We have the unique pleasure to have a bird’s-eye view of numerous clients’ businesses in Korea. At this stage of our experience in Korea we are, typically, able to determine which companies will, likely, succeed and which companies will, likely, fail. We are far from perfect, but companies that succeed in Korea, normally, have the following seven things in common:
1. Comprehensive Understanding of the Korean Market by a Neutral Local Consultant
This understanding, normally, comes from one of the few business consultants, in Korea, that are
capable of providing a decent market overview with a detailed list of potential targets and contacts within these targets. We, only, work with a handful of Korean consultants, since most, we find, don’t have the skills necessary to proactively assist client, but still sell market research reports that seemed to be, only, obtained through a Google search.
2. Great Initial Representative Director for the Korean Venture
The first representative director doesn’t, necessarily, need to be a permanent hire. Often, when a company is, initially, growing a six month specialist to open an office is necessary, then, the specialist may bring in a permanent representative director. This is the same for winding-up a company.
3. Good Cultural Understanding of Korea
We see too many companies handle matters in a way similar to the way they handle matters in Japan and China. Japanese and Chinese are different nuts to crack, than, Koreans.
4. Risk Assessment Tailored to Korea
Your business in China and Japan have different risks and compliance requirements than you will have in Korea. Thus, your in house lawyer or outside counsel should not be utilizing the same agreements, compliance system etc. as what was used in other Asian companies.
5. Full Commitment to Korea
Korea is an opportunity, but don’t even think about coming into Korea if you are looking to enter on the cheap. If you don’t have the resources, time, personnel and patience you will find the “opportunity” a fast closing door. Also, the home office should be fully behind the effort and should be willing to place a home office guy or local expat hire on the ground in Korea. Too many people think that opening an office and hiring a sales manager is enough—–it is not enough.
6. Comprehensive Cost Assessment
Do you know how much it will cost to hire, run an office and manage your staff in Korea? Marketing budget? Consultant budget? Contingency budget?
7. Concerted Effort to Avoid the: Top 10 Mistakes of Companies Doing Business in Korea
- Disputes Between Joint Representative Directors in Korea
- So you want to do business in Korea? Listen to my Mother. Korean Joint Venture/Partnership Basics
- Korean Feasibility Studies will Save You Money and Headaches in Korea
- Korean M & A Due Diligence Checklist: Mergers & Acquisitions Due Diligence in Korea
- Starting a Manufacturing Business in South Korea: Top 14 Things to Know Before you Start a Business in Korea
- Hiring Employees in Korea: The Basics by an HR Guru and Advisor to IPG Legal
- Employment Background Checks in Korea: Not so Different from China
- So you Want to Start a Partnership/Joint Venture in Korea?
- Employee Titles in Korea: Yes Titles Still Matter in Korea
- Restructuring of Korean SMEs a Potential Lucrative Business in Korea