By Don Southerton, KoreaLegal.org Editor
Seems like Yale University is struggling with the Dongguk lawsuit that stemmed from the Shin Jeong-ah scandal in Korea.
I have long felt that Yale has downplayed the controversy. Perhaps this is in part Yale leadership and lawyers not truly understanding Korean academia and the credibility they place in American universities like Harvard, Princeton and Yale (HPY to Koreans). Hate to be so bold, but I could help here…. Culture matters.
AP Notes… A federal judge in Connecticut has rejected a second bid by Yale University to throw out all the allegations in a lawsuit filed by a South Korean university that claims it lost tens of millions of dollars after Yale damaged its reputation.
Dongguk University claims in the 2008 lawsuit that it hired an art history professor after Yale wrongly confirmed the professor earned a doctorate at the New Haven school. Court papers say the professor, Shin Jeong-ah, later had a scandalous love affair with an aide to South Korea’s president.
Dongguk, a Buddhist-affiliated university in Seoul, is suing Yale for more than $50 million, saying it lost that amount in government grants, alumni donations and costs of building a law school the government later refused to approve because of the scandal.
U.S. District Judge Tucker Melancon on Friday rejected most of Yale’s motion for summary judgment. While the judge granted Yale’s request to dismiss a civil charge of reckless and wanton conduct, he let stand allegations of defamation and negligence.
A trial is set for June. Yale previously lost a bid to get the lawsuit dismissed.
“We were very pleased with the decision,’’ said Robert Weiner, a New York City lawyer for Dongguk. “We believe we have lots of damages we can establish at trial.’’
Weiner said Dongguk is the most prestigious Buddhist university in the world and it suffered a huge blow to its reputation with the Shin scandal.
Lawyers for Yale didn’t return messages Monday. University officials have said the lawsuit is without merit and they would defend against it.
Shin was sentenced to 18 months in a South Korean jail in March 2008 for using fake Yale credentials to get the professor’s job at Dongguk and for embezzling museum funds. Officials said she also faked two degrees from the University of Kansas in getting the job in 2005.
The former presidential aide, Byeon Yang-kyoon, was accused of using his influence to get Shin hired by Dongguk. He was forced to step down as an aide to then-President Roh Moo-hyun because of the scandal.
Byeon was sentenced to a suspended one-year jail term and 160 hours of community service in 2008 for exercising his influence to provide state tax benefits to a Buddhist temple founded by a former Dongguk official who helped hire Shin as a professor, South Korean officials said.
Yale told Dongguk in June 2007 that Shin didn’t receive a doctorate there, saying a letter confirming the degree that Shin presented to Dongguk was bogus and forged. Yale also told Korean media that it never received a registered letter in 2005 from Dongguk asking whether Shin had received a doctorate, even though it did receive the letter, the lawsuit said.
Yale later apologized to Dongguk in late 2007 for what it called an administrative error. But Dongguk officials said by that time the damage to its reputation had been done. South Korean media reported in the summer and fall of 2007 that Shin’s academic degrees were a fraud, that Dongguk failed to verify Shin’s degrees, that Shin had an affair with Byeon and that Byeon had recommended to Dongguk officials that they hire Shin, court records say.
Source: LINK
2012 Trends and Expectations—A Korea-facing Commentary
Sunday, January 1st, 2012By 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 forward to 2012, first, the succession in North Korea will continue to be a concern. Issues include the stability of the Kim regime, threats of more border clashes, and an unchecked nuclear arms program. I’ll continue to monitor and share news as it unfolds.
Next, building on the momentum of the past 3 years, expect Korea’s export-driven firms to push their organizations to carve out greater global market shares. Look for even bolder announcements and sales targets than in the past. For example, Hyundai Motor Company, along with their sister firm Kia Motors, announced their global goals for 2012—targeting sales of seven million units. This is a significant increase from estimated sales of between 6.5 and 6.6 million the group expects for 2011.
Not to be outdone, Samsung Electronics, with record 2011 cell phone sales, intends to increase their total by as much as 15%. This translates to approximately 374 million phones, including 150 million smartphones for 2012.
One change from the past 2 years…., I expect few new foreign brands to enter the Korean market in 2012—part saturation, part concerns by the major Groups over the euro-zone fiscal crisis and a stalling U.S. economy undercutting global demand that in turn has an impact on the domestic economy. Two exceptions. One will be services benefitting from KORUS FTA such as U.S-based international law firms wishing to expand into Korea. The second are highly successful brands and products that bring with them strong appeal and a ready market—for example, Chipotle.
For those foreign businesses and brands that do plan to enter the Korean market or partner with Korean firms, I suggest they take efforts to understand not only the culture, but also business norms and expectations. For example, your key management needs access to coaching and someone to answer their questions on topics ranging from strategy to the impact of routine management changes within their Korean partner’s organization. It’s a small upfront investment and less costly than the consequences, which can include lawsuits, local and expat employee turnover, and months of missed goals and low productivity—not to mention tensions between you and the client over expectations. I know this area well—most recently handling the negotiations for a major brand launch in Korea.
Finally, expect further growth in Korean Green technology (wind power, solar, eCars, batteries), along with Korean overseas acquisition of energy related firms. With regard to Green, most of Korea’s major Groups have boldly entered the renewable and sustainable side of the market with plans to expand sales and distribution globally. This includes state of the art manufacturing facilities for wind turbines, solar cells, next generation batteries, and electric power trains. In particular, Hyundai and Kia introduced hybrid models in 2011, with the group aiming to launch a variety of eco-friendly models in 2012.
To conclude, understanding the dynamics of Korea’s economy, markets, and major business groups is vital. It is critical to take into consideration Korea’s past and current trends. Culture, global influences, and a 24-hour virtual workday add to this complexity. I’m dedicated to providing much needed research, analysis, and critical thinking to provide you with answers and insights 24-7-365.
Please feel free to share this commentary across your organization and teams.
If needed, I can also provide more details on specific market sectors, etc.
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