June 3, 2015StaceyUncategorizedComments Off on Everything Korea: June 1 Episode: Challenges and Solutions in Recruiting Foreign Direct Investment and Supporting their International Workforce
Just back from Greater Nashville area and specifically the Clarksville –Montgomery Economic Growth Summit. I was honored to have been asked to speak on an elite panel about international business market entry. In particular, my contribution focused on 1) how the community and its leadership can best support Korean Hankook Tire, with construction now underway for the Korean company’s it’s 1st manufacturing plant in North America, and 2) how can the community attract other top Korean FDI manufacturers.
I like to share some comments made by my colleagues Kiyo Kojima, a top lawyer specializing in Japanese market entry and Sebastian Eich an expert of German and EU business.
For starters, Japanese, German and Korean firms approach the overseas’ operations differently. Cultural nuances impact how they look at and enter new markets.
For example, although local quality education for the expat Japanese, German or Korean dependents is important. German and Japanese families expect to return to the mother countries and their children to resume schooling. More often Korean families see value in an American education, with English language proficiency—the later a competitive workplace edge. A recent trend among Korean expats then is for father to return to Korea when the assignment ends, but the family to remain in the states until the children graduate from High School and college.
BTW A positive for Clarksville is the area has the best schools in the state, along with home to the Austin Peay State University campus.
Another factor that stood out among the many questions the panel tackled included the need for a qualified and skilled workforce, not an issue in Germany, Japan or Korea, but labor force can vary much with a country the size of American, and a determining factor on picking one region over another in the site selection process.
All said, having supported major Korean manufacturing facilities in the US and globally, i found the Clarksville—Montgomery County region of Tennessee offering much…. Not to mention just miles from Nashville.
I also see as a great site for future Foreign Direct Investment as other Korean firms consider launching US manufacturing operations. If interested, I have blocked out my availability to chat and discuss…. Just go to http://www.meetme.so/southerton
Until next time.
Did you check out the Super.me APP yet? Give it a try.
May 7, 2015StaceyUncategorizedComments Off on 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.
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.
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.
For Immediate Release Denver, Colorado January 1, 2013 Korea global business expert Don Southerton has released his latest new publication, an eBook titled Korea Facing: Secrets for Success in Korean Global Business. Southerton notes “With ever-growing number of people employed by Korean-based companies outside of South Korea, this book will provide western teams and management with a strategy and skills to succeed.” Topic covered in the ebook include working with Korean expatriates, managing business partnership expectations, and understanding the Korean decision making and thought process.
Readers will find Korea Facing differ from most books on Korean business with the target audience global teams working outside South Korea and not those employed in Korea, although they, too, will benefit from its content. The author further explaining, “Likewise, if your firm provides services or products to a South Korean overseas subsidiary this book will be beneficial and offer tactics to strengthen and maintain the relationship.”
Finally, Southerton points out a third group that will benefit, ” If your company has significant business in Korea, but leadership and headquarters are located in the West, the book will offers key management suggestions on how best to deal with pressing issues and challenges that surface.”
The eBook is available through iBook, Kindle, Nook, and Amazon. A complimentary PDF version is available upon request. (Just email me, dsoutherton@bridgingculture.com)
About the author When Fortune 500 companies, top Korean Groups, leading international law firms, the media, and elite consultancies like Bain and Monitor look for Korean-facing branding, business strategy, coaching, market-entry, and advice-they turn to Don Southerton. With over 35 years experience, Don Southerton is the definitive authority on Korean-facing global business and branding–from automotive, golf, and QSR/food sectors to New Urbanism and Green technology. When questions surface in development, launch, or fulfillment, we provide sound research, solutions, and comprehensive strategies.
Building on a life-long interest in Korea and the rich culture of the country, Southerton has authored numerous publications with topics centering on culture, new urbanism, entrepreneurialism, and early U.S.-Korean business ventures.
Southerton extensively writes and comments on modern Korean business culture and its impact on global organizations. ###
Over the years, I’ve shared much on business norms and expectations with Korean, American, and global teams and management. I, too, have learned much in exchange. In fact, I’ve been fortunate to have a number of senior Korean leadership share their opinions and thoughts.
Last year I was asked by a Korea client to find out if a successful and high profile American brand was interested in the Korean market. If so, the Korean firm would like to be considered as a potential partner. After talking to the American brand’s founder and CEO, he politely shared that their plans were to focus on the US market. Any Asia expansion would not be for at least 2-3 years.
Several month’s later while they were visiting the US, I hosted the Korean client’s Chairman and his wife at a VVIP lunch meeting. Over the meal, the Chairman’s wife quizzed me on my progress with the American brand. I explained that the US brand’s founder and CEO was polite, but they were not currently looking at Asia and Korea.
Pausing a moment, the Chairman’s wife expressed that their Group was still very interested in the brand for Korea. She then hoped I’d keep trying and not take “no” for an answer; adding firmly that sometimes we need to “Knock on the door a hundred times!”
I came away with 2 insights worthy of sharing…
1. My Korean client’s success was evidently rooted in their perseverance and not taking “no” for an answer. A trait I find in many of the top Korean Groups.
2. That the company’s success was also due to the Chairman’s wife–a strong and influential woman who has gained my respect and esteem. Take away When challenged with an issue, situation, or problem…we need to “Knock on the door a hundred times.”
BTW… I hope all is well. Let me know if you have any pressing questions or issues. I’d be happy to share my thoughts and perspective.
The long awaited opening of the Incheon Bridge will have tremendous impact on Songdo IBD and the region. The soft opening is this week. (Last weekend the Bridge hosted a marathon for 30,000 runners).
ChosonIlbo notes, Incheon Bridge to Open Friday The Incheon Bridge is to be officially opened on Friday[October 16], four years and four months after construction began.
The bridge connects the Songdo International Business District in the Incheon Free Economic Zone and Yeongjongdo, where Incheon International Airport is located.
To celebrate the opening of the bridge, Incheon city and the Chosun Ilbo co-host a walking tour on Saturday. Vehicles are allowed from Monday.
The bridge at 21.38 km is the country’s longest and the world’s seventh longest. Among cable-stayed bridges, it is the world’s fifth longest bridge.
By Don Southerton, Songdo IBD CityTalk Editor and Chief Blogger Songdo IBD continues to draw global attention. This recent Forbes magazine article points out the strong technology partnerships (CISCO, UT, and 3M) Gale International and the Songdo IBD project have attracted.
Very Smart Cities by Elizabeth Woyke, SONGDO, SOUTH KOREA – John B. Hynes III got the jitters when he first spied the mudflats of Songdo, South Korea, in June 2001. How would he transform the expanse of muck into a smart urban center with an integrated network of utility, transportation, real estate and recreation systems?
Eight years and 82 globe-crossing flights later, Hynes is far more assured about Songdo’s prospects. The man-made island, 40 miles southwest of Seoul, is now dotted with more than 100 buildings, including a 7,800-person apartment complex, a massive convention center and a Sheraton hotel.
Hynes’ employer, New York-based real estate developer Gale International, estimates the 1,500-acre city is 40% underway. Completion is slated for 2014. The cost: $35 billion, making it perhaps the world’s largest private real estate venture in history.
Songdo’s backers, which include Gale, Morgan Stanley and Korean steelmaker Posco, are betting the city can become a northeast Asia trade hub, linking nearby Shanghai and Tokyo. It will also be a model for a new Gale project, Meixi Lake, to be built in China’s Hunan Province starting later this year. Both cities will be “smart, sustainable and technologically ambitious,” says company Chairman Stanley C. Gale.
To conform to the U.S. Green Building Council’s energy-efficient LEED standards, Songdo buildings are incorporating special window glazing and ventilated double facades. Greywater and rain will be collected for irrigation and use in cooling towers. A network of underground pneumatic pipes will move solid waste, reducing the need for garbage trucks.
Songdo is also a petri dish for green transportation schemes. Water taxis already zip along the city’s seawater canals. Soon, a citywide bike rental service modeled on Paris’ Velibre system and a car-share system will be added. Buses powered by fuel-cells are expected within the next two to three years.
With its more than 40% green space, including a $220 million park, the city is designed to feel as airy as Vancouver. (Gale estimates Songdo will eventually house 65,000 residents and 300,000 workers.) Hynes is particularly proud of the park, which is dubbed Central Park after the New York City landmark. “Convincing the government and our partners that 100 acres of prime land should be reserved for a park was a tough sell,” he notes.
Meixi Lake will be helmed by the same architects–Kohn Pedersen Fox Associates and Arup–and follow a similar philosophy, but with a 400-acre lake instead of a park.
Data networks developed by Cisco are key to both projects. The company plans to deploy video networking technology and energy management software tools city-wide and meld municipal systems, such as education, health care, transportation and hospitality into a common network. Wim Elfrink, Cisco’s chief globalization officer, says Cisco has identified 20 services that could be linked, but will start with six or seven. The company declined to specify its investment in Songdo, but says it has committed $2 billion to South Korean projects over the next three to five years.
Residents will be able to chat with their children’s teachers, consult doctors and apply for city permits and licenses via flat screen monitors in their apartments. Buildings will be intelligent enough to guide cars to available parking spots and queue up elevators as people approach. Hotels will recognize regular guests and automatically adjust room system settings.
The projects leverage Cisco’s earlier work with schools, stadiums and utility grids. “All our expertise is coming together in Songdo,” says Elfrink. Like Gale, Cisco views Songdo as a model it can replicate around the world. It plans to build a global center for “intelligent urbanization” in Songdo and work on 10 similar projects in places like India and Saudi Arabia over the next two years. “It’s an adjacent business we expect a lot from,” says Elfrink.
United Technologies and 3M are also providing technology to Songdo and Meixi Lake. 3M is making digital signs and “stick-on film” to be used throughout both cities. UTC is providing energy-saving elevators and water-cooled air conditioning units designed to cut energy use by 20%.
Despite all the talent involved, building Songdo has hardly been a smooth path. As a city designed and constructed with private financing by a foreign company, Songdo has few precedents. Tying together people’s home, work and civic lives online has required new regulations. “This is an entirely new industry,” says Cisco’s Elfrink. “We have new questions to answer.”
Permit delays pushed the opening of Songdo’s flagship commercial building, the $500 million Northeast Asia Trade Tower, from December to late summer 2010. Gale says the building’s mixed-use nature–a combination of retail, commercial and residential space that is unusual in Korea–was the main reason for the hold-up and that all necessary permits have now been obtained.
Gale also tussled with the Korean government over a rule that the majority of students in Songdo’s International School be non-Korean–a challenge when most current Songdo residents are Korean nationals. Gale says the issue has been resolved and the school will open this September for grades kindergarten through six.
Gale is currently focusing on luring corporations to Songdo under the theory that people follow jobs. The project will be a success, says Hynes, when Songdo is full and the areas around it are “buzzing.”
Hynes isn’t expecting to see a return on Gale’s billions for two to three years. First he has to finish covering the mudflats.
The Songdo Central Park, located in the newly built city 30 kilometer west of Seoul, has begun filling its canal with 85,500 tons of seawater, Gale International Korea, co-developer of the city, said in an emailed statement yesterday.
The seawater is purified through a double filter and will prevent canal from freezing in the winter. The method will enable water taxis to operate year around, it added.
A 1.8-kilometer-long canal that run through the 100 acre park in the heart of the international business district is deisnged to incorporate many environmentally sustainable benefits in Korea, according to the U.S.-based developer. To maintain the water quality, the canal will be refreshed every 24 hours,
Songdo IBD will encourage and foster sustainable design practices by incorporating the latest design standards and technologies that reduce energy consumption, increase energy efficiency, utilize recycled and natural materials and generate clean or renewable electricity.
Six core design goals for Songdo International Business District reflect our commitment to sustainability for this new city spanning 1500 acres near Incheon, South Korea. These design goals are ambitious targets. But setting them — and meeting them — will set a new standard for green design for large-scale development projects across the globe.
Songdo IBD parcels target certification under the U.S. Green Building Council’s Leadership in Energy and Environmental Design program (LEED). Third party development land sale agreements will contain language mandating that buildings erected must pursue LEED Certification. Songdo IBD is also part of the LEED-ND (Neighborhood Development) Pilot program. The LEED-ND program emphasizes neighborhood connectivity, access to transit, energy efficiency in building design, efficient infrastructure design and the provision of open space and habitat for residents of all kinds. It builds upon the principles of New Urbanism and aims to promote the incorporation of positive planning aspects into local and municipal zoning codes focused on Smart Growth, Transit Oriented Development and Green Growth. The KGBCS (Korean Green Building Certification System) is used on selected parcels within Songdo IBD. The use of both Korean and International green building rating systems ensures that projects are built to a high standard of sustainable design and construction.
Yet another part of sustainability is helping out with the direct participation with the greater Incheon community via the Corporate Social Responsibility (CSR) program going on at Gale International. There are a number of ways that Gale has given back to the citizens of Incheon.
Please take a quick look at the video to catch a glimpse of how Gale takes CSR seriously in Songdo IBD. Comments? Questions?
