First mover

Lee Eo-ryeong, a former chair professor at Ewha Womans University in Seoul, often mentions the “first penguin” in his speeches. He is referring to someone who is the first to act boldly like the first penguin ahead of other penguins. Choi Jae-young, who found the phrase “the birth of youth” in Lee’s book, opened a chain of self-management cafes called “The First Penguin” near Korea University and Ewha. Moon Joon-ho, the founder and chairman of the online marketing and advertising company iPartners, also mentions the first penguin rule as one of four success secrets in his book “The Magical Five Years.”

Large Korean companies received recognition on the global stage after taking an aggressive globalization strategy following rigorous restructuring in the wake of the 1998 Asian financial crisis. Samsung Electronics opened the new market “phonblet (smartphone plus tablet)” in its pursuit of global smartphone leader Apple. Samsung adopted both fast-follower and first-mover strategies. The first penguin can be the first mover, who can lead a market, but a fast follower comes in second at best.

A good idea alone cannot make a first mover. Lee Keun, a professor at Seoul National University, told a panel discussion at the Korea Chamber of Commerce and Industry, “The first mover strategy does not fit Korea because the country has a small domestic market, does not use English as an official language, and fails to follow the culture code of the U.S., the world’s largest market.” Facebook, which has 850 million users worldwide, first gained popularity in the U.S. and then rapidly spread throughout the globe. Korean versions of Facebook such as Cyworld and Iloveschool.com were initially popular but failed to achieve major success as a business model due to the country’s relatively small market size.

Conditions in the Korean market are changing, however. Free trade agreements with the U.S., the European Union and India have taken effect. A similar accord proposed between Korea and China will offer more opportunities for Koreans to do business globally. More young Koreans are gaining skills in foreign languages and IT. Since going on backpacking trips abroad a decade ago, they are dreaming of working or starting a business around the globe. A Korean game company set up its business in the U.S., hoping to be recognized as the first of its kind in the world. Though they face a tough challenge, Korean first movers could soon lead the world.

Editorial Writer Hong Kwon-hee (konihong@donga.com)