The Incheon-IFEZ Promotion Booth to showcase innovative South Korean Incheon startups.
Special guest Incheon Mayor Yoo Jeong-bok will share his smart city vision and future strategies, showcasing innovative technologies and urban plans to the world.
The city of Incheon and the Incheon Free Economic Zone Authority (IFEZ) will participate in the 2025 Consumer Electronics Show (CES) in Las Vegas.
Of particular interest and a not to miss event, on Tuesday, January 7, from 10:30 to 11:30 AM, at North Hall #9037, Incheon and IFEZ will host their “Unveiled Incheon” reveal: “Urban Renaissance: Building Tomorrow’s Smart Cities Today,” featuring special guest Mayor Yoo Jeong-bok.
Mayor Yoo will spotlight his vision, highlighting Incheon and IFEZ’s global leadership by presenting its smart city vision and future strategies, showcasing innovative technologies and urban plans to the world.
We are currently scheduling a limited number of media interviews with the visionary Mayor for January 7, 2025. (See media contact below to arrange an interview and RSVP).
“On behalf of the City of Incheon and IFEZ, we invite you to visit us in LVCC North. Booth # 9037 to learn more about our technology partners, our Innovation Award Honorees, and the opportunities we offer within the Incheon Startup and Tech Park ecosystem. I look forward to meeting you at CES 2025, as we enter the Renaissance of the Smart City.” Mayor Yoo Jeong-bok
Products and technology to be introduced and showcased at CES 2025:
Verses- A music-tech startup that develops user-driven music experience services. A 2025 CES Innovation Award Honoree.
Sheco- A maritime and inland water clean-up robot.
PABLO AIR- at the forefront of drone innovation, developing proprietary autonomous swarming technology and swarm control platform.
Motov- Based on real-time urban data collected and Edge AI technology, operates an Alot advertising and data-driven AI business.
ILias AI- a digital sniffer dog drug detection scanner utilizing olfactory AI technology. A 2025 CES Innovation Award Honoree.
PurrSong- dedicated to improving the “lives of cats” through an AI-enabled Internet of Things (IoT) healthcare ecosystem.
ZipShowKorea- A smart content production company that produces innovative content including online exhibition halls, VR, AR, media walls, artificial intelligence (AI) content, ultra-high resolution 8K content, realistic experience zones, and entertainment fields.
Nine Watt- A key player in urban energy savings, its flagship platform, Watti, uses geographic information system data and simulation tools to diagnose the energy efficiency of buildings and factories across cities.
Future Sense- Leveraging blockchain-based data-driven food safety and supply chain management to create an efficient manufacturing and distribution ecosystem.
Deep Fusion AI-Providing 4D image radar applications for the real environment.
Additionally, Twelve companies supported by the City of Incheon have received Innovation Awards.
Don’t hesitate to contact us to learn more about our partner companies and schedule one-on-one meetings.
Incheon has become a global business hub boasting an ideal international business environment. It includes Incheon International Airport, the rapidly growing Incheon Port, world-class foreign universities located in the Songdo Global Campus, and an international business and bio-hub. The Incheon-IFEZ is where everything from bio to logistics, medical care, education, and high-tech industries can be enjoyed.
Participants will gain deep insights into Korean business, whether new hires, on a team assigned to Korea-related projects, or those of you who have been engaged for a long time.
This is a well-recognized program for anyone who works with Korean or Korean teams.
The virtual classes will be solution-oriented and highly interactive, including Q&A and timely topics.
It’s common for a Korean company’s leadership to decide on direction and major issues. These can range from a shift to Smart Manufacturing to greater SWP (software-based production) or a new business line. In turn, they can request a TFT (task force) and local teams to gather and prepare needed information.
Then, if approved, the dedicated staff will report back to HQ on implementation and progress.
In cases where overseas leadership and teams hope to offer an idea, new service, or program, local Korean and Western management’s role is to prepare—gathering supporting information, the reasoning behind, and ROI, then sharing it with the appropriate senior team members, who are often in Korea.
The local opinion is valued, but review and final approval may come from Korea.
My suggestion…
When conducting a meeting where a decision must be made, please know that your local Korean team(s) will have a significant say in the outcome. This may include both the operations and finance teams. Their primary concern will be risk.. so do your best to mitigate.
Since the topic and subject matter may be new to your Korean team, I recommend you share the needed background documents (best provided in PPT format) before any meetings.
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 be ready to offer as-needed supportive data or documents.
In our next edition, we will examine the 2024 Approvals. So stay tuned and follow our Newsletter and YouTube videos.
Are you engaged in high-priority projects or business proposals?
I can give you some perspective to make sure it works well. Let’s talk.
This week, we examine how Culture shapes our Communication.
It influences how much information we share and whether specific topics are considered sensitive or beyond our boundaries. For example, in the West, we use “low-content” communications. Conversations are direct and can be confrontational.
We require background information or an update—little is assumed to be known, including why an issue may need to be deemed sensitive.
Transparency means fewer boundaries, too, but often we may say, “Let’s keep this between us” or “Keep this private.”
Within Korean organizations, the very nature of the Asian “high content” culture means less is shared in explicit verbal and open communication. This is because teams have long-lasting relationships, much is shared informally within their circle of close, trusted colleagues, and much is accumulated knowledge.
This means issues require little background explanation or even “catch-up” discussion.
Yes and No… and the need to clarify
Koreans often acknowledge what they hear by saying “Yes” or nodding (the Korean term for yes is Ne), but this does not necessarily signal agreement. They tend to avoid open disagreement and confrontation..
In Korean culture, it is rare for people to respond to a question or request with a direct “No.”
In negotiation and decisions, Koreans rely on nonverbal signs such as tone of voice, facial expressions, and body language. They look for meaning and understanding in what is not said and even in the greater content beyond the conversation, such as disruptive business events that could impact decisions.
This non-explicit communication can indicate a firm “no” or rejection of an idea or plan. Many Westerners may miss this, waiting for a verbal or written “no” or “yes.”
In many situations, especially during negotiations, there is often a non-confrontational response, such as “if possible” or “that is difficult.” Understanding the Korean and Western perspectives is vital for global organizations. No culture is right or wrong; it is simply different.
Our aim should be to foster a deeper understanding of each other’s communication styles and their implications for global business.
Questions, comments, feedback, and business inquiries are always welcome. Let’s set a time.
Don Southerton here…I work with Korean and Western teams daily.
It’s common in Western meetings to first discuss the issues, some background, and potential repercussions as part of the work-through
Then, after discussions—sometimes at length—the team will ponder what steps must be taken, including individual input with a range of choices and potential countermeasures, all of which may require more thought and pushing things to further discussion.
In contrast, Korean teams are aware of the issue and prefer to focus talks on the solution and immediate steps, then report these plans and actions to leadership.
When tackling an issue, I recommend a collaborative approach in which teams are transparent, clearly state the challenges, and agree that potential downsides may exist.
Then, it’s best to move on quickly and devote the meeting to actionable steps and a solution-oriented discussion.
Streamline
In advance, solution-oriented talks can be streamlined by sharing a PowerPoint that states Point 1—the Issue—and Point 2—any concerning downsides—and then asking for feedback.
For the meeting limit or sidebar, any deep discussions on either point, ask the team to dedicate the meeting to Point 3—actionable and solution-oriented steps.
Timeline for Execution
The final step for any meeting is to determine and set a feasible timeline for execution and outcomes.
This is very important, as it will give the Korean team deliverables to report to leadership—a norm and expectation.
Questions, comments, just ask.
I, too, am always open to new projects and opportunities.
To schedule a time to talk, please use my Calendar.
Back by popular demand: Korean Business– Executive Level Coaching.
In this October YouTube episode, we look at Korean Business– Executive Level Coaching.
We have offered executive-level Korean business coaching to major Korean Groups, including Hyundai, Kia, MOBIS, Hyundai Capital, and Innocean, as well as key partners and top Western companies.
Many see this as an ambitious step towards career enhancement and job security.
The program covers key issues and what to expect for the rest of 2024 and into 2025.
Each program is tailored to your unique needs and work experiences, ensuring a personalized, compelling learning journey.
The program is for leaders with experience working with a Korean group or those new to the company.
We’d like to invite you to schedule a time using our Calendly to discuss details, taking the first step toward your career enhancement and job security.
Again this is Don Southerton… wishing you all the best.
In this episode, I’ll share ten insights into Korean working teams’ DNA, norms, and mindset. The list was compiled by a Korean colleague who asked me to share it in my workshops and give others a better understanding of Korean work culture.
If you have a question or would like more information … call, text, or email… and I’ll get right back to you.
We offer a full suite of programs, from executive-level Coaching to our popular group Korean Business Culture Workshops for the team and 6-week one-on-one individual classes.
Time proven since 2003.
All our courses provide participants with deep insights into Korean business, whether new hires, on a team assigned to Korea-related projects, or those of you who have been engaged for a long time.
Register today for the Executive, individual coaching, or group workshops.
All are excellent programs for anyone who works with Korea or Korean teams.
The classes will be solution-oriented and highly interactive, including Q&A and timely topics.
Call, Text, EM, or Message to discuss what program fits best….
Understanding how culture shapes our communication is crucial. It influences how much we share information and whether specific topics are considered sensitive or beyond our boundaries. For example, in the West, many use “low content” communications.
Conversations are direct and can be confrontational. We require background information or an update—little is assumed as known, including why an issue may need to be deemed sensitive. Transparency means fewer boundaries, too. We may, although, use “Let’s keep this between us” or “ Keep this private.”
Within Korean organizations, the very nature of the Asian “high content” culture means less is shared in explicit verbal and open communication. Since teams foster long-lasting relationships, much is shared informally within their circle of close, trusted colleagues, and much is also accumulated knowledge, so issues require little background explanation or even “catch-up” discussion.
Yes and No…
Koreans often acknowledge what they hear by saying “Yes” or nodding, but this does not necessarily signal agreement. They tend to avoid open disagreement and confrontation.
In Korean culture, it is uncommon for people to respond to a question or request with a direct “No.” In negotiation and decisions, Koreans rely on nonverbal signs such as tone of voice, facial expressions, and body language.
They look for meaning and understanding in what is not said and even in the greater content beyond the conversation, such as business events that could impact decisions.
These non-explicit communications can indicate a firm “no” or rejection of an idea or plan. Most Westerners miss this, waiting for a verbal or written “No” or “Yes.”
In many situations, especially during negotiations, there is often a nonverbal response or a response such as “if possible” or “that is difficult.” Understanding the Korean and Western perspectives is vital for global organizations. No culture is right or wrong; it is just different.
My work centers on providing support, mentoring, and solutions. I aim to foster a deeper understanding of the Korean communication style and its implications for global business.
I’m looking forward to hearing your comments, feedback, and business questions.
The bustling city of Incheon, South Korea, and its busy port, including Songdo, were once known as Chemulpo. It was Korea’s first international city.
Interestingly, Incheon Metropolitan City mayor Yoo Jeong-bok envisions transforming the city into Asia’s premier business hub, aspiring for it to become one of the world’s top 10 cities.
In the late 19th century, Chemulpo emerged as the main port for merchants trading with Korea. Strategically located on the west coast, it was home to residents from China, Japan, Britain, America, Germany, and Russia.
Many Western traders and officials gathered at the Chemulpo Club, which overlooked Incheon Harbor and was a popular meeting place for expatriates in the early 1900s. In 1896, William Franklin Sands, a young American diplomat newly assigned to Korea, described Chemulpo and its high and low tides that exposed great expanses of mud as “an unattractive entrance to a great adventure.”
Accounts from that time also depict the Chemulpo Club as a gathering place for foreigners to discuss political and business developments in the turbulent days before Japan formally annexed Korea in 1910.
The club was established in Seoul in August 1891 by diplomats and merchants from 11 countries. They initially met at a Western-style building in Seoul’s downtown Jung District.
However, in 1901, the Russian architect Aleksey Seredin-Sabatin built and relocated the Club to a two-story location in Chemulpo, which had become the hub of trade.
Suffering from neglect and the ravages of the Korean War, the club was restored in the late 2000s.
The book was a historical and contemporary research endeavor—including tracking down and acquiring rights to never-published early 1900s photographic plates, and translating the English content into the Korean language, too, for a bilingual work.
The search for images would span both continents–starting at Yonsei University Library where they attributed a series of engaging day-to-day Chemulpo images to the Keystone-Mast Collection, at the UCR/ California Museum of Photography, University of California, Riverside.
The Keystone-Mast Collection comprises over 350,000 stereoscopic photographs and negatives that depict the world between the late-nineteenth and mid-twentieth centuries.
The UCR collection houses several archives including the Korean travelogue stereoscopic plates. In an era before widespread movies and the invention of TV, handheld viewers gave a 3D-like stereo image—often of far-away and iconic destinations.
These images stand out as if taken today bringing clarity into the Chemulpo port life.
The August 2009 Chemulpo book event would attract over 100 attendees, including Mayor Ahn Sang Soo and his entourage, American and Korean officials from the Songdo IBD project, former U.S. ambassadors to South Korea, members of the press, and local dignitaries.
Following the book presentation, a walking tour was conducted for the guests of Incheon’s Jayu Park and the historic Chinatown district.
Looking back, Incheon and Songdo have a rich international business history, and today, one that continues to adapt and draw global attention and opportunity.
The city of Incheon, and its port, including Songdo, were Korea’s first international city.
This today, aligns well with the vision of Incheon Mayor Yoo Jeong-bok and the region’s Incheon Free Economic Zone (IFEZ) commissioner Dr. Wonsok Yun for the city to become one of the world’s top international business hubs. Dr. Peter Wonsok Yun
Songdo today – Image by Daesun Kim
You can view and download a complimentary copy of Chemulpo to Songdo IBD: Korea’s International Gateway here. Enjoy.
A client recently shared the content and deep understanding I had shared on Korea, specifically on working with Hyundai.
The term “Hyundai Whisperer” has been used to describe my consultancy both for working with teams and in the media.
This continues, and more recently, in my work and interviews with Korea Times, CNBC, and Branding in Asia, where I have focused on the “big picture” of transforming the Hyundai Motor Group from a fast follower to a game changer.
I see my role as supporting those new to Hyundai and those engaged but with little insight into “working with culture,” its processes, expectations, and ever-changing norms.
I will continue to provide “knowledge of the tribe, ”insights, and client support worthy of the title — the “Hyundai Whisperer.”
Would you be interested in learning more? Let’s chat.
Globally, foreign direct investment in the tourism sector has been steadily increasing. Yeongjong, located within the Incheon Free Economic Zone(IFEZ), has quickly become the primary destination for tourism and leisure, attracting tens of thousands of visitors and offering numerous investment opportunities.
Over twenty years ago, IFEZ initiated an ambitious plan to attract foreign investment. Districts Songdo, Cheongna, and Yeongjong in Incheon were designated as South Korea’s first free economic Zones (FEZs). A free economic zone attracts foreign investment, capital, and technology by offering tax reductions and deregulation.
More specifically, global FDI in tourism, leisure, recreation, and entertainment has continued to improve, as cited by the World Tourism Organization (UNWTO), which partnered with the fDi Intelligence from the Financial Times.
Today, IFEZ offers an unparalleled strategic location, world-class infrastructure, a favorable business environment, and supportive government policies. In addition to providing expedited access to Incheon International Airport and Sea Port, the surrounding Capital Metropolitan Market boasts a population of 25 million, and over 800 million individuals are accessible regionally within a 2-hour flight radius.
Yeongjong, a part of the IFEZ business triangle, is being developed as a hub for tourism, leisure, recreation, and entertainment, catering to tens of thousands of visitors. Yeongjong and IFEZ host two integrated resort casinos: Paradise City and Inspire Entertainment Resort. A third site, Midan City, is ready for development and open to investment.
Paradise City resort boasts a Forbes Travel Guide 4-star Hotel, shopping mall, spa, convention facilities, and a casino for foreigners.
In addition to its five-star hotel, expansive convention facilities, and casino for foreigners, Inspire Entertainment Resort is newly opening and showcases local and international performance talent in its 15,000-seat area. Plans include Discovery Park, an outdoor entertainment space.
Midan City, former Caesar’s, is a ‘ready to build’ site with approximately 25% of the initial development completed. It offers a unique opportunity to ‘fast-track’ investment in a luxury hotel, spa, conference center, restaurants, and a casino for foreigners.
The adjacent Muui Island Solaire Ocean Resort is perfect for resort hotels, convention facilities, water and theme parks, and meditels, where foreign patients visiting South Korea can enjoy high-quality medical services and amenities. Connected by a bridge from the Incheon International Airport, Muui Island Solaire Ocean Resort will share ocean views, hotels, a convention center, and a water park.
The Muui Island Solaire Ocean Resort medical tourism industry opportunities are of special interest. Specifically, Korea has become a favored destination for foreigners seeking affordable and quality medical services.
Meditel is a compound of ‘medicine’ and ‘hotel’, where Korean medical services and lodging facilities are in one building for foreign patients.
The South Korean government has officially approved designated sites for constructing and managing meditels so that foreign patients visiting South Korea can enjoy both high-quality medical services and tourism.
There is no better location than Muui Island with its tranquil beaches, solitude, and relaxing lifestyle—all within minutes of the airport and dynamic greater Seoul-Incheon metro area.
Future development and investment opportunities also include Yeongjong Dream Island. Infrastructure work is underway for future amenities, including a sports park, golf course, marina, shopping mall, and commercial business district.
IFEZ FDI Benefits and Incentives
Notably, international foreign direct investments (FDI) deals comprised 28% of the global tourism & leisure industry’s M&A activity in Q1 2024 and signal Yeongjong’s growth. For foreign direct investment (FDI), IFEZ offers benefits, including a skilled workforce, tax reduction incentives, and real estate investment immigration programs.
FDI incentives include tax reduction options in the tourism, hotel, and resort sectors. As in all FDI, each opportunity is subject to a case-to-case review. Some can include exemptions from Customs for hotels and resorts importing goods and local taxes based on the investment.
Real estate investment opportunities, too, are an IFEZ benefit for those who invest locally and retain the investment for at least five years. Immigration programs allow investors to freely enter, depart, live, work, and run their businesses in Korea. Their family may receive education and be eligible for Korean medical insurance and its benefits—again, equal to Korean residents.
In conclusion, South Korea, the City of Incheon, the Incheon International Airport, and the Sea Port have significantly enhanced the development of IFEZ’s Yeongjong as a hub for tourism, leisure, recreation, and entertainment. With the global increase in tourism FDI, we can expect investment partners, facilities, and new opportunities to continue attracting tourists, visitors, and local vacationers.
The Incheon Free Economic Zone Authority (IFEZ) recently sent a delegation to the United States to announce the regional “Northeast Asian Global R&D Hub “strategy and hold an Investment Attraction(IR) Briefing for potential international investors.
Led by IFEZ Commissioner Wonsok Yun, who was joined by representatives from five Incheon-based startups—nSAGE, FutureSense, IliasAI, Ninewatt, and IDCITI—the Investment Attraction Delegation participated in various events and meetings at the Korea-U.S. Conference on Science, Technology and Entrepreneurship, now in its 37th edition, held in San Francisco, California, from Aug.21 to 24. Dr. Peter Wonsok Yun
The delegation led a forum called “Establishing a Cross-Border Redub between Korea and the U.S.” during the conference, the most significant bilateral event in science and technology hosted by the Korean-American Scientists and Engineers Association.
Hosting the forum on “Establishing a Cross-Border R&D Hub between Korea and the U.S.,” Commissioner Yoon actively strove to attract investors to establish an IFEZ Global R&D Center. He also hosted the IFEZ Forum, introducing Incheon’s selection as a bio-specialized complex and its R&D Hub strategy.
Commissioner Yun also participated in the “R&D Leadership Forum panel,” meeting up with representatives from the U.S. National Research Foundation and Korean Research Institutions to introduce the Global R&D Hub being established in Incheon and gain insight into the status of joint research.
The Bay Area K-Group, the largest Silicon Valley IT network for Koreans, with over 5,800 members, agreed to work with IFEZ to promote advanced industry exchanges and the entrance of the U.S. market.
Representatives from the Incheon-based startups attended the IR Pitching Competition, three of which made it to the finals and attracted investors’ attention.
IFEZ’s efforts opened the door to U.S. investment and the entrance of Incheon-based firms into the U.S. market.
Before departing for the conference, Commissioner Yun said, “Once Incheon develops into a Global R&D Hub and attracts outstanding scientists and talent, not only will it attract promising corporations from all over the globe, but also create a global entrepreneurial ecosystem, facilitating Incheon’s rise to become a global top 10 city.” Source: Joongang Ilbo [kim.yeonsoo1@joongang.co.kr]
A game-changer introduces something with such significant added value that it stands out from the competition. Game-changers transcend traditional business boundaries, dominate their niche, and become the preferred choice for customers, clients, or followers. They become the go-to company, service, expert, or influencer.
Crucially, a first mover gains a competitive advantage by being the first to bring a new product or service to the market and establish strong brand recognition and customer loyalty.
Over the past few years, South Korean companies, from startups to conglomerates, have aspired to be game changers, often to break out of their secure and well-earned niches.
In the rapidly evolving global automotive industry, Hyundai Motor Group has emerged as a luminary, breaking away from its traditional role as a fast follower to become a trailblazing innovator.
In 1974 Hyundai tapped Giorgetto Giugiaro to design the Pony.
This transformation, marked by a bold pivot towards electric vehicles (EVs), autonomous driving technologies, and a wider range of mobility solutions, has positioned the South Korean giant at the forefront of an industry facing unprecedented disruption.
“Hyundai has made significant strides in elevating its design language, moving from functional and conservative aesthetics to bold, distinctive, and forward-thinking designs.”
The evolution of design by Hyundai has been a key factor in its transformation from a fast follower to an industry innovator as it has steadily reason through the ranks of the global automotive industry.
Over the past decade, Hyundai has made significant strides in elevating its design language, moving from functional and conservative aesthetics to bold, distinctive, and forward-thinking designs.
Hyundai initiated this shift by introducing the ‘Fluidic Sculpture‘ design philosophy in the late 2000s, which brought more dynamic and expressive forms to Hyundai vehicles. Originally conceived in 2007 by M.K. Chung and Oh Suk Geun, Fluidic Sculpture was a much-needed design platform that brought consistency among the brand’s models.
The company further refined its approach with “Fluidic Sculpture 2.0” and later, the “Sensuous Sportiness” design identity, which emphasizes harmonious proportions, dynamic silhouettes, and unique details that set Hyundai vehicles apart in the market.
Hyundai’s design evolution has not been limited to just the exterior of its vehicles. The company has also made significant advancements in interior design, focusing on creating spaces that are not only aesthetically pleasing but also highly functional and technologically advanced.
This holistic approach to design has been particularly evident in Hyundai’s electric vehicle lineup, such as the IONIQ series, where the absence of traditional powertrain components has allowed for more innovative and spacious interior layouts.
By integrating cutting-edge technologies seamlessly into their designs, Hyundai has managed to create vehicles that are both visually striking and highly intuitive to use, further solidifying its position as a design leader in the automotive industry.
Furthermore, Hyundai has revamped its overall design capabilities. The new division will spearhead the Group’s efforts to design all-electric vehicles and future mobility solutions, including purpose-built vehicles (PBVs), robotics, and advanced air mobility (AAM).
Leading Innovation
At the core of Hyundai’s success is a strategic metamorphosis. The Group has redefined its brand identity by venturing beyond traditional automotive manufacturing.
Its investments in Boston Dynamics robotics, Supernal urban air mobility, and Motional autonomous driving demonstrate a commitment to leading innovation across multiple technological frontiers. This approach challenges conventional industry paradigms and positions Hyundai at the forefront of future mobility solutions.
Generally, a fast follower closely watches and tracks a brand leader and then quickly emulates. This eliminates many risks. Significantly, fast followers benefit from substantial economic savings that game changers and the first movers must invest in new technologies, such as development costs and investments running into the billions.
“At the core of Hyundai’s success is a strategic metamorphosis. The Group has redefined its brand identity by venturing beyond traditional automotive manufacturing.”
On a more practical level, fast followers wait for a concept to be proven and issues to be worked out. Then, they can spare their customers from recalls, downtime, and inconvenience.
We also see Hyundai as a significant first mover. In highly competitive industries like automotive, the first mover brand leader holds a significant advantage and will be seen by customers as offering something new and exciting. This advantage can translate into new vehicle sales, which are the drivers for any OEM, as we have seen with Tesla.
While some manufacturers are content with a fast-follower approach, others are recognizing the potential benefits of being first movers in key technological areas. Companies that take the lead in these areas can potentially shape industry standards, capture early market share, and establish strong brand associations with innovation.
In the less occupied field of game changers, Hyundai looks to command a market-leading position as a first mover. One of the ways they are doing this is by implementing changes faster through a ‘Software-defined Everything’ (SDx) strategy, which involves redefining vehicles, fleets, and transportation systems with software and AI. The plan is to incorporate software development methods into the vehicle development process and mobility at a time when the industry is being disrupted.
This strategic shift has the potential to redefine how we interact with vehicles and reshape the entire mobility ecosystem.
As Hyundai continues to push the boundaries of innovation, the world watches with anticipation to see how this vision will unfold.
Heading into a new week the term first surfaced as I was introduced by a Hyundai creative agency SVP to a team of media executives new to the Brand…. Don is our Hyundai Whisperer.
Soon after it went ‘viral,’ a week later in NYC, I was surprised to be introduced as the “Hyundai Whisper” while onboarding a new digital AOR for Kia.
The term “Hyundai Whisperer” has been used to describe my consultancy. On one level, it illustrates the importance of one’s reputation. On another level, it underscores the significance of dedicating one’s work to a niche.
This continues and more recently my work and interviews with Korea Times and CNBC have focused “big picture” of transforming the Hyundai Motor Group from a fast follower to a game changer.
Frankly, I see my role as less on details of Hyundai and other Korean brands’ operations — and more on providing support to those new to Hyundai, “working with culture,” its processes, expectations, and ever-changing norms.
I will continue to provide “knowledge of the tribe”, insights, and client support worthy of the title — the “Hyundai Whisperer.”
It’s common in Western meetings to first discuss issues as part of the work-through. As well as any potential repercussions and downsides. Then, after discussions sometimes at length, the team will discuss options and countermeasures.
In contrast, Korean teams, knowing of the issue, prefer to focus talks on the solution and immediate steps to mitigate—then report these plans and actions to leadership.
My recommendation when tackling an issue is for teams to clearly state the challenge and recognize potential downsides, but quickly move on and devote the meeting to actionable steps and solution-oriented discussion.
This can be streamlined by a PPT which clearly and concisely states: Point 1—the Issue and Point 2—any Downsides, versus rehashing the issue and downsides-repercussions.
More so limit or sidebar any deep discussions on either point… dedicating the meeting to Point 3—actionable and solution-oriented steps.
The final steps should be a tentative timeline for executing the steps and the outcome. This gives the Korean team key points they need for reporting to leadership.
Questions, comments, ask. I, too, am always open to new projects and opportunities.
Korean brands….It’s not too early to be thinking about CES 2025. We offer elite services to support companies and brands for the world’s top trade show.
Most top brands are now working through their January 7-10, 2025 Consumer Electronics Show plans.
We offer theme development that shares your vision, strong pre-show and in-show PR and media outreach capabilities, plus media event content and hosting.
This year 5000-plus global media and content creators packed the show’s media centers and extensively covered the show leading to some 25,000 media mentions and more than 35,000 articles. We can ensure that your brand and products get the attention they deserve.
We have a track record of getting media product attention including a coveted “Top 10 “by CNET.
We have also prepared and managed entries for the CES Innovation Awards and won an Honoree in the Sustainability, Eco-Design & Smart Energy categories. The annual awards program honors the most innovative companies in consumer technology.
Again, the best time is NOW to plan for CES 2025. Along with our partners, we can position your company for a successful event. Let’s talk
Hot topic…This week, I share two of my Korea-facing business perspectives—decision-making and approvals. Are you developing a high-priority project or business proposal? I can provide perspective to ensure success. Let’s talk.
Decision-making and Approvals: Korean Business Culture Insights
This week, I am sharing two of my Korea-facing business perspectives—decision-making and approvals.
In most Korean companies leadership decides on direction and major issues. In turn, the working and local team’s role is to gather and prepare needed information.
Then, if approved they will report back to HQ on implementation and progress.
In cases where overseas leadership and teams hope to offer an idea, new service, or program, local Korean management’s role is often to gather information and then share it with the appropriate senior team members, who are often in Korea. The local opinion is valued, but review and final approval 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 a considerable say in the 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 before 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 be ready to offer as-needed supportive data or documents.
The Approval
Within hierarchical business structures approvals usually require several people to “sign off” on a program before commencing the project. For those who are used to leaner organizations, the process can be seen as time-consuming and lead to frustration and delays.
First, once the go-ahead agreement to move forward on a project is reached within the local organization’s team, the Korean team, too, often has its internal procedures that usually include both Operations and Finance approvals.
Depending on the size of the local organization and whether the project needs review by the Korea HQ, I’ve experienced projects requiring several “approvals” leading to a “final” approval.
For example, once the Korean team agrees to a project, it may mean their team has signed off, but the project must still go to senior management for their okay.
Once senior management has approved, it may go to a COO or CEO for “final” review.
I’ve found Korean teams can be rather vague in sharing the number of approvals in part because the approval chain may change with each project.
In other words, the Korean teams are aware there are several approvals, but depending on the nature of the project and the costs involved higher levels of approval might be required.
I recall a Korean team leader on one project rather humorously reporting approvals several times over a week and then upon receiving a final approval at the end of the week remarking that it was really the “final” approval.
In some cases, I’ve seen companies with several C-levels sign off, but the project still waits several more days for a senior CEO or their Board to approve.
In the best instance, these senior approvals go smoothly when senior leadership trusts the judgment and needs of the local organization’s team.
However, in other situations, leadership may request additional specifics on the project. More concerning, I’ve witnessed senior leadership ask for modification, dramatically affecting previously negotiated terms and conditions of the agreement.
One example of CEO intervention that is not uncommon comes to mind. Several years ago, I was organizing and facilitating a 10-day Global Manager Leadership workshop in Korea for one of the Hyundai Motor Group’s top divisions.
Participants from the U.S., Europe, the Middle East, India, and Asia-Pacific would be attending. Plans were set, dates confirmed, and approvals were obtained up to, but not including, the CEO, an approval thought to be just a formality.
To the surprise of some, the CEO asked the Korean team a number of pointed questions. Uncomfortable with the level of response and sensing the team was rather inexperienced at organizing a global event, he asked the workshop to be postponed with the team re-grouping and coming back in a few days with some data/metrics centered on outcomes from past events and specifically their impact on long term employee loyalty.
Take away
Be aware that projects might be ‘approved,’ and you will be expected to move forward but there may be the ‘Final Approval’ before a true engagement. In the best cases, I have witnessed a quick sign-off by a CEO. In the worst case, they will either want things restructured or postponed.
Are you developing a high-priority project or business proposal?
It is no small effort to stay current on key issues with the many moving parts within a Korean Group and with Korea in general.
Knowing there are gaps in communications, I do my best to keep teams and leadership updated. I’d like to share some thoughts ….
From time to time, there are concerns in the overseas workplace over communications.
This can range from a perception of disconnect and being the last to know as global announcements are made or finding out important news second-hand.
This information gap can include working teams but is also felt by local leadership.
Team members may even feel that information was being deliberately withheld.
While there may be some truth in the disconnection, the feeling that Koreans are withholding information deliberately is most often not reality. What may be a surprise for Western overseas teams is that Korean staff in their home offices must make quite an effort to stay informed.
As one entry-level employee of a major Korean group lamented,
“If I did not spend an hour daily networking with fellow workers, I would be in the dark on issues major and minor that could have a significant impact on my work assignment and projects.”
For my work with Korea-based companies, nightly chats, frequent emails, and Kakao texts are required, or I too, would be “in the dark.” Still, I often find breaking news issues when checking my Kakao or running an early AM Google search. It is common when I ask a Korean colleague and even leadership on the news, their response is one of surprise—not in me asking, but this may be the first they had heard about, too.
This implies that silos within the company limit the sharing of information. More so, those not well connected are out of the loop or rarely given an advance heads up.
I find it interesting that colleagues within a company often remark and see me as well-connected—a very positive trait. As a caveat, teams try to keep their trusted friends, colleagues, and management well informed—even on sensitive and confidential issues. Savvy management continually seeks news on issues, projects, and forthcoming announcements from their colleagues and networks. This is not only to stay informed but to avoid being caught off guard or blindsided.
This network can play a critical role in one’s career and advancement. That said, for most Koreans facing international operations, the communication channel—informal and formal—between the Korean HQ and local subsidiaries is through expatriates.(The same goes for Western companies located in Korea, as Westerners there serve as expats.)
Roles vary within each company, but most frequently with Korean global business an expat’s primary role is to be the liaison between Korea and the local subsidiary.
Frankly, some expats are more open to sharing information than others.
Regardless, I feel this is less a deliberate withholding of news than a “filtering”—that is, a review of communications from the mother company and then a doling out of appropriate information. Filtering becomes an issue when information is withheld until the last moment, whether for clarity, to avoid confrontation, or to decide to best address a delicate situation.
Delaying communication often forces local operations to drop everything and deal with an issue that would have been less demanding and disruptive for the teams if conveyed promptly. In other situations, I found that information is often held back until a 100% certainty is reached on an outcome or upcoming event.
What appears to be silence on important news is often an attempt based on their years of experience working with the mother company to spare local teams from concerns that could and probably would change over time.
So instead of constantly having to return to the local team with a shift in plans, an expat may stay quiet until the last moment and have a firm confirmation.
This can mean little advance notification, as it is common for announcements first to need legal, PR, and then leadership’s “final” approval.
Workarounds
There are workarounds, and one needs to recognize that much is strongly rooted in a company’s culture. Culture matters.
For starters, my best practices include: 1) Building a strong professional network—including colleagues local and overseas. Have set times to chat even nightly with Korea… I suggest by Kakao.
2) Maintain a reputation as one who can share and be shared information—with a high degree of trust and confidentiality when appropriate
All said, outside issues deemed as private, sensitive, and confidential, few will dispute the need for strong internal communications and updates—shared across the organization. Here as always.
If you have a question or inquiry on this topic or another, let’s set a time to chat.
I’m also available by Kakao at 310-866-3777 and Don Southerton, so join me…
(Kakaotalk is free, and best to download the app on your phone and access it).
(Center L) Gregory Washington, President of George Mason University, (Center R) Dr. Wonsok Yun, Commissioner of IFEZ w/ George Mason and IFEZ officials Photo: BusinessKorea
Agreement to promote industry-academia cooperation including biotechnology, bio-manufacturing, cybersecurity, artificial intelligence (AI), and information and communication technology (ICT).
On June 13, 2024, the Incheon Free Economic Zone Authority and George Mason University signed an MOU to promote mutual industry-academia cooperation.
The signing was attended by Dr. Wonsok Yun, Commissioner of the Incheon Economic Zone (IFEZ), Gregory Washington, President of George Mason University, and Robert Matz, President of George Mason University Korea.
The agreement will promote education and research projects in important fields such as biotechnology, bio-manufacturing, cybersecurity, artificial intelligence (AI), and information and communication technology (ICT).
The plan is also to establish additional programs at Mason Korea, which is located in the Incheon Global Campus in Songdo. These new classes will target job and talent development–in cooperation with George Mason University in the United States.
The collaboration will, too, support IFEZ’s plan for the Global Campus partners to serve as a channel providing highly skilled talent to top American and international companies.
President Washington said, “This year, in celebration of the 10th anniversary of the opening of George Mason University Korea, we have decided to expand cooperation with the Incheon Economic Office,” adding, “We will provide opportunities for education for students and cooperation with companies through cooperation in various fields, including support for the Incheon region.” “We plan to expand,” he said.
Mason Korea opened its doors in 2014 and is celebrating its 10th anniversary this spring semester. From our initial offering of two undergraduate programs and 34 students, they have grown to offer six undergraduate and two graduate disciplines, with over 1000 students.
Regarding the MOU, Commissioner Yun said, “We are pleased to be able to solidify our cooperation based on the growth of George Mason University Korea over the past 10 years while expanding our scope to the U.S. campus,” adding, “This agreement will help the development of both George Mason University and the Incheon region.”
He continued, “I am pleased to expand and develop cutting-edge fields through industry-academia cooperation, and to build a foundation for cooperation between various students and startups between Incheon and Virginia through George Mason University.”
Mason University Korea is one of the five foreign universities within Songdo’s Incheon Global Campus (IGC).
###
Incheon Free Economic Zone Media Release, June 2024
Circa 2009. Photo by The Korean Daily and Nathaniel Taeho Yu, Ph.D.
With my considerable work today in support of South Korea, the City of Incheon, the Incheon Free Economic Zone (IFEZ), and Songdo, I’m reminiscing about my 2009 release and signing of the book, “Chemulpo to Songdo IBD: Korea’s International Gateway.” Media coverage was extensive in local U.S. and Incheon news. Thanks, Nathaniel Taeho Yu, Ph.D. for the great photo.
The event attracted over 100 attendees, including Mayor Ahn Sang Soo, American officials from the Songdo IBD project, members of the press, and local dignitaries.
Looking back, Incheon and Songdo have a rich international business history, and today, one that continues to adapt and draw global attention and opportunity.
I’ll be talking and writing about that more, so stay tuned.
Meanwhile, to view a complimentary copy of Chemulpo to Songdo IBD: Korea’s International Gateway. Sparing no effort, I wrote in both English and Korean.
Cover Image
Many of the photos were published for the 1st time.
Photo Courtesy BCW and Keystone-Mast Collection, UCR/ California Museum of Photography, University of California, Riverside
And, the book is cited frequently, and the photos are amazing…
Just us in Part 2 of Korea’s Money Today’s interview with Dr. Peter Wonsok Yun, Commissioner of the Incheon Free Economic Zone Authority, and his Q and A.
I provided the translation and editorial review. Please check it out. Few grasp global developments as well as Dr. Yun.
Dr. Wonsok Yun, Commissioner of Incheon Free Economic Zone Authority, (Photo provided by Incheon Free Economic Zone Authority)
The following is a Money Today Q&A with Commissioner Yun. In Part 2 of the interview, Dr. Yun shared his insights, thoughts, and plans.
Q. Please briefly explain IFEZ
IFEZ was designated “Korea’s first free economic zone” on August 11, 2003. At the time, no one could have imagined reclaiming the desolate West Sea mudflats and turning them into a global city.
Over the past 20 years, IFEZ has successfully transformed ‘Songdo, Yeongjong, and Cheongna’ into international cities with exceptional innovation and lifestyle.
Above all, we are proud of what we have achieved — our original goal of ‘attracting foreign investment’.
Last year, the environment for attracting domestic and foreign investment contracted due to the war between Russia and Ukraine, but we achieved $432 million in FDI, a 10.7% increase compared to 2022.
Large multinational corporations and research institutions were established, fostering a global startup ecosystem where international talents, including overseas Koreans, congregate and collaborate.
The role of IFEZ is crucial for the success of Incheon City’s 8th popularly elected core policies, ‘Global Top 10 Cities (New Hong Kong City)’ and ‘Jemulporn Renaissance’.
It is now time to lay the foundation for long-term, sustainable growth in the future.
Q. What needs to change to lay the foundation for sustainable growth?
So far, IFEZ has adopted the ‘linked development’ approach, which involves constructing profit-making facilities alongside public facilities. The profits generated from the development and land for private apartments and businesses have been channeled for public facilities such as parks and social infrastructure (SOC) for the city.
Significant progress has been achieved in developing infrastructure for smart and international cities through this interconnected method. However, the development is highly residential, which limits its ability to attract domestic and foreign companies for business and job creation.
Now that IFEZ is 20 years old, we aim to develop a new model that integrates linked development and investment attraction.
We will attract strategic industries to fulfill the core function of the free economic zone as a ‘global business hub’ and to advance in name and reality.
We need to provide a driving force for new industries, such as start-ups, and foster the AI industry.
Q. The target for foreign investment attraction this year is set at $600 million. What is the strategy?
This year, we plan to expand our strategy to attract “global IR companies” and bring in more cutting-edge companies.
In addition, we will achieve this year’s target of $600 million by establishing a ‘Day Station Incheon Strategy’ where companies gather in Incheon.
We will take the lead in balancing development within the existing industrial complexes in the original city center of Incheon. To this end, we plan to strengthen our network by collaborating with the Korea Trade-Investment Promotion Agency (KOTRA) and the World Federation of Overseas Korean Traders Associations (World OKTA).
During the first half of this year, we are putting every effort into our high-tech industrial complex strategy in the bio-pharma sector.
We believe that Songdo, which already possesses world-class biopharmaceutical production capabilities, is the perfect match.
We are putting our efforts into attracting a bio-specialized complex to build a ‘Bio-Triangle’ connecting the Songdo-Namdong-Yeongjong region.
As the companies in Songdo possess advanced strategic biotechnologies, as noted by the Ministry of Trade, Industry, and Energy, I believe it is the most suitable region for the government’s industrial development.
Q. Why are you pursuing additional FEZ lands, including the southern end of Ganghwa and Incheon Inner Port?
Twenty years have passed since IFEZ was launched. As we enter maturity, investment demand is increasing, but available land is in short supply.
For a specialized bio hub complex to be constructed within IFEZ, like Songdo, additional land must be made accessible.
Currently, IFEZ’s development rate exceeds 90%. There is a lack of space to attract the four major high-tech industries that Incheon pursues.
In many cases, other countries and their competitive cities have available land and rival clusters. IFEZ must also be able to compete in high-tech industries, future mobility, cultural tourism, green bio, and smart cities. To achieve this, additional FEZ designation is essential.
Q. A red light has been turned on for large-scale projects that have stalled, including the Golden Terra City (formerly Midan City) casino project. How are you going to solve it?
I am aware of the concerns shared by the residents of Incheon. We are focusing our efforts on getting things back to normal.
Last March, the Ministry of Culture, Tourism and Sports did not extend the casino project development period applied for by RFKR, the Korean subsidiary of China’s Furi Group, the operator of the Midan City complex resort.
We will seek to develop alternatives to meet the expectations of residents.
In addition, the ‘Icore City Project’, which involves constructing landmark buildings in Zones 6 and 8 of Songdo and has been in consideration for 17 years since announced in 2006, has seen repeated delays. These delays have been due to financial crises, changes in local governments, and the ups and downs of the global economy.
We are currently discussing options and plans to resolve, for example, the height restriction issue with the relevant ministries.
Q. Inaugurated as the 8th Commissioner of IFEZ last February, what activities have you undertaken since taking office, and what kind of organization are you aiming to create in the future?
First, for over a month since taking office, I have spent my time reviewing major work in progress, and visiting the central Incheon City ministries, business sites, and related organizations. I have dedicated considerable time to communicating with shareholders to understand the current business issues better.
Internally, we are promoting the establishment of the ‘IFEZ Vision and Strategy 2040 Project’ that will drive future leaps forward.
We will, too, strive to create a productive and happy IFEZ organizational culture.
In the future, the goal is to make IFEZ a world-class global city that surpasses Dubai and Hong Kong. To this end, we will do our best to attract corporate investment, for example, by conducting ‘visiting investment IR’.
In addition, we will increase the city’s competitiveness so that IFEZ becomes a top free economic zone, creates good jobs, revitalizes the local economy, and serves as a model for a new growth engine for our country.
A Brief Bio, Dr. Wonsok Yun
Born in Chungcheongnam-do in 1960.
Graduated from Sungkyunkwan University, English Language and Literature, a Master’s degree from Seoul National University Graduate School, and a Doctor of Business Administration, from Sungkyunkwan University Graduate School.
Director of Economic and Trade Cooperation Division, Korea Trade-Investment Promotion Agency (KOTRA)
CEO, International Business, Hangul and Computer Group
Chairman of Global Industrial Competitiveness Forum
This article was originally published in the Korean language in the June issue of Leader’s Money Today, a legislative affairs magazine. Sang-gu Yoon, head of Incheon headquarters, Reporter Se-mi Hong.
I enjoy sharing Korean business insights. This insight is one of my most popular.
I often say “Similar brings us together…”
Global business requires colleagues of different cultures to work together daily.
How we perceive each other culturally is often based on differences, such as language, and similarities, like shared values such as family. I prefer to concentrate on the similarities, as differences can create distance while similarities unite us.
It is crucial for Western teams collaborating with Korean operations to gain a deep understanding of the workplace culture in Korea, including the 2024 norms, practices, and daily life. The workplace is under constant change, and we can easily fixate on things that may have been distorted by hearsay or a lack of understanding.
The same principle applies to Korean global teams assigned to support overseas operations. We all need to become learners, adept in local and overseas practices. Expecting global teams to conform to Korean business norms rarely works; it often leads to delays and stalled projects.
As I noted above, recognizing similarities is one of the most powerful cross-cultural bridges. In other words, how can you relate to the nuances in communications and day-to-day life? This requires identifying the local beliefs, values, expectations, traditions, and culture
The information provided helps us gain a deeper understanding of how our teams think and what they expect.
Outcomes
Although there is bound to be friction between home and host country cultural values, a successful model accomplishes…
1. Awareness and appreciation of the home and host country with the ability to gain insight into one’s personal traits, strengths, weaknesses, attitudes, and interests.
2. Realization of shared cross-cultural values, along with an awareness of and respect for cultural differences.
Call to Action
Are you dealing with Korea-facing issues, challenges, or impasses? I provide workarounds and solutions.
Dr. Wonsok Yun, Commissioner of Incheon Free Economic Zone Authority, Photo provided by IFEZ
This article was originally published in the Korean language for the June issue of Leader’s Money Today, a legislative affairs magazine. It has been translated and edited.
“We will raise $600 million in FDI through new business models such as AI,” Dr. Wonsok Yun
On August 11, 2003, the government initiated an ambitious plan to attract foreign investment. Songdo, Cheongna, and Yeongjong in Incheon were designated as South Korea’s first Free Economic Zone (FEZ). A free economic zone is an area designed to attract foreign investment, capital, and technology by offering incentives such as tax reductions and deregulation.
The goal was to establish a prominent business hub city in Northeast Asia, similar to Shanghai, Hong Kong, and Singapore. In the same year, the ‘Act on Designation and Operation of Free Economic Zones’ was established. Nine FEZs were soon operated nationwide, starting with Incheon, Busan, Jinhae, and the Gwangyang Bay Area.
Much of IFEZ was constructed on the former West Sea mud flats and has developed into a bustling international city with modern high-rise buildings.
The growth of IFEZ can be observed through its indicators. From 2003 to July of last year, the total foreign direct investment (FDI) reached $14.756 billion. This figure represents approximately 70% of the $20.8 billion reported by the country’s nine FEZs.
When IFEZ was opened, the number of businesses in the Incheon Free Economic Zone was only 673, but the number has now increased to 3,400. Initially, there were only 3 foreign-invested businesses, but there are currently 206 businesses.
Dr. Wonsok Yun, the current 8th Commissioner of the Incheon Free Economic Zone Authority, took office last February 2024. In this interview with Money Today, he emphasized that the area’s growth resulted from the ‘linked development’ strategy.
Linked development is a business model that connects profit-making sectors with public use. The development profits generated when private businesses build and sell apartments are used to underwrite parks and social infrastructure (SOC) that are essential to the city.
Commissioner Yun said, “So far, IFEZ has chosen the ‘linked development’ method of building profitable residential facilities and public facilities together,” and added, “The model has funded the construction of infrastructure such as smart city and international city amenities. It has made considerable progress.”
However, the Commissioner said that the interconnected development method that has been in place for 20 years cannot lead to the future and sustained growth of IFEZ.
He said, “In the case of interconnected development, the proportion of housing is high, so there is a lack in terms of business revitalization and job creation by attracting domestic and foreign companies.” “We need to discover new businesses such as AI and build innovative business models so that we can move forward as a city,”.
IFEZ has set this year’s target for attracting foreign investment at $600 million (approximately KRW 802.5 billion).
This is an increase of approximately $200 million (KRW 267.5 billion) from last year’s target of $400 million (approximately KRW 535 billion). Commissioner Yun announced that he will achieve this goal this year by attracting high-tech international companies, expanding global investment IR, and the ‘Destination Incheon’ strategy.
Commissioner Yun said, “Foreign direct investment (FDI) was less than expected last year with the war between Russia and Ukraine stalling domestic and foreign investment.” “Nevertheless, IFEZ achieved $432 million, a 10.7% increase compared to 2022.”
He continued, “This year, we will pursue new business opportunities, strengthen our appeal to global companies, and spearhead the development of the city center to reach our target revenue.”
IFEZ Expansion
Of the three IFEZ districts, Songdo International City is responsible for international business, IT (information technology), BT (biotechnology), The Incheon Global Campus (education), and startup research and development. Yeongjong, home to the Incheon International Airport, is focused on logistics and tourism, and Cheongna looks to build on finance and leisure.
In addition, IFEZ plans to attract the lucrative biopharma high-tech industry hub development, in the first half of this year and turn parts of Songdo into a ‘bio-specialized hub complex.’
Commissioner Yun explained, “Songdo has regional geographical competitiveness due to its proximity to the airport and port, and also has the advantage of already having several leading biopharmaceutical companies.”
Currently, IFEZ’s development rate exceeds 90%. There is, however, a lack of space to attract new high-tech industries. It was announced that the southern end of Ganghwa and Incheon Inner Port should be designated as a new FEZ to expand the space.
Commissioner Yun said, “As the IFEZ enters its maturity, investment demand is increasing, but available land is lacking.” Adding, “designation and expansion of new FEZs in the southern part of Ganghwa and Incheon Inner Port are badly needed. “I will do my best to marshal all my capabilities and ensure that they are designated within my term.”
Commissioner Yun plans to develop alternative projects and explore other more viable plans.
K-POP Culture City/Casino business runs aground… “We will develop alternative projects”
Last year, IFEZ planned to create a ‘K-Pop Content City’ within Songdo’s R2, B1, and B2 blocks (a total of 210,000 m2) but the plan was scrapped under land use issues.
In addition, the Ministry of Culture, Sports and Tourism canceled the long-delayed project to build a foreigner-only casino at the Golden Terra City (formerly Midan City) in Yeongjong Island, near the airport.
Commissioner Yun plans to develop alternative projects and explore other more viable plans.
For example, in Songdo R2 Block where the construction of ‘K-Pop Content City’ was canceled, Commissioner Yun said, “This is a site owned by Incheon Urban Development Corporation,” and “We plan to form a task force (TF) with their team to discuss how to develop the land.”
He added, “The former Golden Terra City will also form a ‘Midan City Revitalization TF’ with Incheon City and the Incheon Urban Development Corporation to target another integrated resort.”
“We will strengthen internal organizational competitiveness by establishing IFEZ Vision and Strategy 2040”
Commissioner Yun’s background is well-suited for the 20240 vision and goals.
As an academic, Dr. Yun graduated from Sungkyunkwan University’s Department of English, obtained a master’s degree in business administration from Seoul National University Graduate School, and earned then a doctorate in business administration from Sungkyunkwan University Graduate School.
His career included joining the Korea Trade-Investment Promotion Agency (KOTRA) in 1986 and serving as the head of the Vancouver Trade Center, the Busan Trade Center, and the KBC Center in Los Angeles, as well as the Planning and Coordination and Economic and Trade Cooperation offices at the KOTRA headquarters.
After decades of service, he has served as a special professor at Sookmyung Women’s University and in the private sector as CEO of the international business division of a Hangeul and Computer Group.
Commissioner Yun, who took office last February, will serve a three-year term. His goal is to develop Incheon into a global city, including the “IFEZ Vision/Strategy 2040 Project.”
The project will take a deep dive into the internal and external environment, develop practical measures, and create a vision and strategy aimed at positioning the city as a top-tier destination by 2040, thus achieving sustainable growth.
We will build a system that links performance and rewards
Finally, Commissioner Yun highlighted his commitment to retaining IFEZ public officials by addressing organizational culture and a correlation between performance and compensation.
“We will build a system that links performance and rewards where you can collaborate in a free atmosphere and be treated well if you work hard. We will strengthen the competitiveness of our organization by establishing a system that fosters creative talent while generating results.”
This article was originally published in the Korean language in the June issue of Leader’s Money Today, a legislative affairs magazine. Sang-gu Yoon, head of Incheon headquarters, Reporter Se-mi Hong.
Mayor Yoo Jeong-bok of Incheon Metropolitan City with Richard Kessler, Dean of Mannes Schools of Music ( Photo: BusinessKorea)
Incheon Metropolitan City Signs MOU with Mannes Schools of Music
The Incheon Free Economic Zone Authority (IFEZ) has announced that Mayor Yoo Jeong-bok signed a memorandum of understanding (MOU) with Mannes Schools of Music for the establishment of an “Expanded Campus.”
At the signing ceremony, Mayor Yoo was accompanied by Linda E. Rappaport, Chair of the Board of Trustees of The New School, the parent institution of Mannes School of Music, and Richard Kessler, Dean of Mannes School of Music. Also in attendance from South Korea was Dr. Yoon Won-seok, Commissioner of the Incheon Free Economic Zone Authority, and home of the Songdo District’s Incheon Global Campus (IGC).
The Mannes School of Music is one of the top music schools in America and is affiliated with The New School in New York. It was founded in 1916 by David Mannes (1866–1969), a renowned violinist, conductor, and one of the most important music educators in the United States. Alongside Mannes, the New School programs include the Parsons School of Design, which is the world’s top-ranked fashion university.
An Expanded Campus
Plans are underway for the Mannes School of Music to join the five foreign universities already located within Songdo’s Incheon Global Campus (IGC), which includes the State University of New York’s Fashion Institute of Technology. This will expand the appeal of the IGC and establish a hub for cultural and arts education in the area.
Commenting on this vision, BusinessKorea reports Mayor Yoo Jeong-bok expressed his hopes, noting, “The establishment of Mannes School of Music in Incheon is expected not only to foster talent but also to contribute to Incheon’s growth as an international city in the cultural sector.” The Mayor added, “We look forward to collaborations between our city, IFEZ, and the Mannes School of Music, and we will actively support the expedited establishment of the campus.”
Mayor Yoo Jeong-bok of Incheon Metropolitan City with Richard Kessler, Dean of Mannes Schools of Music ( Photo: BusinessKorea)
As a trusted friend constantly reminds me, “Don, no one does what you do.”
I strive to ensure success and sustainability in dealing with Korea-facing business partnerships through well-communicated expectations and cross-cultural understanding.
It also requires a unique skill set—groomed over decades of working with an ever-changing Korea.
I like the story that shortly after an engineer retires, a machine at his former factory stops working. They try everything they can do to fix it, to no avail. Finally, the boss calls up the engineer and asks him to come in and fix it.
The engineer agrees to do so as a paid consultant. He comes in, walks around the machine, looks at a few things, takes out a hammer, and whacks the machine. It whirrs into life.
The engineer presents his former boss with a bill for $5,000. The boss says, “This is ridiculous! What did you even do? I need an itemized bill.”
The engineer provides a new invoice that states:
· Hitting machine with a hammer: $5.00
· Knowing where to hit the machine: $4,995
Nuff said…
My work is knowing when and where to use the ‘hammer’, catching issues early, and then as needed providing work-throughs as projects can so easily get sidetracked. Many assume when initial talks and progress seem smooth things will continue to move forward—which is rarely the case.
It’s one thing, too, for those well-experienced in global business who are now engaged in Korean projects to expect experience in the West will be enough to work through what can be escalating challenges—but in fact, what many will find out is that they are poorly suited to adapting and being flexible (a very Korea business approach and norm).
At the very least, working through issues can become a lengthy learning process. Both ways are time-consuming and costly.
My long-time approach when providing work-throughs is to step back and look for underlying concerns and nuances that are easily missed. Then knowing the Korean processes and mindset work for a resolution. Again, this is more art than science.
To summarize, impasses are common in all business—but what may work in the West to overcome issues will take a different approach in Korea.
The best model is to be constantly aware and sensitive to what may unfold. Use less direct and non-confrontational ways to gain deeper insights into any challenges and be open to alternative approaches at work-throughs.
As always, I look forward to discussing any challenges, and any questions you may have.
I’ll have my hammer ready, too. And here, ready for your call or email.
I am delighted to share my latest work, which explores global business trends and is featured as a Special Edition in the Incheon Free Economic Zone (IFEZ) Journal.
Along with my Special Edition article, I provided both the translation of the Journal into English and the editorial review.
It was an honor to be asked to share my insights, cultural understanding, and experience with Korea’s leading Free Economic Zone and the City of Incheon.
I’ve been asked how I support businesses… the short answer is I bring solutions to Korean global business, and global firms working with Korea.
I also seek exciting opportunities and challenges. If you encounter a deadlock, stalled work, or a potential issue that needs resolution, let’s discuss it.
Hubs offers R&D and Manufacturing resources, expertise, and talent.
Always great to see media picking up. The topic centers on Foreign Direct Investment, which I craft content on Songdo, South Korea.
I’ve been asked how I support businesses… the short answer is I bring solutions to Korean global business, as well as, global firms working with Korea.
I, too, look for exciting opportunities, and challenges, so here if you have an impasse, stalled work, or a potential issue that needs to be resolved.
All said, here is this week’s look at global business with a Korean twist–as seen in Branding in Asia.
Globally biopharmaceutical companies look to advance the development of a molecule from the laboratory to the clinic and then the market as soon as possible. This must unfold without sacrificing product quality, process efficiency, or patient safety.
To achieve this goal, companies must navigate the complexities of business planning, cell line development, process development, technology, and regulatory and risk assessment. This takes the right mix of resources, expertise, and talent.
In this context, APAC nations South Korea and Singapore are standouts. Specifically, their biopharma hubs aim to provide essential research and development activities in the biopharmaceutical industry.
In many cases, this may be a biopharma scale-up lab with separate areas for cell-line development, media screening, clone selection, upstream and downstream process development, and small-scale production for 200L pre-clinical studies.
The hubs also include large-scale manufacturing facilities and the ability to provide end-to-end biopharmaceutical manufacturing services. This enables domestic and foreign companies to quickly enter the global biologics and biosimilars market while reducing the time it takes to bring their products to market.
Bioclusters offers world-class biopharmaceutical production capacity.
For example, as cited by Invest Korea industry-leading pharmaceutical companies like Saint-Gobain, Janssen Pharmaceutical, Celltrion, Samsung Biologics, Dong-a Socio Group, and Binex are all located in the Songdo Biocluster.
In turn, as noted by the Singapore Economic Development Board, pharmaceutical industry leaders like Pfizer, Novartis, MSD, Sanofi, AbbVie, and Amgen have established global manufacturing hubs in Singapore, where they develop a wide range of products.
Many are engaged in a range of services including Contract Manufacturing Organization (CMO) of biopharmaceuticals, or developing and producing biosimilars based on their proprietary technologies.
Contract Manufacturing Organization (CMO).
A contract manufacturing organization, or CMO, helps pharmaceutical and biotechnology companies manufacture innovative drug substances. Their offerings include commercial production, drug development, formal stability, formulation development, method development, pre-formulation, and registration batches.
The strength of these bioclusters, too, lies in their production capacity. The biopharmaceutical production capacity of Songdo is 560,000 liters going head-to-head with San Francisco (440,000 liters), Singapore (270,000 liters), and Ireland (230,000 liters).
Finally, as biopharmaceuticals are made from cell cultures, it is critical to import and export products before products deteriorate during the storage and transportation process.
This means there is a need for a nearby airport and port for transporting chilled goods and frozen logistics.
And we find again standouts–Korea with the Incheon International Airport and Singapore home to the Changi Airport—both with their state-of-the-art logistics.
Meanwhile, local government efforts are being made for Greenfield sites to create additional biocluster facilities.
What is a Greenfield?
The term greenfield refers to buildings constructed on undeveloped lands where there was no previous development– that was, literally, green. The word green is also synonymous with the word new, which alludes to new construction projects. These greenfield developments are generally made by multinational companies that begin a new venture from the ground up.
To conclude, it is expected that within the next decade, the clusters in Korea, Singapore, and APAC will double to meet the growing global demand. Additionally, local governments will provide new support and incentives for domestic and international partnerships.
I have a long history supporting Songdo, an urban business community on the West Coast of South Kore
I recall an early visit to Incheon and what would be Songdo and looking out at acres of land reclaimed from the sea. Over time buildings, parks, and infrastructure soon emerged from the sand. The photo was a view from my Songdo office in 2018.
Stepping back some… the community, now called Songdo International City, was developed with Western amenities and covers roughly 1500 Acres complete with a Central Park, an international school, and a Jack Nichols-designed golf course–all within a short distance of the Incheon shipping port and the international airport.
It was also an early adopter of buildings with LEED certification, which provides a framework for healthy, highly efficient, and cost-saving green buildings. Plus, Songdo was seen as a frontrunner as a Smart City innovator. Today, it is one of 3 districts of the Incheon Free Economic Zone and home to the Incheon Global Campus.
Today, I am happy to continue to share and highlight Songdo
For over 20+ years, I have presented Korea 101 programs to more than 10,000 participants across the globe. Korea 101: The Book shares insights and experiences with my ‘boots on the ground’ in the classroom, boardroom, and, more recently, remotely.”
Building on the past, this revised edition, too, looks at the transition to Smart Mobility and the corresponding workplace overhaul to become an agile global player.
As I shared in Korea Perspective (2015) there is an interconnectedness in the Korean workplace. In particular, complex relationships abound.
This is true whether workplace operations are in South Korea, Germany, Brazil, India, or the Americas.
Directives and requests originating in Korean headquarters radiate to global operations.
In turn, inputs from local working teams, Korean and Western, make their way back to Korea impacting decisions by leadership. Relationships also play a strong part in this process.
What may appear one-sided and perhaps top-down may be the result of months of study, benchmarking, and research, as well as internal discussions and Korean peer input.
For reasons unclear to local overseas teams, projects can stall, while others re-boot.
Amid the disruptive business conditions, how overseas teams, Korean and Western, working in collaboration matters.
We all recognize that within divergent cultures and mindsets, both sides must bend, compromise, and adapt, as both are parts of a greater whole.
That said, at times tensions culminate in relationships between Korean and Western teams that can become confrontational or stall.
The good news in this era of disruptive business the most strained relationships can be repaired.
A negative relationship turned positive can be a very strong one.
Here are some key takeaways from the Harvard Business Review article, “Fixing a Work Relationship Gone Sour” (2014).
1. Give up on who’s wrong or right
2. Look forward, not back. You can take a solution-focused approach.
3. Understand from the other person’s perspective. “How do they see things?” “What are their contextual factors that need to be considered?”
4. Instead of debating what went wrong and who is at fault, create a space where you’re aligned. It can be helpful to focus on the bigger picture — the common, shared goal.
5. Don’t assume that things will change immediately ¬— repairing relationships can take time
All said, my work is focused on working through challenges and providing teams with solutions. As always, let’s talk and discuss the options.
There has been an expectation that Korean, Vietnamese, and other APAC companies would strive to fully localize as they expand overseas business operations in markets like North and South America, the UK, and the EU. With COVID we saw a change from the past with an annual dispatching of teams from Asia-Pacific HQs to a more reduced and limited role for expatriates.
There is a strong argument that local operations are best managed locally with minimal day-to-day oversight from the company’s HQ expatriate team. The exceptions in many cases, are expatriates assigned in a “designated” support capacity often in tech support and engineering.
As a thought leader in global business trends, I suggest a potential shift in global governance.
A limited expatriate support role has been a long-term goal. It’s costly, and the acculturalization for any expat in a new market takes time and an openness to learn and adapt.
This said, one constant is change. What potentially might have been the plan to reduce oversight may be altered to strengthen expat engagement and input in day-to-day business decisions and management. This frankly has been a cycle I have witnessed over the years. The current mode of reduced engagement has been, too, rooted in COVID where new overseas assignments were all but eliminated.
There are justifications and reasonings for the increased local engagement. One possible option for effective communication with APAC HQs is to assign expatriates for daily direct communication during evening hours, considering the time and work hour differences.
Expatriates can provide valuable insights into the HQ strategy, particularly in clarifying recent mandates and initiatives for local management.
Moreover, there is a growing need for broader HQ fiscal oversight during the rapid shift to capital-intensive ventures such as mobility, which requires significant infrastructure investment.
I want to mention that many Western brands, too, have long contemplated the right balance between a centralized company business strategy versus one driven by localization.
Bottom line… In today’s rapidly changing global economy, it is vital to comprehend the intricacies of Asia Pacific business, including the hows and whys, and to engage with local APAC teams.
Some suggestions:
For those in the West, it may be the first time working with a team from Korea, Vietnam, the Philippines, or Singapore. This opportunity requires an understanding of the new partner’s culture and expectations.
The assumption that local and expatriate teams can bridge cultural gaps through practical on–the–job experience might work with those few highly intuitive individuals with the exceptional ability to assimilate cultures.
What stands out in numerous studies, such as Forbes however, is the need for ongoing multicultural training, that can successfully impact people, especially those who need to quickly adapt to new or changing business culture and values, while fostering sensitivity and teamwork among all company members.
Finally, best practices have shown that a tiered service model with training, mentoring, and ongoing strategic support is the most effective approach for an organization. Leadership can greatly benefit from one-on-one coaching, too.
To conclude, to answer the question “Is it better to manage local operations locally?” International companies must seek the right balance between global oversight and striving for localization. This includes the best mix of an HQ team’s engagement in day-to-day oversight and decision-making while creating a level of direct communication to ensure expectations are addressed, especially aligning with global strategies and fiscal concerns.
“Much like the Salt Lake campus, the Incheon campus is located right in the heart of a bustling city.”
Photo IFEZ
Nice mention of Songdo in The Daily Utah Chronicle.
Songdo has many large businesses and it is very convenient to students, holding the popular term “Smart City” for being efficient in technology use. Business consultant Don Southerton wrote “Songdo’s development aimed to create an integrated 15-minute city, where people can access 90% of their daily activities by bike or public transportation in fifteen minutes or less.
As part of the Incheon Global Campus, Utah, is joined by SUNY, George Mason, GHENT and Stanford. https://www.igc.or.kr
The article goes on to share… In addition to the University of Utah’s main Salt Lake City campus, there is a campus located in Incheon, South Korea. The U’s Asia Campus is conveniently located in Songdo, the business district. This provides students with not only a comprehensive learning experience but is also great for future career opportunities and internships.
I recently posted a photo of the Hyangwon Pavillion and a number have asked to share on its origin and location. What I noted in the caption was its significance as the 1st building electrified in Korea and possibly Asia.
Early in my ground-breaking 2000s post-graduate academic research, I examined the long-standing technology exchanges between the United States and Korea. Much of this development began in the late 1800s when Korea looked to bring rail, trolley, electrification, telephone, waterworks, and hard-rock gold mining to the country. Some of these infrastructure projects were “a first” for Asia. Specifically, the 1st building electrified! It was fascinating reading the correspondence between Korea and Thomas Edison.
In 1884, King Gojong reached out and contracted the Edison Light Company to electrify Gyeongbok Palace starting with showcasing the Hyangwon Pavilion. The monarch intended to adopt and welcome new technologies from the West.
The 2-story Hyangwon Pavilion had been constructed on an artificial island in the center of the palace lake.
Technicians dispatched from Thomas Edison’s laboratory and installed a small DC water-powered generator on the stream that fed the lake. {The stream is long gone, curious I looked a few years ago].
To King Gojang and the court’s amazement, the building was illuminated.
Several years later, in 1893, a second electric plant was built for the Changdok Palace, and thereafter for the Sundok palace. Reports by Western diplomats of the time told that the incandescent lights were most often used for court meetings held during the evening hours.
It should come as no surprise that 140 years later a robust technological trend continues– today both the U.S. and South Korea’s equal tech partners.
There has been an expectation that Korean and other APAC companies would strive to fully localize as they expand overseas business operations in markets like North and South America, the UK, and the EU. With COVID we saw a change from the past with an annual dispatching of teams from Asia-Pacific HQs to a more reduced and limited role for expatriates.
There is a strong argument that local operations are best managed locally with minimal day-to-day oversight from the company’s HQ expatriate team. The exceptions in many cases, are expatriates assigned in a “designated” support capacity often in tech support and engineering.
As a thought leader in global business trends, I suggest a potential shift in global governance.
A limited expatriate support role has been a long-term goal. It’s costly, and the acculturalization for any expat in a new market takes time and an openness to learn and adapt.
This said, one constant is change. What potentially might have been the plan to reduce oversight may be altered to strengthen expat engagement and input in day-to-day business decisions and management. This frankly has been a cycle I have witnessed over the years. The current mode of reduced engagement has been, too, rooted in COVID where new overseas assignments were all but eliminated.
There are justifications and reasonings for the increased local engagement. One possible option for effective communication with APAC HQs is to assign expatriates for daily direct communication during evening hours, considering the time and work hour differences.
Expatriates can provide valuable insights into the HQ strategy, particularly in clarifying recent mandates and initiatives for local management.
Moreover, there is a growing need for broader HQ fiscal oversight during the rapid shift to capital-intensive ventures such as mobility, which requires significant infrastructure investment.
I want to mention that many Western brands, too, have long contemplated the right balance between a centralized company business strategy versus one driven by localization.
Bottom line… In today’s rapidly changing global economy, it is vital to comprehend the intricacies of Korean and Asia Pacific business, including the hows and whys, and to engage with their teams.
For those in the West, it may be the first time working with a team from Korea. This opportunity requires an understanding of the new partner’s culture and expectations.
The assumption that local and expatriate teams can bridge cultural gaps through practical on–the–job experience might work with those few highly intuitive individuals with the exceptional ability to assimilate cultures.
Is a need for ongoing multicultural training, that can successfully impact people, especially those who need to quickly adapt to new or changing business culture and values, while fostering sensitivity and teamwork among all company members.
Finally, best practices have shown that a tiered service model with training, mentoring, and ongoing strategic support is the most effective approach for an organization. Leadership can greatly benefit from one-on-one coaching, too.
To conclude, to answer the question “Is it better to manage local operations locally?” International companies must seek the right balance between global oversight and striving for localization. This includes the best mix of an HQ team’s engagement in day-to-day oversight and decision-making while creating a level of direct communication to ensure expectations are addressed, especially aligning with global strategies and fiscal concerns.
And, above all get support, winging it rarely works….
A bird’s-eye view of the Global Genome Center provided by the Incheon Free Economic Zone
The Incheon Free Economic Zone (IFEZ) has the groundbreaking for Macrogen’s Songdo Global Genome Center at the Advanced Industrial Cluster in Songdo International City.
Dr. Won-seok Yun, head of the Incheon Free Economic Zone Authority, said, “We expect Macrogen to take a leap forward as a global precision medicine leader and Incheon Free Economic Zone to advance its bio-industry structure further.”
IFEZ Songdo is home to South Korea’s growing biopharmaceutical production capacity and increasingly making the country an attractive investment destination for global life science companies.
Founded in 1997, Macrogen is a company specializing in dielectric analysis. They are South Korea’s leader with the world’s fifth-largest capacity next-generation sequencing. Macrogen provides services to more than 18,000 customers in 153 countries.
The Songdo Global Genome Center will serve as a global genomic big data hub that accelerates the digital transformation of healthcare by combining big data including genomic information and artificial intelligence (AI).
IFEZ expects Macrogen’s dielectric analysis research facility to greatly contribute to the diversification of the bio-industry structure of the Songdo Biocluster.
Hyundai MOBIS, a global leader in future mobility, will begin testing Level 4 autonomous driving in South Korea Incheon City’s Songdo and Yeongjong districts. These test rides aim to promote the commercialization of self-driving vehicles.
According to a Hyundai MOBIS article in the media, MOBIS, the Incheon Free Economic Zone (IFEZ), and the Incheon Technopark have signed a memorandum of understanding for Level 4 testing as well as plans to collaborate on nurturing startups that can innovate smart mobility.
The smart mobility project will engage 20 startups, partner firms, research institutes, and universities that will participate in the test-driving project. The expectation is that this will spur further regional IFEZ and Technopark smart mobility testing and R&D.
I see this as a smart move by Hyundai, MOBIS, local officials, and shareholders engaged in the project– as someone who has followed autonomous technology development, supported MOBIS teams, been a backer of IFEZ initiatives, and has considerable first-hand experience of the urban, bridge, and highway road network.
For example, in the 2000s, we built the Songdo IBD (today Songdo International City) smart road system to address future transportation needs… wide lanes to reduce congestion and traffic sensor data capture technology. Songdo, too, is designated by the City of Incheon and IFEZ as a “Smart City” and innovation hub. And, so frankly, it’s a great venue to be at the forefront of smart mobility. ( See my article on Songdo).
Under the memorandum, the test vehicle will be able to drive on a 60 KM/ 37 miles course. In addition to Songdo, the nearby Yeongjeong area is home to the Incheon International Airport.
Hyundai MOBIS noted that the Incheon municipal government had given its permission for test drives that include inner-city routes. This is a rare chance to test autonomous driving technologies under city traffic conditions versus exclusively highway drives.
Industry experts categorize autonomous driving into six levels, ranging from 0 to 5. Level 4 autonomous driving requires the vehicle to perform the majority of driving tasks independently. For example, and still a little unclear, a Level 4 does not require a human driver to remain engaged and ready to take over, though they’re limited by geographic and weather conditions, where human drivers need to take over.
Expanding internationally offers numerous benefits such as access to new markets, customers, workforce, and improved reputation.
I am a strong advocate of global business, as it presents great opportunities. I am also deeply passionate about seeing brands succeed in overseas markets.
Expanding internationally offers numerous benefits such as access to new markets, customers, workforce, and improved reputation. As Wharton Magazine noted, “…expansion provides diversification and additional revenue, it also exposes one to different methods of doing business.”
Frankly, my experience is that global companies looking at market entry for Asia-Pacific countries like Korea, Singapore, the Philippines, or Vietnam, should recognize the potential upfront investment required to enter a new market. Best practices require a company to invest time and resources in “Discovery” and hire a qualified expert or firm to assist in the local mark
It is also common for local entrepreneurs to approach global brands with the hope of securing a memorandum of understanding (MOU) to bring a popular brand to their market. However, these entrepreneurs may not currently have the necessary resources and means to operate the brand. They intend to get the MOU, and then pitch the deal to local business partners.
Sadly, we’ve seen over the years even seasoned international companies realize too late that their well-intentioned partnership was less than qualified. The deal, then, stalled or ended.
Qualifying a local partner can be a challenge, as it requires deeper insights into the local market and identifying key players.
As a benchmark based on recent projects this cost is easily a minimum of US $20,000- $50,000 in international travel and legal fees to secure a partnership. There are, of course, additional costs after an agreement is signed.
There are methods to offset these development costs, which include joint ventures and licensing. Also, a best practice is to ensure you are working with a market entry firm that can
Effectively screen for highly qualified potential partners,
Secure high-level meetings with decision-makers and,
The target company has the required capital, resources, and experience to successfully operate the brand.
Going it alone
In contrast, I have seen firms entering overseas markets who prefer to take a different, more reserved approach and go it alone with their internal staffing. Sadly, the success rate for an international firm successfully entering a new overseas market is poor— or more costly than expected, even with the support of highly dedicated government agencies for local market entry.
To elaborate more, some businesses want to focus on finding a solid, committed overseas partner or client with little investment and need to pay upfront fees to engage a local expert in a market entry — all compensation is contingent upon first finding a potential partner. This rarely (code word–never!) works.
More to the point, a highly qualified market entry firm that has a track record of getting results will rarely shoulder the risk of funding the upfront development costs for a client. Instead, an experienced market entry firm will seek out businesses that expect success and are willing to compensate for the services.
Also, although a company going it alone may have websites, products, and company information (often in need of editing), they however lack what is commonly accepted content for meeting presentations with potential partners, including, but not limited to, a detailed localized, savvy Go to Market Plan—often a high content 20+ pages and a competitive market analysis. These expectations are not options.
And finally, for highly recognized U.S. or global brands, there is less of a barrier in setting up meetings because of the strong international desire for a top brand. For less-known brands entering an overseas market, there is considerably more effort. I most often have to rely on my credentials to begin a dialogue with a potential partner vs. the brand itself, which typically is little known outside Korea and East Asia.
All said I am a strong advocate of global business. I see a great opportunity and am passionate about seeing brands succeed overseas. However, as I have shared, this does require an upfront investment in time and resources, as well as securing local expertise. My advice, too, is to follow best practices for market entry.
New York State University President Arthur Lee, GM Korea President Hector Vizarreal and GM R&D Corporation President Brian McMurray (Photo IFEZ)
The Incheon Free Economic Zone Authority Incheon Free Economic Zone(IFEZ) under Commissioner Dr. Peter Wonsok Yun has announced New York State University and General Motors (GM), both with operations within the Incheon Global Campus, have signed a business agreement to foster future talent
I’ve noted in previous posts how IFEZ specifically Songdo is home to a community of foreign and domestic academic institutions, companies, and NGOs.
As noted in Maeil Business Newspaper Co., Ltd. the NY State Univerity and GM signed the MOU on April 3, 2024. GM operates an R&D center within IFEZ.
Attending the signing ceremony were Arthur Lee, president of New York State University, Hector Vizarreal, president of GM Korea, and Brian McMurray, president of GM R&D.
On this day, the two sides agreed to join forces to provide various educational programs for the growth of students at New York State University in Korea, including mentoring, seminars, and internships, to plan and promote job training and joint research and development (R&D) for GM employees, to visit both institutions and to contribute to the local community.
“We are happy that our students, who have strengths in engineering and management, will have the opportunity to strengthen the capabilities needed in global companies and grow into future talents,” President Lee said. “We will contribute to student growth and community development by promoting various programs with GM.”
President Vizarreal said, “STEM (Science, Technology, Engineering, Mathematics) education is an indispensable keyword in GM that leads future mobility,” adding, “I am happy to have an opportunity to cooperate with New York State University in Korea, which has strengths.” He said, “We will discover more innovative and creative programs and support fostering talents who will lead the rapidly changing future industry.”
“We are happy to have various collaborations with potential students and excellent faculty at New York State University in Korea through this partnership,” said McMurray.
“The high student recruitment rate (of IGC resident universities) means that IGC meets the purpose of creating new growth engines and creating a global education hub,” said Yoon Won-seok, head of the Incheon Economic Office.
New York State University Korea, which opened in 2012, is the first U.S. university in Korea with undergraduate and master’s, and doctoral courses. It operates an excellent department at Stony Brook University, which has the best science and engineering education programs in North America, and Fashion Technology University (FIT), the world’s top fashion school. All classes are the same as the faculty at New York State University in Korea through this partnership,” said McMurray.
Currently, FDIs in many markets are experiencing a global decline in funding. So, what are the best approaches markets should take for FDI 2024?
Foreign direct investment has become a cornerstone for governments and corporations looking to stimulate and sustain business growth. Foreign direct investment plays an important role on a macroeconomic and microeconomic level. We define foreign direct investment (FDI) as investment made by a company in one country into another country’s business or assets. FDI is a crucial aspect of international commerce, but it is also an evolving ecosystem that continues to change and develop over time.
Some key benefits of foreign direct investment include:
Economic Growth: Countries receiving foreign direct investment often experience higher economic growth by opening up to new markets, as seen in many emerging econom
Job Creation: Most foreign direct investment is designed to create new businesses in the host country, which usually translates to job creation and higher wages.
Technology: Foreign direct investment often introduces innovative technologies and creates hubs for technical expertise.
Stepping back between 2000 and 2008, the world saw an early growth phase in FDI. This was the peak time for global investment in FDI.
An Asia-Pacific (APAC) standout was South Korea’s Songdo International Business District (Songdo IBD). The project was a Joint Venture project I was engaged as a consultant and have continued to follow. Like other FDI of the period in the region, the 1997 Financial Crisis brought to the forefront the need for the APAC nations impacted to broaden their economies beyond domestic export-driven businesses
Economists recommended attracting foreign direct investments as a buffer against the potential impact of recessions and fiscal crises.
The Songdo vision in the early 2000s was to build an international business-friendly hub on the West coast of South Korea. The community with Western amenities was built on reclaimed land and covered roughly 1500 Acres complete with a Central Park, an international school, and a Jack Nichols-designed golf course–all within a short distance of the Incheon shipping port and international airport.
Over the years, Songdo IBD, now Songdo International City, has broadened beyond FDI to include residential, domestic companies, and NGOs. As part of the Incheon Free Economic Zone (IFEZ) which was created in 2003 and designated as Korea’s first free economic zone, today Songdo is one of three districts—along with Cheongna, and the airport’s Yeongjong International City.
Currently, FDIs in many markets are experiencing a global decline in funding. So, what are the best approaches markets should take for FDI 2024?
Over the years, the approach to international foreign direct investment (FDI) has evolved from a model solely focused on incentivizing foreign businesses to a more collaborative, synergistic, and dynamic ecosystem. This is observed in countries such as South Korea, Singapore, Vietnam, and Indonesia, as well as Ireland, the Netherlands, Latin America, and the Caribbean.
And, as noted by the World Bank, an exception to the downturn can be found in Greenfields–projects that require developing a new product or service from the ground up. Data shows this is the top area of FDI growth.
In turn, APAC markets like South Korea, Vietnam, and Singapore seek to position themselves as global hubs. Specifically for future industries such as bio-healthcare, smart manufacturing, high-tech finance and future robots, information and communication (IT), and artificial intelligence (AI) while making great strides in distribution, logistics, tourism, and MICE.
One takeaway does stand out—FDI is an evolving ecosystem that continues to change and develop over time.
A sector near Samsung Biologics’ Bio Campus 1 within the Songdo Bio Cluster in Incheon (IFEZ)
South Korea’s Songdo is leading the way in bio-pharma…The Korea Herald notes…” Songdo Bio Cluster in Incheon, where the biopharmaceutical production capacity has reached 1.2 million liters, the world’s largest followed by Massachusetts, San Francisco and Singapore, according to officials from the
South Korea’s growing biopharmaceutical production capacity is increasingly making the country an attractive investment destination for global life science companies, industry sources said Thursday.
Songdo has successfully created an ecosystem for the bio-industry over the past few years, and it is now home to numerous international bio companies, with Korean biopharmaceutical giant Samsung Biologics being the key driving factor.
I have been fortunate throughout my career to receive extensive media coverage in both Korean and Western publications. I feel a major contributing factor is that as a consultant I cover and am engaged in Korean business.
I have a lot to say, and many people seek out my perspective. In fact, in just the past 6 months, I’ve contributed to Korea Times, CNBC, Branding in Asia, Haps Magazine, and Sisajournal-e.com, not to mention releasing a new book and multiple press releases.
Topics often vary — Hyundai, Startup Ecosystems, EV and Critical Minerals, Smart Cities, and insights into the ever-changing Korean business culture.
So why “Tip of the Iceberg?” As a prolific writer, I enjoy sharing my perspective, but only a fraction of my insights are shared, like the tip of an iceberg.
It’s in my consulting work that I explore the difficulties that companies and teams encounter in greater detail. I have decades of experience providing solutions and workarounds.
All said, for those who follow my commentaries and writings as well as acquaintances — Have a request for an article? — please let me know. Have a question or opportunity… let’s talk.
Over the past nearly 20 years, I have been engaged in Smart Cities. This work has involved various Smart City projects. The first was the Songdo International Business District in Incheon, South Korea, and more recently—cutting-edge Smart City Platforms.
The concept of “Smart City” is an emerging technology that many local governments see as the future; however, few municipalities have a solid roadmap.
The term “Smart City” can be defined differently. Some envision a green and sustainable community that offers a life-work balance and implements cutting-edge technologies to achieve these benefits.
For example, Songdo, on the West coast of South Korea was built on reclaimed land and covers roughly 1500 Acres. Today, Songdo is a community of 167,000 residents located within one of three Free Economic Zones (IFEZ) in Incheon, South Korea. The project has been approximately 86% completed. Aside from residential areas, the location is also home to a Global Campus, Pharma Hub, Startup Center, and international organizations such as the Green Climate Fund.
Songdo’s development aimed to create an integrated 15-minute city, where people can access 90% of their daily activities by bike or public transportation in fifteen minutes or less.
In Songdo, traffic sensor data is utilized to regulate signal timing on the technical front, while household waste is directly transported from homes to waste processing centers through underground tubes.
Additionally, various apps assist residents in managing their daily lives providing them with information on bus schedules or checking on parking availability in the area.
That said, since these innovative systems were first offered, many new smartphone apps are now available across Korea and provide these and other digital services.
Today, there is a continuing effort to foster the development of Songdo as an urban district under the Incheon Free Economic Zone (IFEZ).
Dr. Won Sok Yun, who has been named the new Commissioner of the IFEZ) notes, “Over the next three years, I will aim to attract foreign and domestic investment in pharma and healthcare, tourism and leisure, and high-tech industries to create a ‘world-class city’.”
Smart City Platform
Recently, we are seeing the adoption of Smart City Platforms. These provide an integrated Geographic Information Systems (GIS) and Information and Communication Technology (ICT) platform. Plus, they offer municipalities some innovative urban solutions.
With the help of the Internet of Things (IoT) and AI, cities can enhance their emergency and fire response, traffic management, sanitation services, and facility maintenance. I’d add that it’s a tool for urban development and revitalization, and in some cases can enhance a city’s security.
Seoul, South Korea’s Smart City Platform is an example of successful integration. The system was developed between 2017 and 2019 to provide various services, including sophisticated drone defense monitoring.
The platform has been highlighted at recent Consumer Electronics Shows (CES) and gained global attention when it was modified during the COVID-19 pandemic to track real-time virus outbreaks.
In January 2024, neighboring Incheon’s Mayor Yoo Jeong-bok was quoted, “Building a smart city is a global challenge that all cities worldwide should aspire…. in collaboration with leading global companies and cities that possess state-of-the-art technology related to smart city construction.”
I agree that developing “Smart Cities” will require collaboration between private tech companies and local government. The mayor envisions building “eco-friendly smart cities centered around people’s needs.” This will address concerns about the ambiguous nature of the “Smart City” identity, which may mean different things to different groups.
The bottom line is that in discussions centered on “Smart Cities,” I suggest there is no one exact definition, however, the goal should be improved quality of public services and citizen welfare.
Incheon
Incheon is a city located on the northwest coast of South Korea and is home to a population of about 3 million people. Its suburbs are situated on the outskirts of Seoul.
Moreover, Incheon is home to South Korea’s primary international airport, the Incheon International Airport, serving as a gateway to northeast Asia.
IFEZ
In 2003, the Incheon Free Economic Zone (IFEZ) was designated as Korea’s first free economic zone. Within the Zone are three districts– Songdo, Cheongna, and Yeongjong International City.
Over the past 20 years, IFEZ has grown significantly and developed into a global city currently home to more than 400,000 residents, 3,300 businesses, 14 international organizations, and renowned foreign universities.
Don Southerton takes a look at smart city development in South Korea
Heads up– I am a keynote speaker at the 2024 Korea’s Sisa Journal-e.com Start-up Conference this week.
My topic–The Ecosystem of Global and Korean Start-ups: Risk, and the Shift in Startup Mindset.
I’m joining an amazing lineup of guest speakers talking on: the electric vehicle market, the Unmanned Exploration Research Institute Space robotics, and The role of climate tech in achieving carbon neutrality.
The event will be held in Seoul at 10 AM, March 20 KST, and shared Live via this YouTube link.
Site Selection Magazine just posted an article on the Incheon Airport City and the Incheon Free Economic Zone (IFEZ)— South Korea Aerotropolis leads the world in the combined magnitude, range, and quality of commercial investment in both its airport city core and peripheral business and urban clusters. Its planning and development epitomize the principles of “thinking big, acting fast, and doing it right.”
International Business Centre 1 (IBC-I) was designed to reinforce air traffic demand, boost airport commercial revenues and improve the operational efficiencies throughout the broader Incheon Aerotropolis. Image courtesy of Incheon International Airport Corporation
South Korea’s Free Economic Zone (IFEZ) Newsletter shares how the district has positioned itself as the global hub for future industries such as bio-healthcare, smart manufacturing, high-tech finance and future robots, information and communication (IT), and artificial intelligence (AI) while making great strides as a hub for distribution, logistics, tourism, and MICE. #songdo
Black mass and upcycling. Once a lithium battery reaches the end of its useful life or becomes damaged, the battery pack can be collected, dismantled, and shredded.
The shredded material is then processed to produce what we in the industry call black mass, not be confused with an astrophysics term, or a dark movie on Netflix.
This black mass can consist of high amounts of lithium, manganese, cobalt, and nickel metals. EV batteries use these metals in ratios which we label as NMC 622 or 811–60% nickel, 20 % manganese, and 20% cobalt, or 80% nickel, 10% manganese, and 10% cobalt. [1]
These metals when sent to a facility can be reclaimed from the black mass and in direct recycling reused in new battery production.
(Image courtesy of Argonne National Laboratory.)
I like to use the term upcycle vs recycle for these materials.
As I wrote in my End-of-Life article, “The Lithium-ion Battery Life Cycle: Mandates, Sustainability, Recycling, Recovery,” compared with the West, Asia — specifically China and Korea have been at the forefront in recovery and re-use — reclaiming batteries’ black mass.
I reported in 2021, “… with strong encouragement from the Korean government, many of the nation’s top groups are actively engaged in some form of end-of-life program. For example, Korean steel producer POSCO, looks to import waste battery scraps concentrated in a powdered form from Europe. Likewise, the Hyundai Motor Group, SK Innovation, and LG Chem all have programs to ensure used batteries have second-life applications, or are recycled and metals such as Lithium, Nickel, and Cobalt are recovered. These programs made lots of sense, as Korea is one of the world’s largest producers and innovators of Lithium-ion EV batteries — with accordingly a high demand for these raw materials.”
Fast forward…
This trend has shifted with new incentives for North American battery recovery.
For one, the U.S. government has mandates to shore up batteries among the nation’s key strategic interests. Second, the government looks to make the U.S. more competitive in the battery market.
These programs include the Inflation Reduction Act (IRA) and other funding under the Biden Administration such as The Energy Act of 2020, and the Bipartisan Infrastructure Law (BIL), which, together with the IRA, offer billions of dollars to the Department of Energy (DoE) funded government programs.
These monies do come with some restrictions.
Specifically, under the Inflation Reduction Act, vehicles that use batteries that contain (i) any “applicable critical minerals” that were extracted, processed, or recycled by an FEOC [ or (ii) any component manufactured or assembled by an FEOC would be ineligible for the $7,500 Section 30D consumer tax credit (Sec. 13401(e)(7)) starting after 2023.
A FEOC is defined as a Foreign Entity of Concern and, with reference, to the IRA, a Chinese company or entity controlled by a Chinese firm.
These prohibitions take effect in 2024 for EV battery components and in 2025 for “applicable critical minerals.”
A Question.
In a recently attended EV battery panel, I raised a question, “Will we, like in the EU, see more regulations for End of Life?” [For example, the new EU regulations will over the next few years, mandate minimum levels of recycled content in batteries, noting end-of-life batteries contain many valuable resources and these critical raw materials must be reused instead of relying on third countries for supplies.]
The panel’s consensus was that unlike the EU and their use of widespread regulations; the thought was for the U.S. to continue to use more of a carrot approach — incentivizing reclaiming battery materials. Something we can see in a range of DOE grants now being offered.
In closing,
One final takeaway the driver for reclaiming black mass is sustainable profitability. The critical metals, NMC, for example in the black mass in this formhave a value that may or may not be competitive against new widespread sourcing of the rare materials.
That said, when the reclaimed key materials are further refined and separated from the black mass their value increases 3-fold, and even further new processes increase the value 6 times.
I have also read that these refinements in the reclaiming process can result in improvement in the very EV battery life span, battery density, and range… all of which add considerably to what I see as “Upcycling”.
Mr. Southerton provides strategy, consulting, and training to Korea-based global businesses.
This includes long-time support of many of the major Korean Groups including the Hyundai Motor Group, SK Corp., and LG.
He also has supported Korean market entry for several innovative small and medium enterprises (SMEs). Most recently Southerton has been engaged in the mobility, electrification, and the battery sector.
On related issues, Southerton has been a contributor to CNBC, The Economist, Automotive News, the BBC, CNN Fortune, Korea Times, Yonhap, tbs eFM, Wall Street Journal, and Forbes.
[1] Most EVs today use either lithium-ion NMC, NCA (Aluminum), or lithium-ferrous LFP chemistry batteries. There are advantages and disadvantages.LFP: lower cost, lower density, higher discharge cycles; and NMC/NCA: higher cost, higher density, lower discharge cycles. Regardless they all contain ametals that are reclaimable.
I am often asked to assist with Korea-facing business ventures. This can be a North American firm just entering the Korean market or a Western company already with operations in Korea.
Too, I am also asked to support top Korean Groups with their overseas operations.
Most often Korean and Western senior leadership teams did a great job of gaining mutual trust. Both negotiated well. The deal is signed and it’s time to perform.
Sadly, the honeymoon is over. Challenges arise, and what appeared to be clear expectations can now seem murky with poor alignment and weak communications. Why?
There are several reasons. One is that teams that meet, bond, and negotiate are seldom the ones doing the work. The teams on both sides that crafted the deal are better skilled in global business. The teams doing the work are talented, but usually less skilled in local affairs.
Many Westerners have no recent experience working with Koreans, and the Korean teams have limited experience working with North America.
A caveat to this is that many of the Korean teams are bright, but very junior, new to the workplace, and tend to be generalists, while Western teams are comprised of highly specialized industry veterans.
So, what’s the solution?
Frankly, in our experience, the most successful firms show great leadership and vision. They also recognize both sides will need constant ongoing support and training.
Expecting the teams to “get it” seldom works — and if it does it takes time, is costly, and contributes to stress, poor productivity, and even employee turnover. Expecting non-Koreans to understand Korean culture, business models, and workplace expectations is like throwing someone into a pool and assuming they will swim, not sink.
That said, a huge mistake is hiring an industry consulting firm without a full understanding of the specific challenges and cross-cultural issues. In many cases, they fail to get to the root of the problem(s) and expectations are never fully clarified. Issues will surface. Things will get worse.
To conclude,
In dealing with partnerships, I understand the huge stress loads within Korean-based firms. Teams need to perform. Partners will also be expected to perform. Clear, well-communicated expectations and cross-cultural understanding from the beginning are vital, along with a strong business plan and strategy.
Need a solution, I am here on-call with practical workarounds and seasoned experience in overcoming the challenges. Waiting only adds layers and costs.
Why we need Korean business cultural training. My “no punches pulled” Q and A. Targeted cross-cultural support and coaching are necessary for local teams to succeed in working with overseas Korean business projects.
A. This may be the first time working with a Korean team. This opportunity brings with it great opportunity and the need to better understand the new partner’s culture, workplace norms, and expectations.
In most cases, Western teams will interact with Korean HQ and expatriate teams. Some of the teams will hold a line managerial position with day-to-day responsibilities alongside Western managers, while others will hold key management C-level positions, such as CEO, COO, or CFO. In many, if not most, cases, these teams may operate as a “shadow management” with considerable oversight and operational control over local operations.
With the best of intentions, the Korean teams will look to build strong collaboration and teamwork and try to avoid a sense of us and them. However, they do bring Korean work norms that can conflict with Western work-life balance and Western working methods.
More so, Korean teams may make seemingly one-sided decisions with the company’s best interest in mind but without consulting local teams, causing mistrust.
A solid training and coaching program followed by ongoing support can address differences, such as sharing work styles, hierarchy, and comfort levels, plus providing workarounds.
Q. What are some typical issues that arise, especially without training or coaching?
A. As with all individuals, no two of us are alike –and the same goes for Westerners and Koreans… Each has their unique strengths, skills, experiences, and personalities.
Expecting local teams to “get it” without support and training seldom works. Even if a better understanding of the work culture eventually occurs over time, this “learn as you go” approach is costly, contributing to stress, poor productivity, and even employee turnover. Sadly, the most common mistake I see is waiting to see if tensions rise, and workers quit before acting.
Q. Can you cite an example of misunderstandings resulting in mistrust, loss of time, resources, and profits?
A. A challenge I was recently asked to address was the intervention by the expatriate partners in decisions that are best handled by local Western teams.
Probing the issue, I learned that based on extensive experience in the market and industry, the local Western management felt these decisions were often short-sighted, reactive, and not aligned with their well-thought-out strategy. Some saw it as a “cut twice, measure once” approach and “ready, fire, aim.”
Of even more significant concern were one-sided decisions not resulting from the collaboration. In any case, local management felt their input and expertise were being marginalized. As pressure to meet HQ expectations, avoid any negative news, as well as missing Sales or Production “Targets” they saw increased intervention by the expatriate teams.
In this case, I worked with the Western teams to provide some proven workarounds, particularly tempering the Korean teams’ pressing for immediate results.
Specifically, I shared ten steps.
1. To soften jumping to implement a stop-gap plan with hopes of producing immediate results, look to minimize the anxiety for both the local Korean team and the headquarters team. Please be sure to show confidence that the challenge can be overcome.
2. Acknowledge your team’s high engagement and assure the Korean teams that action will be taken promptly.
3. As a next step upon receiving a directive from Korea, have an informal discussion with local Korean teams to brief them on action steps that enable the team to work through what needs to be explored more deeply.
4. Follow up with email correspondence confirming the verbal discussion.
5. Allow a day or two for the Korean team to review your action plan. In many cases, the Korean teams are not familiar with local practices and the vocabulary used to describe Western technical nuances.
The local expat teams may also want to report back to Korea on progress. HQ leadership is ultimately responsible, so the better informed they are, the more trust they will have in local teams — Korean and Western — that the project will progress.
6. Remember that you may receive only some feedback promptly because of time differences.
7. Conducting informal daily updates to the Korean teams and sharing the steps undertaken with the local Koreans can also be helpful.
8. Even better is reporting positive accomplishments in your review process.
9. It is essential to address the potential trade-offs and risks as action steps leading to solutions and assuring the team that these steps will not impede the project and may, in fact, avoid costly setbacks.
10. Finally, having said all this, maintaining trust through strong relationships between Korean and Western local organizations is essential.
Q. What have Koreans told you about Americans? Work habits, commitment, etc.
A. If you ask Korean expats how they perceive Americans and Westerners in general, responses would be very positive and respectful, especially toward Western work ethics and work habits. Koreans see great value in American and Western teams providing them with new insights, perspectives, and best practices.
A. What might be covered in Korean business culture training?
I see the training as twofold — 1) providing teams with an understanding of the Korean partner’s affiliate company history, heritage ( challenges overcome), trends, and expectations! , and 2) sharing the Korean workplace and its norms, practices, and workarounds. One nuance I share is that Korean overseas operations can differ from those in Korea, something I am most familiar with.
Above all, a best practice is to celebrate similarities and shared values when possible, along with instilling an awareness of and respect for cultural differences.
Addressing the team’s questions and concerns is also vital with issues, such as work-life balance, safety and quality processes and procedures, and Korean partners’ overall expectations.
Q. Anything else?
A. To conclude, the need for cross-cultural training programs for local employees and management is a high priority.
The assumption that local and expatriate teams can bridge cultural gaps through practical on–the–job experience might work with those few highly intuitive individuals with the exceptional ability to assimilate cultures.
What stands out in numerous studies, however, is the need for ongoing multicultural training, that can successfully impact people, especially those who need to quickly adapt to new or changing business culture and values, while fostering sensitivity and teamwork among all company members.
Finally, I have found a tiered service model — training, mentoring, and ongoing strategic support- to be the most effective approach for an organization. For leadership, they most often benefit from one-on-one coaching, too.
The Hyundai Motor Group has posted some wonderful images of a 1970s Kia Brisa. Last week in Part 1 of my “Rise of Kia” I shared the launch of the Brisa. Part 2 provides some more details on its success.
In the fall of 1974, the first Kia Brisa S-1000 four-door sedans rolled off the Sohari production line. ( A year earlier they had begun production of the Brisa pickup).
Overall the Brisa sedan was a success with 75,987 sold between 1974 and 1981.
In conjunction with the manufacturing of the Brisa sedan and Brisa pickup, Kia Motors also produced the vehicles’ 1-liter gas engines.
While the competition sourced engines from their foreign partners, this marked the first Korean company to manufacture its engines. In the first year of production, 65 percent of the parts in the Brisa, including the engine, drive shaft, and clutch, were manufactured in Korea. This local sourcing was strongly encouraged by the Korean Government and the ratio of locally produced parts increased steadily over the years.
Kia Motors would grow into Korea’s second-largest carmaker and would experience both international success and its demise under the 1997 financial crash —the latter leading to a “second chance” under parent company Hyundai Motor.
Over the years I have been fortunate to meet with and interview many of the early Korean and Western Hyundai and Kia teams and leadership. Today’s successes were built upon their struggles and can-do perseverance.
Last week the Hyundai Motor Group posted some amazing photos of the Kia T600 circa 1969. I shared some more details such as in early 1962 Kia’s Shiheung production line launched the first in the line-up–the K-360. Production would continue until 1973 with over 25,000 of the sturdy vehicles sold.
I’d add the T600 would signal Kia’s rise … ( Kia= Rising out of Asia).
Kia Motors [Now Kia] Kia Worldwide is one of the world’s fastest-moving global automotive brands. It has earned a reputation as an industry leader in design styling along with a full line of fuel-efficient vehicles that have earned critical acclaim and dramatically increased consumer awareness. Interestingly, the carmaker had early roots as a Korean bicycle and motorcycle manufacturer.
In the early 1960s, the Kia Motors Company moved beyond first bicycle components, then bicycles, and motorcycles to produce a highly practical K360 three-wheel utility truck. Across much of Asia, similar vehicles met a demand for reliable low-cost commercial transportation that could transport goods and products often in tight urban areas.
Based on the Mazda Mazdago design, the K360 also signaled Kia Motors’ long technology alliance with the Japanese automaker with a number of cars and trucks eventually licensed from Mazda.
During this era of budding Korean economic development, strong technology ties with foreign partners were common. For example, other Korean firms entered into partnership arrangements with international carmakers, including Nissan (Datsun), Toyota, Fiat, GM, and Ford. Korean industrial groups desiring to enter the car sector forged these alliances to gain advanced automotive technology and know-how. In addition, the government implemented strong trade protectionism in an effort to build a self-sufficient import substitution economy.
In particular, the Korean Automotive Industry Promotion Law required cars to be manufactured locally versus imported from foreign markets.
When pressured by the government to produce Korea-assembled cars, Kia Motors leveraged its strength as an engineering-based company and chose not to assemble compact cars imported as knockdowns (CKD). Instead, Kia set up a full-scale production plant with considerable local sourcing of parts.
Sohari
In 1973, Kia’s Sohari plant opened with the initial production of a pickup version of the Brisa. Drawing on the ongoing relationship with Mazda, the Brisawas based on the second-generation Mazda 1000, which was marketed as the Familia in Japan.
Brisa
In conjunction with manufacturing the Brisa pickup, Kia Motors also began production of 1-liter gas engines. While the competition sourced engines from their foreign partners, this marked the first Korean company to manufacture its own engines. In the first year of production, 65 percent of the parts in the Brisa, including the engine, drive shaft, and clutch, were manufactured in Korea. This local sourcing was strongly encouraged by the Korean Government and the ratio of locally produced parts increased steadily over the years.
In the fall of 1974, the first Kia Brisa S-1000 four-door sedans rolled off the Sohari production line. Overall the Brisa was a success with 75,987 sold between 1974 and 1981. In 1975 the Brisa pick-up also became the first Kia to be exported when a number were shipped to Qatar in the Middle East.
Brisa Sedan, Sohai Plant
Oil Shock
Notably, what spurred the Brisa’s early success was actually its small 1000cc engine displacement. Starting in 1973, an international oil shortage forced gasoline prices to skyrocket creating a supply shortage in Korea.
Veteran Hyundai and Kia Motors executive Mark Juhn who began his career with Shinjin Motors noted that the oil shock had a devastating impact on Kia’s rival— a newly formed and much larger General Motors Korea, a joint-venture company between GM and Shinjin Motors.
Mr. Juhn shared that with high gas prices Korean consumers favored the Kia Brisa and its smaller more economical engine over GM Korea’s first production model, the Chevrolet 1700 with a larger 1700cc engine.
Mr. Juhn also pointed out, “I could say the oil shock brought good luck to Kia but GM Korea struggled.”
[For those of you long associated with Hyundai, Mr. Juhn would later in his career head up Hyundai Motor America and was the driving force convincing HMC leadership to approve and support the game-changing 10-Year, 100,000 Mile Guarantee program].
Mark Juhn with Don Southerton, Seoul, South Korea
Steady Growth
By 1976 Kia also strengthened its position in the commercial vehicle sector by purchasing Asia Motors based in Kwangju, South Korea. Asia Motors manufactured heavy trucks, buses, and a line of military vehicles. In addition, to meet the growing demand in Korea for cars, Kia even started CKD assembly of the Fiat 132 sedan, along with the Peugeot 604, a larger model sedan.
Government Intervention
Despite Kia’s successes, government intervention imposed new mandates over much of the growing Korean economy. Direct competition was regulated across many sectors of industry. In 1981, Kia Motors was told to stop producing cars and concentrate instead on light commercial vehicles. In turn, more light truck and van models were added, including the 1-ton Bongo, the Ceres pick-up and some larger truck models.
Ford Alliance
By the mid-1980s the Korean Government decided to change policy and relax its restrictions on the car and truck companies. Kia was allowed to return to car production. Working with Mazda’s Ford alliance, Kia Motors began to produce the Festiva (known as the Pride in Korea). Export to the U.S. began in 1988. The venture was extremely successful with 300,000 Festivas being shipped overseas between 1988 and 1993.
Earth Day- Earth Week- Earth Month 2023 By Don Southerton
Reflecting on Earth Day, my ties to Green and Sustainability have reached back in time more than a few years. In fact, it parallels my work with Korea. In the mid-2000s, I was an advisor to developing and building the Incheon, South Korea Songdo International Business District. Under the leadership of Green visionary Stan Gale, the city is the global model for urban sustainability.
Envisioned as a Green, high-technology city of the future — at the time, it was one of the world and Korea’s most significant foreign real estate development projects.
Built on reclaimed land and with partners like Kohn Pederson Fox, Cisco, and United Technology, the forward-leaning project also showcased some of the first LEED-certified buildings in South Korea and Asia.
In conjunction with the Songdo IBD project and my work for Hyundai, around 2007 the Songdo team and I had the opportunity for a VIP visit to Hyundai Motor’s R&D. We even got to fuel their 1st Gen Hydrogen Fuel Cell Electric Vehicles (FCEV), and then test drive the vehicles. At this time, Songdo’s leadership was very interested in FCEV buses for the International Business District powered by hydrogen.
I also hosted a 2013 BBC World Service visit to Songdo IBD, showing off its Green smart city capabilities, capped off by an interview with Cisco’s former Chief Global Strategist Wim Elfrink, an early adopter who popularized the term IoT — the Internet of Things. A day later, we visited Hyundai Motor’s Eco Lab and test-drove their 3rd Gen HCEV, a first-of-its-kind production SUV, which was soon launched in Korea and then California.
In the years that followed, as companies I supported moved to mobility and EVs, I, too, shifted my research and work to these new sectors. Electrification has been and continues to be a major part of my work, leading to an ongoing immersion in the sector supporting Korean startup Grinergy and Green lithium battery technology.
In particular, the focus on Green, Sustainability, and Resilience is this year’s Earth Day, or as one presenter at a recent webinar shared—it’s more of an Earth Week and Earth Month.
Personally, this includes participating in workshops and presentations at the Federal, State, and local levels, including groups like Yale Blue Green (YBG), who are engaged in environmental and sustainability topics and issues, and the Colorado Electric Vehicle Coalition.
This coming week is no different with plans to attend a Live Earth Day event at NREL—the National Renewable Energy Lab headquarters in Golden, Colorado.
Takeaways As a Colorado DOT electrification expert shared, the questions their office received just a year ago centered on “if” EVs and related mobility were a good idea—to now a heightened acceptance and questions on expanding infrastructure and issues like micro-mobility, battery recycling, and end-of-life—to expanding availability from urban centers to rural and less economically served areas.
More so, as noted above and in my previous article American-Made, Limits on Sourcing, Eliminating a Dependence on China there is a need for better sourcing and sustainability of the raw materials and components used in Green tech.
Finally, as we reflect on Earth Day, in both in my work and pursuits, I find a greater embrace of new Green technologies, fueled by government and private funding and with a growing public interest in sustainability.
Questions? Comments? Have a project in mind or need support? Urgent requests Text at 310-866-3777 All other Dsoutherton@bridgingculture.com
The Abu Dhadi event to showcase drones, robotics, components, and unmanned systems.
Seoul, South Korea. February 16, 2022
Grinergy, a South Korean headquartered lithium-ion rechargeable battery and battery management systems company today announced that they will exhibit at 2022 Unmanned Systems Exhibition (UMEX) and Simulation Training (SimTEX).
The conference set to kick off on February 20th in Abu Dahbi is dedicated to showcasing drones, robotics, components, and unmanned systems– key applications for Grinergy battery technology.
Grinergy offers multiple solutions to revolutionize the shortcomings of the conventional lithium battery industry. Grinergy’s proprietary technology offers remarkable safety with improved charging capability.
For more information on Grinergy at UNMEX or their battery technology applications, please contact Don Southerton at dsoutherton@grinergy.co.kr or +1-310-866-3777.
Year-end organization-wide promotions, restructuring, and new assignments for teams are traditionally a part of Korean corporate culture. Top to bottom within Korean companies they occur sometime between early December and early January, with the changes to senior leadership announced first, and team level changes as a norm made known the week just before or between Christmas and New Year’s Day.
After the Holidays, teams then report back to work. Some assume new roles frequently in departments where they have little experience—requiring employees to acquire new skills—sink or swim.
In the days that follow those shuffled brief their replacements, as staff remaining in their jobs update new management teams on the status of projects and issues.
Meanwhile, others will be en route to assignments in overseas operations; a challenge for those working outside Korea for the first time.
This can also be a challenge for local overseas operations. In particular, it is common for those newly assigned to be unfamiliar or have very limited experience with the many nuances in the localized foreign business, as well as the new role and responsibilities. Not to mention, working outside Korea is in itself a learning curve that can take months and even years.
And I strongly recommend leadership—Western and Korean– have countermeasures in place to mitigate any transitional gaps. They do occur. In fact, over the years I have worked extensively to facilitate smooth transitions.
So, what to look for… The top Chaebol will and have begun to announce key promotions, which can provide some insight into future trends. The Chaebol usually also comment on whether this year’s promotion number is more or less than in the past and the reasons “why.”
On restructuring, top Chaebol have already announced plans. These can range from granting more independence to business units to consolidating control.
In their restructuring, SK Group elevated a number of executives to vice-chairman level and granting independent decision-making authority to their key affiliates that span from semi-conductor chips, batteries to wireless network, energy, and biotech.
In contrast, Samsung Electronics noted as a shake-up they will merge 3 of their business units.
Samsung also announced several changes in its corporate policies. With the new year, they will employ a new personnel management system. Under the new system, Samsung will abolish a set of requirements before an employee gets promoted to a certain level, such as a minimum term of service that lasts roughly eight to 10 years. Instead, top-performing employees will be eligible for their work performance and expertise be taken into account as key factors for promotion over time in grade.
The Hyundai Motor Group, too, has announced its executive reshuffle. To align with the new Chairman E.S. Chung’s future vision, we see a plan to bring younger faces on the C-suite with a focus on future mobility and on technology sectors such as infotainment, ICT, and autonomous driving. This then means many of the current leadership are stepping aside to the advisory posts.
New Years’ Message This said, as in the past, with the new year, we can expect leadership will share their 2022 plans in an annual New Years’ company announcement, too. I monitor closely and as they are in Korean will share when appropriate and upon request.
As a final note, for western global teams, I suggest congratulating those who are promoted but also be sensitive to Korean team members who were passed over… or possibly moved to what may be seen as a less strategic assignment.
BTW Time in grade is just a criteria for promotion, or in some cases if a junior is promoted over a senior it is deemed as their time to retire.
The 2021 ‘K-Startup Center Demo Day’ was organized and hosted by South Korea’s Ministry of SMEs and Startups, and the Startup Promotion Agency.
‘KSC’ is a startup support program for promising Korean domestic ventures and startups looking to expand overseas.
This event held on Friday December 10th at Banyan Tree Club & Spa Seoul Crystal Ballroom showcased 7 innovative companies. Participating in the KSC program were Aon, Sentbe, Testworks , Grinergy, GEMotion, HiLocal and Dot. Each company presented an IR pitch through the online platform and were then screening by VCs.
The 1st place winner was ‘Grinergy’, which shared their lithium secondary battery solutions that are capable of low-temperature and rapid charging.
Sentbee, which introduced their “Digital C2C/B2B overseas remittance payment service’, was selected as the 2nd place. ‘TestWorks’, which introduced ‘Artificial Intelligence Algorithm and Data Solution Service for Learning’, was selected in 3rd place.
“Startups participating in today’s event are promising companies that have been recognized by accelerators from 7 countries around the world,” said Kim Yong-moon, president of the Korea Startup Promotion Agency. “In the future, the Korea Startup Promotion Agency will spare no effort to support K-start-ups to take a leap forward and advance into the global market.”
Congratulations Grinergy on being selected 1st Place in the 2021 K-Startup Center Demo Day.
What a great honor.
축하합니다
Grinergy is a lithium-ion battery technology company with multiple solutions to revolutionize the shortcomings of the conventional lithium battery industry.
Saturday October 9 is a National Holiday in South Korea — Hangul Day. (As this year the holiday falls on weekend, Monday is celebrated a National Holiday, too).
The Digitization of Hangul, the Native Korean Language Script The Hidden Driver of Korea’s Economic Success
We often see terms like “Miracle on the Han,” that highlight South Korea’s economic rise after decades of harsh Japanese colonial rule and then the devastation of the Korean War.
With only determination and its people as resources, Korea became one of the world’s top industrial, export-driven economies. In particular, the main contributions to this success story include the nation’s emphasis on higher education, as well as the role of government and private investment in innovation, technology, and R&D.
Looking deeper, what may be missed is the impact of digitizing the native written language Hangul. Crafted in the mid 15th century during the reign of King Sejeong. Hangul linguistically is seen as a very logical and structured written language script.
Inspired by a vision to make Korea information independent
Jumping forward, it was in the early 1990s that a local Korean company, today’s Hancom, successfully developed a native word processing program for the Korean language.
As Hangul was created so that the common people could accurately and easily read and write the Korean language, so too, the word processing software allowed Koreans to communicate digitally.
Although the Hangul word processing software grew in popularity, by 1998, the company nearly went bust, even though it was considered a national treasure: the Asian Financial Crisis and software piracy had brought the company to its knees.
Rival Microsoft which had only about 15% market penetration in office software at the time in Korea, offered $20 million to Hancom to stop producing its software and instead resell Microsoft’s localized Word program.
For a small investment, Microsoft would have wiped out their main competitor in Korea, one of the few countries in the world that had still resisted wide adoption of Microsoft’s office suite.
When the news of the proposed deal offering surfaced, Koreans united in a national fervor and raised over $10 million through a campaign to save the company.
In addition, the company’s near-bankruptcy brought the issue of software piracy under the spotlight. As a result, Koreans began to pay for their software and more began to adopt and use the Hangul software in Korea.
An Economic Driver
With the rise of globalization, and Korea as a nation leapfrogging economically, experts attribute much of the growth to the streamlining of both government policy and regulations. This was possible with a universally accepted digitalized Hangul well suited to the E-Government transfer of information. E-Government refers to a government that uses technological communications devices, such as computers and the Internet, to provide public services in a country or region.
This has also given Korea a strong competitive advantage — data management critical in the digital age.
Looking forward, South Korea today is at the forefront of AI and Cloud-based technology. That said, one may argue that many under-developed nations, most with their own indigenous languages, too, could follow Korea’s digitalization model.
Globally, South Korea and Korean business are well-positioned to support this and similar endeavors — as the Korean proverb noted — A Rising Tide Lifts All Boats.
— Lithium-ion batteries perform poorly in cold weather. Lead-acid batteries are not environmentally friendly. — alternative, lithium-titanium compound, minus 30 degrees, withstand fast charging, — buses, ships, heavy-duty ‘multiplier’ market can coexist with lithium-ion
Grinergy CEO Sungpang ( Scott) Bang Photo Park Hae-joo
“There are several problems with batteries used in today’s vehicles. Lead-acid batteries are safe, but they pollute the environment and are heavy. Lithium-ion batteries lose their performance significantly when the temperature drops. I think there are batteries that solve these problems. I think the era will come when the existing battery market and new batteries coexist.” Grinergy CEO Sungpang (Scott) Bang
This is a startup that began with the idea that battery technology is a key issue in the era of electric mobility. In Silicon Valley, Sungpang ( Scott) Bang (47, photo)who worked at Tesla, Apple, Byton, and Hyundai, etc., and Samsung Electronics’ former COO Byung-hoon Jeong, who co-founded Grinergy in 2017, are the main characters.
They witnessed early on that the automobile industry was slowly shifting from internal combustion engines to electric vehicles, but they realized that current battery technology could not match the tasks that internal combustion engines are doing.
For example, there are problems in that the existing batteries under perform the internal combustion engine in heavy trucks that require strong output or in areas where more than half of the year temperatures falls below -10 degrees Celsius except in the summer.
For this reason, for several years since its establishment in 2017 Grinergy has developed a secondary battery using Lithium Titanium compound (LTO). Currently, 5 patents related to LTO batteries have been registered and 6 applications have been filed. Grinergy co-CEO Bang met with reporters in San Jose, California, USA and said, “LTO batteries are lead-free, so they are more environmentally friendly and work at -30 degrees.”
The typical case use is in electric vehicles and low temperatures. This is because Lithium-ion batteries that power vehicles instead of internal combustion engines perform poorly in low temperatures.This lithium-ion battery operates normally at 10–50 degrees Celsius, and its efficiency drops significantly when the temperature is higher or lower.
More so, in order to upgrade energy sources from internal combustion engines to electricity for transportation means that cars, trucks, heavy equipment, railways, and yachts operating in cold regions have no choice but to look for other alternatives due to the limitations of the existing Lithium-ion batteries.
On the other hand, LTO batteries are resistant to temperature, so they can be charged at -30 degrees Celsius. “We are conducting due diligence evaluations of batteries with a [Korean] military base through a defense venture project,” said CEO Bang. The goal is to prove how much Grinergy’s LTO battery can perform even in cold weather.
In addition, Grinergy is providing products for Korea’s outdoor smart signs. The current batteries powering the smart signs freeze in cold weather and do not work properly.
Grinergy is also paying attention to medium-to-large transportation such as buses, ships, trains, and heavy equipment, markets that are urgently required to be electrified due to the soot and the pollution problems that pose.
In the case of transportation, it is important to increase the mileage by compressing the size and weight of the battery, but it is also more important to increase the output of energy in a short time. CEO Bang said, “Grinergy’s batteries have better performance for these special industries.”
There is a growing possibility that LTO batteries will replace lead-acid batteries used for starting in existing vehicles. Lead-acid batteries are widely used in automobiles because they are very safe. Even electric vehicles such as Tesla contain lead-acid batteries and are used for starting.
Lead-acid batteries are widely used in automobiles because they are very safe. Even electric vehicles such as Tesla contain lead-acid batteries and are used for starting the vehicle.
However, since the recycling of lead-acid batteries is often done in underdeveloped countries — breaking down of the battery into its raw materials — it causes not only environmental pollution issues but also poses health problems. CEO Bang notes he saw the environmental pollution problem of recycling this lead acid battery and thought about how to solve it.
Of course, LTO batteries are not without their drawbacks. CEO Bang said, “LTO batteries have 10~15% less capacity to the same volume compared to general lithium batteries. In particular, he predicted that lithium-ion batteries and LTO batteries would coexist in the future. CEO Bang explained, “The global battery market is worth close to $1 trillion, but half of the battery market is lithium-ion and the rest is lead-acid batteries.” He added, “LTO batteries can be charged at -30 degrees Celsius, can be charged more than 10 times faster than lithium-ion, and are eco-friendly, so there is a good chance of winning.”
[Silicon Valley = Reporter Shin Hyeon-gyu / Reporter Lee Sang-deok] [ⓒ Maeil Business & mk.co.kr,]
Battery Power. Michael Malone one of America’s best-known technology writers has taken a shot at predicting game-changing technology that will fuel Silicon Valley’s next round of growth.
In July 2021, Malone among other tech experts who spoke as part of the Computer History Museum’s CHM Live series on the resilience of Silicon Valley.
“I think it is going to be battery power,” he said. “There are some battery companies out there that are doing some interesting things.” Malone feels batteries may follow the path of other technologies and Moore’s Law.
Well-referenced, Moore’s Law states that we can expect the speed and capability of our computers to increase every couple of years, and we will pay less for them.
It’s noted that Gordon Moore co-founder and chairman emeritus of Intel had always said that, at a certain point, battery power, too, would be the limiting factor for future tech advances.
But, Malone has indicated, perhaps the time has come for battery improvements to escalate. “It is possible that batteries can get on the freight train of Moore’s Law,” he said.
“I think the next great invention is just around the corner.”
Not the only one to see the potential in batteries. Rodney Brooks, Panasonic Professor of Robotics (emeritus) at MIT, in his recent article The Battery Revolution Is Just Getting Started, draws upon the famous line from the 1967 movie The Graduate for an updated 2021 spin. “If I were to offer advice to an ambitious young graduate today, I’d have one word for her: ‘Batteries.’”
I’d add to not only at Silicon Valley, but to South Korea a hub of battery innovation, too.
About the Author
For nearly 30 years, Don Southerton has advised Korean firms doing business in the United States and globally. He has also worked with American firms’ M&A and FDI teams as part of their business expansions in South Korea. He currently serves as Chief Investment Officer for South Korea’s Grinergy.
Grinergy is developing leading-edge lithium-ion rechargeable battery technology for electric vehicles and other uses, with state-of-art safety, batteries with fast battery charge times, and improved cell power density. Grinergy has recently announced expanding operation to North America. Talks have also begun with potential POC partners, licensees and investors.
Battery Power Grinergy …Michael Malone one of America’s best-known technology writers has taken a shot at predicting game-changing technology that will fuel Silicon Valley’s next round of growth.herto
In July 2021, Malone among other tech experts who spoke as part of the Computer History Museum’sCHM Live series on the resilience of Silicon Valley.
“I think it is going to be battery power,” he said. “There are some battery companies out there that are doing some interesting things.” Malone feels batteries may follow the path of other technologies and Moore’s Law.
Well-referenced, Moore’s Law states that we can expect the speed and capability of our computers to increase every couple of years, and we will pay less for them.
It’s noted that Gordon Moore co-founder and chairman emeritus of Intel had always said that, at a certain point, battery power, too, would be the limiting factor for future tech advances.
But, Malone has indicated, perhaps the time has come for battery improvements to escalate. “It is possible that batteries can get on the freight train of Moore’s Law,” he said.
“I think the next great invention is just around the corner.
I’d add to not only at Silicon Valley, but to South Korea a hub of battery innovation, too.
About the Author
For nearly 30 years, Don Southerton has advised Korean firms doing business in the United States and globally. He has also worked with American firms’ M&A and FDI teams as part of their business expansions in South Korea. An author of more than a dozen books on entrepreneurship and Korea he has been interviewed and quoted by Arirang Global Insights, The Economist, Bloomberg TV, The BBC World News, US Korea Connect, eFM Seoul, The Wall Street Journal, Korea Times, Yonhap, Forbes, CNN, and Fortune among other media.
He currently serves as Chief Investment Officer for South Korea’s Grinergy.
Grinergy is developing leading-edge lithium-ion rechargeable battery technology for electric vehicles and other uses, with state-of-art safety, batteries with fast battery charge times, and improved cell power density. Grinergy has recently announced expanding operation to North America. Talks have also begun with potential POC partners, licensees and investors.
Surprising Many. Grinergy–Next Innovative Advancements in Lithium-ion Batteries Are On The Way From South Korea.
More and more vehicle owners around the world are learning to love Battery Electric Vehicles (BEV) and these clean-energy cars and SUVs are moving toward worldwide acceptance, However, there are troubling clouds as automakers move to a clean, sustainable future. The problem? One of the most serious technical challenges BEVs face is the need for improvements in battery technology.
While battery engineering has vastly improved, global vehicle manufacturers and the battery makers they depend on still face some key issues that must be overcome. Even as the sales of BEVs continue to increase every month, there are troubling issues around batteries that experts feel must be improved to allow for true mass acceptance of electric vehicles.
The challenges of lithium-ion batteries used in electric vehicles include:
· The need to increase the energy density of the batteries · Allowing recharging rates that are significantly faster than those possible today · Improving the cold-weather performance of batteries (Some studies have shown up to a 40 percent reduction in range in severe cold weather) · Increasing safety by reducing the danger of fire
Grinergy, Energy Company of the Future from Korea Surprising some, the answers to these questions seem to be emerging from South Korea as the battery technology company Grinergy, which is at the forefront of developing next-generation lithium-ion batteries and has begun to reveal startling new technology.
Working in Korea since 2017 the Grinergy engineers and technicians have already filed for 10 patents in Korea and 9 international Patent Cooperation Treaty (PCT) patents with more under development.
Grinergy technology overcomes the current failings of traditional Lithium-ion batteries.
Developments in the United States All the new Grinergy technology arrives at just the right time in the United States market. At the end of March 2021, the administration of United States President Joe Biden announced a trillion-dollar legislative package which includes a $174 billion investment in the U.S. electric vehicle market.
Industry leaders have noted that with vehicle electrification it’s all about the batteries which, until now, have faced serious challenges. Grinergy has come along at just the right time with many of the answers. Even Chief Executive Officer Oliver Blume at Porsche, which made its stellar reputation with gasoline-powered vehicles now says, “the battery cell is the combustion chamber of the future.”
Perhaps it shouldn’t surprise anyone that one of the places breakthrough battery technology is being created is in South Korea. In May 2021 President Biden chose to make just the second meeting he ever held as President at the White House with a foreign leader a summit meeting with South Korean President Moon Jae-in. Technology was one of the important topics the two leaders discussed.
The Market The rechargeable battery market has been growing exponentially with a compound annual growth rate of some 25 percent in recent years. For example, electric vehicles are a critical part of this growth as sales of such vehicles exploded at an unprecedented rate in major Asian, European, and American markets. In 2020 the market was almost a trillion U.S. dollars and is growing strongly in 2021.
Today the technology has far surpassed that of the older lead acid and nickel cadmium batteries which were once used. Lithium-ion has proven to be a superior technology as its use in almost all EVs today demonstrates. Grinergy’s battery technology now adds the next step to the dependable lithium-ion battery increasing safety, flexibility, manufacturability, capacity, and greater fast charge capability all of which foretells a future that is evolving to meet the world’s need for environmentally friendly energy.
Grinergy and the Future Awareness of Grinergy lithium-ion technology is just beginning to emerge. In a world hungry for innovation leading to better batteries to power the current and future generations of electric vehicles and products, Grinergy is ready to speed movement toward improved worldwide sustainability, in part through the application of electric vehicles that meet the globe’s needs for mobility.
Global business requires colleagues of different cultures to work together on a daily basis.
How we see each other culturally is often in the differences, like language and in similarities such as shared values like family. I like to focus on the later; as differences can pull us apart and similarities brings us together.
Particularly for western teams engaged in all ways with Korean operations, I believe in the importance of deep learning about the workplace in Korea — the 2021 norms, practices, and day-to-day life. They do change and most often we can get fixed on what could have been tainted by here say — or an altogether lack of understanding.
The same learning goes for Korean global teams assigned to support overseas’ operations. They need to become learners — savvy in the wide range of local overseas practices. Expecting global teams to bend to Korean business norms rarely works, too. It just leads to delays and stalled projects.
As I note above, recognizing similarities is one of the most powerful cross-cultural bridges. In other words, how can you relate to the nuances in communications and day-to-day life. This requires identifying the local beliefs, values, expectations, traditions, and culture.
These insights allow us to better understand our mutual teams’ thoughts and expectations.
Outcomes
Although there is bound to be friction between home and host country cultural values, a successful model accomplishes:
1. Awareness and appreciation of both the home and host country with the ability to gain an insight into one’s own personal traits, strengths, weaknesses, attitudes, and interests.
2. Realization of shared values, along with an awareness of and respect for cultural differences.
Call to Action
So, how do you see this applying to you and your own experiences working with another culture’s teams? I’d like to know, so please share.
Dealing with better understanding Korea-facing issues, challenges, or impasses? I provide workarounds and solutions.
I look forward to your thoughts and comments, and with no COVID travel planned have set aside time to discuss one on one.
Always Private and Confidential. Please feel free to FB or Linkedin Message, Text or email to set up a Zoom time.
One popular Korean Lunar New Year tradition is 세배 (sebae), which is respect for elders and ancestors. In the ritual families often travel to the family graves to show their respect.
Also common is younger people will bow to their grandparents. They then wish them a happy New Yearby saying: sae hae bok mani badeu say yo (새해 복 많이 받으세요. ) Which translates as “Please receive good fortune for the New Year.”
In turn, the elders typically reward this gesture by giving children New Year’s money, or “pocket money” called Sebaet Don, usually new crisp paper money.
Christmas is a popular holiday in South Korea. That said, it is also seen as a distinctly Christian holiday. As the holiday approaches, you may wish to greet Korean colleagues with a common greeting. Sae hae bok man i ba deu say yo!
Hint: When speaking, 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, text, IM, or an email.
In fact, it is the best seasonal greeting for New Year’s, too.
With the time differences, plan to wish Korea-based friends and colleagues a holiday greeting no later than US/ Canada/ EU on Wednesday, December 23, 2020 …so Thursday Christmas Eve Day AM in Korea.
October 9 is a National Holiday in South Korea—Hangul Day. This digitization of Hangul commentary will provide some insights into not only Korea but their native written language.
The Digitization of Hangul–we often see terms like “Miracle on the Han,” that highlight South Korea’s economic rise after decades of harsh Japanese colonial rule and then the devastation of the Korean War.
With only determination and its people as resources, Korea became one of the world’s top industrial, export-driven economies. In particular, the main contributions to this success story include the nation’s emphasis on higher education, as well as the role of government and private investment in innovation, technology, and R&D.
Looking deeper, what may be missed is the impact of digitizing the native written language Hangul. Crafted in the mid 15th century during the reign of King Sejeong. Hangul linguistically is seen as a very logical and structured written language script.
Inspired by a vision to make Korea information independent
Jumping forward, it was in the early 1990s that a local Korean company, today’s Hancom Group, successfully developed a native word processing program for the Korean language.
As Hangul was created so that the common people could accurately and easily read and write the Korean language, so too, the word processing software allowed Koreans to communicate digitally. https://office.hancom.com/about/history/
Although the Hangul word processing software grew in popularity, by 1998, the company nearly went bust, even though it was considered a national treasure: the Asian Financial Crisis and software piracy had brought the company to its knees.
Rival Microsoft which had only about 15% market penetration in office software at the time in Korea, offered $20 million to Hancom to stop producing its software and instead resell Microsoft’s localized Word program.
For a small investment, Microsoft would have wiped out their main competitor in Korea, one of the few countries in the world that had still resisted wide adoption of Microsoft’s office suite.
When the news of the proposed deal offering surfaced, Koreans united in a national fervor and raised over $10 million through a campaign to save the company.
In addition, the company’s near-bankruptcy brought the issue of software piracy under the spotlight. As a result, Koreans began to pay for their software and more began to adopt and use the Hangul software in Korea.
An Economic Driver
With the rise of globalization, and Korea as a nation leapfrogging economically, experts attribute much of the growth to the streamlining of both government policy and regulations. This was possible with a universally accepted digitalized Hangul well suited to the E-Government transfer of information. E-Government refers to a government that uses technological communications devices, such as computers and the Internet, to provide public services in a country or region.
This has also given Korea a strong competitive advantage—data management critical in the digital age.
Looking forward, South Korea today is at the forefront of AI and Cloud-based technology. That said, one may argue that many under-developed nations, most with their own indigenous languages, too, could follow Korea’s digitalization model.
Globally, South Korea and key digital firms like Hancom are well-positioned to support this and similar new endeavors such as Mobility, EV and AI—as the Korean proverb noted—A Rising Tide Lifts All Boats.
I’m just back from Seoul amid COVID and Korean Business Protocols. In my most recent book Korea 2020—A Workplace in Transition released earlier this year, I elaborate on a wide range of corporate workplace culture changes underway. These include flattening of workplace titles and hierarchical protocols as well as encouraging those junior to question the status quo.
Beyond my published writing and articles, this transition to a more open and global workplace is covered extensively in Korea media that follow changes at the top groups such as Samsung, LG, Hyundai Motor and SK Groups.
All said, in my two 2020 trips to Seoul, I had an opportunity with “boots on the ground” to again observe the extent of the changing corporate landscape. First, witnessing at one of the leading tech/ICT companies located in the heart of Korea’s Silicon Valley, and the second visiting a long-established industrial manufacturing group.
First and foremost, in my field research, I try not to be judgmental as each company follows their heritage and values—with no overarching right or wrong, but just different.
For the tech company, more flexible workplace hours and dress codes reflect my writings. In fact, it was refreshing to see widespread casual and rather cool trendy summer fashion worn by millennials—and both genders, too. The exception was middle age staff and leadership in more formal, but tie-less business attire.
Embracing other changes both management and teams addressed individuals in informal conversation by their first names instead of calling team members by the titles as was once universal.
Titles rather than names were used only when the team addressed the most senior leadership or with formal email correspondence.
Office seating however was still based on title and rank reflecting this hierarchy. This is different from some tech companies where we are now seeing open seating.
In contrast, to the tech sector, I witnessed traditional norms in the industrial manufacturing sector visit.
During introductions and exchange in business cards, we were asked to call them by either a Korean name or a western first name. Although, among the Korean team and leadership they addressed each other by hierarchical Korean title.
The use of rank and title were very hierarchical as well as seating in formal meetings. On the later the most senior leadership was positioned mid-table, flanked by their more senior staff in descending order, and with support staff positioned behind them.
In such situations it is then important that the western team follow the same protocols. This allows the Korean team to better understand the hierarchy of your company. This includes staying consistent in seating order during every meeting, and dinner event as well as how teams are introduced—most senior first and then in order of seniority and rank. BTW, The same goes for virtual meetings, too.
Again, in less formal team meetings we are finding these norms less important and more casual. I’d add in observing teams working in the office vs leadership, dress was more casual, too.
On a final note, reflecting both my research, writing and recent visits, we find that corporate norms and expectations in Korea today do vary. Not to mention, like westerners, no two Koreans are alike.
True cultural understanding and sensitivity require both recognizing the similarities and differences. More so, the key to any successful business relationship is adapting and respecting local and individual company norms.
Following norms and expectations leads to clarity and better communications vs. impasses and costly misunderstandings.
Frankly, a good model to follow is for us to be aware and adapt according to their norms vs. expecting them to change as it’s their country. Plus, change is underway in Korea amid a transition driven by globalization and millennials in the workplace.
Questions and comments welcome. All kept private and confidential.
In this episode of The Worldly Marketing Podcast, Don Southerton was first featured on episode #057 of this podcast. As the Founder & CEO at Bridging Culture Worldwide, he helps Korea-facing business by assisting companies in their market entry strategy into South Korea, and by helping Korean brands expand into North America and internationally.
In this Worldly Marketing Podcast interview, Don talks about how South Korea’s economy is weathering the COVID-19 pandemic, how he’s seeing interesting shifts in traditional Korean corporate culture, and what those changes mean for Western companies looking to do business there.
With nearly four decades of experience, Don is recognized as the definitive authority on South Korean business consulting and Korean corporate culture. In fact, he is known in business circles as “The Korea Whisperer”. His clients have included Fortune 500 companies, top Korean groups, leading international law firms, and elite consultancies. He has worked with a variety of industries, including automotive, golf, quick-service restaurant sectors, New Urbanism, and green technology.
In addition, in late 2019, Don became the Global Head of Corporate Communications at Hancom Group, which is South Korea’s leading ICT company. He now heads up the group’s global communications and PR, as well as its North American market entry.
Don is also a regular contributor to online publications such as Branding in Asia on the topic of Korean business, and he is the author and co-author of several books, including Korea Perspective. His latest book is called Korea 2020, A Workplace in Transition.
Salt Lake City, UT (Restaurant News Release) Although the pandemic isn’t yet behind us, Utah-based ROXBERRY JUICE CO. (founded 2008) has seen a steady growth in sales.
Brad Davis, Founder and CEO noted, “Our systemwide same-store sales are up about 35% over last year. We’ve done extremely well in spite of the pandemic.” Davis also shared that with concerns over health many now see the importance of adding nutritious and vitamin packed smoothies, juices and healthy açaí bowls to the diet.
This fast-casual smoothie concept is open for breakfast, lunch and dinner hours, with a $4-$12+ per person price range. Stores offer Drive through and offer online ordering options.
There are a great number of food choices out there, but when it comes to Fresh Juices, Smoothies, and Açaí Bowls, the best choice is Roxberry. This is because Roxberry pays attention to the things that matter; the ingredients. From 100% natural juices to real fruits and veggies, Roxberry provides the best in quality products on the market.
In a classic sense, Roxberry brings you back to a simpler time. To a time when quality products and ingredients were abundant, and to a time when you didn’t feel the need to question what was in your food. Roxberry cares about you and your health. Our goal is to always provide you with the best quality juices, smoothies, and bowls possible.
According to a recent post COVID-19 survey conducted by Korean business and market entry advocate Bridging Culture Worldwide in partnership with Tierra Advisors, the mood is upbeat in the South Korean food and beverage industry as the country looks ahead to life after COVID-19.
The bilingual survey, which was conducted from April through mid-May 2020, polled a mix of domestic Korean F&B teams and leadership as well as Korean foodie influencers and business entrepreneurs, asking their views on opportunities for F&B growth and expansion over the next year. According to the findings, in a lead question on the general mood, a 60 percent majority surveyed shared an overall positive feeling toward the F&B market for 2020-21, said the two organizations.
Additionally, the survey found 38 percent responding “Very Likely” or “Likely” to expand their business in 2020-21. In contrast, only 10 percent responded Very Unlikely.“The study was conducted to gauge the overall market mood and more specifically future F&B growth plans in response to the uncertainty and disruption of COVID-19,” said BCW Founder and CEO Don Southerton.
BCW and Tierra Advisors pointed out that Korea appears to have reined in the outbreak. Still, the economy and businesses like restaurants and coffee shops have suffered. “Although Korea never experienced mandated widespread closures, Koreans pro-actively stayed away from eateries, bars, and cafes,” according to a statement to Branding in Asia. “The restaurants did remain open, eagerly waiting for customers who seldom came.”
Fast forward to today and Korea’s everyday life today is now resembling something closer to normal. There are lines outside restaurants during lunchtime; malls are bustling, and the streets are busier. As a positive indicator, major Korean food brands like SPC have also recently announced plans to open new locations as well as add additional western fast-casual brands, said BCW and Tierra Advisors.
Fast Casual Tops List of Opportunities
Also, highlights of the survey found that among F&B concepts, ‘Fast Casual’ tops the list in the study when looking ahead at where the industry sees the most opportunity for growth in the local Korean market. QSR-Fast Food, Sandwich, Coffee cafes, Juice Bars, and Bakery concepts, too, were popular picks.In open polling questions at the end of the survey, the top F&B criteria for 2020-2021 food brands included delivery and take-out service, healthy food options, and a value-added menu offering both high quality and affordable pricing.
May 30, 2020Don SouthertonCommentaryComments Off on South Korea Hancom Group Unveils Hancom Office 2020 —Their Newly Feature-Enhanced Office Productivity Suite
In a move set to advance operations and support the company’s aggressive growth, Hancom Group, South Korea’s leading ICT company has announced the North American release of flagship product ‘Hancom Office 2020.’
Previously, Hancom has been most well-known internationally for the default mobile office suite experience in Samsung Galaxy/DeX devices and a long-time technology partnership with AWS WorkDocs supplying a cloud-based collaborative document editor.
More cost-effectively than with any other office suite available today, and a smart alternative to Microsoft 365, new enhancements for the Hancom Office 2020 product lineup include word processor Hancom Office Word, spreadsheet Cell, presentation Show, and PDF. Most importantly, as a part of ongoing efforts for enterprise customers, this update facilitates interoperability by improving the spreadsheet’s Excel compatibility significantly by adding advanced support for pivot tables, charts, formulas, and macros.
Setting the stage for collaboration, Hancom Office 2020 also strengthened its link with Hancom Space, a cloud-based storage and web office. Hancom Space, a cloud service that allows you to edit Hancom Office documents via Internet access, even on a PC without Hancom Office, allows users to save and share documents created on Hancom Office 2020 directly in Hancom Space. In turn, you can edit a document you created in Hancom Space on Hancom Office.
Adding value, too, a cost-saving and a new feature of the suite, Hancom Office 2020 now offers a new built-in PDF application that provides an essential tool for PDF use and includes annotation, merging, and extracting. It also allows you to convert any existing PDF documents into Word, Excel or PowerPoint files and then edit and reuse your PDF files. With this feature, there is no need for a separate PDF editor required by other products in the market as users can edit and author all common office documents formats.
Regarding the product launch, Sungjun Byun, Chief Executive Officer of Hancom, said, “Building upon decades of experience supplying the office productivity suite to Korean enterprises, SMBs, educational institutions and government, Hancom Office 2020 is built to meet the diverse demands of global customers regardless of size or sector.”
Dr. Peter Wonsok Yun, President of Global Business, Hancom Group notes, “With the New Normal Post COVID-19 workplace, Hancom Office 2020 will unleash your creativity and enhance your productivity more cost-effectively than with any other office suite available today.”
A free 30-day trial version is available for download at office.hancom.com. And the subscription license and a lifetime license are available for purchase now.
I am excited to share my most recent article that looks at the New Normal market entry for brands and products. As always your comments and thoughts are welcome.
In this post COVID-19 world, we hear the expression the New Normal used frequently with regard to society and business. A timely question then is how will this New Normal apply to commerce and specifically international market entry?
In a Deep Data webinar jointly hosted by the Israel Economic Trade Mission to Korea in Seoul and Cardumen Capital based in Tel Aviv, I spoke to a wide audience of Korean companies on how I saw market entry under post COVID-19.
For one, and as in the past, ‘need and demand’ have always been the drivers for a successful business market entry. Goods or services must match what is lacking in a market and enterprisingly fulfill a need or gap in that local market.
For example, in a market like South Korea with an abundance of pizza and fried chicken eateries introducing either fast food would be an uphill battle. In contrast, with innovative hubs like Israel and South Korea as developers of new AI, robotics, drone, deep learning and mobility technologies, a company offering its unique product or service has a much greater probability of success in that they provide needed cutting-edge solutions. More so, these technologies will drive the transition to the digital economy accelerated by COVID.
Second, for successful market entry selecting the right partners goes without saying. I feel a best practice is to find a partner that has both an industry sector plus international experience working with other cultures and approaches to business. Teams tied to the project must be skilled in a deep understanding of the local culture, norms and expectations. With the new normal of COVID-19, a partner who has also weathered past crises and business disruptions would be a huge bonus, too.
And finally, the third best practice is the need for flexibility. If there is one lesson from COVID-19 it is the need for businesses to be open and flexible. As an example we now see the widespread adoption of video conferencing during the pandemic instead of insisting on in-person meetings.
That said, few market entry projects succeed in a climate of rigid thinking on either side of the partnership. Give and take fosters collaboration, which builds relationships nurtured over time.
Even under adversity, fulfilling a demand, the right partner, and coupled with flexible and adaptive transformative thinking means all parties will see a project through to execution and beyond—to both side’s mutual benefit, as well as the individuals tied to the market entry partnership.
South Korea: Smart Work and COVID-19 Transforming the Workplace
By Don Southerton
With the COVID-19 New Normal from video chat platforms to office productivity and cloud-based software, the shift to working remotely is now seen as a convenient alternative to in-person communication, the office and commerce.
In this article, we will look at how Koreans post-COVID-19 may come to accept remote working (also referred to in Korea as “smart work”), as an option to the traditional on-site model. In February and March government agencies and companies across South Korea opted to keep workers home in what can be seen as a mass experiment with the remote work system — the intent to flatten the spread of COVID-19. As the threat passed, and methods to control the spread of the virus proved effective, companies soon called for their homebound teams return to their offices.
In a nation with little experience with teams working remotely, responses are mixed — some now strong advocates perceiving themselves more productive and efficient, while others feel working from home meant longer hours tied to technology and little boundaries between work and personal time.
With the post-coronavirus shift back to the office, the pros and cons of work-from-home will be subject to scrutiny and comparison with the day to day work culture still heavily rooted in on-site interaction and interpersonal contact.
One issue that did not hamper work from home was Korea’s Internet infrastructure robustness even as the demand for telecommuting solutions rapidly increased.
Unlike underdeveloped countries, Korea was not limited by a lack of state-of-the-art technology. A number of Korean and multinational information technology companies were able to provide top-notch smart work services, with many large firms like the Hyundai Motor Group having long had their own internal communications systems.
More so, Korean domestic ICTs like the Hancom Group have since the 1990s offered a suite of office productivity software platforms. Originally developed for the home Korean market in their indigenous language Hangul, the software now has English as well as other language options. Plus, as an attractive alternative to Microsoft 365, Hancom offers several Cloud-based products, including Hancom Space and Hancom DocsConverter. [Source: https://office.hancom.com]
Not Alone
Korea tech brands like Naver, too, saw considerable demand. The tech giant which offers Line Works, a popular telecommuting software, witnessed a huge spike in usage during the peak of Korea’s COVID-19 outbreak. The company added that its video conference calls technology saw a sevenfold increase during the same period.
The Big Question
As most of Korea has returned to working on-site, the big question remains open as to whether working remotely and adopting “smart work” systems will become an option and part of the new normal.
As I noted in my book Korea 2020, A Workplace in Transition that was released earlier this year, there has been a considerable effort to offer a flexible working environment. Many of Korea’s top Groups have transitioned their corporate policy for rigid older norms to open dress codes, flexible work hours, and are adopting a more horizontal and creative work culture.
Increasingly, Korean companies, particularly those dedicated to technology and mobility have sought to become adaptive and agile global players. Adding to this, we are finding that the strong hierarchical corporate culture is being challenged by the growing number of millennials. It is no surprise that some millennials are leaving their corporate jobs to pursue freelance work and are very open to working remotely.
That said, even as Korea’s workplace culture has progressed, we are seeing push back on working remotely — some executives still prefer their teams to work on-site and are expressing concerns about employees’ work ethic and output.
On an encouraging note, South Korea’s leading game and online service provider NHN Corp. just announced it has decided to take its remote work experiment further by making Wednesdays their official “work remote day .” The move comes after overwhelmingly positive feedback from NHN and their affiliates’ employees. [Source: https://pulsenews.co.kr/view.php?sc=30800018&year=2020&no=471263 ]
A Second Look
Perhaps Korean companies should take a second look into creating a smart working environment. Accepting remote work systems that have been embraced in the West will depend greatly on whether companies and society are willing to bring such corporate and cultural changes.. Businesses can improve ROI and save on overhead and rental costs for their offices. Workers, for their part, can reduce their hours’ long commutes and experience increased productivity, as well as foster a better life-work balance.
The COVID-19 outbreak has changed the way people work and their perceptions about work. The virus crisis could provide an opportunity for Korean companies to re-visit and re-evaluate the benefits of smart work approaches to the workplace.
I’ll be a guest speaker sharing my thoughts on Deep-Tech and what Israel and South Korea have to share as both are strong centers for innovative technology. For all those in the tech sector, this webinar will prove insightful.
The webinar is hosted by Yaniv Goldberg Economic Attaché — Head of Israel Economic and Trade Office, Embassy of Israel in Korea, and Israeli Cardumen Capital.
The webinar will explore among other topics of interest Israel’s ‘Deep-Tech’. Speakers include Gonzalo Martinez de Azagra, CEO and Founder of Cardumen Capital and Ruby Chen, Venture Partner of Cardumen Capital.
The event will be held at 3 PM on Wednesday, May 13, Korea time (time subject to change).
To participate in the Zoom Webinar, you must register. Interested?
Like most of the world, government intervention is the cornerstone of South Korea’s recovery. South Korean President Moon Jae-in has announced a massive relief package worth billions for South Korea’s key industries disrupted by the coronavirus pandemic.
Preventing layoffs and creating jobs have become the top priorities for the government.
The funds are meant to help them weather the crisis, which the Korean president characterized as the worst since the 1997 IMF financial meltdown, and to help maintain employment. Moon also unveiled an additional job protection program to cushion the COVID-19 impact on the country’s overall job market. This includes new job creation in the digital sector.
Drilling Deeper
A significant portion of Korea’s economy and the backbone of the country’s employment is from export-driven sectors, especially in hard-hit key industries that include aviation, oil refinery, shipping, shipbuilding, and car production.
Noting the huge task for Korea amid global downturns with much of the country’s employment driven by export-driven sectors such as automotive, how Korea preserves its workforce and jobs will take considerable effort and savvy.
As in past crises, senior government officials recently met with a group of top chaebol executives. The participants included Samsung Electronics, Hyundai Motors, SK Holdings, LG Corporation, and Lotte Corporation. Although closed-door meetings, they seemed to have centered strongly on persuading the leading employers to maintain employment in the face of coronavirus-related challenges.
The Auto Sector
In a separate round of talks, senior officials from five local automakers and nine auto parts manufacturers met with the Ministry of Trade, Industry, and Energy.
The five domestic automakers, Hyundai Motor, Kia Motors, GM Korea, Ssangyong, and Renault-Samsung account for 150,000 jobs in Korea. Within their supply chain, their roughly 8,850 partner companies employ 240,000 workers.
An upswing in local sales is welcome news considering Hyundai, Kia, and the other automakers have weathered many challenges over the past few months.
According to the Korea Automobile Manufacturers Association, the auto industry officials said they need a total of $34 billion to maintain their workforces, operate facilities, and keep up with fixed costs for the next three months. With $10 billion already secured, the local automobile industry asked the government to provide $26 billion in emergency loans to save automakers and associated companies struggling from the impact of the coronavirus pandemic.
Automakers also requested tax cuts to overcome the pandemic’s negative impacts on sales and production.
As a condition for the funding, the government pressed the automakers to maintain their employment numbers. To make up for overseas losses and boost domestic sales, the government will also expedite the order of 8,700 EVs and make an advance payment of up to 70 percent.
Strong Local Demand
Still, we are seeing strong demand in Korea’s domestic auto market. As COVID-19 cases have been dropping without mandating drastic measures such as a nationwide stay at home and remote work, Korean customers are again venturing back into auto showrooms.
Hyundai’s domestic sales in March hit their highest level in more than four years, up 80% from February 2020. Much of this was driven by attractive discounts and installment payment plans, as well as a cut in consumption tax. Hyundai also noted robust local pre-orders for new models like the Elantra and Genesis G80.
An upswing in local sales is welcome news considering Hyundai, Kia, and the other automakers have weathered many challenges over the past few months.
In February, Hyundai and Kia had to suspended operations — hamstrung by a lack of Chinese sourced parts with the coronavirus outbreak crippling China’s industrial output. As COVID-19 peaked in Korea some plants also closed briefly as a safety precaution.
More pressing, although local sales are a cushion, little has prepared the automakers for the drop-in demand overseas and the unexpected halt in their global production facilities.
Although domestic production in March was at 95%, with the slump in global sales and demand taking hold, we are beginning to see Korea’s production, too, take drastic moves. For example, Hyundai halted production for 4 days of the sport utility vehicles Palisade, Tucson, Santa Fe, and Genesis GV80.
Sister firm Kia Motors, too, is looking to suspend 4 of their Korean plants with a mix of closures to keep inventory levels manageable and stay flexible to overseas demands.
As an additional countermeasure, Hyundai Motor and Kia Motors have decided to halt all their domestic factory lines from May 1 for Korea’s Labor Day to May 5 for the nation’s Children’s Day — both public holidays. Korea’s other car brands and related industries are mulling similar moves, too. Some suppliers are now considering extended shutdowns into mid-May.
Preserving the Workforce
Noting the huge task for Korea amid global downturns with much of the country’s employment driven by export-driven sectors such as automotive, how Korea preserves its workforce and jobs will take considerable effort and savvy. It will be a difficult balance between mitigating business losses while holding on to jobs.
For one, as Korean groups have shifted manufacturing overseas, the lesson from COVID-19 is to have a less concentrated supplier and production base which ultimately means spreading things around. This does not, however, help Korean employment.
Next, government funding is but a part of the solution, more so may be an agile and scalable production model — one that can grapple with and carry on through the unforeseen and disruptive times. Again, countermeasures need to be in place as new situations unfold.
With unemployment spiking globally, the lessons learned if Korea as a first mover can successfully maintain their workforce in the wake of the crisis will be of the greatest interest as regions and nations emerge from COVID-19 — many facing the same tough challenges.
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As always here for your comments, thoughts and questions. Open to interviews, webinars and new business opportunities.
South Korea – A Roadmap to COVID-19 Economic Recovery For many weathering stay at home and a remote office, how businesses will return to work weighs heavy on the minds of governments, employers, and workers worldwide. It’s a delicate balance between staying safe and an urgent need to re-open commerce.
For an economic recovery, South Korea could be a glimpse into future best practices.
The world has been watching and, in some cases, following as South Korea benefits from its social distancing guidelines, technology-powered testing, tracing and treatment, as well as measures to utilize data in fighting the virus.
How South Korea tackles rebooting their economy will also be closely followed — as Asia’s fourth-largest economy, it is considered a bellwether for world trade.
As a trial, in their recent election, South Koreans turned out in record numbers. The country after much discussion went ahead with elections as its massive and rapid testing and quarantine efforts have slowed the spread of COVID-19.
On one level the strong voter response is a sign of intense public interest in what may be seen as a referendum on President Moon Jae-in and his administration’s handling of the COVID-19 crisis.
Perhaps more insightful, as a first step in COVID-19 recovery, it appears to have pushed more citizens to cast their ballots.
I believe all efforts will now turn to economic recovery.
For me, this was very apparent in recent in Zoom calls and correspondence with Seoul.
In one example following the election, a Korean colleague asked what was needed as the next step into jump-starting our marketing outreach for a stalled product launch. More so, sensing the urgency and some pressure, they shared leadership’s new and rather hefty quarterly goals for the product launch.
In another instance on a call with a team, senior leadership jumped in to get an update on a number of global business outreaches made in the last few weeks — leadership then asked to move forward ASAP with whatever support was needed from their teams and HQ.
Stepping back and pondering some, I feel we all need to have a plan in place — and be positioned to move forward fast.
As business and commerce recover, agreements will probably be revisited, terms subject to renegotiations, and above all expect partner and leadership requests for a detailed localized Recovery Plan!
To this, I’d add that it’s best to include some countermeasures for recovery. In weeks to come, and as economies emerge from COVID-19, early movers like South Korea may provide much-needed roadmaps for recovery and implementing return to work plans.
That said, we can assume recovery will be gradually phased-in, vary by location, industry sector, and the overall local health status.
It also will require continued social distancing, expanded use of personal protective equipment, and other preventative health measures. ###
With millions of people sheltering in place amid the COVID-19 pandemic, the cloud computing market is getting a serious usage boost.
Schools, corporations, and individuals are using cloud-based software to learn, collaborate, and stay connected.
The pandemic is changing the way the world operates, including how we work.
A significant number of companies deemed non-essential have transitioned to remote work environments to remain in operation, using cloud-based software to collaborate and work.
At the same time, a large segment of the population is practicing social distancing and turning to virtual tools to stay connected.
That demand for cloud-based services isn’t going to go away anytime soon, even if cities begin easing social distancing rules in the coming weeks or months.
One attractive alternative to Microsoft 365, is Korea’s Hancom suite of productive software. The company in business since 1990 offers a number of Cloud-based products, including Hancom Space and Hancom DocsConverter.
Hancom offers a number of Cloud-based products, including Hancom Space and Hancom DocsConverter.
Hancom Space provides a full-featured suite of office productivity tools in a modern collaboration space for enhanced team effectiveness.
You can create and share documents conveniently from a desktop, mobile device, or web browser. You can work together on documents stored in the cloud.
You can even combine cloud storage services and manage them from one place.
Hancom DocsConverter is a server solution that enables you to convert MS Office documents into a variety of formats. It provides features such as document preview, content security, search keyword extraction, and more.
DocsConverter integrates with Groupware, EDMS, CMS, email systems, search engines, and more.
The Hancom DocsConvertor business application is available through the AWS Marketplace with a free trial period, too.
SEOUL, April 9 (Yonhap) — South Korean IT solution providers are introducing various artificial-intelligence (AI)-based solutions to help the country’s fight against the novel coronavirus, industry insiders said Thursday.
Hancom Group, South Korea’s leading software developer, said it has been offering an AI-powered phone calling system, known as Hancom AI Check25, for free to help local municipalities monitor those in self-quarantine.
The outbound call system asks people about their health conditions and can quickly analyze data from their answers. Its AI voice assistants can make many phone calls at once, allowing authorities to save time and check quarantined people efficiently.
The AI call center platform is currently used by cities, like Seoul and Daegu. Hancom said Naver Business Platform Corp., an IT infrastructure management firm, is also supporting systems by proving cloud infrastructure.
In the wake of the novel coronavirus outbreak, South Korea’s ICT ministry has since last month been supporting IT firms that develop AI algorithms or solutions for the containment of COVID-19. For more information, please contact Don Southerton
If times are a challenge or you have an urgent need to talk regarding Korea, text me and we can connect.
310-866-3777
Don
Don Southerton
To stay proactive here are some of my thoughts for this week
Like you, I miss meeting in person, travel and much of the daily routine. That said, after more than a decade + of 24/7 working remote, virtual and online support for teams in Korea, North America and worldwide, technology today allows us to stay very well connected.
I do however recognize the uncertainty most are experiencing and have blocked off time in my schedule to not only catch up with teams and leadership but feel free to reach out as a sounding board and for a strategic, culturally savvy perspective.
Here are a few examples… but not limited to these 🙂
1. Short term how will Korea HQ’s’ team and leadership respond globally vs, in their own Domestic market? i.e. Will HQ work to maintain their Korean workforce, but mandate overseas operations cut employment, budgets, etc.
2. As a caveat, what countermeasures can global subsidiaries recommend to their Korea-based / HQ organization as an alternative to drastic global cuts across the board? ( I always try to suggest 3 options) [Same goes for western operations in Korea for a western-based / HQ company who may be pondering cutting backs.]
3. How can western-based teams and organizations with new and/or ongoing ventures in Korea ensure their Korean partners do not pull back amid the uncertainty? (This has been common in the past with recessions, the China boycott, etc.)
4. Noting Korea’s cross-cultural high-risk avoidance, how do we structure re-assurances?
5. Noting western cross-cultural frankness, how do we structure constructive Korea facing dialogue and conversations dealing with the Crisis?
6. As a partner, service provider, or vendor, how can I mitigate Korea-facing / HQ budget cutbacks in programs and services?
As always, all communication is kept private and confidential.
The Year of the White Rat. South Korea (as well as China and Vietnam) celebrate two New Years’. One on Jan. 1 and the Lunar New Year celebration, which this year falls on Saturday, January 25.
For your Korean colleagues (living and working in Korea), you can wish them Happy Lunar New Year on Wednesday afternoon by phone, text, or email, which is Thursday AM in Korea and their last workday before the holiday.
Koreans this year will have a 4-day weekend starting Friday K time.
For expatriate Koreans working outside Korea/ globally, you can wish them a Happy Lunar New Year and Year of the White Rat on the day itself, Saturday, January 25, or at some time prior on Friday.
Here is the formal greeting.
Sae hae bok mani ba deu say yo
One more thing… The year of the rat opens up a new 12-year cycle of animals in the Chinese zodiac. As the first animal to finish the Great Race of the Chinese zodiac legend, the quick-witted rat represents new beginnings and versatility.
According to legend, a Great Race was organized by China’s Jade Emperor to determine the order for the annual calendrical signs. The competition saw the small but clever rat crossing a final river race obstacle by riding on the back of the ox. Then nearing the finish line, the resourceful rat jumping off to cross before the other animals. Thus, being name first among the animals of the 12 Chinese zodiacs.
In Korean folk tales, though the tiniest among the zodiac animals, rats are seen resourceful, nimble, diligent and productive—this translates into 2020 being seen as a year of wealth and abundance.
As always, I appreciate your comments and thoughts, as well as any inquiries to support you and teams by steering through Korea facing business issues with a proven strategy, work throughs, and solutions.
SEOUL, SOUTH KOREA, Dec. 20, 2019 /Hancom Group, South Korea’s leading ICT company has announced it will unveil its next-generation Life Blockchain technology at the 2020 CES Show in Las Vegas.
How Hancom sees Blockchain Within the Group’s “Safe World” vision, affiliate Hancom WITH has built upon its 30 years of core competencies as a trusted and integrated information security provider. Ever evolving and steering the 4th Industrial Revolution IT ecosystems Hancom WITH offers convergence solutions that enhance productivity in both Blockchain and Intelligent City Platforms.
Next generation Blockchain Hancom provides a robust and trustworthy blockchain service by integrating security technology and blockchain technology. Within our lineup of products is HancomSLedger, a blockchain platform that allows privileged user access, providing electronic contracts, document notarization services, civic applications/certifications and public data access.
HancomSLedger optimized modules support various areas like supply chain, IoT and finance and can be easily configured for new services. As a result, it assures data integrity, transparency and service efficiency.
Next generation Intelligent City Platform Hancom’s Intelligent City Platform acts as an urban controller tower collecting and analyzing information from transportation, safety, and the environment to help make the most suitable decisions. Hancom simplifies the development process in the complex data processing and monitoring of literally thousands of devices. As Hancom provides a proven seamless rapid development process, Hancom Intelligent City Platform is scalable and customizable to fit each city’s environment.
Intelligent City Platform Stop by the Hancom 2020 CES booth located at South Hall 2, AI & Robotics, Booth 25628 of the Las Vegas Convention Center.
Media Contact Don Southerton +1-310-866-3777 Dsoutherton@bridgingculture.com
About The Hancom Group Founded in 1989, today South Korea Hancom Group is a leader in creating innovative ecosystems that will lead the world through the convergence of technology.
With its reach of 13 affiliate companies covering Hardware, Software, and the Finance industry, the Group’s mission is to create a “Convenient World, Connected World, and Safe & Secure World.”
Convenient World Hancom Inc. Global smart work solutions from AI to productivity software solutions. Hancom MDS Intelligent convergence solution leader based on IoT and embedded technology IoT. Hancom Mobility Sensor-based smart parking sharing solution. Hancom Robotics Intelligent logistics and service robots.
Connected World Hancom Interfree Voice recognition and translation that remove language barriers. Hancom Teladin IoT-based wireless solutions. Hancom Talkafe Communication solutions. Accufly.AI AI-based solutions for barrier-free communication with the best technology from Korea & China.
Safe World Hancom WITH Next-generation smart city platform creating a secure urban ecosystem based on blockchain. Hancom Lifecare Integrated safety solution ranging from personal safety equipment to social safety. Hancom GMD Mobile Forensic & AR/VR Solution based on Digital Data Analysis. Hancom Investment Investing in companies with excellent technology in the Fourth Industrial Revolution.
Who is Hancom? How does Hancom envision Robotics, Smart City and AI Life Blockchain technology?
For Immediate Release
SEOUL, SOUTH KOREA, Dec. 13, 2019 /Hancom Group, South Korea’s leading ICT company today announced that it will participate at CES 2020, Jan.7-10, 2020, in Las Vegas. The company will present its visions for making the world better through pioneering future innovation for an ever-evolving tech industry.
Rendering of the Hancom Group CES 2020 Exhibit
The new exhibit will be located at South Hall 2, AI & Robotics, Booth 25628 of the Las Vegas Convention Center.
Who is Hancom?
Hancom like the other highly recognized South Korean market leaders will share with the industry how it uniquely envisions Robotics, Smart City and AI Life Blockchain technology.
How Hancom sees Robotics
Led by Hancom’s Convenient World vision for work and life, Toki is one in a line-up of specialized robots for home and educational use. With customized AI conversations through face and voice recognition tailored to each family member, Toki also has home monitoring and video calling capabilities. Come experience Toki live at the Show.
Toki, Home and Education Robot
How Hancom sees Smart City and Blockchain
Driven by Hancom’s Safe World vision, the innovator has developed an Intelligent City Platform, the next-generation smart city platform creating a secure urban ecosystem by connecting everything to each other utilizing the latest technologies. This connectivity will improve city services and infrastructure, as well as the quality of life for urban dwellers.
The Intelligent City Platform acts as urban control tower integrating AI technology, blockchain and IoT, while utilizing real-time data for easy visualization.
Intelligent City Platform
On Life Blockchain, Hancom’s efforts are game changing and wide ranging. They include a seamless, private blockchain platform to allow privileged user access, providing electronic contracts, document notarization services, civic applications/certifications and public data access.
Life Blockchain
“As South Korea’s leading ICT company, we look forward to sharing at CES how Hancom will contribute to make the world Smarter and Better,” Dr. Peter Wonsok Yun, President of Global Business, Hancom Group.
Pre-show and Show media interviews are welcome.
About The Hancom Group
Founded in 1989, today Hancom Group is a leader in creating innovative ecosystems that will lead the world through the convergence of technology.
With its reach of 13 affiliate companies covering Hardware, Software, and the Finance industry, the Group’s mission is to create a “Convenient World, Connected World, and Safe & Secure World.”
Convenient World
Hancom Inc. Global smart work solutions from AI to productivity software solutions.
Hancom MDS Intelligent convergence solution leader based on IoT and embedded technology IoT.
The Habit Burger Grill (Nasdaq: HABT) is setting its sights on South Korea as the next international growth target as the burger-centric restaurant concept continues its steady march abroad. To support its expansion plans, The Habit has partnered with the experienced business development consulting firm, Bridging Culture Worldwide to attract multi-unit franchise development companies.
“South Korea, with its savvy consumers, open minded culture and interest in global brands is an ideal marketplace for The Habit Burger Grill’s expansion,” said John Phillips, The Habit Burger Grill’s Chief Global Business Partnership Officer. “The people of South Korea appreciate quality food and enjoy the fast-casual experience. We look forward to working with Bridging Culture Worldwide to find the right franchise partner to ensure our mutual success.”
The Habit Burger Grill’s entry into the South Korea marks the next phase in a larger international expansion plan. Bridging Culture Worldwide will help The Habit lead its expansion into the broader Asia-Pacific region. The consulting, strategic planning and market entry service is excited to join this venture.
“South Korea has embraced premium Western brands and The Habit Burger Grill delivers exactly what consumers are seeking – great food and excellent service. With their distinctive fresh off the grill Charburger and hand-crafted sandwiches, fresh salads and other menu items, we know South Korea will appreciate all that The Habit Burger Grill has to offer,” said Don Southerton, Bridging Culture Worldwide’s Founder and CEO.
Better burgers are just the beginning at The Habit where the menu also includes hand-cut salads, grilled sandwiches including line-caught, sushi grade ahi tuna, fresh chicken, and hand-filleted marinated grilled tri-tip, and sides including onion rings, sweet potato and French fries, and tempura green beans. Guests can choose from a variety of peppers, lemons, limes, and sauces at a complimentary condiment bar to customize the flavor of their meal.
The Habit Restaurants, Inc. Celebrating its 50th anniversary this year, The Habit Burger Grill is a burger-centric, fast casual restaurant concept that specializes in preparing fresh, made-to-order chargrilled burgers and handcrafted sandwiches featuring USDA choice tri-tip, grilled chicken and sushi-grade ahi tuna cooked over an open flame. In addition, it features fresh made-to-order salads and an appealing selection of sides, shakes and malts. The Habit was named the “best tasting burger in America” in July 2014 in a comprehensive survey conducted by one of America’s leading consumer magazines. The first Habit opened in Santa Barbara, California in 1969 and was most recently named the winner of USA Today’s 10Best in Regional Fast Food. The Habit has since grown to over 265 restaurants in 12 states throughout Arizona, California, Florida, Idaho, Maryland, Nevada, New Jersey, North Carolina, Pennsylvania, Utah, Virginia, and Washington as well as six international locations. More information is available at www.habitburger.com.
About Bridging Culture Worldwide Founded by Don Southerton, Bridging Culture Worldwide provides targeted market entry, strategy, and consulting to Korea-based global businesses as well as support for major western firms entering Korea.
With a life-long interest in Korea and the rich culture of the country, Southerton has researched and authored numerous publications with topics centering on the creative culture lifestyle, the Korean auto industry, new urbanism, entrepreneurialism, and U.S.-Korean business ventures.
Southerton has been a contributor to The Economist, Branding in Asia, Automotive News, the BBC, CNN Fortune, Korea Times, Yonhap, Korea Herald, tbs eFM, Wall Street Journal, and Forbes. To learn more, go to www.bridgingculture.com.
Christmas is a popular holiday in South Korea. I am incredibly impressed by the decorations in popular locations across Seoul city, such as Yeouido, Myeongdong, and Cheonggyecheon.
That said, it is also a distinctly Christian holiday.
As the holiday approaches, you may wish to greet Korean colleagues with a common greeting. Sae hae bok man i ba deu say yo!
Hint: When speaking, 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, text, IM, or an email.
It is the best seasonal greeting for New Year’s, too.
Given the time differences, vacations, and work schedules, plan to wish Korea-based friends and colleagues a holiday greeting on Thursday, December 19 (USA/ EU time), Friday KST.
Another option is next week on Monday, December 23, USA/ EU, which coincides with Christmas Eve Day AM in Korea.
Questions on the holidays in Korea? Urgent business issues?
The National Assembly (Parliament) has passed a motion to impeach President Yoon Suk-yeol for issuing a short-lived martial law on December 3rd. The motion suspends Yoon’s role as South Korea’s president.
Prime Minister Han Deok-soo will step in as acting president to lead the nation until Yoon returns to office or until a new president is elected.
The Constitutional Court has six months to review the impeachment motion. If the court upholds the motion, a new presidential election will be held within two months of the court’s decision.
I assume he will be impeached, as most feel the reasons President Yoon’s grounds for martial law were political rather than his reason to “investigate election fraud manipulated by North Korea.”
His motives stem more from frustration with advancing the administration’s agenda and his desire to prevent the opposing party from meeting.
My takeaway is that South Korea’s democracy is vibrant after decades of authoritarianism. Politicians embrace free speech and confrontation, and massive public rallies are typical. What is apparent is that Korean democracy remains strong and resilient.
Concerns about potential trade restrictions regarding the impeachment’s international impact on business have been raised.
Although the incumbent Trump administration has not explicitly mentioned tariffs on South Korea, there is potential for tariffs on Korean-made goods and services.
More to the point, during the previous Trump administration, in which President Trump met with the former Korean president and engaged in ongoing negotiations, we saw exemptions for Korean products subject to punitive tariffs.
The status of the South Korean leadership in limbo could pose a challenge until the Korean presidency is resolved.
That said, in my opinion, President-elect Trump seems to have greater concerns about U.S. military troops in South Korea than about any bold mention of trade restrictions—unlike with the EU, China, Mexico, and Canada.
About Don
Don Southerton has a long history of offering Korea-facing market entry, strategy, and consulting services to businesses around the globe.
On business issues, Southerton has contributed to CNBC, The Economist, Automotive News, the BBC, CNN Fortune, Korea Times, Yonhap, tbs eFM, Wall Street Journal, Branding in Asia, and Forbes.
Southerton is the author of more than a dozen books, including, most recently, Korea 101: The Book (2023) and Hyundai Way: Hyundai Speed (Third Edition, 2023).
This is my annual update and insights on the Korean corporate shuffle.
Year-end promotions, restructuring, and new team assignments are part of Korean corporate culture, both past and present.
Changes occur from top to bottom within Korean companies between early December and early January. Changes to senior leadership are announced first, and team-level changes are usually made known the week before or during the period between Christmas and New Year’s Day.
For example, Samsung Electronics is the first mover this year, having made its annual high-level leadership changes last week. It carried out its year-end executive reshuffle, emphasizing a generational shift.
We can expect others to follow, so stay tuned. By the way, even if public announcements have yet to surface within the groups, these changes are in play internally.
Similarly, with Hyundai Motor Group, we have already seen top leadership changes, with José Munoz promoted to incoming CEO of Hyundai Motor Company and Michael Cole of Hyundai Motor Europe stepping away. We expect their organization-wide changes to be announced soon.
2025
Teams will report back to work after the Christmas and New Year holidays. Some assume new roles frequently in departments with little experience, requiring employees to acquire new skills—sink or swim. Hence, it’s called the “Shuffle.”
In the following days, those who have shuffled brief their replacements, while staff remaining in their jobs update new management teams on the status of projects and issues.
Meanwhile, others will be enroute to assignments in overseas operations, which can be stressful for local overseas operations and challenging for those working outside Korea for the first time.
The Disconnect
In particular, it is common for those newly assigned to be unfamiliar with or have minimal experience with the nuances of localized foreign business and their new roles and responsibilities. Not to mention, working outside Korea itself can be a learning curve that can take months or even years.
What works in Korea rarely transfers to managing overseas teams. Most still try to adapt to local norms and language. In fact, over the years, I have worked extensively to facilitate smooth transitions in many of the newly assigned overseas teams, and they will need support. I strongly recommend that Western and Korean leadership take countermeasures to mitigate transitional gaps.
So, what to look for…
The top Chaebol will begin to announce key promotions, which can provide some insight into future trends.
The Chaebol usually also comments on whether this year’s promotion number is more or less than in the past and the reasons “why.”
Top Chaebol will soon announce restructuring plans, ranging from granting business units more independence to consolidating control.
For example, some years, we see less change and stability than drastic changes in the face of economic uncertainty, as it may carry out in a modest year-end leadership reshuffle across affiliates.
New Year’s Message
That said, as in the past, with the new year, we can expect leadership to share their 2025 plans in an annual New Year’s company announcement, too. I monitor these closely and, as they are in Korean, will share them when appropriate and upon request. These New Year’s messages can be very insightful as they pose marching orders for the new year.
As a final note, for Western global teams, I suggest congratulating those who are promoted but also being sensitive to Korean team members who were passed over… or possibly moved to what may be seen as a less strategic assignment.
In this week’s Newsletter and YouTube, I look at Korean Business and ”Similar but Different Norms.”
Global business requires colleagues of different cultures to work together daily.
How we see each other culturally is often based on differences, like language, and similarities, such as shared values like family.
I like to focus on the latter, as differences can pull us apart, and similarities bring us together.
Particularly for Western teams engaged in all ways with Korean operations, I believe in the importance of deep learning about the workplace in Korea — the 2024 norms, practices, and day-to-day life.
They do change, and most often, we can fixate on what could have been tainted by hearsay or an altogether lack of understanding.
The same learning goes for Korean global teams assigned to support overseas operations. They must become savvy learners in the wide range of local overseas practices. Expecting global teams to bend to Korean business norms rarely works, too. It just leads to delays and stalled projects.
As I noted above, recognizing similarities is one of the most potent cross-cultural bridges.
In other words, how can you relate to the nuances in communications and day-to-day life? This requires identifying the local beliefs, values, expectations, traditions, and culture. These insights allow us better to understand our mutual teams’ thoughts and expectations.
Outcomes
Although there is bound to be friction between home and host country cultural values, a successful model accomplishes:
1. Awareness and appreciation of both the home and host country with the ability to gain an insight into one’s own personal traits, strengths, weaknesses, attitudes, and interests.
2. Realization of shared values, along with an awareness of and respect for cultural differences.
Call to Action
So, how do you see this applying to you and your experiences working with teams from another culture?
This brings me to recall a recent C-level meeting where I chatted with the local subsidiary’s Korean CEO. He asked if I’d shared with his team how the company in Korea and the U.S. differed from the Group’s many sister firms—many Westerners wrongly assumed high conformity across the Group.
I assured him that “yes,” and, in mentoring, I shared that I, too, had experienced each company’s unique culture within the group.
Not only did sister companies differ, but in some cases, the Koreans recruited and worked in different ways at companies within the group.
On parting, the CEO pointed out another key point to be shared: Over time, Koreans dispatched to support the division’s overseas operation came to see things differently than domestic Korea-based teams.
He ended having come to “See things differently, too.”
Cultural differences can create misunderstandings and stress, impacting productivity and smooth business operations. Cross-cultural education is recognized as the chief solution to workplace challenges.
We have a long history of training executives and teams in a wide range of Korea-focused mentoring, coaching, and strategy services.
We offer a six-week Korea 101 Korean Business Culture program for teams. The theme is “Working within the Cultures.” The cost is US $4800.00.
Additionally, we provide situational mentoring and coaching as needed on issues that surface, focusing on negotiations and meeting expectations.
The workshops and mentoring aim to build upon the team’s experiences while providing new understandings.
We invite you to schedule a time to discuss the details using our Calendar.
Again, this is Don Southerton wishing you all the best.
Chemulpo: Korea’s First International City
Japanese and Chinese Settlement in Chemulpo – Photo Courtesy BCW and Keystone-Mast Collection.
By Don Southerton
As In the most recent Branding in Asia
https://www.brandinginasia.com/chemulpo-koreas-first-international-city
The bustling city of Incheon, South Korea, and its busy port, including Songdo, were once known as Chemulpo. It was Korea’s first international city.
Interestingly, Incheon Metropolitan City mayor Yoo Jeong-bok envisions transforming the city into Asia’s premier business hub, aspiring for it to become one of the world’s top 10 cities.
In the late 19th century, Chemulpo emerged as the main port for merchants trading with Korea. Strategically located on the west coast, it was home to residents from China, Japan, Britain, America, Germany, and Russia.
Many Western traders and officials gathered at the Chemulpo Club, which overlooked Incheon Harbor and was a popular meeting place for expatriates in the early 1900s. In 1896, William Franklin Sands, a young American diplomat newly assigned to Korea, described Chemulpo and its high and low tides that exposed great expanses of mud as “an unattractive entrance to a great adventure.”
Accounts from that time also depict the Chemulpo Club as a gathering place for foreigners to discuss political and business developments in the turbulent days before Japan formally annexed Korea in 1910.
The club was established in Seoul in August 1891 by diplomats and merchants from 11 countries. They initially met at a Western-style building in Seoul’s downtown Jung District.
However, in 1901, the Russian architect Aleksey Seredin-Sabatin built and relocated the Club to a two-story location in Chemulpo, which had become the hub of trade.
Suffering from neglect and the ravages of the Korean War, the club was restored in the late 2000s.
Soon after the building was restored, I saw it as the perfect venue for the 2009 release of “Chemulpo to Songdo IBD: Korea’s International Gateway.”
The book was a historical and contemporary research endeavor—including tracking down and acquiring rights to never-published early 1900s photographic plates, and translating the English content into the Korean language, too, for a bilingual work.
The search for images would span both continents–starting at Yonsei University Library where they attributed a series of engaging day-to-day Chemulpo images to the Keystone-Mast Collection, at the UCR/ California Museum of Photography, University of California, Riverside.
The Keystone-Mast Collection comprises over 350,000 stereoscopic photographs and negatives that depict the world between the late-nineteenth and mid-twentieth centuries.
The UCR collection houses several archives including the Korean travelogue stereoscopic plates. In an era before widespread movies and the invention of TV, handheld viewers gave a 3D-like stereo image—often of far-away and iconic destinations.
These images stand out as if taken today bringing clarity into the Chemulpo port life.
The August 2009 Chemulpo book event would attract over 100 attendees, including Mayor Ahn Sang Soo and his entourage, American and Korean officials from the Songdo IBD project, former U.S. ambassadors to South Korea, members of the press, and local dignitaries.
Following the book presentation, a walking tour was conducted for the guests of Incheon’s Jayu Park and the historic Chinatown district.
Looking back, Incheon and Songdo have a rich international business history, and today, one that continues to adapt and draw global attention and opportunity.
The city of Incheon, and its port, including Songdo, were Korea’s first international city.
This today, aligns well with the vision of Incheon Mayor Yoo Jeong-bok and the region’s Incheon Free Economic Zone (IFEZ) commissioner Dr. Wonsok Yun for the city to become one of the world’s top international business hubs. Dr. Peter Wonsok Yun
You can view and download a complimentary copy of Chemulpo to Songdo IBD: Korea’s International Gateway here. Enjoy.