Foreword to Mastering Business

Foreword
to
Mastering Business in Korea: A Practical Guide
by
Nick Reilly
President of GM Asia-Pacific

This book is written with the expatriate business professional in mind.

Korea

is reputed to be a tough place to do business, but much of that reputation is unfair. Well-meaning and experienced foreign businesspeople routinely make serious errors that ultimately impede their success in the world’s eleventh strongest economy. This is the first such book written in collaboration by a Korean and a Westerner – both of whom have built their careers in international business between Asia and the West. The authors do not pretend doing good Korean business is easy – but it can be much easier than how many foreign businesspeople go about their business. This book is a result of many interviews with both seasoned expatriate executives and highly experienced Korean managers and directors. The reader will discover both opinions and objective observations. As such, it reflects the international business community in Korea – and not simply the perspectives of a Korean and an American.

South Korea

is in a state of flux. Given these modern times, one may say that about many countries. But,

Korea

is probably more so than most – and it has come a much further distance than most countries in the past half century.

From virtual to actual dictatorships and on to being one of the strongest democracies in Asia, the Republic of Korea has a political track record that is in direct competition with it literal rise to riches from the ashes of a devastating war. In the process, the Korean people are not longer recipients but donors of foreign aid. With, at times, ostentatious displays of wealth, comes a deep political struggle from being the government’s people to having a government of the people. Today there are stronger human and civil rights within

South Korea

than in anytime of

Korea

’s multi-millennia history. Coming part and parcel with democratic development, various interest groups and NGOs add a new dynamism to both the public and private sector arenas.

Korean consumers are no longer satisfied with cheap products, they demand – and get – quality. They also are more vocal about products and services in context of their rights as citizens of this republic. Stockholder and consumer rights are coming to the forefront. For example, product liability is no longer a subject studied as something that is a feature of overseas, advanced economies. Such issues and concerns are now part of daily Korean life.

Not so long ago, Koreans looked enviously of what others achieved with advanced technologies. Today, Korea not only emulates but even advances beyond the most advanced nations in cutting edge application of the latest technologies – most notably in the practical integration of broadband networks into daily home and business life.

Through rapid economic growth of the recent past and now through steady progress of a mature economy,

Korea

holds its own as an OECD nation. Mercantile protectionism is not yet fully an issue of the past, but the Korean markets have opened considerably.

Korea

recognizes that its long-term growth is dependent upon being an active member of a globalize economy. At the time of this book’s writing,

Korea

had completed its first Free Trade Agreement (FTA) with

Chile

, with other FTAs in mid negotiations.

Koreans have often and rightly described as being “frogs in a deep well.” And yet, some ten million South Koreans travel abroad for pleasure per year. On a per capita basis, that means more South Koreans are getting out and exploring the world than their wealthier and more urbane neighbors, the Japanese.

With one of the strongest physical infrastructures in the world, the Koreans continue to improve. The recent bullet trains, the KTX, have within a year of its opening, have changed the consumer patterns of the nation. Hospitals and department stores in regional hubs are now in direct competition with the best that Seoul has to offer.

Given

South Korea

’s amazing modern history and how much the nation continues to dynamically grow; even Korean marketing analysts are struggling to keep pace with their nation. Even harder is their task to forecast future trends. Even more so is the case for foreign managers and executives who accept expatriate positions to work in Korean or foreign multinational organizations.

In the end, it matters not if one be a Korean or a non-Korean. Once one has grabbed the Korean tiger by its tale, it can be an amazing adventure of simply hanging on. But for those who wish to ride the tiger, this book’s authors have written this book from a combined century’s managerial experience -- from both a Korean and an American perspective. There are other, excellent books on the market dealing with narrower perspectives on doing business in

Korea

. There has not been a general survey book, however, on this subject for almost twenty years.

While no single volume will provide the business reader with all the answers, the authors endeavored to provide practical, street-wise knowledge one cannot readily find on the Internet and from other public information sources. Together with other aids in understanding Korean business, the authors wish the reader the best of success in doing business in

Korea

"The authors have written a superb book that is a "must read" for any foreigner doing business with Koreans or working amidst Korean colleagues. The book is full of insightful recommendations on a broad range of topics as well as practical, common sense tips useful for all expatriates. Moreover the book's insightful advice is underscored with a deep and nuanced understanding of modern Korean culture that is as invaluable as it is rare. Quite simply, this is an authoritative book that demystifies Korea and offers comprehensive advice to anyone interested in living in the country, working with or for Korean managers or doing business with Korean counterparts."

Robert Fallon
Chairman of the Board
Korea Exchange Bank

Song-Hyon Jang and Tom Coyner's book is a "must-have" for expatriates who currently conduct or have interest doing business in Korea. The book cogently presents comprehensive and authoritative advice not only regarding nuts and bolts business topics such as labor negotiations, but also on more subtle cultural topics such as business etiquette. I recommend this book as a welcome addition to the burgeoning literature helping foreigners better understand Korea's business environment.

For a foreigner, learning about Korean social and business ways can take a lifetime. Certainly after three decades here I am still discovering what I did not know I didn't know and re-learning what I misunderstood in the past. But even the smallest effort pays a dividend and with this excellent book the reader has a chance to tap into the insight of a Korean businessmen who has spent a whole career relating to foreign managers as well as of a Western consultant who has integrated himself into Korean society almost as much as it is possible for an outsider.

We, the guests in this country, will never be insiders, and so we should always recognise that the business relationship is not going to be equally balanced. But a lot of our frustrations will be eased if we understand some of the reasons, motivation, and cultural and historical background which lie behind behaviour which otherwise seems unfathomable.

I thoroughly recommend this book, not only for the newcomer to Korea but also to long-term expat residents who may think they know it all already. As they will discover, modesty is not just a virtue, it can be a very useful state of mind.

“It’s all here! This is a superb effort to help expat executives deal with the tremendous complexities of Korean business. Lots of examples and practical advice grounded in the experience of the authors and their corporate colleagues. This book will save you years on the learning curve if you really take it to heart.”

Jack G. Lewis, Ph.D
Associate Dean, IBEAR MBA & International MBA Alumni Outreach
Marshall School of Business
University of Southern California

A great primer for all newcomers to Korea, as well as a refresher course for those of us who have spent a lot of time in Korea. The authors focus on the keys to business success in

Korea

– regardless of industry, business sector, or job title. The book demystifies much of the Korean business culture and practices. It is a must for anyone who wants to be successful doing business in

Korea

William (Bill) Oberlin
Former Chairman
The American Chamber of Commerce in

Korea

- AMCHAM-Korea.

In many ways, this book is a community effort. Several leaders in the Korean business environment – both foreign and local – have generously donated their time to this effort. During the course of preparing material for this book, the authors were vindicated in their belief that many in the international business community are almost as eager to see others succeed as they hope to do themselves in

Korea

. In addition, there have been others whom may not be involved in Korean business per se but who have contributed to getting this book off the ground.

Apologies to anyone who supported this effort, but is not specifically recognized in the lengthy roster. To avoid any possible controversy, we list these people in alphabetical order:

Anonymous, Korean senior manager at a Korean financial services company offered his insight of foreigners working in Korean corporation.

Dr. Young-Ok Ahn of DuPont Korea who was the first Chief Technology Officer at Samsung Group at the Corporate level, offered his perspective as a Korean executive working in joint ventures.

Mr Edwin Betz an officer of Samsung Fire & Marine for conceiving the idea that this book needed to be written and for offering his insight in expatriate executives working in Korean corporations

Mr. Peter Bartholomew, Managing Director-COO, Industrial Research & Consulting Ltd., shared practical advice on negotiating contracts with Korean companies.

Mr Steve Bowen of Edelman gave his insight in advertising and public relations

Mr. Thomas Michael Caldwell of Thelema Aura extended his encouragement and assistance in approaching book publishers.

Mr. Brendon Carr, Foreign Legal Consultant (Washington State Bar; not admitted in Korea) of SEOUL Law Group, suggested his insight in the legal and practical pitfalls of extending credit in

Korea

Mr. Joe Day, President of Market Entry Services Ltd., organized excellent monthly British Chamber of Commerce business seminars from which our chapters on human resources and legal affairs drew some of the material.

Mr. Robert Fallon, Chairman of Korea Exchange Bank, offered his insight in managing a Korean organization as well as working with Korean labor unions.

Mr. Ken Kaliher, a civilian analyst with of U.S. Forces Korea for the past twenty-five years, acted as our ongoing writing mentor in helping us come up with clear prose as well as a sounding board on what we were trying to convey.

Mr. Niall Morrissey, an officer of Macquarie offered his insight in managing Korean employees as well as working with Korean business partners

Mr. Laxmi Nakarmi, Managing Partner of Saturn Communications, offered his insights from his seventeen years in reporting Korean political-economy and business as a foreign correspondent.

Mr. Brian O'Brien, EVP of Samsung Fire & Marine advised his insight in serving as an expatriate executive in general and in a

Korea

in specific

Mr. Timothy O'Brien, an American attorney with Kim & Chang extended his insight on the foundations and history of the Korean legal system and how that history affects current practices.

Mr. Bill Park, an executive at a foreign financial services company in

Korea

, offered his insight in managing Korean employees as well as working as a Korean-American executive.

Mr. Nick Reilly, now President of GM Asia but then President of GM Daewoo at the time of writing this book, gave his insight in managing Korean managers as well as working with Korean labor unions

Mr. Stephen Schueler, Managing Director of Procter & Gamble Korea, provided his views to the chapters on marketing and distribution

Mr. Young-Soo Seo, an officer of Matica Asia Pacific, shared his experience and advice as a Korean executive working for multinational corporations.

Mr. Stefan Spreu, Senior Vice President of Leschaco Korea, extended his insight in managing Korean employees as an expatriate executive.

Mr. Keri Theophilus, an officer of Samsung Petrochemical, a joint venture with BP plc, offered his insight in managing successful joint venture relationships.

Mr. Peter Walshaw of the Hyatt Hotels shared his experience of sixteen years of general management in

Korea

Ms. Linda Yang of Japan Tobacco International

Korea

offered her insight in international human resource management and compensation

Dr. Lew, Young-ick, Chair Professor of Korean Studies, Graduate School of International Studies, Yonsei University, reviewed and made necessary corrections in the chapter on relevant Korean history.

Not least we must mentioned our families, most specifically our spouses, who have helped and put up with us all these years, including with this latest project as just one more event in our long marriages.