by Charles Duerden
Invest Korea Journal
May-June 2007
It has often been said that Korea presents a challenge to the foreign
executive. Meanwhile, little in the way of resources has been available
to explain the idiosyncrasies of business in Korea, let alone as to why
the business environment has developed in the manner it has.
These twin shortcomings are at once remedied in a new book,
Mastering Business Success in Korea: A Practical Guide, written by
Seoul-based consultants Thomas L. Coyner and Jang Song-Hyon and
published by Seoul Selection. As referred to in the preface, the book is
based in structure -- and partially in content -- on Mr. Jang's 1988
work, The Key to Successful Business in Korea, which he wrote
according to his experiences as a senior executive with multinational
corporations Sandoz, Johnson & Johnson and Schering.
The new publication offers two-fold benefits. Firstly, it is imbued
with the foreign perspective of Mr. Coyner that has been gained through
a long association with Korea that began as a Peace Corps volunteer in
1975. Secondly, it provides a contemporary view of Korea since much has
happened in this most dynamic of societies over the last 20 years to
transform the country out of all recognition.
Dynamism may indeed be said to be the key word of the book, as Messrs
Coyner and Jang strive to point out how so many areas of business are
changing and the need to be aware of current trends. At the same time,
the authors continually stress the need to be cognizant of the demands
of Korea's unique social patterns that owe heavily to a powerful legacy
of Confucianism that entails the subordination of the individual to the
group and its hierarchy.
A cardinal virtue of the book is that it explains this and other
seeming dichotomies in easy-to-understand language, assembled in direct
sentences as part of short, concise sections under punchy rubrics, by
way of example, such as "A Profitable Marriage" and "National Dominant
Traits" in the chapter on joint ventures.
Of equal importance is the book's emphasis on Korean history, both
recent and distant, and how it has shaped societal structures and
current attitudes to foreign business and the presence of foreigners in
general. To lay a groundwork of understanding, the book commences with a
section entitled "What Every Expat Manager Needs to Know about Korean
History" where the country's tragic history of regional factionalism,
repeated invasions and occupations is laid bare, and how pride in the
country's material success over the last half century has been tempered
by the bitterness of national division. Here, the reader will learn that
political liberty is a relatively recent phenomenon in Korea, and
democracy even more recent, the implication being that a people so
lately freed from the yokes of oppressors, both domestic and foreign,
are understandably reluctant to see similar strictures reintroduced in a
different guise. Coyner and Jang bring this point home at critical
sections of the book dealing with those areas of business where contacts
between foreign executives and their host community are most acute.
To return to the chapter on joint ventures, the authors remark that
their history has made the Koreans sensitive about their national
identity and destiny so that they may in "extreme cases behave quite
chauvinistically in spite of the realization of the benefits of being
more open and cosmopolitan."
This is but one example, provided in the book, of how one's hosts may
seemingly fly counter to common sense (and to the detriment of their own
well being) but which upon closer examination reveals a logic of its
own. Where the Western mentality encounters Korean reality, the authors
counsel patience blended with flexibility, yet underpinned by strict
adherence to one's principles.
In the same vein, the authors do considerable service to foreign
executive personnel in their chapter entitled "Getting Labor Relations
Right." The sensitive nature of this area has often precluded its frank
discussion, a situation this magazine attempts to remedy through its
"Labor File," but the book's robust exposition of workplace relations
does much to further their understanding and explain why so many foreign
executives have found it to be of particular challenge. In its potted
history of labor relations, the reader may be surprised to discover that
like democracy, which spawned it, the Korean union movement is of
relatively recent creation. While explaining its tumultuous debut in
1988, a year that was marked by a rash of strikes, the book does well to
point out the ebbing nature of union membership and how sensational
media treatment of a few extreme examples serves to tarnish the
reputation of Korean labor relations as a whole.
Personal relationships are constantly cited as a key element in
maintaining workplace harmony, as well building business relations in
general. Strong emphasis is placed upon fostering ties among the
workforce, whether they are formalized in the manner of welfare
programs; group-bonding events such as mountain climbing; or simple
expedients of the type where the country manager will leave the redoubt
of his corner office and visit workers on the shop floor to take a
professional and personal interest in them.
Attendances at family events such as a wedding, funeral or baek il,
the celebration held 100 days after a baby's birth, are stressed as acts
of kindness that will leave lasting impressions.
Practical advice on human resource management is contained in the
chapter "Hiring and Firing," while an extensive section on employee
compensation systems will help keep the country manager abreast of this
rapidly evolving issue.
In dealing with a Korean business associate, the nurturing of
personal relationships through entertaining (and being entertained) is
repeatedly stressed given the Korean predilection for considering a
contract the mere starting point of a relationship. Moreover, on more
than one occasion, readers are enjoined to "let their hair down" in
order to let one's associate see "the real you" as a means of building
trust and gaining confidence.
In keeping with book's down-to-earth approach, the authors even list
an "Eleven Commandments for Doing Business in Korea." These range from
the relatively easy-to-keep "Thou shall always have a formal
introduction," "Thou shall not be without business cards," and "Thou
shall keep fully informed," to the more difficult -- for the foreign
businessperson -- "Thou shall restrain from pushing thy position too
hard" and "Thou shall temper thy use of Western logic."
This formula is continued in the chapter on "Making it in the Korean
Market" where seven myths about selling in Korea are systematically
smashed. Myths so smashed include "Price Takes Precedence over Value,"
"Spend Money on the Client," and "Koreans only Buy from Koreans,"
thereby removing a slew of preconceptions about barriers to the local
market.
A core element of the original publication, but just as relevant
today, is the section on business etiquette. For readers unacquainted
with Asian customs, this will prove to be an amusing but vital read on
how to keep one's business negotiations faux pas free. General advice?
In the words of one rubric: "A little humility goes a long way."
In the process of learning to negotiate and generally get along with
one's Korean associates, the reader is introduced to the Korean concepts
of nunchi (or "eye energy" gained from eye contact); kibun
(or mood); and jeong, or heart (as in the Broadway show
tune, You Gotta Have Heart).
Want to keep abreast of current events? This is made easy through a
list of blog Web sites that provide information beyond what is offered
in the conventional English-language media and includes "Lost Nomad" and
the celebrated "Marmot's Hole."
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Overall, Mastering Business Success in Korea is a
must-read for anyone contemplating doing business with Korea or
taking up a post in-country with a foreign or domestic
corporation. If you are a foreign executive new to Korea, make
this book your bedtime reading. If you have been in Korea some
time, it will make excellent refresher material and keep you
alert to the pitfalls that await the unwary.
To learn more about Mastering Business in Korea or
to order the book, contact publishers Seoul Selection through
the company's Web site at www.seoulselection .com or call +82 2
734-9565.
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