`Leading a Korean business is like driving an F1 racecar`

“Managing a business in Korea is like driving a Formula 1 racecar. You can rapidly move the company toward the finish line but you must drive with great caution.”

Jean-Marie Hurtiger, the outgoing CEO of Renault Samsung Motors, left this message to foreign businessmen advancing into Korea. He said Koreans are enthusiastic and dynamic in that one small decision can move the company farther than expected, even off-road sometimes.

Saying doing business in Korea is like F1 racing and a CEO`s mistake can bring about unintended adverse results, he said, "To do business in Korea, open your ears, keep your mouth shut, and be decisive in decision-making."

Hurtiger will end his term in Korea and return to Renault Group in France on Sept. 1. He had a roundtable interview with a few journalists Friday at Renault Samsung Motors office in central Seoul, and spoke about his experiences in Korea over the last five years and six months.

He refused to disclose his next position in France but said he will be promoted.

Speaking of the changes he has seen since taking office in February 2006, Hurtiger said Korea is more open to global markets and has grown more relaxed. Coupled with its sense of pride in overcoming difficulties, Korea can further advance on the global stage, he said.

On the Korean auto industry, Hurtiger said quality and technology have improved significantly over the past 10 to 15 years. He said negligence of small and mid-size companies is a risk factor, however.

The huge wage gap and pressure by large companies on smaller ones for the sake of securing competitiveness are risk factors and Korean society will increasingly demand fairness, he added.

Hurtiger is also chairman of the European Union Chamber of Commerce in Korea and adviser to the Presidential Council on National Competitiveness of Korea.

On the Korean government’s corporate policy, he said that similar to a government in any other country, Seoul tends to devise measures to control companies rather than focusing on industrial matters themselves. Autonomy should be guaranteed instead of trying to control them, he added.

On his performance in Korea, he said he did his best. Among the achievements, he cited his company`s top ranking in customer satisfaction for the ninth straight year and the complete renewal of all models. Sales increased from 118,000 units in 2005 to 277,000 last year.

After going on summer vacation for three weeks from Saturday, Hurtiger will return with his successor Francois Provost to complete the changeover and attend a farewell banquet on Sept. 1.

Hurtiger also said Korean CEOs cannot freely enjoy their vacations because they have to check email and receive phone calls. "It`s like keeping your hands on the steering wheel of an F1 car," he said.

sublime@donga.com