[Opinion] Korean-Style Businesses

On March 29, 1988, the first Korean chain of McDonald’s opened in Apgujeong, southern Seoul. Some anti-American college students criticized it as an attack on Korean culture, claiming the U.S. icon of capitalism occupied Korea. Twenty years from then on, the first chain shop of Korea`s BBQ Chicken opened in the United States where franchise chicken business first started. The Korean company opened two branches in Orange County and Korea Town in Los Angeles. It hopes to open up to 200 stores across the United States within this year.

In southern part of Manhattan, New York, two ice cream shops stand facing each other on Bleecker Street, Greenwich Village: Red Mango and Pink Berry. The latter was established in 2005 by two Korean students who were studying in America. Now it has dozens of branches in the United States including Los Angeles and New York City. Red Mango was founded in 2003 in Korea. It opened its first and second stores in Los Angeles and Las Vegas. This year, it plans to expand its chains to 30. Korean bakery Paris Baguette is meanwhile captivating Chinese people on high-class residential streets of Beijing and Shanghai.

Experts point out that localization is a must in order to succeed in a foreign market. However, what is in common in these brands is they adopted the Korean way of business. BBQ, which receives royalties from 22 nations, used olive oil for the first time in the world for health reasons and utilized Korea’s “fast-fast” marketing. Instead of having customers wait for a waiter, they put a button on the table to call one. It also delivers chickens to university dormitories, utilizing the idea of Korea’s fast taxies.

The frozen-dough preparation of bread, which half-cooks bread in a factory and completes the cooking at a shop, is the know-how of Paris Baguette. Asked about the secret of success, Lock & Lock Beijing President, Shin Dong-hoon, said, “Korean business style of making house-to-house visits worked in China where businessmen usually seat and wait for customers to come.” The best way to make it in the global market is to utilize one’s own color and advantage.

Editorial Writer Huh Mun-myeong (angelhuh@donga.com)