Many thanks to Korea Herald and reporter Elaine Ramirez, the
article shares my views on Korea facing global business.
http://www.koreaherald.com/view.php?ud=20130408000691
No Two Chaebol Are Alike, Author says
By Elaine Ramirez
While Koreans’ rising presence on the global stage is hard to
ignore, how to do business with them as a non-Korean is an
increasingly tricky area little covered in English-language
literature. Don Southerton explores the niche with his recently
published book ”Korea Facing: Secrets for Success in Korean Global
Business,” which picks apart how to work with a Korean conglomerate
from the ground up, for non-Koreans working in Korean branches
overseas.
“Over the years I witnessed firsthand cross-cultural issues that
surfaced as Korean companies expanded globally. My role has been to
address these issues such as poor trust among the Korean and
Western teams, lack of communication, local employee turnover and
managing expectations,” Southerton said in an email interview with
The Korea Herald.
Although he has long been aware and exposed to the cultural
differences in Western and Korean business settings, he said, it
was when he began working at a Korean subsidiary in the U.S. in the
early 2000s that he witnessed the differences between how U.S. and
Korean teams managed the company.
He noted that the differences in decision-making processes, for
example, had been a particular source of friction between Korean
and Western teams: Key decisions were always deferred to the parent
headquarters in Korea, and Koreans in the overseas branches needed
to scrutinize and approve even the most mundane matters, regardless
of the Western team’s experience in the field.
He discovered, as he writes in ”Korea Facing,” that all too many
frustrations were rooted in not knowing how to do things ”Korean
style” ― or, for the Korean side, not knowing any other way.
In ”Korea Facing” he shares his personal experiences from working
particularly for Hyundai-Kia overseas branches as a coach,
consultant and trainer with those Korean and Western teams, and
offers experience-based advice for overcoming those workplace
challenges.
His chapters explore basic business culture lessons, from the
levels of the Korean managerial hierarchy, to nuances on the right
timing for getting approvals, meeting protocol ― upon meeting
foreign teams, Koreans line up their business cards on the table to
match their seating order, and he advises doing the same ―
identifying and resolving conflicting expectations and ambitions of
Korean and Western teams, and insight on just how much the Korean
chairman’s wife might influence the direction of the company.
But Korean companies are gradually loosening their neckties and
adapting to Western business practices, he notes.
“I feel the Korean groups have seen the need to be flexible and
adapt quickly to changes in global economic fluctuations,” he said.
“For example, in the recent global recession they saw an
opportunity to expand when others pulled back in production, R&D
and marketing. They capitalized on this opportunity to leapfrog
ahead of the competition.”
Additionally, young Korean employees sent overseas have often
attended school or lived abroad, and increasingly more Korean
executives have worked overseas as expats. And as the overseas
businesses are increasingly using English to communicate, so, too,
do they adapt more casual Western business norms and practices, he
added.
Beyond all the differences between Korean and non-Korean working
cultures, Southerton noted, Korean companies deal with many of the
same challenges: How quickly projects can be approved and executed
depends on the individual company; Korean and Western companies
both struggle with generational gaps when trying to create harmony
and cohesiveness within their ranks; and no two Koreans or Korean
companies are alike, nor should they be approached as such.
The last is a theme he drives throughout his book ― affiliates
under the same chaebol and even sub-divisions of affiliates have
entirely different business cultures, and it is important not to
work on assumptions based on experiences with other companies, he
emphasizes.
“One common mistake by Western teams outside Korea is assuming that
because they might have worked for other global companies such as a
Japanese firm that they will have few challenges adapting to a
Korean company,” he said. ”Norms, expectations and mindset differ,
even with Korean groups.
“Many Western overseas teams have stereotyped Koreans, often based
on their interactions with the early expats dispatched to the local
operation. Like Westerners, experience, training and skills vary ―
some Korean expats do well while others struggle,” he added. ”In
global business we need be mindful of others, and recognize that
Korean teams and leadership vary in their approaches to challenges
and management.”
“Korea Facing: Secrets for Success in Korean Global Business” is
available through iBook, Kindle, Nook and Amazon…
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US Korea Connect–A Hidden Benefit of KORUS FTA
May 5th, 2013by Don Southerton April 30, 2013
I have long followed and supported both successful market entry of Korean business into the US and American firms to Korea. This mutual success has centered on product, retail and quick service restaurants, with limited opportunities in the service sectors. The KORUS FTA will make a huge change in this exchange. In the area of services, I see KORUS FTA as a game changer.
A few weeks ago, United States Secretary of State John Kerry visited Korea and spoke about the importance of trade between our two nations. This month, President Park will visit the White House to reaffirm our countries’ mutual commitment and celebrate the 60th anniversary of the U.S.-Korea strategic alliance. Since its implementation last year, the KORUS FTA has given that alliance a new dynamic. One area of the agreement that should receive more attention is trade in services.
At its core, trade in services is trade in ideas. Whether legal, financial, technical, or in the tourism industry, the services exchanged between the U.S. and Korea expand mutual access to highly skilled talent. That talent is vital in generating the ideas that will define our economies tomorrow. In fact, today’s leaders in the U.S. service industries are using the KORUS FTA to recruit and nurture that talent.
Unlike the banking and insurance sectors, non-Korean legal and accounting firms faced entry barriers prior to the KORUS FTA. Today, American law firms like Cleary, Gottlieb, Steen & Hamilton are able to open offices in Korea under the KORUS agreement. Law firm Ropes and Gray, Another U.S. Korea Connect success story, sees their new ability to open physical locations in Korea as a way to show their dedication to Korean clients.
Outside the obvious benefits to service related firms, under the KORUS FTA, U.S. businesses are generating and exchanging ideas more freely. But the best is yet to come. American companies have expressed the need to hire additional Korean professionals to help them navigate the Korean marketplace. Professional visa reforms under consideration by the U.S. Congress will fulfill that still unmet need, allowing companies to take greater advantage of the KORUS FTA.
As the pace of business quickens, service providers need a regulatory framework that provides them maximum flexibility. A fluid business mechanism that promotes and enhances innovative ideas is essential for prosperity in both countries. That’s precisely what the KORUS FTA does for the service industry.
About Don Southerton
Don Southerton has held a life-long interest in Korea and the rich culture of the country. He has authored numerous publications with topics centering on the Korean auto industry, new urbanism, entrepreneurialism, and early U.S.-Korean business ventures. Southerton is often called upon by the media (the BBC World Service, CNN Fortune, Bloomberg TV, Korea Herald, Korea Times, Yonhap, Wall Street Journal, Forbes) to comment on modern Korean business culture and its impact on global organizations. His firm Bridging Culture Worldwide provides strategy, consulting and training to Korea-based global business.
Link to Article
http://www.uskoreaconnect.org/blog/2013/04/trade-in-ideas-a-hidden-benefit-of-korus-fta/
Tags: Don Southerton, Korea consulting, Korea market entry, KORUS FTA, US Korea Connect
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