Listen to Podcast Here:
Korea Society Corporate Series Featuring Don Southerton
Don Southerton is highlighted in the month’s Global Success Newsletter from Frankfurt, Germany.
Doing business in Korea- Contractual Agreements
Contracts, legal agreements and negotiations go hand in hand with global business. I was once told that in Korea the purpose of signing a contract or agreement was essentially to formalize the partnership. Over time, terms would be subject to change and re-negotiation.
My Korea facing experience has been that the contract fundamentally solidifies the working relationship. However, to maintain the partnership contractual obligations, the contract will require on-going changes to reflect business conditions. In contrast, a legal agreement in the West is immutable.
Challenges
Major differences in how Korean and Westerners perceive legal agreements can surface during the negotiation stage and even after the contract is in place. In particular, requests by Korean teams for change after change and alterations to a Western company’s standard agreements and contracts can cause considerable frustration, especially for their legal counsel. In the West some “red lining” of a document may take place, but legal teams may see unprecedented levels of questioning the most basic contractual language. Great patience may be required to walk Korean teams through the Western legal terminology and clarifications of what cannot be changed within the document to maintain compliance with international laws.
Finally, it is not uncommon for terms to be re-visited and questioned by other departments – often with limited or no international legal or business experience – despite months of work between the Western and Korean lead teams!
As the Ink dries…
Perhaps of more concern is that terms mutually agreed upon within the binding agreement can be subject to re-interpretation. Most often, Korean and western senior leadership teams did a great job gaining mutual trust. Both negotiated well. The deal is signed and its time to perform.
Sadly, the honeymoon is over. Challenges arise, what appeared to be clear expectations could now seem murky with poor alignment and weak communications. Why?
There are a number of reasons. Over time, as Korean team members are reassigned to the project, the new staff will be unfamiliar with previous compromises and understandings. This new staff, often in response to changing business conditions, will have different expectations and want to implement fundamental changes that alter the agreement. This will require amending the original agreement with all of the associated time and costs. In the worst cases, Western companies will not be open to altering what they feel is fair and binding, resulting in seriously jeopardizing the relationship and creating potential legal action.
Conclusions
In dealing with Korea-facing business partnerships ensuring success and sustainability will require well-communicated expectations and cross-cultural understanding. In particular, any business plan and strategy needs to take into account differences the cultural realities between the West and Korea.
Excerpt from: https://www.globalsuccess-club.net/newsletter-april-2015
https://www.globalsuccess-club.net/business-in-korea?utm_source=april+Newsl
Everything Korea – Korean Foreign Investment, Tennessee and Car Tires!
In the week’s episode I recommend some books, as well as discuss Korean Foreign Investment, Tennessee and car tires.
A common question I get from Korean executives is “what books are you reading Don?” Two books stand out from my current bookshelf. [Both titles are listed in the video].
Before I share why these two books are on my reading list, I need to step back the past several months. Prior to my March trip to Seoul, I picked up a new iPhone 6 (and yes, I plan to get an iWatch Sport soon). Anyway, while in Korea and to take advance of the high speed Internet I planned to do the software update. Mid download, the phone locked up.
Luckily I was heading back to the US the next day, and would be in-flight for much of the next day, so I “survived” without phone, text and constant email updates. In the meantime, I was re-reading Tim Ferriss’ 4 Hour Workweek, and although cognitive to my addiction of constantly checking email, I finally came to recognize the time chewing up keeping an eye on emails, most all non-urgent, was impacting the quality of my work and life. In particular, my creative thought stream was disrupted with a mix of updates, alerts and promotions. I wouldn’t even mention how many times I would check emails during the night.
So what’s the relevancy, well, after now implementing some rather cool email filter processes, and earmarking times to follow up on emails, I have carved out noticeable blocks of time I am now devote to additional reading and research…. And I’ve found “Those who read, have something to share.”
Moving to my next topic, I’m in NYC at the Korea Society next week. I’d happy to say the presentation will be recorded, available on YouTube and I’ll be posting the links.
BTW I have some time still available while in New York, so let me know if you have some thoughts who I should meet with while in the City.
One more thing-
In late May I will be in Tennessee as part of a panel discussing local foreign investment. Specifically I was asked to discuss Korean foreign investment in regard to Hankook Tire’s new $800 million car tire plant. Frankly, I’ve supported Hyundai and then Kia Motors’ manufacturing plants in Alabama and Georgia as well as teams from their other plants globally. I have also worked with Hyosung, which in their diverse product lines manufactures tire cords—the key component in tires.
I’ve been followed news of the Hankook plant since last fall, and hope to learn more about their plans for the US plant as well as help the local government and community support the new plant.
In turn it’s these experiences that provide the insights I share with you and others—all of us benefitted from this work across and supporting the many legs of Korean business: Manufacturing, Sales and Marketing, research and design.
So until next time…
Quotes
“Those who Read, have something to share.”
Hankook Tire
http://
4 Hour Workweek (updated)
http://www.amazon.com/
A Curious Mind
http://www.amazon.com/
Questions? Go to questions@koreabcw.com
Bridging Culture Worldwide Launching Korea Culture Training On-line
Beginning with its highly popular Korea 101, the Korea facing consultancy now offers programs on-demand via digital download
Golden, Colorado (PRWEB) April 10, 2015
Bridging Culture Worldwide (BCW) provides a wide range of Korea-focused training, coaching, and consulting services beginning with Korea 101, the consultancy’s most popular workshop. For more than a decade Korea 101 has been offered in corporate live and Webinar sessions both in the United States and internationally. Thousands of participants have benefited from this training and the insights shared.
BCW CEO Don Southerton notes, “For the first time we are offering the Korea 101 in an on-demand online learning format. Over five lesson sessions the course builds upon current experiences, while providing new knowledge.”
Southerton adds, “Building teamwork and cross-cultural understanding is paramount to success. Misunderstandings and stress created by the differences in culture impact productivity and interfere with smooth business operations. Cross-cultural education is recognized as a solution to cultural challenges in the workplace.”
Korea 101 is a timely overview approach to Korean culture, modern history, norms and business culture. The goal of the program is to foster a better understanding of Korea and its business culture.
Topics covered include: Business and social etiquette; History and the economy of Korea; Culture (music, art and cuisine); U.S./Korean relations including North Korea; The Korean workplace, management structure, and decision-making; Popular culture and New trends, as well as, Cross-cultural insights.
The program is conducted by noted author, strategist and lecturer, Don Southerton. Don works closely with many of Korea’s top Groups including Hyundai Motor and is an experienced specialist in bridging cultures between Koreans and non-Koreans.
Don has authored numerous publications with topics centering on culture, new urbanism, entrepreneurialism and early U.S.-Korean business ventures. Southerton also extensively lectures and writes and comments on modern Korean business culture and its impact on global organizations. He is a frequent contributor to the media (WSJ, Forbes, CNN Fortune, Bloomberg, Automotive News, Korea Times, Korea Herald, Yonhap, Korea Magazine, tbs eFM Koreascape and FSR) on Korea facing business and culture.
To learn more, go to Korea 101 On-line at http://unbouncepages.com/korea-101-buy-now/
About Bridging Culture Worldwide
Since its founding, Bridging Culture Worldwide has focused on global and Korea-related business services. Based on over 3 decades of experience, they share cross-cultural insights to global teams and management. Bridging Culture Worldwide core services include: Consulting, Strategy, and Research; Publications; along with Franchise and Licensing Development, Market Entry, Product Launch, IP, and Trademark.
Visit http://www.bridgingculture.com
Korea 101 On-line Launched
Building teamwork and cross-cultural understanding is paramount to success. Misunderstandings and stress created by the differences in culture impact productivity and smooth business operations. Cross-cultural education is recognized as the chief solution to cultural challenges in the workplace.
Bridging Culture Worldwide (BCW) provides a wide range of Korea-focused training, coaching, and consulting services beginning with Korea 101.
What is Korea 101?
Korea 101 is a timely overview approach to Korean culture, modern history, norms and business culture. The goal of the program is to foster a better understanding of Korea and its business culture.
What are topics covered?
Business and social etiquette
History and economy of Korea
Culture (music, art and cuisine)
U.S./Korean relations including North Korea
The Korean workplace, management structure, and decision-making
Popular culture
New trends
Cross-cultural insights
Tell me more
For the first time we are offering Korea 101 in an on-demand online learning format. The intent of each of the five lesson sessions is to build upon the current experiences, while providing new knowledge and insights.
Korea 101 has been offered in corporate Live and Webinar sessions both in the United States and internationally for more than a decade. Thousands of participants have benefited from training and the insights it shares.
The program is conducted by noted author, strategist and lecturer, Don Southerton CEO and President of Bridging Culture Worldwide. Don works closely with many of Korea’s top Groups such as Hyundai Motor and is an experienced specialist in bridging cultures between Korean and non-Koreans. His firm, Bridging Culture Worldwide, is a Golden, Colorado, Irvine, California, and Seoul, South Korea, which offers programs and consulting to help management and employees appreciate and understand Korean culture and business relations.
Noted Korea expert Don Southerton
Don has authored numerous publications with topics centering on culture, new urbanism, entrepreneurialism and early U.S.-Korean business ventures. Southerton also extensively lectures and writes and comments on modern Korean business culture and its impact on global organizations. He is a frequent contributor to the media (WSJ, Forbes, CNN Fortune, Bloomberg, Automotive News, Korea Times, Korea Herald, Yonhap, Korea Magazine, eFM tbs Koreascape and FSR) on Korea facing business and culture.
Outcomes include:
A strong understanding of Korean cross-cultural differences and their relevance to Korean workplace culture.
Reduce tensions and frustrations rooted in cross-cultural issues.
Better morale and team spirit.
Support for interacting with Korean teams assigned to local operations.
The Cost for the 5 web-based on-demand learning sessions in $495.00.
To learn more, CLICK.
Korean Business Expert Don Southerton Releases Ground Breaking Book
Korea Perspective offers a road map to avoid common pitfalls while overcoming challenges, addressing issues that frequently surface with Korea.
http://www.prweb.com/releases/2015/01/prweb12479689.htm
Golden, Colorado (PRWEB) February 02, 2015 Korean global business consultant Don Southerton has released his latest publication, titled Korea Perspective. Southerton notes, ” As a result of my interacting with Korea facing business on an almost daily basis, Western overseas teams, as well Korean leadership and teams, have openly shared their challenges and pressing concerns. In turn, I have worked to provide them with a framework, strategy, and solutions. This book is based on these daily interactions.”
The intended audiences, the author points out, are Westerners employed by Korean-based companies outside South Korea, firms providing services or products to a South Korean overseas subsidiary or operations and global companies that have significant business with a Korean company.
Southerton adds, “All in all, this book offers a road map to avoid the pitfalls, navigate around the roadblocks, and thrive.”
Korea Perspective is available through Amazon Kindle, Nook and most popular booksellers.
About the author Don Southerton has a life-long interest in Korea and the rich culture of the country. He has authored numerous publications with topics centering on culture, new urbanism, entrepreneurialism, and early U.S.-Korean business ventures. Southerton also lectures extensively and writes and comments on modern Korean business culture and its impact on global organizations.
He is a frequent contributor to the media (WSJ, Forbes, CNN Fortune, Bloomberg, Automotive News, Korea Times, Korea Herald, Yonhap, Korea Magazine, and FSR) on Korea facing business and culture. He heads Bridging Culture Worldwide, a Golden, Colorado based company that provides strategy, consulting and training to Korea-based global business. An avid martial artist, Southerton has pursued the study and practice of Korean traditional arts for more than forty years.
The author is available for media interviews.
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68 Story Songdo NEATT Opens
Pleased to see Songdo’s NEATT ( The North East Asia Trade Tower) open. I recall over the years peeking out from floor after floor as construction moved ever upward. Last time i was in the Tower it was a chilly February morning hosting BBC Click.
NEATT ( on right)
http://www.globest.com/news/12_899/international/office/Korea-Opens-68-floor-Trade-Tower-348124.html
Songdo in the News–Incheon and Songdo: Sub-National Economic Integration Efforts
As a longtime supporter of the Songdo project, we always have seen the Songdo International District ( the core of the greater Songdo FEZ which NY-based Gale International has developed) as a Hub for East Asia business…neat idea the area could be hub for eventually N-S commerce.
Incheon and Songdo: Sub-National Economic Integration Efforts
by Marcus Noland | May 13th, 2014
A few years back I was invited to participate in some activities sponsored by Gangwon province in northeastern South Korea, the traditional boundaries of which were split by the division of the peninsula. Officials were hoping that a reconnection of the east coast rail line would give the province an economic shot in the arm.
On the west side of the peninsula, officials have also been eyeing inter-Korean integration and the economic benefits that it could bring. According to a newspaper story passed along by Tom Murcott of Gale International, the developer of the Songdo “smart city,” back in 2008 local officials pushed for a traffic network expansion plan that would connect Incheon International Airport to Gangwha and Gaeseong Industrial Park as part of the Gangwha development plan. That integration would seem to make sense, especially if the October 2007 North-South summit vision of redeveloping Haeju ever came to pass.
With President Park’s renewed emphasis on unification, Incheon officials are dusting off the old plans. According to the report in the Incheon-based Kiho Ilbo, Incheon City has announced it will push ahead with the construction of an expressway from Yeongjong to Haeju of North Korea, the so-called “West Sea Unification Expressway.” Incheon City estimates KRW2.7 trillion of project costs will have to be spent on the 112km-long expressway.
Presumably the city doesn’t have that kind of cash laying around, and one would think that the national government might have something to say about opening up direct transportation links with the North, so don’t hold your breath. Nevertheless, it’s a reminder that local officials have their own eyes fixed on North-South possibilities, and if North-South relations calm, Incheon and Songdo would be ideally placed to become the hub of North-South exchange.
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Korea Herald: Author Southerton calls for new growth approach from Hyundai Motor
[HERALD INTERVIEW] AUTHOR CALLS FOR NEW GROWTH APPROACH FROM HYUNDAI MOTOR
2014-04-30 20:51
“Speed” is the key to explaining Hyundai Motor Group’s stunning growth over the past decade. The rapid decision-making under the charismatic leadership of chairman Chung Mong-koo has been crucial for its global expansion.
But Don Southerton, author of the recent book “Hyundai Way: Hyundai Speed,” says a more cross-cultural approach is now needed for the Korean auto giant to keep going at its current speed.
He recalled a 2005 training session he held at Hyundai Motor’s newest plant in Montgomery, Alabama, where tensions were mounting between the American and Korean teams ahead of the production of their first vehicles at the facility.
“The problem was ‘cultural’ ― Koreans not understanding and Americans vice versa,” Southerton, who is also leading a Denver-based consulting firm, Bridging Cultural Worldwide, wrote in an email interview with The Korea Herald.
According to him, many of the new American managers had been searching in earnest for the “Hyundai Way” ― documented policies and procedures that would guide them in decision-making and day-to-day work.
But not finding a set “Hyundai Way” resulted in some Americans feeling that there might be a communication and language issue. “More concerning, a few hinted strongly at trust issues and that Koreans were deliberately withholding vital information,” he said.
He wouldn’t say this cultural issue was limited to Hyundai. Other multinational companies like Coca-Cola and IBM that have a long history of dispatching expatriates worldwide have always experienced such difficulties.
“But unlike American companies like Ford, GM and Chrysler that have highly standardized and documented policies and procedures, at Hyundai these were acquired on the job and over time, shared informally through mentoring,” he said.
He pointed out even some Korean employees experience this issue.
“In the past … an employee joined the group as their first job and moved up through the ranks. Today, greater numbers of Korean team members are joining the group after years of employment with other firms. Like Westerners, it takes time for them,” he said.
“As more and more Hyundai operations and sales have shifted globally, the need to localize to each market has been crucial. I feel Hyundai is constantly evaluating what works best for each market. In some markets leadership is Korean, in others leadership is local.”
He suggested that what works best is when both the Korean and local leadership are strong collaborators. As for the hiring of non-Koreans for local leadership roles, like in any international operation, or in the case of Peter Schreyer, the group’s design chief, the decision would be based on the individual’s experience and reputation.
“I also feel one management change occurring is a shift from the top-down management to one of collaboration,” he said of the ongoing leadership transition from the current chairman to his son Eui-sun, the vice chairman.
By Lee Ji-yoon (jylee@heraldcorp.com)
See LINK
This Week’s Episode of Everything Korea – Watch Now!
Two topics, first I’ll be working from NYC this week. I’ll be sharing the Korea Society presentation once their very professionally team produces the video series and uploads to YouTube. Please Stay tuned.
That said, much of my professional work is providing strategy and consulting to the top Korean brands globally.
This includes working with non-Korean firms, leadership and audiences to explain the dynamics and nuances in Korean business. During a long day that can often extend into the evening, I tackle client issues.
A common question both in media interview and by clients is “ Don, how did you get interested in Korean business?”
My Korea focus and experience are actually rooted in Korean martial arts. I began martial arts in the early 1970s, receiving my Cho Dan (1st Degree Black Belt) by the mid 1970s, opened my first school in 1976 and tested for Sabom Master Instructor in 1987. In 2013, I was inducted into the Taekwondo Hall of Fame.
Outside my public image today of business consultant, coach, trainer, strategist, social commentator, and author. I’ve continued to be a life-long student of traditional Korean martial arts– now for 43 years.
I have added several complex Chinese forms to my repertoire of over 35 hyung—the traditional sets of combative movements martial artists’ practice to hone their bodies and minds.
I have always seen martial arts as not only a way of staying in shape through a wide range of stretching, kicking, and hand movements, but also a demanding mental regiment.
All said, I attribute my success in Korean business much in part to the discipline, “meditation in motion,” self-control, patience, and focus sharpened over a lifetime in the martial arts—not to mention the strong rooting in the cultural dimension of a traditional Korea art.
Just one more thing, in addition to my Korean facing Facebook pages, I just added a new martial arts Page. It includes some articles I have written for both academic and the martial arts industry.
So until next time, this is Don Southerton wishing you all the best.
As in past Everything Korea, I will share links on topics discussed in the accompanying copy.
1. The Korea Society
http://www.koreasociety.org/corporate/korea_perspective.html
Please Follow and Like:
2. My Facebook Page ( lots of posts I see as timely and relevant)
https://www.facebook.com/dsoutherton
3. Bridging Culture Worldwide Facebook Page (Korea facing)
https://www.facebook.com/BridgingCultureWorldwide
4. My Martial Arts Page (cool videos and articles)
https://www.facebook.com/pages/Don-Southerton/846237712136423
Questions, Comments, Thoughts? Go to questions@koreabcw.com
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