In this Part 2 Korean norms, I provide insights for Western executives, and in Part 3, I will share more with teams interacting with Korea.
As noted for global teams, steering the norms and expectations of the Korean workplace can be challenging. Furthermore, failing to meet expectations and, in many cases, misinterpreting situations is concerning. Although individuals may be very confident in their positions and way of doing things, they may never see their demise coming and will be blindsided.
Seasoned Korean executives are highly intuitive and sensitive to everything around them. They read situations and adapt. Little gets by them. In fact, few ever reach an executive level without such a skillset.
To share a couple of takeaways…
First, a Western executive is hired for two reasons based on their background and experience. 1) To do the job you were hired. And 2), to develop solutions, ideas, and workarounds. These solutions should include several options to present to leadership and, at times, ideas “out of the box.”
Next, I strongly recommend Western executives receive ongoing and frequent updates on Korea and the workplace, as well as coaching and mentoring. On-demand and weekly sessions can address questions and issues impacting your company and issues that surface.
As always, I am here to discuss… Let’s set a time to talk.
For global teams, steering the norms and expectations of the Korean workplace can be a challenge.
Workplace norms differ less today in Western operations, as the international business model is common, despite some regional differences.
That said, Korean domestic companies and headquarters follow a Korean business model. However, as I have shared in articles, podcasts, and books, change has occurred, such as casual dress.
Today, however, we may observe that recently assigned Korean expats still adhere to the traditional model, at least in their interactions with the Korean team and in daily correspondence with Korea. Most notable is their use of titles with Korean teams and seniors, as well as their quiet, respectful demeanor with upper management.
This difference between Western business industry norms and today’s accustomed practices and those of Korea and their operations can sometimes be challenging.
First and foremost, although local leadership manage their operations, they still need to report to a Korean HQ. In the past, it was the expat’s responsibility, and there was an expectation that reports would be formatted according to SOP HQ guidelines.
Next, with more direct meetings between Western teams and Korea, time differences can be challenging, especially for pressing issues that need immediate action. These often occur with time differences overlapping late in the day, and when Koreans at the HQ arrive at work. This can easily push discussion into the evening for local teams. And, in the past, with expats interacting with Korea, they often stayed late into the evening and even overnight.
So, what are the workarounds?
I recommend that 1) Western leadership receive ongoing and frequent updates on Korea and the workplace, as well as coaching and mentoring, where questions and issues impacting their company and work can be addressed.
And 2, the local team also needs immersion in Korean business norms, practices, and expectations—both in general and specifically with their home Korea Group and its sister companies. Norms can vary, for example, between Hyundai, CJ, Samsung, LG, SK, and their startups. Moreover, Korea is constantly changing.
By Don Southerton Trusted Korea business advisor, culture coach, mentor, and consultant. Hyundai Whisperer…Incheon-IFEZ
A shift in support, coaching, and onboarding for Korean businesses.
In a conversation with a Korean American colleague supporting one of Korea’s top groups, our discussion shifted to the changing business model and the Chaebol’s newer approach to overseas development.
For example, early entries into the US and North America dispatched teams of expatriates to set up and manage their local operations. Although local teams were responsible for operations, Korean expatriates, often called Coordinators, acted as shadow management with considerable oversight, especially in Finance.
Moreover, as in Korea, the business model was to create their own local sister subsidiaries in marketing, IT, logistics, manufacturing, and design.
Today, many Korean groups new to the US market have taken a different path: acquiring their first entrants through M&A and building their local organizations through acquisition.
In most cases, Korean expats typically work on more temporary assignments and liaise with the Korea HQ.
Getting back to my conversation, much of my earlier work with Korean Groups involved providing support to local Western leadership and teams on how best to interact with the expats who, as I mentioned, had considerable oversight and could override well-thought-out decisions.
Today, we have observed Korean groups significantly reducing the dispatch of expats, although a few divisions still adhere to the old model.
What stands out today is the shift away from embedding expats with divisions acquired through M&A or partnerships.
There are still challenges. First and foremost, although local leadership manages their operations, they must report to a Korean HQ, and their teams must interact with Korean counterparts. The time difference is the least of the challenges.
This then requires a deep understanding of Korean business norms and expectations, which are vital for smooth global operations.
I recommend that 1) Western leadership be provided with ongoing coaching, frequent updates on Korea and the workplace, and a coach or mentor to discuss questions and issues that impact their company and work.
2) The local team needs immersion in Korean business norms, SOP, practices, and expectations… in general and with a specific Korea Group—and even their sister companies. Norms do vary, for example, between Hyundai, CJ, Samsung, LG, SK, and their startups. Not to mention that Korea is constantly changing.
As always, I am here to discuss… Let’s set a time to talk.
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As U.S. tariff threats mount, South Korea’s key industries brace for impact, navigating shifting trade policies and economic uncertainty, writes Don Southerton.
When examining trade between nations, 2025 is particularly worrisome. Recent concerns are widespread. Specifically, the Trump administration’s threats of tariffs against countries like South Korea emphasize that there will be no exceptions, even with a Free Trade Agreement revised under Trump 1.0.
Newly appointed President Trump announced that he will introduce a 25% tariff on autos, pharmaceuticals, and semiconductor chips.
More immediately, levies on automobiles could be coming as soon as April 2.
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.
Contact me 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…. Don
We are launching our 24/7 live stream. With nearly 200 YouTube and Korean-facing business videos, I’ve picked the top video for the new Bridging Culture Worldwide: 24/7 Korean Business Livestream 2025.
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I am a strong advocate for Korean global business. I see tremendous opportunities and am passionate about helping Korean brands succeed overseas and enabling international brands to thrive in the Korean market.
As I have shared, Korean and global companies must recognize the considerable upfront support and investment required to enter markets outside their home countries.
I want to share what I see as best practices for 2025.
Step 1: Do your homework
Invest time and resources in discovering the local market. Seek an expert knowledgeable about the local market and business sector to conduct an objective, detailed competitive analysis. The report should identify the strengths and weaknesses of the competition within the market, strategies that will give you a distinct advantage, the barriers that may hinder your entry into the market, and vulnerabilities in the competition that can be exploited.
Too often, I see a company scratch the surface of its market discovery. Sometimes, this controls initial investment costs by assigning in-house teams to work remotely and conducting research via a Google search.
In other cases, the headquarters staff dispatches a team to do “field work,” attend trade shows and perhaps arrange to visit a few potential partners.
These fall short of a legitimate competitive analysis.
Step 2: Get in front of the right people
For highly recognized U.S. or global brands, setting up meetings is less of a barrier because product or service name recognition does open doors. This recognition at least generates enough interest for a potential partner to want to learn more.
Korean brands entering an overseas market need significant effort to establish credibility upfront.
Arranging solid introductions involves an upfront cost and can be very time-consuming for both international and Korean market entry.
Furthermore, anyone with the skills, savvy, and reputation to facilitate introductions, especially with decision-makers, should not be expected to do so as a favor.
Step 3: Present the brand, product, and service as if it were a first date.
Although this was best done in person in the past, I recognize that introductions and first contacts today are often “virtual.” Any content presented at this stage should be high-quality and well-localized.
I often see repurposed PDF and PPT presentations — not unique, custom-tailored content.
Then, double-check the grammar, spelling, and punctuation of a native speaker and ensure the pages are free of format glitches.
At the very least, interested parties will Google a company—and often you personally—before any meeting, so it’s advisable to have a professional website. Even better are postings by third parties, such as press releases and media articles, that showcase the company as a legitimate business.
Step 4: Share the Vision
During their screening and selection process, global companies will select a top candidate among potential partners based on criteria, the foremost of which is the partner’s solid vision and business plan in the market. They will ask if the local partner has performed a detailed competitive analysis (see Step 1) and then ask for a comprehensive Go-to-Market Business Plan. As a best practice, the Business Plan needs to be detailed, not a three—or four-page company overview.
Like the PDFs or PPTs shared during introductions, the Plan must be free of glitches, poor grammar, and spelling errors. The documents should present an appealing and solid business opportunity.
By the way, a Company PDF highlighting your brand is fantastic, but most potential partners are primarily interested in a solid business and go-to-market plan.
These four steps are best practices that can lead to a successful Letter of Understanding, clarifying in writing the terms that may have been discussed via email and in conversation.
These steps require time, resources, and commitment — there are upfront costs, unlike past and current practices in Korea that traditionally required less investment or were absorbed by the company.
Experts like BCW, with a proven track record, rarely work on a contingency basis. They seek a retainer to cover their time and expenses, with a bonus when a deal is signed or a development fee transaction occurs.
Regarding local market legal support, navigating the cultural and legal nuances of contract negotiations and drafting, and regulatory frameworks, “A little money carefully spent at the front end of market analysis, and during initial negotiations will always save a lot more money later in the process.” — as a trusted legal colleague has noted.
Frankly, global business presents challenges and risks. The effort requires embracing a new model and taking bold actions by committing resources to a project that leads them into uncharted waters, even when a more practical approach seems to involve tackling each stage as it unfolds.
I am open to talking with you about any questions.
I’m also happy to steer you in the right direction.
Plus, we can provide the support and resources needed for your market entry.
I note in the recent NIKKEI ASIA article Trump tariffs shake Asian carmakers’ Mexico production strategies: Policy could backfire on GM and Ford while also harming Nissan, Mazda, and Kia.
South Korea’s Kia, an affiliate of HyundaiMotor Group, said during its earnings call that if the tariffs go ahead, the company would have to consider a new destination for the 120,000 K4 sedans it planned to make in 2025 at its Mexican factory then ship to the U.S.
Don Southerton, a consultant to Hyundai, Samsung, and other South Korean companies operating in the U.S., said his clients and their suppliers have been growing increasingly concerned about the potential impact of 25% tariffs on imports from Mexico.
He added that although the additional costs will burden Kia, they noted that “the tariff policy is not at a level that would undermine Kia’s system.”
We’ll see… Feb. 1, 2025, is just around the corner.
By the way…
I’d add that when most OEMs entered the Mexican market under the North American Free Trade Agreement (replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020), it opened the doors for the flow of goods tariff-free between Canada, Mexico, and the U.S.
That said, before the treaties, substantial goods were produced by Maquiladoras, factories in Mexico that assemble, manufacture, or package products for export to the United States or other countries.
Interestingly, today’s Hyundai Translead was one of the 1st Maquiladoras.
Hyundai Will Build Container Plant in Tijuana : Maquiladoras: South Korean company is the second heavy-industry firm to announce plans in Baja in the wake of relaxed Mexican guidelines.
By the way, cost savings and lower labor costs have not been the sole drivers of carmakers building plants in Mexico.
Mexican government regulations force car companies to assemble cars in Mexico using local and imported components. Thus, all the major car brands have plants in Mexico. I
In other words, for an OEM like the Hyundai Motor Group and KIA to sell cars in Mexico, it needs to also manufacture cars in Mexico.
Do you have a Korea-facing question, business opportunity, or challenge? Let’s talk.
Norms and Expectations 2025: Part 2 Leadership Insights
NEXO FCEV
By Don Southerton
In this Part 2 Korean norms, I provide insights for Western executives, and in Part 3, I will share more with teams interacting with Korea.
As noted for global teams, steering the norms and expectations of the Korean workplace can be challenging. Furthermore, failing to meet expectations and, in many cases, misinterpreting situations is concerning. Although individuals may be very confident in their positions and way of doing things, they may never see their demise coming and will be blindsided.
Seasoned Korean executives are highly intuitive and sensitive to everything around them. They read situations and adapt. Little gets by them. In fact, few ever reach an executive level without such a skillset.
To share a couple of takeaways…
First, a Western executive is hired for two reasons based on their background and experience. 1) To do the job you were hired. And 2), to develop solutions, ideas, and workarounds. These solutions should include several options to present to leadership and, at times, ideas “out of the box.”
Next, I strongly recommend Western executives receive ongoing and frequent updates on Korea and the workplace, as well as coaching and mentoring. On-demand and weekly sessions can address questions and issues impacting your company and issues that surface.
As always, I am here to discuss… Let’s set a time to talk.
Check us out https://www.bridgingculture.com