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.
“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….
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.
Two Best Sellers: Korea 101: The Book, Hyundai Way
Two of Our Most Popular Books… Korea 101 and Hyundai Way: Hyundai Speed, The Third Edition
Korea 101: The Book https://a.co/d/4k0nNaQ
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.”
Hyundai Way https://a.co/d/dHJdwYy
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.
Have a Korea-facing question? Just ask dsoutherton@bridgingculture.com
Don Southerton