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April 2017

Legal Analysis

Interviews

Lee & Ko

Young Cheigh Alex Jun

Korea Intelligence Risk Management Economics

Korea Voices Steven B. Mckinney Bryan Hopkins Hank Morris


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In This Month’s Issue

Founders’ Message

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KBLA Update Upcoming KBLA Events

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KBLA Breakfast Business School KBLA South

New Members This Month

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KBLA Community Young Cheigh

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InnovaMed Medical devices have entered the era of customized or personalized devices, 3D printed devices and wearable technologies.

Alex Jun

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Rolls-Royce International No matter how big the stakes are, or the pressure to win, winning right is everything.

Korea Intelligence 2017 Forecast

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Trade, Finance, & Industry

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Economics

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Technology

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Risk Management

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Real Estate

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Legal Analysis

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In This Month’s Issue

Korea Voices Bryan Hopkins

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The Limited Opening of the Korean Legal Market- A Number of Missed Opportunities

Steven B. McKinney

One Mistake Country Managers should avoid to be Successful

About the KBLA

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Hank Morris South Korea in Transition -a Center/Left President Takes Over

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Founders’ Message

Expectations are everything. T

here is a famous story about a psychology experiment where children were put alone in a room with an adult who put a treat on a table and told each child, “You can eat the treat now or if you can wait until I get back to eat it, I’ll give you two treats.” The adult then left the room. The results of the experiment saw the children separated into three groups. - Those children who ate the treat immediately. - Those children who struggled against their desire to eat the treat only to give in and eat it before the adult returned. - Those children who were able to hold out until the adult returned and got two treats. The researchers then visited the children later in life and found that those children who were able to hold out until the adult returned were generally more successful in life. These children had better grades, scored better on standardized tests, and were well-adjusted socially. The narrative of this experiment is usually one of willpower and selfcontrol. Those children with innate or learned willpower ended up doing better in life. The experiment is usually cast as a testament to the power of self-control. That is not the whole story, however. One of the factors the researchers were not able to control for was expectations. There were no controls for what kind of adult-child relationship environment the children had previously experienced and how each child had been preconditioned to believe or disbelieve the things adults told them. The experiment had not separated measuring self-control from measuring trust. Later researchers were able to take this initial experiment and modify it to more directly measure the impact of pre-existing expectations on the willpower and self-control of the children. In the new experiments,

they ran earlier interactions with the children in which the adults did not keep their promises at all or said things like, “I’ll be right back.” and did not return for long periods. What the new experiments found was that the reliability and trustworthiness of the adults was the major deciding factor in the whether or not the children later showed willpower when faced with the treats question. Children interacting with unreliable adults found no reason to wait for the promised additional rewards. The lesson for businesses here is that every interaction we have with customers and the market is not an isolated incident. How the public perceives our marketing and products has much to do with how they have been conditioned to react by our prior performance. In this respect, small data is big data in disguise. Everyone has a large amount of data about past experiences and the expectations they have as a result of those experiences that they bring to each interaction with us. No piece of data, no interaction, ever stands on its own as an isolated case. Prior great experiences with customers earn points that can later be cashedin. Prior bad experiences work the opposite: get behind the power curve and everything gets more difficult. We must evaluate the success or failure of our marketing, sales, and product initiatives with all of this in mind.

Rodney J. Johnson President, Erudite Risk Co-Founder, KBLA

Steven B. McKinney President, McKinney Consulting Co-Founder, KBLA


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Upcoming KBLA Events

Friday May 19, 2017 Grand Hyatt, Seoul This event is open to everyone. Register online at kbla. info or send an email to admin@kbla.info.


Upcoming KBLA Events

Friday June 2, 2017 Park Hyatt, Busan This event is limited to KBLA Members only. Register online at kbla. info or send an email to admin@kbla.info.

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New KBLA Members This Month Mr. Baek Seungjae Sollers Partners Partner Mr. Jim Clark Erudite Risk Advisor Ms. Jorgeany Di Trani Keyrus Business Executive Ms. Mariana Hebborn IBM Korea Data Scientist Mr. Scott Burton Hunton & Williams, LLP Partner

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KBLA Community

Young Cheigh

Shaping the development of the medical device ecosystem for the generations to come Medical devices have entered the era of customized or personalized devices, 3D printed devices and wearable technologies. Thank you for taking the time to do this interview. Tell us a little a​bout your background and yourself. I spent the early part of my career working in the US, Mexico, Korea and Australia for Motorola in International Manufacturing Support Group for Asia Pacific and Latin America, I then settled down in Korea where I cofounded a patent law firm which, in the 20 years of operation, became an internationally renowned firm with a global client base. Today, I wear a couple of different hats. I am still active in the field of IP in my role as President of AskLaw Moon Korea ​and U.S.A and additionally have diversified into the field of Biotechnology as Chairman of InnovaMed which is an Australian based medical device consulting company specialising in product development, manufacturing and commercialisation. What brought you in the medical device field? Working in the area of IP, I come across many different types of technologies across many disciplines. Over the past decade I have witnessed an increasing trend in the patents filed in the areas of medical devices and medical technology. Further, the Korean government has been investing heavily in the biotech and medical device space to boost the medical ecosystem within Korea. Seeing this trend and working

so closely with startups, SMEs, entrepreneurs and healthcare professionals, I identified an unmet need in several of these medical device companies. They simply did not have the resources, infrastructure, nor the capability to develop globally marketable medical technology. As Korea was still in its infancy

Korea is now in the sights of medical device giants such as the US, EU and Australia as an attractive partner for collaboration and trade. as a medical device development nation, the devices may have been adequate for the local market, it did not quite meet the standards to be an international player. A significant portion of medical devices in Korea, particularly high end devices, are imported. Thus, I wanted to utilise my business development skills and leverage my global networks I had built over my career to try and advance Korean medical technology up the value chain.

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KBLA Community

How would you explain the rapid development of the Korean Medical Device market? As I mentioned, Korea is still in its infancy, however with the support from the government to nurture the medical device ecosystem, Korea has made several leaps forward. Although there is still a long way to go, Korea is now in the sights of medical device giants such as the US, EU and Australia as an attractive partner for collaboration and trade. Korea is a nation which has always prided itself on having world leading technology and know-how, however once they began to reach out and

look beyond its borders and engage a ‘collaborative’ mind set, the progression of technological knowhow has made even more rapid progress. Do you feel any restrictions or obstacles in the development of your industry in Korea? As with a lot of different industries, there are regulations and controls. Medical device approvals is a key focus and efforts are being made with trying to harmonize the medical device regulatory process around the world. Standardising and harmonising this process will significantly improve and speed the process of bringing new


KBLA Community therapies to those in need. The Asian Harmonisation Working Party (of which Korea is a part of) is collaborating with the International Medical Device Regulators Forum (IMDRF) in an effort to bring about medical device regulatory convergence. Apart from the regulatory aspects, broadly speaking, Korea is a great country to do business in, however the cultural difference can be an obstacle for many overseas organisations. It takes deep understanding and persistence in being able to build the trust, however once you establish your rapport the business will essentially build itself. Is there a place for innovation and new comers in this ultra-competitive markets? People are very innovative and inventive creatures. There really does not seem to be any bounds to what the human mind can conjure up. Just when you think that there is no other way to improve or change something, someone always thinks up a unique solution. It is ever evolving and changing which is why companies invest so heavily into R&D. Further, partnering with universities which is a bank of ideas helps organisations stay ahead of the latest and greatest advancements in processes, materials and technologies. Yes, this medical device space is very competitive and crowded but being such a dynamic environment there is always room for innovation and newcomers. For new comers, the key is partnering with the right organisation. What are the innovations to come that could be a game changer for your industry? I believe we have already entered the era of game changers in our industry. Medical devices have entered the era of customised or personalised devices, 3D printed devices and wearable technologies. I believe the biggest and most significant development in progress currently is the ‘Internet of things’. It has changed the way devices, patients and healthcare

professional communicate and the way that patient specific therapies are being derived. However, as I mentioned earlier, innovation is so dynamic and one can only wonder what the human mind can come up with next. How has being a woman has been an obstacles or a strength in your career? The reality is that my career was being built during times when women perhaps didn’t have the same opportunity or voice as men. Although this can be seen as an obstacle, I shielded myself from the gender profiling and the generalisations and focused on building myself into a strong leader. I am of the belief that strengths or weaknesses should not be profiled based on ones gender but on ones capability as a person. It is my resume which spans both eastern and western cultures which helps me work seamlessly across borders and is the value which I add to organisations. This is my strength, but I don’t believe it comes down to the fact that I am a woman. I think it has just come from hard work and persistence. Anything else you would like to share with us? As an Australian citizen residing in Korea, I wear my heart on my sleeve and am very focused on seeing stronger ties being built within the Korean – Australian biotechnology community. Both Korea and Australia have provided me with wonderful opportunities over the past few decades and I would like to be able to give something back to help continue the growth of the medical device ecosystem for the generations to come.

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KBLA Community

Alex Jun

Overcoming the legal and domestic political environment impacts on business No matter how big the stakes are, or the pressure to win, winning right is everything.

T

ell us a little about your background and yourself.

I have a background which you see more and more around you in Korea these days. My family emigrated to the US when I was a teen and I completed all my secondary and advanced studies in the US before I took a job in Korea. I also worked for a US defence company while in the States. Although I am an engineer by education and training, I also love history, international relations, music and literature. Learning and getting better understanding on different cultures, languages and collective behaviour of any nations or ethnicity always fascinate me. Apart from these sedentary elements, I also love golf as a sports, but also as a means to get my hands on with the equipment and skillset. That’s why I became interested in golf club fitting and now I have a Golf Fitter Association’s first class fitter license. What made you decide to go in the aeronautics and astronautics fields? I can tell you the exact place and the date when I realized my calling. It was in a TV room of my neighbour (my family did not have a TV then) and it was July 20, 1969, when I saw Apollo 11 landed on the moon. Neil Armstrong said that it was a giant step for a mankind, but it was indeed a special step that prompted a 7 year old boy into the world of airplanes and rockets. I have never faltered away from these worlds

and that led me to study the filed in the universities and to all my professional careers in the US and in Korea with four different industrial concerns. It has been a wonderful journey as an engineer, program and strategic planner and most recently as a marketer. Are there any ethical concerns that your type of business must deal with? I do not believe the businesses I am in are any different from any others when it comes to the issue of the ethics. We deal with customers, suppliers, and various stakeholders in the country and around the

Convincing ourselves and our customers that we only do the business the right way is our everyday effort and emphasis. world to convince we have the right products at right prices that fits the requirements of our customers. These processes involve many stakeholders with various different economic and financial motivations, and again, this should not be

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KBLA Community

different from any other industries or commercial entities. However, one thing is very clear. No matter how big the stakes are, or the pressure to win, winning right is everything. It is not because we are living in the world of FCPA, Serious Fraud Offices, or even the new Kim Youngran law here in Korea. But because it is the only way to win and to be in the business for a long time. Of course, the new laws and regulations with sharp watching eyes of various regulators around the world now creates more or less the level playing fields for everyone, but convincing

ourselves and our customers that we only do the business the right way is our everyday effort and emphasis. How big are the legal and political environments impacting your businesses in Korea? One of the key elements of any country strategy is the PESTR analysis, which contains quite prominently the regulatory and political environment of the region affecting one’s businesses. Korea is bit more dramatic because of its geo-political presence with such


KBLA Community neighbours as the North Korea, and in the middle of world’s new power politics between China, the US, and Japan. Thus, macroscopically, these geo-political elements and any associated economic and financial impacts certainly are important points to gauge the rational why we are in Korea. One good example is of course the Defence businesses here in Korea. A big part of RollsRoyce’s business here in Korea is with Defence customers. We have products in service at all military branches and significant portion of our US businesses is indeed in the Defence sector where such products are also in operation in Korea.

or at the National Assembly, often impacts the changes in regulations with government’s acquisition policies or products of choice. But, in broader sense, our businesses in Korea is mostly with the industrial entities whether they being customers, partners, or suppliers, and the world’s economic winds are more relevant to us whether we are in Korea or anywhere else. The dramatic downturn of Korea’s shipbuilding industries has a direct impact to our Marine business, but this is due to the world’s ship and offshore equipment demand and has very little to do with Korean’s internal legal or political environments.

Microscopically, legal and domestic political environment also have

How do you see your industry going in the future? Are there

impacts on our businesses here in Korea. The FTA with the US and EU have been such important elements to further boost trade with Korea and thus impacting our businesses. The Kim Young-Ran Act certainly created an environment where direct contact with the customers more adventurous. The political changes in the Blue House,

many major changes to come? Rolls-Royce has four distinctive business focuses; Civil aero engines, Defence aero engines, Marine equipment and systems, and Nuclear. More than 50% of our revenues and profits are coming from large Civil engines, such as the Trent engines for A350XWB and

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KBLA Community B787 Dreamliner. Therefore, as you can imagine, the most important barometer of our industry’s fortune is the demand of the air traffic and thus new airplanes. This is especially pertinent to the regions of rapid economic development such as China and India where near term new aircraft requirements are huge. Today’s airplanes with most advanced engines such as our Trent engines are 20 to 30% more fuel efficient than airplanes just over a decade ago. We therefore see that many major airlines around the world, both established ones and up and coming ones, will get new airplanes such as the B787 and Airbus A350 in a scale not seen since the birth of the jet age. Now for the market segment we are in, the large civil engines, RollsRoyce is the leader of the two dominant players. With continuous new technology and product development, and with huge entry barriers for any new players around the block, Rolls-Royce is very well placed to lead the industry and to meet the growing demand of the market in the future. We have good business model, good products, and continuous investment into the technologies and products that will keep us in this trend for many years to come. We also make technologies of the fourth industrial revolution. Internet of Things, unmanned platforms, big data, additive manufacturing (3D printing) are all the usual suspects that we are making huge investment. Obviously, for further ahead, we have to look at quite different situations as well. One day the oil will become scarce and different fuel, thus different power systems, will be needed. Intelligent machines, drones, electric powered flights and ocean navigation will one day become necessary realities. Rolls-Royce is thus actively investing in technologies and products that would be required in such a future. Anything you would like to tell us? KBLA is becoming more prominent in Korean MNC and its expat

communities. The data and indicators that it collects from various government and private organisations and distribute to KBLA subscribers/members are quite timely and poignant. I wish for the continuous success to the KBLA and good businesses and prospects for all its member companies and individuals.


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Korea Intelligence | 2017 Forecast

Private R&D Spending Forecast for 2017 On March 1, the Science and Technology Policy Institute (STEPI) issued a report for private R&D spending trends and forecast for 2017.

According to a survey conducted by STEPI, private R&D spending is expected to increase by 1.5%* in 2017, although the KOITA R&D Sentiment Index (RSI)** forecasts a decrease in R&D spending. In 2015, total Korean R&D spending amounted to 65.5 trillion KRW, of which private R&D spending accounted for roughly 75%.

The rate at which private R&D spending has grown has slowed in recent years.

Data NSTC via STEPI, Chart and Translation KBLA

In 2015, Korea was the sixth largest R&D spender in the world (58.31 billion USD) and number one by R&D spending to GDP ratio (4.23%).

Data NSTC via STEPI, Chart and Translation KBLA

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Korea Intelligence | 2017 Forecast

In 2016, private R&D spending amounted to roughly 75% of total R&D spending.

Data NSTC via STEPI, Chart and Translation KBLA

In 2017, the R&D Sentiment Index (RSI) forecast dropped to 95.1 index points. Large companies are historically more positive on R&D investment than small and medium enterprises.

Data KOITA via STEPI, Table and Translation KBLA

*Information was collected by surveying 546 private companies. **RSI in comprised by surveying 500 companies; values higher than 100 represent an increase in R&D spending, while values smaller than 100 represent a decrease.


Korea Intelligence | Trade, Finance, & Industry

Household Financial Soundness On March 13, the Korea Development Bank (KDB) issued a report on household financial soundness trends. According to the KDB, decreasing household income in recent years has led to a continuous increase in the number of financially limited households*. There were 1.81 million financially limited households (16.7% of all households) in 2016. While the top fifth of households by income level saw significant increases in their property income (as did the middle fifth, to a lesser extent), income gains elsewhere remained modest (or saw actual losses, in the case of the bottom fifth).

In 2016, the financially limited households accounted for 16.7% of total households, up 4.4 percentage points from since 2012.

Data Statistics Korea via KDB, Chart and Translation KBLA

*�Financially limited households� include households in which financial liabilities exceed their financial assets, and in which debt principal and service exceeds 40% of disposable income.

Data Statistics Korea via KDB, Chart and Translation KBLA

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Korea Intelligence | Trade, Finance, & Industry

Korean Entrepreneurship Index in 2016 On March 8, the Korea Economic Research Institute (KERI) issued a report concerning Korean entrepreneurship ecosystem based on data by Global Entrepreneurship Monitor (GEM). According to the KERI, the Korean entrepreneurial environment has improved significantly over the past several years. In 2016, Korea’s Global Entrepreneurship Index (GEI) amounted to 51, up 13 points up since 2011. In 2016, Korea took 27th place out of total 137 countries evaluated by GEM. Cultural and social norms remained biggest problem for Korean entrepreneurs. In 2016, Korea scored relatively high on product innovation (0.91), process innovation (0.95), venture capital (0.77), technology absorption (0.78) and risk tolerance (0.76). While areas that were relatively low included high growth (0.38), internationalization (0.42), competition (0.25), opportunity recognition (0.29) and cultural support (0.33).

Data GEM via KERI, Table and Translation KBLA

According to the National Expert Survey (NES) results, which contribute to the GEI score, experts pointed out cultural and social norms as the biggest problems in the Korean entrepreneurship ecosystem.

Data GEM via KERI


Korea Intelligence | Trade, Finance, & Industry

SME Brand Awareness Survey On March 2, the Korea Federation of Small and Medium Enterprises (KBIZ) issued results on Small and Medium Enterprise (SME) brand awareness survey. Data was collected by surveying 109 SMEs. According to the survey results, nearly all respondents believed that branding was either somewhat or very necessary for the growth of their business, with 63.3% of respondents believed that it was very necessary. Most respondents felt that a widely known brand can result in the ability to charge higher prices and lower marketing costs.

Roughly 91% of SMEs responded that a widely know brand resulted in the ability to charge higher prices for their product.

Data KBIZ, Chart and Translation KBLA

Two-thirds of SMEs responded that widely known brand reduced their marketing costs between 6% and 20%.

Data KBIZ, Chart and Translation KBLA

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Korea Intelligence | Trade, Finance, & Industry

Single Person Household Trends in 2015 On February 23, KB Financial Group Management Research Institute (KB) published a report on single person household trends in 2015. According to KB, there were over five million single person households in 2015. Such households were concentrated in large metropolitan cities and Gyeonggi Province, with slightly more than half of single person households being younger than 49 years old. In 2015, there were 1.58 million single person households consisting of someone aged 60 or more; nearly 80% of said households earned less than 12 million KRW per year.

Nationwide, single person household’s share of total households increased from 15.5% in 2000 to 27.2% in 2015. There were nearly 1.6 million single person households consisting of someone 60s years old or more.

Data Statistics Korea via KB, Chart and Translation KBLA

Single person households’ net assets increased by 37.6% between 2010 and 2015, the greatest rate among all households. Single person households were also the only demographic to reduce their debt during that period.

Data Statistics Korea via KB, Chart and Translation KBLA


Korea Intelligence | Economics

Use of Internet Banking Services During 2016 On February 27, the Bank of Korea (BOK) released a report on use of internet banking services during 2016. According to the BOK, in 2016, overall Internet banking transactions, including mobile banking, increased by 12.2%, while the mobile banking transactions by themselves increased by 25.2%. Mobile banking accounted for over sixty percent of total Internet banking transactions, but only about seven percent of the value of Internet banking transactions. The number of individual subscribers of Internet banking services recorded the lowest growth since the statistics were first compiled in 2003.

In 2016, the volume of Internet banking service use increased to 87.50 million transactions per day (including mobile banking services); the value involved was 42.42 trillion won, up 5.3% over 2015.

Data BOK

In 2016, mobile banking volume amounted to 53.09 million daily average transactions; the value involved was 3.14 trillion won, up 26.2% from 2015.

Data BOK

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Korea Intelligence | Economics

Corporate Loan Market Trends in 2016 On February 20, the Korea Development Bank (KDB) published a report regarding the corporate loan market in 2016. According to the report, total corporate loan burden increased by 20.8 trillion KRW, 56% less of an increase than 2015. Lower interest rates in recent years have led to decreased bank borrowing costs, but, beginning in 2H 2016, the gap between large business group and SME lending increased.

In 2016, SMEs corporate loan burden increased by 4.5 trillion KRW less than in 2015. SME access to financing deteriorated due to increased borrowing cost.

Data KDB, Chart and Translation KBLA

From 2015 to June 2016, roughly one-third of SMEs which took a loan had a good credit score (credit rating levels 1-3), up ten percentage points from 2010, while roughly 62% of large business groups which took a loan had a good credit score.

Data KDB, Chart and Translation KBLA


Korea Intelligence | Economics

Indirect Investment Assets in 2016 On March 12, the Financial Supervisory Service (FSS) issued its figures for indirect investment assets in 2016. According to the FSS, in 2016, indirect investment assets recorded an alltime high at 172.8 trillion KRW. In 2016, publicly offered fund assets slightly decreased, while privately offered funds assets recorded roughly 25% growth. Overseas funds assets amounted to only a quarter of Korea funds assets.

In 2016, fund assets increased by 47.6 trillion KRW (11.3%), discretionary assets increased by 42.5 trillion KRW (8.5%) and trust assets increased by 113 trillion (18.9%). Data FSS

In 2016, assets of publicly offered funds decreased by 0.8% to 219.6 trillion KRW, while assets of privately offered funds increased by 24.6% to 249.7 trillion KRW.

Data FSS

In 2016, assets of Korea funds increased by 27.6 trillion KRW (7.9%), while assets of overseas funds increased by 20.0 trillion KRW (27.0%).

Data FSS

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Korea Intelligence | Technology

KNPA Cyber Crime Arrests in 2016 On March 15, the Korea National Police Agency (KNPA) published a report on cyber crime related arrests in 2016. According to the KNPA, the number of cyber crime related arrests in the first 10 months of 2016 amounted to 44,592 people; up by 12% compared to same period in 2015. Roughly 70% of those arrested were first time offenders in their 20s and 30s. Over half of all arrests were due to online fraud (55.7%).

22,578 people were arrested for cyber crimes between May and October 2016.

Data KNPA, Chart and Translation KBLA

70% of those arrested for online gambling were in their 20s or 30s.

Data KNPA, Chart and Translation KBLA

70% of people arrested for cybercrime committed their first offense.

Data KNPA, Chart and Translation KBLA

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Korea Intelligence | Risk Management

Foreign Substances Found in Food, 2016 On February 28, the Ministry of Food & Drug Safety (MFDS) issued its figures on reported foreign substances in food in 2016.

According to the MFDS, in 2016, the reported cases of foreign substances in food dropped by roughly 700 cases (11%) to 5,332 cases. Insects were the most commonly found foreign substance, which tended to occur in food which customers took home and stored for a long time, while plastics were found in food in which processing processes were poorly managed.

Over the past ten years, reported cases of foreign substances in food have dropped by 45%.

Data MFDS, Chart and Translation KBLA

In 2016, insects accounted for 34.3%, mold for 10.3%, metal for 8.2% and plastic for 5.8% of foreign substances founded in food. Most frequently foreign substances were found in noodles (13.8% of all reported cases).

Data MFDS, Table and Translation KBLA


Korea Intelligence | Risk Management

Fraudulent Bank Books and Illegal Banking Data Collection in 2016 On March 7, the Financial Supervisory Service (FSS) issued an advisory on fraudulent bank books* and illegal bank account data collection in 2016.

According to the FSS, in 2016 the number of reported fraudulent bank books increased by 143% to 1,027 cases. Data to roughly 56% of fraudulent bank books was obtained through text message advertising. Text messages, job advertisements on websites, and voice phishing were most common methods to collect data to create or obtain fraudulent bank books. Fraudulent text messages included promises to transfer money if potential fraud victim would send their bank account data.

Data FSS, Table and Translation KBLA

*Fraudulent bank books (대포통장), can be created or obtained through either voice phishing or some other form of graft. In practice, a ‘fraudulent bank book’ is one in which the user (of the physical book) is not the individual named in the book or on its corresponding bank account. It is a form of identity theft. It should be noted that a ‘fraudulent bank book’ is not necessarily a counterfeit one; in many cases, they are legitimate documents willingly surrendered to criminals by victims of scams.

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Korea Intelligence |

Real Estate by Cushman & Wakefield


Korea Intelligence |

Real Estate by Cushman & Wakefield

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Legal Analysis

A Master Franchisor on a Budget: Exploring the Unspoken “Exemption” under the Korean Franchise Law in Master Franchising S

uppose that you own a franchise business. It can be of any type. Let us say that your franchise business offers Kansas City spareribs in ways that are truly unique. Through careful planning, development, and hard work, you developed “Kansas City BBQ” into a franchise business that is widely-known and enjoyed by your patrons of all ages. After many years of successfully operating your franchise business, you believe that time has come to look beyond your borders and introduce “Kansas City BBQ” abroad so BBQ enthusiasts from around world can experience the authentic taste of Kansas City spareribs. You decide that Korea is an attractive market. Since you are cost-conscious, at this point in your thought process, you might ask yourself the question: what would be the most aggressive franchise arrangement for introducing “Kansas City BBQ” to Korea that is both legally compliant and inexpensive? Franchise Arrangement of Choice: Master Franchising Franchisors seeking to expand their franchise businesses internationally often struggle with this fundamental question. There are several franchise arrangements that our hypothetical franchisor of “Kansas City BBQ” could choose from, such as directunit franchising, area development, or master franchising. Although the decision in choosing the right franchise arrangement will depend on manifold factors, for international expansion, master franchising is arguably the most popular franchise arrangement.

In master franchising, a franchisor – the “master franchisor” – grants a franchisee – the “master franchisee” – the right to develop a franchise business within an assigned territory by granting sub-franchisees the right to establish and operate sub-franchised units. The master franchisee assumes the role of the franchisor and carries out the functions of operating companyowned units, selling sub-franchised units, and supporting (e.g., training, logistical support, and marketing) the sub-franchisees in the assigned territory.

Conceptually, the franchisor maintains contractual privity only with the master franchisee by entering into a master franchise agreement, which typically grants the master franchisee the right to operate its company-owned units and the power to sublicense to sub-franchisees that establish and operate sub-franchised units. The master franchisee executes a subfranchise agreement through which the master franchisee, in its capacity as the franchisor in the assigned territory, grants the sub-franchisees the right to establish and operate sub-franchised units. Master franchising offers many

Legal analysis provided by Terry Kim, Lee & Ko Sun Chang, Lee & Ko


Legal Analysis advantages, and an exhaustive discussion is beyond the scope of this article. However, what makes master franchising so attractive is that it allows the franchisor to shift most of the responsibilities of selling sub-franchised units and supporting the sub-franchisees in the assigned territory to the master franchisee. This shift minimizes the financial and non-financial burdens for the franchisor.

levels of transaction. The first-level transaction involves the master franchisor granting the master franchisee the right to operate its company-owned units, and more importantly, the right to recruit subfranchisees in the assigned territory. The second-level transaction entails the master franchisee – in its capacity as the franchisor in the assigned territory – granting the

Furthermore, by leveraging the local knowledge and expertise of the master franchisee, master franchising presents an opportunity for the franchisor, such as our hypothetical franchisor of “Kansas City BBQ,” to achieve rapid expansion while minimizing investment while simultaneously increasing the probability of success in the local market.

sub-franchisees the right to establish and operate sub-franchised units. Thus, in principle, both the master franchisor and the master franchisee must each register its own FDD.

Implementation: Limited Value of Registering a Franchise Disclosure Document In Korea, franchise transactions are governed primarily by the Fair Transactions in Franchise Business Act (“Franchise Act”) and its Enforcement Decree. Before a franchisor, including a master franchisor, can offer and sell its franchise business in Korea, the Franchise Act obligates the franchisor to register its franchise disclosure document (“FDD”) with the Korean Fair Trade Commission (“KFTC”) and provide the registered FDD to the prospective franchisees. The FDD is a written document describing extensive information about the franchisor and the franchise organization. And the intent behind the requirement for providing the FDD is to give the prospective franchisee sufficient information to make an informed decision about purchasing a franchise. In master franchising, there are two

The problem facing our hypothetical franchisor of “Kansas City BBQ” in implementing master franchising comes into view. As the master franchisor, our hypothetical franchisor seeks one master franchisee, who ideally has been selected carefully to develop the franchise business and support the sub-franchisees in ways that uphold the uniformity and value of the franchise business in Korea. To offer and sell the franchise business to the master franchisee, our hypothetical franchisor must register and deliver its registered FDD to the master franchisee. However, once our hypothetical franchisor enters into a master franchise relationship with the master franchisee, the FDD no longer has any significant value because no further master franchisee will be recruited in Korea. In addition, the FDD used in entering into the master franchise relationship becomes of limited value to the master franchisee, who must register its own FDD to engage in the second-level transaction in master franchising – that is, to grant subfranchisees the right to establish and operate sub-franchised units. It is understandable then that a master franchisor, when seeking to implement master franchising

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Legal Analysis in Korea, would want to search for ways to avoid registering its FDD. This desire could be especially pronounced because registering an FDD is a lengthy and costly process; it can take anywhere from two and three months to complete the registration and can cost between $40,000 and $50,000 in legal and administrative fees. Is there a way for our hypothetical franchisor of “Kansas City BBQ” to offer and sell its franchise business in Korea without registering its FDD? De Facto Exemption: Separating the Rights in Master Franchising The Franchise Act provides two statutorily-stipulated exemptions. To be eligible, a franchisor (or a master franchisor) must satisfy one of the following two requirements: 1) Franchisor receives less than KRW 1 million (approx. $900) in franchise fees during a six-month period from the date of receiving the first payment of franchise fees from the franchisee; or 2) Franchisor has less than four franchisees worldwide and earned less than KRW 50 million (approx. $48,000) in worldwide sales in the previous fiscal year. The exemptions under the Franchise Act are intended to apply to small franchisors and are rarely applicable to foreign franchisors, who are introducing their franchise businesses to Korea. However, a de facto exemption could be found in the way the Franchise Act defines the critical term, “franchisor.” Specifically, the Franchise Act defines a “franchisor” as a business entity that “grants the right to operate franchised unit to a franchisee.” The corollary of this definition could be that if a business entity does not grant the right to operate a franchised unit, then the business entity is not a “franchisor,” and therefore, does not fall within the purview of the Franchise Act. In master franchising, a master franchisor grants a master franchisee the right to operate its

company-owned units and the right to recruit sub-franchisees to establish and operate sub-franchised units in an assigned territory. If the master franchisor withholds the right to operate company-owned units while granting only the right to recruit sub-franchisees to the master franchisee, then it is possible to interpret the Franchise Act to mean that such a master franchisor is not a “franchisor” as that term is defined under the Franchise Act, and consequently, not subject to the registration and disclosure obligations of the Franchise Act. The KFTC has released no formal guidelines or statements on whether a de facto exemption exists in the context master franchising. However, it appears that the KFTC shares the view that if a master franchisor grants only the right to recruit sub-franchisees to a master franchisee, then the Franchise Act does not govern the first-level transaction between the master franchisor and the master franchisee in master franchising. Thus, the master franchisor can offer and sell its franchise business to the master franchisee immediately without registering and disclosing its FDD to the master franchisee. It is important to note that the de facto exemption does not absolve a master franchisee of its own obligations to register and disclose its FDD to the subfranchisees. In master franchising, the master franchisee grants the sub-franchisees the right to establish and operate sub-franchised units, and therefore, the master franchisee falls squarely within the definition of a “franchisor” as defined under the Franchise Act. Before the master franchisee can offer and sell the franchise business to the subfranchisees, therefore, the master franchisee must register its FDD. Let us return for the final time to our hypothetical franchisor of “Kansas City BBQ.” To take advantage of the de facto exemption, our hypothetical franchisor can consider structuring a master franchising arrangement


Legal Analysis by granting the right to recruit sub-franchisees but not the right to operate any company-owned units to the master franchisee. Should our hypothetical franchisor desire for the master franchisee to operate its “company-owned units,” then the master franchisee could do so by “recruiting” its wholly-owned subsidiary as a sub-franchisee.

Under this master franchising arrangement, only the master franchisee will need to register its FDD. Meanwhile, our hypothetical franchisor would have achieved its goals of introducing “Kansas City BBQ” in Korea using master franchising as the vehicle in a legally compliant and inexpensive way. Cautionary Warning: Seek Local Counsel Advice It bears repeating that the KFTC has not formally acknowledged the de facto exemption in master franchising. More importantly, the Korean courts have yet to review whether any exemption, other than the two statutorily-stipulated exemptions, can be interpreted to exist under the Franchise Act. Given the legal uncertainties surrounding the de facto exemption, and further, the knowledge that the registration and disclosure obligations constitute important cornerstones of the Korean franchise regulatory regime, it is highly advisable to seek local counsel advice before structuring your master franchising arrangement to take advantage of the de facto exemption under the Franchise Act.

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The Limited Opening of the Korean Legal MarketA Number of Missed Opportunities Until recently, Korean lawyers were not adequately trained to compete outside of the Korean legal market with lawyers from the US, Hong Kong or Singapore. Korean legal education was more focused on domestic legal theory than international practice even though Korea is an export driven economy. With the liberalization of the legal market in Korea, and the growing competition from ethnic Korean lawyers trained in the US and elsewhere Korean law schools have taken steps to educate internationally focused lawyers. Young Korean lawyers are becoming more bilingual than ever before and are becoming more and more business savvy. Also, more foreign law professors are teaching at Korean law schools. The threat of competition from Singapore and Hong Kong has pushed young Korean lawyers to become more creative in how they address legal problems and how they resolve complex legal issues. With foreign clients expecting more from Korean lawyers than in the past the new generation of Korean lawyers must be willing to rise to the challenge and prove how skilled they are. Even so, what many agree upon is that young Korean lawyers will lose out if they are not able to work for and be trained by the top international law firms. The multinational law firms, by virtue of their presence in Hong Kong and Singapore guarantee that local Singaporean and Hong Kong lawyers will receive excellent international legal training during the beginning of their careers. When the liberalization of the Korean legal market began several years ago, the

thought among many legal scholars was that the opening of the legal market would lead to more Korean lawyers working for and receiving training from large international law firms and would thus be better prepared to compete against lawyers from other jurisdictions such as Hong Kong or Singapore. Though young Korean lawyers are more internationally focused in the past, the main question facing Korea when it comes to Korea’s legal system and legal market is whether liberalization of the legal market in Korea will; actually work. Has Korea in fact opened its legal market as promised and are the major international law firms rushing in to take advantage of the robust domestic legal market place? In essence, what is the impact of the current status of market liberalization in Korea and how does that impact the current crop of new Korean lawyers? Korea is the last major country in Asia to open up its legal market to international firms. Japan opened up in 1987 (some would say it was not successful), China opened up in 1992 and Korea started the liberalization process in 2011 with the execution of the FTA with the EU followed by the FTA with the US in March of 2012. The liberalization under the FTAs between Korean and EU and the US meant that Korea would open up the legal market in 3 stages: The first stage allowed foreign law firms to establish their representative offices in Korea; the second stage allowed foreign law firms to collaborate with Korean law firms; and the third stage allows for foreign law firms to establish a joint

Bryan Hopkins Special Counsel, Lee & Ko bryan.hopkins@leeko.com

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Korea Voices office with Korean law firms and hire Korean licensed attorneys to handle domestic legal work. The Korea- US FTA provides in part: “No later than five years after the date of this Agreement enters into force, Korean shall allow U.S. law firms to establish, subject to certain requirements consistent with this Agreement, joint venture firms with Korean law firms. Korea may impose restrictions on the proportion of voting shares or equity interests of the joint venture firms. For greater certainty, such joint ventures may, subject to certain requirements, employ Korean-licensed lawyers as partners or associates.” The problem with the liberalization was in fact the amendment to the Foreign Legal Consultant Act) FLCA) which was intended to implement the FTA with the UK and the US. On February 4, 2016, the Korean National Assembly passed the Amendment to the FLCA which provides that in order for a foreign firm to have a JV with a Korean firm, the maximum ownership a foreign firm could have in the JV is 49%. It also provided that the headquarters of the foreign joint venture partner firm would be solely and unlimitedly responsible for the JV. Also, the number of senior Korean lawyers must exceed the number of senior foreign legal consultants. On March 15, 2017, pursuant to the FTA between the US and Korea, US firms that opened offices in Korea are able to establish a joint office with a Korean firm and hire Korean licensed lawyers. However, for the reasons listed above, which are outside of the norm in many jurisdictions, US firms and EU firms have refused to engage in JVs with Korean domestic law firms. Most of the foreign firms in Korea are still operating in the Phase 1 format where they have established a representative office and have foreign licensed attorneys practicing law of their home jurisdictionprimarily the US or the EU. But at this moment, JVs are out.

To date, 27 international firms have branch offices in Korea, while none have JVs with Korean law firms. Therefore, while there are approximately 2000 foreign lawyers working in Korea, most are working for Korean law firms; with 90% of the foreign lawyers US qualified. The vast majority of Korean licensed lawyers are working for Korean law firms or are in house, with very few working for the multinational law firms as they would also have to be licensed in the US or Europe. The Korean legal market pie is small relative to the US and Britain, but still sizeable which has led to many international firms opening up offices in Korea. The increase in legal fees for the inbound Korean market is staggering. Inbound legal fees have increased from $682,400,000 in 2011 to $820,700,000 in 2014. Likewise, the outbound legal market has also grown. In 2011 the outbound legal fees for Korea was $1,183,600,000. In 2014, it was $1,438,500,000. The inbound, outbound and domestic legal fees market in 2014 was estimated to be $5.2 Billion US. A very attractive market. All have thought the time was right for a complete opening of the Korean legal market. But as I have pointed out, that is not the case. It now appears the Korean legal market will not fully open, and will continue to have some protectionist measures built in to protect Korean law firms. This may have a negative impact down the road. If Korean firms had to compete with international firms, Korean firms would be forced to become more competitive. Korean lawyers would be able to work for the international firms located in Korea and your Korean lawyers would receive training from the international firms. However, as long as the market prevents international firms from establishing JVs with Korean firms, or from acquiring Korean law firms (such as the midsize or small firms), Korean firms don’t have to compete on the scale needed to become more competitive. Nor will


Korea Voices Korean licensed lawyers work at the international firms anytime soon. The failure of the legal market to fully open will lead to several lost opportunities. Namely: 1. The lost opportunity of having international firms introduce highquality legal counsel skills and thereby improving local legal services; 2. The lost opportunity of Korea’s small and medium sized law firms to establish relationships with international firms and gaining a competitive edge in the Korean legal market; 3. The lost opportunity of having more legal jobs created in Korea by virtue of the large international firms hiring more domestic Korean lawyers; and 4. The lost opportunity of having young Korean lawyers receiving high-quality international legal training that those in other jurisdictions such as Hong Kong and Singapore receive. It is hoped that Korea one day fully opens up the legal market in Korea. Until that day happens, Korea’s legal market and therefore its economy will suffer from lost or missed opportunities. It is time for Korea to open up its legal market and to embrace the benefits it gains from a robust domestic/outbound/inbound legal market that has domestic and international law firms competing against each other in the market place.

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South Korea in Transition -a Center/Left President Takes Over On 9 May South Korea will hold a presidential election to select a successor for former the former President, Ms. Park Geun Hye, whose conviction in impeachment proceedings that concluded in early March resulted in her dismissal for office and the necessity of holding a new election. The results of the presidential primaries that have been held by the contending Korean political parties are now filtering through and it is evident now that the main opposition party, the Democratic Party, will have Mr. Moon Jae In as its standard bearer. He is in his early 60s and has been active in Korean politics for some years, particularly since he was a senior aide to his mentor, former President Roh Mu Hyon, the center/ left politician who was president during the early 2000s. Mr. Moon is perhaps best known for having been the losing candidate in the previous presidential election in 2012 that saw Ms. Park elected as president and Mr. Moon’s return to senior roles in the Democratic Party of Korea, which has long been the main opposition party. Over the past few days, Mr. Moon received a great majority of the primary votes of the Cholla region, the historic heartland of the Democratic Party in the Southwestern part of Korea, but he also significantly outpolled his nearest rival, Choonchung Province’s Governor, Mr. Hee Jung An, in Choongchung Province itself. As the sitting governor and most senior politician of the Democratic Party in that province, which is in the central area of South Korea, Mr. An was considered to be quite popular with the electorate of the Democratic Party and had been expected to do better in the polls but in recent weeks he had been quoted as casting some doubt on the idea that President Park was well aware of her wrongdoings that lead to her impeachment and was perhaps duped to some extent by her friend Ms. Choi who has been at the center of the impeachment scandal due to testimony about her alleged interference in government affairs but also due to her alleged role in acting

as President Park’s chief associate in garnering bribes from a number of the Korean chaebols, the Korean business conglomerates. Also in the running for the presidency will be Yoo Sung Min of the Barun Party, a newly launched conservative party formed by opponents of President Park’s in the former conservative party, the ‘Saenuri’ Party. His poll numbers have never been out of the low single digits and clearly he is no threat to Moon. The Saenuri party renamed itself the Liberty Korea Party, but since it was not successful in persuading former UN Secretary General Ban Ki Moon to join its party and run as its candidate, the party’s nominee looks unlikely to rise to low double digit popularity ratings. Another center/left party, the People’s Party, is in the process of nominating Mr. Ahn Chol Soo, who was a contender in the last presidential election until he dropped out of the running in favor of Moon, since it seemed highly unlikely that if there were two center/left candidates in the election against Park, that one of the center/left candidates would win. So, since polls showed Moon with a lead over Ahn at that stage a few months before the election, Ahn did the gracious thing and stepped down. Nevertheless, Moon went on to lose the election. Since that time Ahn has formed a new party, the People’s Party, that is much smaller in terms of deputies in the National Assembly than Moon’s party, the Democratic Party. In any case, although Ahn’s popularity ratings in nationwide polls have come up in recent days, he remains in the low double digit range while Moon seems secure in the thirty plus percent range. The trend is now fairly clear and absent any major shocks such as a sudden health problem, Moon Jae In seems certain to win the nomination of the Democratic Party of Korea and then the presidency on 9 May. That will put into office an acolyte of the late former president, Roh Moo Hyun into the top job, and most observers

Hank Morris Argentarius hank@argentarius-group.com

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Korea Voices expect that Moon will adopt similar policies, particularly with regard to the relationship with North Korea but also in terms of economics. Former President Roh Moo Hyun was a believer in the ‘Sunshine Policy’ of President Kim Dae Jung who was in office immediately before Roh. Kim’s and then subsequently Roh’s Sunshine Policy was designed to placate the North’s leadership by offering economic incentives to the North to persuade their leaders to give up their harsh, antiSouth Korean and anti-Western policies and begin to modernize their economy in a peaceful manner similar to that of China in the 1980s following Chairman Mao’s death in 1976 and the end of the Cultural Revolution shortly afterwards. Whether in current circumstances, given North Korea’s determination to build up its nuclear arsenal including missile delivery systems, it will be possible for Moon to readopt the Sunshine Policy is a major question. Moon will not have a parliamentary majority since his Democratic Party does not have a majority in the National Assembly and he will not be able to ram bills through into law without the support of other parties, particular the People’s Party which holds similar views on many significant issues. The absence of a majority in the Korean National Assembly might make it difficult for Moon to implement a new policy toward North Korea, but Moon’s main challenge to a restart of warmer relationships with North Korea might turn out to be the attitude of the Trump administration towards such efforts. At this time the Trump administration’s policies towards North Korea have not been fully articulated, but it does seem that the new administration believes that the Bush and Obama administrations’ policies of ‘strategic patience’ are not being considered as productive policies by the Trump administration. Another area of potential major change under a new Moon administration could well be the new administration’s policies towards the chaebol, the Korean conglomerates, and big business in general. Historically, Moon’s mentor former President Roh had a somewhat fraught relationship with the chaebol in that his administration did try to enhance state regulation of the chaebol to prevent monopolies and other chaebol abuses, including tax evasion and embezzlement, but with only mixed

success at best. Then, when Roh stepped down and was followed by a conservative, President Lee Myung Bak, who turned back the clock and took a much more lenient attitude towards the chaebol, the chaebol were able to avoid some oversight and this more lenient policy continued into President Park’s administration. Now the major question will be: what does Moon intend to do about the chaebol since his predecessor was impeached due to alleged bribery committed by the heads of a number of the chaebol, including JY Lee of Samsung. Moon has suggested in recent election statements that he wants a more fair system that curbs the powers and privileges of the chaebol, but he has avoided providing any details. It is certainly highly probable that JY Lee will not be the only major chaebol figure to be tried in the Korean courts for the alleged bribery of President Park. But that is a corporate governance issue and it does not tell us anything about Moon’s attitude towards corporate and personal tax rates and business regulations in general. These things are of concern to the foreign business community in Korea because many foreign companies have joint ventures or customer relationships with the chaebol and other Korean companies, and if the tax rates are to be modified, then the new and presumably higher rates will apply to foreign companies in Korea along with the chaebol and Korean companies. Then there is the issue of business regulation in general, such as the requirement for foreign companies to store their IT data only in Korea rather than make use of a data storage point outside Korea. This is just one example of a business operational regulation that impedes foreign business and adds to the costs of operating in Korea, and there are many others. Moon’s attitude towards regulations will to a major extent signal his intentions as to whether the operating environment for business in Korea, both Korean and foreign, is to be made more or less challenging from a general operational perspective as well as a purely financial perspective. As the presidential election campaign unfolds, it will be important to remain alert to what Moon will have to say about these major issues.


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One Mistake Country Managers Should Avoid to be Successful How To Lead Change Effectively in 4 Steps Leading a multinational organization in South Korea or any country outside your home country poses unique obstacles. But, you are not alone as many expat country managers share the same challenges. To be successful on a foreign assignment leaders should avoid making these three mistakes, Resisting Change, Not Communicating Effectively, and Not Understanding Cross-cultural Differences.

energy which can transform or stop progress.” Resistance brings energy, and that energy is valuable because it can be capitalized upon to aid the change process. To utilize resistance, we must learn to embrace it and not avoid it. We must understand resistance is information. Leadership is about leading, but it’s also about implementing change, as many of my clients have found out. According to Rosabeth Moss Kanter, Professor of Business Administration

North Americans are considered individualistic societies, and focus is on the individual. In contrast, Koreans are a collectivist society and focus is in the group. Simply put, it is “I” versus “We.” Knowing these differences, one might expect some resistance to different ideas, methods or ways of thinking. Some individuals perceive opposition as a threat to them. As human beings, we are all naturally resistant to change. Resistance may take many forms, including active or passive, overt or covert, individual, or organized, aggressive or timid. In the field of electronics, the concept of resistance is well understood. One definition says, “Resistance is the opposition of a body or substance to current passing through it, resulting in a change of electrical energy into heat or another form of energy.” The heat and the energy are desired and useful but can also create problems. Modifying this definition to apply to change and people it would read, according to Rick Maurer, “Resistance is the opposition of people to change passing through them, resulting in

at Harvard Business School, “The best tool for leaders of change is to understand the predictable, universal sources of resistance in each situation and then strategize around them.” Before making or accepting any changes, it is important to follow these four steps. 1) Identify and think through the changes. Will this be an organizational change where more people will be hired or laid off? Or, will this change require the shutting down of the company communications for a 24 hour

Steven B. McKinney McKinney Consulting Inc. steve.mckinney@kbla.info


Korea Voices period? Or, will training of select personnel be required, etc.? 2) Identify whom the changes will impact. Department(s) or individual(s)? 3) How will these changes impact them? Will this change affect their morale in a positive or negative way? Will the employees and management perceive this change as necessary? 4) How they might respond to these changes. Will everyone embrace this change as a win-win for everyone involved? Or, will they consider this change as someone winning and someone losing? All possible scenarios should be considered and evaluated. So, hopefully, there will be no surprise reactions to the change only anticipated responses to the changes. Armed with this information you are ready to devise an action plan and implement it smoothly. Leading a multinational organization outside your home country poses unique obstacles. However, expecting possible resistance to change and being prepared to lead through it is critical to success. Steven B. McKinney is the founder & President of McKinney Consulting Inc. (IRC Korea) a partner firm of IRC Global Executive Search Partners (Top 3 Globally) with over 17 years of experience as a consultant in executive search and leadership consulting placing 100’s of executives of multinational companies in Korea and Asia-wide. He earned the distinction of Certified Master Coach from Behavioral Coaching Institute and a certificate in Leadership Coaching Strategies from Harvard University. Previously he managed global footwear R&D efforts for Adidas International and oversaw manufacturing production and R&D duties for Reebok International in Korea. He is also the co-founder of the Korea Business Leaders Alliance (KBLA).

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About the KBLA Korea Business Leaders Alliance Our mission is to serve leaders in Korea, primarily business leaders, but also academics and arts leaders. We bring peer leaders together, help them build relationships, expose them to new ideas and best practices, give them opportunities to interact, publish, demonstrate expertise, and just spend time getting to know one another. We provide information tools and channels for them to interact online and to be informed.

The KBLA also serves business leaders around the world who have a stake in the Korean business environment through our business intelligence reporting service: Korea Intelligence Package.

Partners of the KBLA


About the KBLA Value Chain Advertisers Index EDITOR IN CHIEF Rodney J. Johnson

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Seoul Foreign School www.seoulforeign.org

CONTRIBUTORS Young Cheigh Alex Jun Kyle Johnson Terry Kim Sun Chang Bryan Hopkins Hank Morris Steven B. McKinney Arthur Sabalionis

Lee & Ko www.leeko.com

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Value Chain is published monthly by the Korea Business Leaders Alliance on the ground, in Seoul, Korea. Value Chain is a digital-only publication available in PDF and online forms. For advertising and distribution inquiries contact us at admin@kbla.info.

Marsh & McLennan Companies http://www.mmc.com Alitalia https://www.alitalia.com Asian Tigers Mobility www.asiantigers-korea.com KEB Hana Bank hanafn.com/main.do Top Cloud http://www.topcloudcorp.co.kr/ Agility Korea www.agility.com Grand Hyatt Seoul http://seoul.grand.hyatt.com/en/hotel/home.html Taejon Christian International School http://www.tcis.or.kr/ United Airlines www.united.com Erudite Risk www.eruditerisk.com McKinney Consulting www.mckinneyconsulting.com

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Even if you’re on the right track, you’ll get run over if you just sit there. -- Will Rogers

Value Chain April 2017 Edition  

Value Chain is the Montly Magazine of the KBLA