Posts Tagged ‘LG’

Korea Facing: Decision Making

Friday, October 5th, 2012
Korea Facing: Decision Making

By Don Southerton, KoreaLegal.org Editor

As noted in the 3 previous Korea Facing hierarchy articles (see LINK below), power in Korean companies is often very centralized and only people at the highest level have the right to decide on issues. In Korea, the working team’s role is to implement or gather needed information. In other cases where overseas leadership and teams hope to offer a new service or program, local Korean management’s role is to gather information and then share with the appropriate senior team members, who are often in Korea. The local opinion is valued, but review may come from Korea.

My Suggestion

When conducting a meeting where a decision must be made please recognize that your local Korean team(s) will have considerable say in it’s outcome. This may include both the operations and finance teams. First, since the topic and subject matter may be new to your Korean team, I recommend you share prior to the meeting any needed background documents (best provided in PPT format). In addition, have an informal pre-meeting Q&A with the Korean team leader to brief and update them on any specifics. Note: they may need a day to review proposals and agreements, so timing is critical. Even in the best cases, expect that the Korean team may want to postpone any decision until they can carefully review and perhaps confer with Korea. I suggest all documents and meeting PPTs be immediately forwarded to the Korean team. I’d create a sense of urgency with a timeline for execution and implementation. Regardless, expect some delays and be patient. Over the years, I’ve found that Korean teams appreciate when their overseas co-workers recognize that the internal approval process takes time and offer supportive data or documents.

BTW…if your firm provides services to a Korea–based partner, provide both the western and Korean teams with background information prior to any meetings. Moreover, be prepared to share the meeting’s content with the Korean team, too.

LINK to Korea Facing  http://archive.aweber.com/bcw-clients/DIzHI

Korea Facing: Decision Making

Henry Collbran, Korea, Denver, and Coors

Friday, March 2nd, 2012
Henry Collbran, Korea, Denver, and Coors

By Don Southerton, KoreaLegal.org Editor

I’d like to share the abstract for an updated article on Henry Collbran, the early 20th century concessionaire who established a number of Korea’s first western style ventures.  The full version of Collbran’s story will be published in the near future. Meanwhile, here’s a teaser.

Colorado’s Henry Collbran and the Roots of Early Korean Entrepreneurialism

By Don Southerton ©March 2012

 The signs of American activity, in the capital alone, are evident upon every side. The Seoul Electric Car Company, the Seoul Electric Light Company, and the Seoul (Fresh Spring) Water Company have been created by American enterprises, backed by the “liveness” and ‘cuteness (sic) of the two concessionaries…and pushed along by little diplomatic attentions upon the part of the American Minister.   Angus Hamilton, Korea, 1904

ABSTRACT

Korean brands have gained significant market shares in the United States and globally. Buyers find the products of high value and quality along with a trendy design. Another reason for this success with American consumers is Korean brands build upon themselves–asa Hyundai or Kia car owner shop at Forever 21, while toting a Samsung Galaxy smartphone.

What may surprise many is Colorado’s ties to Korea – for it was Denver-area entrepreneurs who provided early 20th century Korea with technology and know-how. The most successful of these capitalists was Henry Collbran (1852-1925). British-born, Collbran emigrated to America and found employment in the railroad industry, first in the Southeastern United States, and then in a number of diverse Colorado business ventures. On word that East Asia held rich untapped mining opportunities Collbran left for Korea in 1896 and after passing up the opportunity to invest in a gold mine concession the businessman was contracted to build the nation’s first railroad from the port city of Incheon to the capital Seoul. After the railway project, and with the assistance of Horace Allen, the missionary-doctor turned head of the U.S. legation, Collbran and his junior associate Harry Bostwich secured the franchise to electrify sections of Seoul and build a modern streetcar system. Over the next several years, the entrepreneur with additional concessions from Emperor Kojong operated the electric streetcar line, the power system, the first telephone system, a modern waterworks, a bank, a coin mint, and even a movie theater.

With the end of the Russo-Japanese War in 1905, Japan gained control over the East Asian peninsula. In the wake of the change, Collbran sold his major municipal assets to British and Japanese firms at considerable profit. Turning to mining rights granted prior to the Protectorate Treaty, Collbran pressed American and Japanese officials for the rights to develop the massive Kapsan copper mine near the headwaters of the Yalu River, in addition to leasing the Suan gold mining operation.  With support from investors, including beer baron Adolph Coors, at peak production the mines employed over thirty Anglos, including Collbran’s sons, along with five thousand Korean and Chinese laborers. Under pressure from the Japanese, the Kapsan mine of nearly one thousand square miles was sold in 1915. The Suan mine played out in 1924. Collbran died in his native England a year later, after spending the last decade living a life of leisure.

Henry Collbran, Korea, Denver, and Coors

Korean Business: Year-end Norms, Practices, and the Holidays

Sunday, December 19th, 2010
Korean Business: Year end Norms, Practices, and the Holidays

By Don Southerton, KoreaLegal.org Editor

With the year end, Korean Groups are in the middle of annual end of year reporting, restructuring, promotions, and new assignments. Many Korean team members already have begun to share news of the re-assignments, others will find out next week. Samsung Group announced a record number of Director and above promotions, we’ll see what happens at Hyundai Kia Motor Group and the other Groups. Meanwhile expect some change both at senior leadership and across the teams. Those receiving promotions should be congratulated–promotions bring considerable status along with a boost in wages.

On a more personal level…
As the holidays approach, you may wish to greet Korean colleagues with:
Sae hae bok man i ba deu say yo! (Seasons Greetings)
(I’ll modify the Romanization for easier pronunciation)

Hint: Break the greeting into: sae hae bok—mahne—bah deu say yo

Sae hae bok man i ba deu say yo! works well both in person, in a card, or an email. It is a common seasonal greeting into the New Year.

On behalf of myself and Korea Legal.org have a happy holiday season!

Sae hae bok man i ba deu say yo!
Questions? Feel free to contact  dsoutherton@bridgingculture.com 1-310-866-377

Korean Business: Year end Norms, Practices, and the Holidays

An Upside for Korean Global Business? Another Side of the North South Tensions

Sunday, May 30th, 2010
An Upside for Korean Global Business? Another Side of the North South Tensions

By Don Southerton, KoreaLegal.org Editor

Over the past week, I’ve been sharing my thoughts on the recent heightened tensions between North and South Korea over the sinking of the Cheonan naval vessel.

After a lengthy investigation following the March incident, a multinational forensics team concluded unanimously it was a North Korean torpedo that sank the South Korean ship.

Why did North Korea launch such an attack knowing it would anger even those sympathetic to their plight? In correspondence, Marcus Noland, noted NK scholar, shared his thoughts on North Korean motivations. They include:

1) Revenge (for an earlier encounter where the North took a bruising from the South’s better equipped navy).

2) Brinkmanship

3) Wave the bloody shirt—divert attention inside the North from disastrous confiscatory currency reform.

4) Influence South Korean National Assembly elections–the current president Lee Myung-bak administration’s takes a hard line approach to the North and opposition leaders have long supporting a more conciliatory path.

5) Succession—Kim Jong Il’s son and his peers might get credit for the attack and it would be a show of strength to defy the South and their allies.

That said, tension and emotions are running high. In fact, more so than in years. June elections, pro-North supporters, anti-North war veteran groups, and the media continue to fan the situation.

Without ignoring or downplaying the human suffering and loss resulting from the Cheonan sinking… So, why might this benefit Korean global business? Samsung, Hyundai-Kia Motors and LG derive much of their profits from international sales. Even with the global recession last year, they all performed well—lots due to a weak Won. This year the Won was strengthening against the Dollar as the South Korea economy recovered. This could mean that overseas profits this year would in turn suffer.

Interestingly, the Korea Economic Institute notes that when a threat arises from the North the Won drops in value to the Dollar. (Please review the full article posted by the Korea Economic Institute.) Click Here

So what may foster fear and concern among many working for Korea-based global organizations, the current tensions might actually have some benefit– at least in short term profits.

So what can we expect…. Over the next few weeks, we’ll see defensive positioning of the South Korean and US military forces, more sanctions against the North, China and Russia trying to avoid taking sides, and the North grabbing as much media attention as it can.

Questions? Comments?

An Upside for Korean Global Business? Another Side of the North South Tensions

Kodak, Samsung, LG and Patent Infringements

Monday, January 18th, 2010
Kodak, Samsung, LG and Patent Infringements

By Don Southerton, Korea Legal Editor

One common concern with doing global business is trade and patent infringement, which are complex and costly–to both defend and protect. This recent case involving Kodak, Samsung, and LG provides some insights into Korean business. First Kodak is vigilant in protecting its IP. Next, Samsung and LG eventually saw that settling the case was in their best interest and would open doors for cross-licensing technology. That said, LG settled first, while Samsung waited until the U.S International Trade Commission ruled against them.

In comparing Samsung and LG, I see shrewder brinkmanship on the part of Samsung. This is no surprise and points out the need to understand Korean business and their unique corporate cultures. (Samsung, LG, Hyundai-Kia, Lotte, Hyosung, Hanjin, SK, Doosan, etc–all differ).

A Brief Overview
Kodak Takes Action Against Samsung and LG For Patent Infringement
Kodak Asserts that Samsung and LG Camera Phones Infringe its Digital Camera Patents

ROCHESTER, N.Y., Nov. 17 2008 — Eastman Kodak Company (NYSE:EK) announced today that it has filed complaints against Samsung Electronics, LG Electronics and other related entities for infringement of Kodak patents.

The Kodak actions specifically allege that Samsung and LG camera phones infringe Kodak digital camera patents. The patents in question cover technology related to image capture, compression and data storage and a method for previewing motion images.

Kodak filed against Samsung and LG in the United States District Court for the Western District of New York, as well as in the U.S. International Trade Commission. Kodak’s District Court complaints request compensation for damages resulting from the companies’ infringement, and both the District Court and ITC actions seek injunctions prohibiting Samsung and LG from further importation and sale of products cited in the complaints. Kodak did not disclose the amount of damages it is pursuing.

Full Circle
In February 2009 both Samsung and LG flied suits at the U.S. International Trade Commission over some alleged patent infringement by Kodak.


LG Settlement
ROCHESTER, N.Y., Dec. 4, 2009 — Eastman Kodak Company (NYSE: EK) announced today that it has entered into a technology cross-license agreement with LG Electronics, Inc., which will allow each company broad access to the other’s patent portfolio.

ITC Ruling
December 18, 2009 – An administrative law judge at the U.S. International Trade Commission ruled that Samsung has infringed two camera patents developed by Kodak.

Samsung Settlement
ROCHESTER, N.Y, January 11, 2010. —Eastman Kodak Company (NYSE: EK) announced today that it has entered into a technology cross license with Samsung Electronics Co Ltd. that will allow each company access to the other’s patent portfolio.

The license agreement, which provides significant benefits to both companies, is royalty bearing to Kodak. The company received a payment from Samsung in December that has been credited toward its royalty obligation. Additional financial details were not disclosed.

In December, Samsung and Kodak agreed to negotiate a settlement over digital camera patents issues, which could include a cross-licensing deal, Kodak said Wednesday.

The companies also entered into an agreement to file joint requests for the termination of patent infringement proceedings before the U.S. International Trade Commission, and to settle their patent infringement lawsuits against each other, which are pending in U.S. District Court for the Western District of New York and in the German courts. Both the settlement of the litigation and the license agreement become effective upon approval by the International Trade Commission of the joint requests for termination. The ITC is expected to make its determination by the end of January 2010.

Kodak, Samsung, LG and Patent Infringements