Based on Don Southerton’s Insights
Hello everyone. Today, I wanted to share this new series, Executive Briefing, and some insights into decision-making and approvals for Korean business culture. If you’re working with a Korean company or planning to, understanding this process can make the difference between success and frustration.
In most Korean companies, leadership makes decisions on direction and major issues. Your role as part of the local or working team is to gather and prepare the necessary information.
Once approved, you’ll report back to headquarters on implementation and progress.
If you’re hoping to propose a new idea, service, or program, understand this: your local Korean management’s role is to collect your information and share it with the appropriate senior team members—often back in Korea. Your local opinion is valued, but the final approval? That always comes from Korea.
Here’s my first recommendation: never enter a meeting unprepared. Share all background documents beforehand—and please, use PowerPoint. Korean teams appreciate this structure.
Hold an informal pre-meeting with the Korean team leader, either in person or via video. Brief them on the specifics. Allow at least a day for them to review proposals and agreements. Timing is essential.
Even in the best cases, expect that the Korean team might want to delay any decision. They need time to review carefully and possibly consult with Korea. Send all documents and meeting presentations to the Korean team immediately. Create a sense of urgency with a clear timeline for execution.
Now, let’s discuss approvals. In hierarchical business structures like Korea’s, approvals usually require several people to sign off before a project can start. For those used to leaner organizations, this can seem time-consuming and frustrating.
Here’s what generally happens: once your local team agrees, the Korean team still has internal procedures—often including both Operations and Finance approvals. Then it moves to senior management. After senior management approves, it might go to a COO or CEO for final approval.
Korean teams can be somewhat vague about the number of approvals needed because the approval chain may vary with each project. The project’s nature and costs determine how high up the ladder it must go.
Let me tell a story. I was organizing a ten-day Global Manager Leadership workshop in Korea for one of Hyundai Motor Group’s top divisions. Participants were coming from the U.S., Europe, the Middle East, India, and Asia-Pacific.
Plans were set, dates confirmed, and approvals obtained, up to, but not including, the CEO. We assumed that was just a formality.
The CEO asked several pointed questions. Unsatisfied with the responses and sensing the team lacked experience organizing a global event, he postponed the workshop. He requested the team come back in a few days with data and metrics on past events, specifically their impact on long-term employee loyalty.
Be aware that projects might be “approved,” and you’ll be expected to proceed, but there could still be a “final approval” before the project is truly underway.
In the best scenarios, you’ll get quick sign-off from the CEO. In the worst, they might want things restructured or postponed.
So, what’s my advice? Expect delays and be patient. Korean teams appreciate it when their overseas colleagues recognize that the internal approval process takes time. Be prepared to provide supportive data or documents as needed.
Understanding this process isn’t just about getting approvals faster—it’s about building trust and showing respect for how Korean business operates.
Master this, and you’ll be much more effective in your cross-cultural business relationships.
Thank you for following this Executive Briefing series!
If your organization is navigating Korea’s dynamic business landscape—or preparing for global partnerships—let’s connect. I offer consulting, briefings, and actionable strategies to help you succeed.
My practice supports companies in succeeding in Korean global business.
I assist global executives and teams in succeeding in Korea’s competitive market through cultural intelligence and strategic action.
Don Southerton provides strategic advisory to executives navigating Korean business relationships.
Request a private briefing.