Heritage Chapter 4 Defining  Th...

By Don Southerton, Editor With South Korea president Lee Myung-bak signing the KORUS FTA, we see the major trade agreement taking effect in January 2012. Long a topic of  BCW Blog, we were pleased to hear Sean King, Senior VP of Park Strategies, CNBC's comments on KORUS FTA. See  http://video.cnbc.com/gallery/?video=3000059540 Loved Sean's comments and observations on Korean cars.  GM Korea (formerly GM Daewoo) Chevy ribbon badging was a smart move....Old gray GM Daewoo showrooms are now Chevy Town.... colors bright.... etc. Might have something to do with 2 former heads of Hyundai Motor America marketing now running GM and Chevy marketing globally.

By Don Southerton, BCW Editor KEB Lone Star continue to draw media attention. In fact, it has long been a lightning rod for controversy. I'll soon post an audio of  my recent TBS eFM interview on issues surrounding Lone Star and KEB. That said, one dimension to the controversy is---Does Lone Star warrant the huge payoff ? Maybe... 1) they did turn KEB into a hugely success bank. 2) if there had never been issues that tied up  KEB Lone Star  in the courts, Lone Star would have preferred  to sell their holdings in 2006 and in subsequent aborted deals. Ironically being forced to hold on the FEB, Lone Star will reap even more gains. Comments and / or questions?  

My article in Forbes...    I've been a long time advisor on the  Korea-facing  project  providing high  level strategy and cross  cultural support. In a follow-up article,  I plan to look at expectations and reality, plus why Green cars have a role in new urbanism. http://www.forbes.com/sites/jaynejung/2011/11/15/new-urbanism-comparing-songdo-south-korea-to-belmar-usa/ New Urbanism: Comparing Songdo,  South Korea   to  Belmar ,  USA   Songdo,  South Korea  Master Plan Guest Post By Don Southerton I’m a baby boomer. I grew up in a small town of 6,000 in northeastern Pennsylvania—a county seat surrounded by dairy farms. We walked to the elementary school, the neighborhood store for a loaf of bread and maybe a soda, and weekly shopping trips downtown–3 blocks from home. Most backyards displayed gardens with long rows of vegetables, some yards cultivated grape vines, raspberry bushes, or an...

By Don Southerton, BCW Editor One of my new projects--tying an interest in Korea, Green, and sustainability with new urbanism--Incheon's Songdo IBD and Denver's Belmar communities.   See the FB Link Double Click to View