GOLDEN, CO, September 06, 2025 /24-7PressRelease/ — Business strategist and Korea expert Don Southerton is thrilled to announce his latest book, Korean Business: Challenges and Solutions– 25 Workplace Hints for 2025. This essential guide provides 25 practical and actionable tips for professionals navigating the ever-evolving landscape of Korean business culture.
With over twenty years of consulting experience with leading Korean and international brands, Southerton provides a wealth of insights tailored to the challenges of 2025. The book covers key topics, from succeeding in Korea-facing roles to building stronger cross-cultural partnerships with Korean teams and leaders. Each tip is refined, tested, and designed to empower executives, managers, and professionals in today’s rapidly changing global market.
Korea’s influence continues to grow worldwide, and success in this area requires cultural fluency and strategic know-how, says Southerton. “This book is a clear, practical roadmap for building effective, lasting relationships in Korean business environments.” Whether you’re leading a Korea-focused company, collaborating with Korean partners, or entering the Korean market, Korean Business: Challenges and Solutions is your essential guide for success.
Don Southerton has spent his career assisting companies and leaders worldwide in working effectively with Korean businesses. Over the years, he has supported major Korean conglomerates, global brands, and government agencies, earning a reputation as the “go-to” expert on Korean business matters. Known for his practical insights and cross-cultural expertise, Don is passionate about building strong partnerships, solving complex challenges, and sharing what he’s learned to help others succeed.
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.
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.
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.
Trying to not doze off and miss a late evening phone or Facebook Message call.
Responding early morning to a previous evening’s urgent Text.
This week we look at some of the new challenges as we’re finding more open and direct communications between Korean HQ and local teams. This is more and more commonly surfacing for teams.
Waking up to a rather lengthy request for revisions on a multi-page document that the Korean team needs to finalize as is due that day in Korea.
Don Southerton
By its very nature, Korean facing business is the interaction of worldwide teams operating in different zones—with Korea and North America—their working days beginning as our ends and visa versa.
Beyond the different cultures globally working together on a daily basis, which I speak of often, we have seen the advancements in telecommunications as well as more open communications between working-level teams in the West and Korea.
(BTW I can recall a time when an international call between the US and Korea was not only costly but few Korean office landlines even had international access.)
That said, it’s now common for Staff in Korea to now pick up their mobile phone and reach out via an app for a one on one with a western team member. This contrasts with the old model where all communication between HQ and local subsidiaries went through and was screened by the local expatriate team.
The new model is not without its challenges.
For one, email requests often need clarification and even a message received in the AM in the West with hopes that by the end of day (morning in Korea) there will be substantial progress—without some clarity—little may have been accomplished.
More so, even if a request is made—local teams are often stretched thin—and any new workload can be seen as overwhelming.
Also common are End of Day requests—again sent at the beginning of the day in Korea—but received as the day is wrapping up in the West. In contrast for an expat team their “second day” often begins around 4-5 PM as the Korean HQ is back on-line and their work often running late into the evening—but for western employees working late is most often not an option.
I do have a number of work-arounds—most the result of nearly 20 years working directly with teams and leadership in Korea.
Here I share two among my long list many proven cross-culture approaches and solutions.
Hint 1
In the case of a last-minute request or a request that may require more clarity and/or substantial research….
As I learned from a senior Korean executive, in many cases Korea often requests local input so teams and leadership can finalize an important decision. They are aware of time restraints and that a comprehensive response could take days. Noting that they are looking for some input, even input limited in scope, that may help sway their decision—pro or con.
Hint 2
In the case of a request and not wishing to seem uncooperative—but unable to respond as requested due to commitments and workload….
Given my experience in dealing with urgent HQ request as noted in Hint 1, I suggest sharing with the Korean team that you’d be happy to assist but you’ll need additional time due to current deadlines, end of day, etc.
As a caveat, I always ask for their timeline and then share some options on when you may be able to assist. I have found what is assumed to be an urgent request often does have flexibility.
In closing, I feel the move to more open and direct communications between HQ and the local team is quite positive. It is not without its challenges as we learn to adapt, build relationships and work within the restraints in time difference, life balance and work hours.
I look forward to your thoughts and comments. Again, if needed I can share more regarding proven cross-culture approaches and solutions.
Today is an exciting day for me. I just launched my Patreon page.
Staying on top of Korea facing business issues and breaking news that impacts you makes a large demand on my time.
Don Southerton
The research, analysis, writing, and delivering the best content possible to you every week has become a full-time job.
In order to continue providing the very best content I can, I could really use your help. I feel Patreon is a great option to offset the costs. If you aren’t familiar with Patreon, it’s an easy way for those interested in my work to see new exclusive content and have access to a range of my services.
100% of all funds contributed through Patreon will be used to cover my bandwidth, so I can focus on creating great content. As a friend, I wanted to share the news with you before promoting more widely.
So, if it feels right to you, anything you or the company contribute is most appreciated. With each tier there are some cool benefits, too.
It’s easy for those new to Korea business to make quick assumptions. I often have to remind myself lessons learned, too. Over time those engaged in projects find there are complexities often rooted deep within in the culture — requiring context, recent and past. This is a normal learning process.
As an example, I’ve also found it very valuable over the years to work with a number of Korean Groups, and the affiliates companies. (I define an affiliate is one of the many family controlled subsidiaries that chaebol typically operate across diverse industries. These can include in-house IT, Marketing, Construction, Design, Sales, and Financing.)
What stands out is how the Culture vary between the Korean Groups — and even within a Group and it affiliates. Perhaps moving among Groups and affiliates sometimes in a single day, I see and experience the subtle differences more than most. This can range from the tangibles like building design, workspace layout, dress code and amenities to intangibles such as what one can sense in day to day employee engagement, morale and openness to new ideas. In other words, the working of one Korean company or agency can differ lots from another.
In particular, there are even Culture differences, such as; 1) in Korea between the domestic HQ and their own local affiliates; and 2), in Korea, between the domestic teams and their own in-house overseas divisions; and 3) between the HQ operations in Korea and the company’s overseas affiliates.
Digging deeper, I feel recognizing what is common between the companies’ counts, too. This can include intrinsic Group values and norms shared across the organization, or even more common general Korean business practices and expectations.
This all means when a Korea related issue surfaces we have to look at with several colored lenses. Candidly, that’s how I pull apart situations, provide context, and a solid work-through when supporting clients as a mentor and their Korea business strategist. Again, watch out for quick assumptions.
As a follow up to news on Hyundai Motor Group chaebol reform, we are seeing some interesting developments. First Samsung is one of the few Groups yet to reform their shareholder structure. That said, I feel they will adopt one similar to Hyundai’s recent plan– a hybrid from the traditional Korean Holding Corp. model.
For starters and some clarity regarding the spin-off and merger within the Hyundai Motor Group Chaebol reform, Hyundai MOBIS, the new de facto holding company still plans to further beef up its core auto parts business.
That said, operations for both domestic Korea modular and A/S parts will move over to GLOVIS as announced—overseas operations will remain under MOBIS.
In particular, MOBIS as the Group’s nerve center will focus more on R&D, and investing in future growth drivers like autonomous vehicles and connected cars.
Next… and getting lots of media coverage and in my opinion nothing that radical.
On Wednesday, Elliott Advisors, a hedge fund sponsor subsidiary of the U.S. fund, called on Hyundai Motor Group to step up its efforts to overhaul its governance structure after announcing it had acquired more than US$1 billion (1.05 trillion won) worth of stocks in three key affiliates of the Korean automotive group.
“While this step is encouraging, more needs to be done to benefit the companies and stakeholders,” Elliott said in a statement.
The hedge fund sponsor also called for a detailed roadmap to further enhance the Korean auto giant’s corporate governance, optimize balance sheets, and enhance capital returns at Hyundai affiliates.
Elliott Advisors said in the statement it looks forward to engaging with management and other shareholders directly on these issues and offering recommendations regarding the proposed plan.
In response, Hyundai said it will make continued efforts to enhance shareholder value and the worth of its affiliates while focusing on better communicating with shareholders.
I’ve also seen HMC sources note they plan to meet with Elliot teams during an upcoming investor event.
Again foreign investment in Korean publically held companies is nothing new.
For example, HMC’s total foreign ownership is about 46% of the Common Stock. Kia is at about 38%.
Elliott Advisors is estimated to own only a combined 1.4 percent stake in Hyundai Motor, Kia Motors and Hyundai MOBIS.
One more thing…
Did you have an opportunity to review my detailed 5 Page Report on Hyundai Motor Group Chaebol reform…. If not I please contact me… as has been very well received.
I’m also available to comment and answer questions as always…
I’d like to share the story behind what has become a cornerstone for Hyundai and Kia Motors.
Please enjoy this weekend’s read, “The Hyundai Advantage, Creative Marketing and America’s Best Warranty—The Story Behind”
“A bold creative marketing ’10-year / 100,000-mile Warranty’ program was first introduced in the U.S. in 1998…not by Detroit’s Big 3 or the growing number of Japanese brands, but by Korean automaker Hyundai Motor.”
In my trip to SoCal this week, and KMA, HMA, GMA, MPA and HCA, many were asking about previous Weekend Read 1-4. No problem, go to: Case Studies
Korea First Mover in COVID Recovery
South Korea: A Roadmap to COVID-19 Economic Recovery — Industry and Automotive First Mover
Apr 27, 2020
In this second segment COVID-19 recovery series, following up on the first, we look at how Korea as a first mover could be a model for best practices in maintaining the industrial workforce and preserving jobs.
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.
###
As always here for your comments, thoughts and questions. Open to interviews, webinars and new business opportunities.
Don