“Understanding Business Culture in Korea”:
an approach from History and Recent Ecomic
Development
John Duncan, PHD.
Director, Center for Korean Studies UCLA, USA
Prepared for Seminar organized by Cámara de Comercio Chile-Corea and Centro
Asia Pacífico UDP – Santiago Chile
June, 6th 2013.
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Korean Business Culture
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Approach
• Historical Background
• Aspects of Korean Social Culture
• Some Features of Korean Business Culture
• Prospects for the Future
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Historical Background 1
• Long History of Centralized Bureaucratic Rule
– 1st kingdoms—over 2000 years ago
– 1st unification—Silla in 668
– Koryŏ Dynasty (936-1392)
– Chosŏn Dynasty (1392-1910)
• Occasional Horrific Invasions, Mostly Peaceful
• Strong Confucian Culture
• Civil Supremacy, especially in Chosŏn
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Chosŏn Court Session
(Modern Reenactment)
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Painful History of Modern Korea
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1876: Forced open by Japan
1910: Colonized by Japan
1945: Liberation but division by U.S. & U.S.S.R.
1950-53 Korean War: 3.5 million die, still divided
1948-87: Authoritarian Rule/Military Dictators
1987: Democratization
1997: Financial Crisis
1998-Now: Recovery, problems w/North Korea
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Devastation from the Korean War
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The Struggle for Democracy
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Development
• Education
– 1960s: Less than 30% went to high school
– Now: Over 90% attend college or university
Capita GDP less than $200
• Economy
– 1960s: Per Capita GDP less than $200
– Now: Per Capita GDP over $20,000
– 1960s: Near bottom of world rankings
– Now: 12th largest economy (2012)
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Cheonggyecheon, Central Seoul 1960s
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Features of Korean Corporate Culture
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• Authoritarian Hierarchy
– Respect and Obedience to Boss
– Respect for Seniors
– Partly Confucian, Partly Military (Park & Chun)
• Emphasis on Personal Relations and Harmony
– Cooperation Between Divisions: Personal Basis
– Apologetic Attitude: Not Thank You but Sorry
• Organization Over Individual
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Features of Korean Corporate Culture
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• New Employees Like Secretaries, Servants
• Male-Centered Culture
• After Hours Dinner and Drinking—Part of Job
– Okay for Men
– Difficult for Women
• Family Control (1st Slide)
– Samsung now 3 generations
– Also LG, Hyundai
– Not unlike North Korea
– Not All Bad—Vision Over “Bottom Line”
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Future of Korean Corporate Culture
• Young People Unhappy, but Works in Korea
• Koreans Aware of Problems
– Not Only in Overseas Operations
– But also with Non-Koreans in Korea
• Efforts to Change
– LG: Less Hierarchical, More Creative
– Samsung: Work Smart Rather than Work Hard
• Remains to Be Seen: Can Korean Corporations
Overcome Korean Social Culture?
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