{"id":156948,"date":"2025-04-24T13:59:00","date_gmt":"2025-04-24T19:59:00","guid":{"rendered":"https:\/\/www.songdoibdcitytalk.com\/blog\/?p=156948"},"modified":"2025-04-24T13:59:00","modified_gmt":"2025-04-24T19:59:00","slug":"the-shift-the-korean-business-model-build-from-within-or-through-ma","status":"publish","type":"post","link":"https:\/\/www.songdoibdcitytalk.com\/blog\/the-shift-the-korean-business-model-build-from-within-or-through-ma\/","title":{"rendered":"The Shift – The Korean Business Model: Build from Within or Through M&A"},"content":{"rendered":"\n

By Don Southerton<\/a>
Trusted Korea business advisor, culture coach, mentor, and consultant. Hyundai Whisperer…Incheon-IFEZ<\/em><\/p>\n\n\n\n

<\/p>\n\n\n\n

\"<\/figure>\n\n\n\n

A shift in support, coaching, and onboarding for Korean businesses.<\/p>\n\n\n\n

In a conversation with a Korean American colleague supporting one of Korea\u2019s top groups, our discussion shifted to the changing business model and the Chaebol’s newer approach to overseas development.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Moreover, as in Korea, the business model was to create their own local sister subsidiaries in marketing, IT, logistics, manufacturing, and design.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

In most cases, Korean expats typically work on more temporary assignments and liaise with the Korea HQ.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Today, we have observed Korean groups significantly reducing the dispatch of expats, although a few divisions still adhere to the old model.<\/p>\n\n\n\n

What stands out today is the shift away from embedding expats with divisions acquired through M&A or partnerships.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

This then requires a deep understanding of Korean business norms and expectations, which are vital for smooth global operations.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

2) The local team needs immersion in Korean business norms, SOP, practices, and expectations\u2026 in general and with a specific Korea Group\u2014and 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.<\/p>\n\n\n\n

As always, I am here to discuss\u2026 Let\u2019s set a time to talk.<\/p>\n\n\n\n

Don<\/p>\n\n\n\n

https:\/\/www.bridgingculture.com<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

By Don SouthertonTrusted Korea business advisor, culture coach, mentor, and consultant. Hyundai Whisperer…Incheon-IFEZ A shift in support, coaching, and onboarding for Korean businesses. 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