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Expectations for President-elect

By Tom Coyner
Korea Times
January 11, 2008

The presidential election of Lee Myung-bak has placed South Korea in the positive limelight. No Korean political development has generated more interest within the international business community since the North tested what was presumed to be an atomic weapon. And if one disregards Pyongyang's ongoing, attention-grabbing antics, Lee's election is probably the biggest event for us doing business in Korea since the IMF crisis.

These are heady times for those expatriates whose livelihood depends on how well they and their companies perform in South Korea. Daily we read of what comes across as very sensible, long overdue intended changes in the national government once MB Lee takes office next month. Nonetheless, as I talked with various business professionals and journalists, some interesting issues surfaced ― as well as some interesting reflections on doing what business pros need to contend when working in Korea.

For example, there has been a great deal of discussion about educational reform ― most particularly at the secondary level. From what I can gather, the two primary concerns are overall improvement of the education system and the need to find a way so that children may have some kind of a reasonable childhood, rather than the current purgatory of forced education, often in the regimen of 18 or more hours a day.

Some of Korea's top minds are looking at ways to give Korean universities and high schools more independence and to create more magnet schools for gifted children, etc. There is also a reexamination of why the hagwon cram schools are so necessary for children to attain the necessary (competitive) knowledge to pass university examinations. Many of these proposals are good to excellent in intent and feasibility. But they are at best band aids that fail to address the root cause: the lack of career opportunities for women.

Based on some thirty plus years of observations and conversations on this topic, I see the problem getting worse rather than better. Today, with eighty percent of high school graduates going to college and many bright to brilliant woman being effectively denied long-term employment as they enter their motherhood years, Korea is fostering a very large pool of extremely intelligent and highly educated women who are effectively forced to live vicariously through their children's forced march toward their goal of maintaining ― or bringing ― the family along to the top of Korea society via admission to top-ranked universities. It really doesn't even matter that the actual educational quality at even the best of Korean universities ranks about slightly above average worldwide. Degrees from Seoul National, Yonsei or Korea University, etc. are the admission tickets to working in Korea's best companies and/or introductions to the best of potential marriage partners.

Given this, these highly educated housewives often meet over tea to essentially brag about how their little darlings are progressing in life (on behalf of their families) and what genuinely incredible sacrifices the mothers are making to give their children whatever competitive advantage their offspring may have in Korea's cradle-to-grave rat race. As such, it really doesn't matter what kind of education reform the next government may put into place. These frustrated women will find ways to work with or around whatever system any administration constructs to give their children the competitive edge.

So, my conclusion to all of this is that employers need to find ways to provide women with childcare and rearing support so as to retain some of their best employees as they enter the prime productivity periods of their potential, long-term careers. Having an artificial turnover created by women being forced out of work in their mid 30s may be good for giving younger college graduates employment opportunities, but the costs of excessive recruitment and training of employees probably outweigh the costs of child-rearing related benefits. Actually, many multinational firms have long ago figured this out. But if most Korean companies did the same, there would be less need for hagwon, forced family break-ups as mother and children study English abroad, etc. Quite possibly, over some time, Korea could become a more normal society with women more actively contributing to the overall prosperity of society while allowing their children to live normal childhoods. But that will only happen when most working mothers are genuinely given full career opportunities.

Let's now consider something completely different. There is some minor anxiety about Lee Myung-bak and his transitional team potentially pushing back the clock a bit to the days of authoritarianism. One of the undeniable achievements of President Roh Moo-hyun has been making the government less authoritarian and the strengthening of civil liberties. While many people have benefited from these changes, President Roh inadvertently diminished the authority of his government and himself. This lack of authority is part of the reason why he was not more successful and why is ideological opposite, Lee Myung-bak, did so well in December's election.

Like most people, Koreans dislike authoritarianism but respect authority. More than most people, those of a Confucian tradition feel even more so, since authority in East Asia also encompasses responsibility to one's minors as well as to one's superiors. Be the person a teacher, a president or a department manager, if there is a loss of authority, those below him or her lose respect and the group loses its potential.

In many ways, during the past decade, the South Korean government has lost much of its hard-earned respect both at home and abroad. Authority was widely divested without sufficient monitoring and consistency of long-term purpose. Both Koreans and foreigners were regularly surprised and confused by the government's initiatives ― and many initiatives essentially dissipated over time due to a lack of coherent administration. Eventually, much of the citizenry lost its respect for the Blue House. Roh Moo-hyun probably had his heart in the right place, but his experience may be a good case study for expatriate executives to consider when managing Korean employees.

For example, some concepts of "enlightened management'' can go afoul in East Asia. Generous delegation of authority to subordinates can be easily misinterpreted by one's staff as one's dereliction of one's responsibilities. Sometimes foreign managers need to change their style to be truly effective here. Again, that means being authoritarian in a Confucian sense that encompasses being much more directive, but also being much more concerned about one's employees' lives, than how one may manage under similar experiences in the West.

Furthermore, the laid back foreign manager's minor quirks can easily be exaggerated in his subordinates' eyes as being managerial or personal weaknesses or faults. Once that happens, it can be almost impossible to reverse the trend and repair the damage. I have seen this happen to foreign managers in both Japan and Korea ranging from mid level to senior executive ranks. So, if one is not careful, one could be replaced by a more "authoritarian'' individual. Or, in the very least, face major employee turnover.

In this column, I have focused on just two sets of expectations with their implications from which one can possibly learn. As we move through this transitional time when many new ideas are being advocated, please try taking a few moments to consider how these macro changes may impact your immediate environment.  Then consider why these changes are being made and what lessons may be learned as you manage your business in Korea.


Tom Coyner is president of Soft Landing Korea, a consulting group focusing on sales and human resources issues. He is co-author of Mastering Business in Korea: A Practical Guide.