Korean Business & Management: Establishment of Korean Companies I. Week 2 презентация

Understanding some of the seeds and backbone of Korean companies
- Understanding the sources of Korean capitalism and her management
- Understanding the role of Confucianism, Japanese influence, American influence and military-led industrialization to the foundation of Korean companies

led industrialization

leaders

“My dream is to develop a company and contribute to building national wealth. It is a businessman’s social responsibility and obligation to make a company profitable”
Lee Byung Chull, Late founder of Samsung Group

“Some men live without thinking. Other men with positive thinking achieve ten or one hundred times as much as ordinary people”
Chung Ju-Yung, Late founder of Hyundai Group

leaders (cont.)

“The incentive system is the greatest invention of the century, turning the tide favorable for capitalism”
Lee Kun-Hee, Chairman of Samsung Group

are..
- Confucianism
- Influence of Japan
- Influence of US
- Military-led industrialization

is the idea and Philosophy of Confucius, who is a Chinese scholar lived in China around 500BC
- It was introduced in Korea about 1,000 years ago
- It had a strong shaping influence on Korean society during the past 1,000 years
- During its settlement, Korea developed its own interpretation much stricter way than in China itself.

- The relationship between monarch & subject
- The relationship between husband & wife
- The relationship between elder brother & younger brother
- The relationship between friend & friend

to maintain order and harmony within a society
It is strictly hierarchical in nature
Everybody has a well-defined position and has to obey to individuals who are ranked higher

beliefs and rituals that are concerned with the realm of the sacred
-Religions with the greatest following are
Christianity (1.7 billion adherents)
Islam (1 billion adherents)
Hinduism (750 million adherents)
Buddhism (350 million adherents)
Confucianism also influences behavior and shapes culture in many parts of Asia

religion
common throughout Europe, the Americas, and other countries settled by Europeans

Question: What are the economic implications of Christianity?

Answer:
In 1904, Max Weber suggested that it was the Protestant work ethic (focus on hard work, wealth creation, and frugality) that was the driving force of capitalism

life that governs one's being
Muslims believe that there is one true omnipotent God

Question: What is Islamic fundamentalism?
Answer:
Islamic fundamentalism is associated in the Western media with militants, terrorists, and violent upheavals,
the vast majority of Muslims claim that Islam teaches peace, justice, and tolerance
fundamentalists have gained political power in many Muslim countries, and have tried to make Islamic law the law of the land

of Islam?

Answer:
Under Islam, people do not own property, but only act as stewards for God and thus must take care of that which they have been entrusted with
Islam is supportive of business, but the way business is practiced is prescribed
businesses that are perceived to be making a profit through the exploitation of others, by deception, or by breaking contractual obligations are unwelcome

of achieving spiritual growth and development, which may require material and physical self-denial
practiced primarily on the Indian sub-continent

Question: What are the economic implications of Hinduism?
Answer:
Hindus are valued by their spiritual rather than material achievements
Promotion and adding new responsibilities may not be the goal of an employee, or may be infeasible due to the employee's caste

of achieving spiritual growth and development, which may require material and physical self-denial
practiced primarily on the Indian sub-continent

Question: What are the economic implications of Hinduism?
Answer:
Hindus are valued by their spiritual rather than material achievements
Promotion and adding new responsibilities may not be the goal of an employee, or may be infeasible due to the employee's caste

the afterlife, rather than achievement while in this world
found mainly in Central and Southeast Asia, China, Korea, and Japan

Question: What are the economic implications of Buddhism?
Answer:
Buddhism does not support the caste system, so individuals do have some mobility and can work with individuals from different classes
entrepreneurial activity is acceptable

attaining personal salvation through right action
the need for high moral and ethical conduct and loyalty to others is central
practiced mainly in China

Question:What are the economic implications of Confucianism?
Answer:
Three key teachings of Confucianism - loyalty, reciprocal obligations, and honesty - may all lead to a lowering of the cost of doing business in Confucian societies

Strong family orientation
- Strong emphasis on the value of education
- “Chung”

The Nature of Confucianism in Korea

behavior of Korean people
- Created strict hierarchical manner based on age & position


- However, such Confucianism-based value appears outdated and Korean companies have faced increasing challenges due to this

The Nature of Confucianism in Korea