A blog referred to me by the China Law Blog has a wonderful post on Developing Trust in China by Building Trustworthy Systems/Processes. The same advice given in this blog post is relevant to work done in Korea, Southeast Asia, China and even the West. We believe that the verification of the developing and implementation of these system is, often, necessary before building a joint venture relationship with a Korean company.
The value of building systems is not to be underestimated in Korea. Koreans, in most respects, are wonderful at performing tasks that are well dictated and explained. While in the West, we often appreciate more autonomy and, often, don’t strive when systems are too rigid. In the East, many strive on ordered guidance.
My law firm often works with business consultants to assist client in implementing systems that reward following these systems/processes.
These “systems” are, often, incorporated by reference into our joint venture, OEM and other agreements in Korea.
Don’t jump into a Joint venture relationship or other relationship, in Korea, before considering the development of verification, quality assurance, logistic and like systems.
The article from the All Roads Lead to China Blog notes emphatically that:
Systems that can, regardless of human ignorance, greed, inaction, confusion or incompetence, remove the downside risks that comes with the human element of any process. Systems that at the heart of it, are established to minimize human impact, alert system operators (buyers/ clients) of a failure, and provide the data necessary to make changes to the system (human or mechanical). For me this is a system, as basic as it is, that allows for the most protection for a firm who is engaging with any external party, and in a way where “trust” isn’t an issue.
- So you want to do business in Korea? Listen to my Mother. Korean Joint Venture/Partnership Basics
- Korean Trust Act of 1961 Amended
- Dispute Resolution Clauses in Franchise, Joint Venture, Partnership Agreements in Korea
- English-Speaking Business Lawyers in Seoul, Korea: Corporate Law & Compliance Team at IPG Legal
- Negotiating a Joint Venture Agreement in Korea: Shareholder Agreements in Korea
- Entering into a Joint Venture/Partnership in South Korea?
- So you Want to Start a Partnership/Joint Venture in Korea?
- Korean Small Business Partnerships/Joint Ventures: Pubs, Distributors, Exporters, Boutiques, Franchises and Basic Manufacturing etc.
- Disputes Between Joint Representative Directors in Korea
- Starting a Manufacturing Business in South Korea: Top 14 Things to Know Before you Start a Business in Korea