Understanding Korean Workplace: Imitation to Innovation SCHOOL OF BUSINESS ADMIN KNU RIEBA INNOVATION CENTER MOON, GYEWAN

GNP per Capita ($) ,5972,242 Population26,51328,70532,24135,28138,12440, ,88311,47211,2377,47710,88816,43818,374 42,86945,09345,95446,28747,00848,13848,297

Korean Economy Critical Variables for Successful Enterprises 1)Reliability 2)Economies of Scale 3)Quality & Design Number 1 items in the world SAMSUNG ELECTRONICS (SEMICONDUCTOR – D-ram)-21% LG-DiSPLAY, SAMSUNG ELECTRONICS TFT-LCD)-46.5% HUMAX(SETOP -BOX)-11% SAMSUNG SDI, LG ELECTRONICS(PDP)-54% HYUNDAI HEAVY INDUSTRY,SAMSUNG HEAVY INDUSTRY(CARGO SHIP)-63% SAMSUNG ELECTRONICS,LG ELECTRONICS(AIR CONDITIONER)- 22.3%

Emergent ActionRational ActionConstrained Action 1 Winning Strategy 8 Creative network 7 Choice 6 Entrepreneurial action 5 Visionary leadership 4 Confusion 3 Crisis 2 Conservation CURRENT STATUS OF KOREAN CORPORATION CURRENT STATUS OF KOREAN CORPORATION (Data : Hurst (1995), Crisis & Renewal revised IMF Restructuring Core Comp. CoP (Innovative Culture)

Business Growth Govt. & Industrial Policy Hardworking Korean/ Korean Culture Technological Learning Direction Setting Key agents Tools Korean Company Growth MODEL (Chaebol)

Industrial Policy Direction Setting : Centralized Planning & Effective Govt. Intervention Selection of Strategic Industries : Heavy & Chemical Industry (1970’s), Electronic Industry (1980’s) Special Industry Promotion Act :1969 Establishing Industrial Complex : Gumi Industrial Complex – Gumi Innovation Cluster Financing : German Loans – Divided countries, Compensation money from Japanese Occupation (600 million $), Vietnam War Provision of Human Resources : Scholars studied in the States, Japan, & Europe

Hardworking Korean & Korean Culture Neo-Confucianism 1) Education emphasized, 2) The clan in social & economic relations 3) Harmonious interpersonal relations 4) The pursuit of the highest good 5) Discipline Hardworking Koreans 1) the national trait of tenacity 2) “han” psyche = resentment 3) conditioning during school days 4) physical environment 5) “beat Japan” spirit 6) experience of deprivation

Protestant work ethic Confucian Culture Hard-working Korean (90’s) Entrepreneurship Personal drive for achievement Smart Korean (00’s) Knowledge-based Economy Global Competition TRANSFORMING KOREAN

Technological Learning

Existing Knowledge Base Intensity of Efforts Low High Reverse engineering Low High A chaebol is a business group consisting of varied corporate enterprises engaged in diversified business areas and typically owned and managed by one or two interrelated family groups.