By John Burton
Having worked with several Korean companies over the years, I have come to the conclusion that their management practices are harming the country's development. The combination of a strict hierarchy based on seniority, autocratic bosses, long working hours (including mandatory after-work drinking sessions) and a top-down management style can be blamed partly for social ills such as the low female participation in the workforce, falling birthrate and high cost of living in Seoul.
I was reminded of this when I read a story recently in The Economist about how traditional Korean work culture is even infecting the performance of digital startups despite their promises of flat hierarchies, flexible work and young, innovative workplaces.
Korea's authoritarian management culture may have been justified during the country's rapid industrialization push in the 1960s and 1970s because it proved reasonably effective in marshalling large manpower resources to achieve ambitious economic goals. But it looks out of date in a new industrial age that puts a premium on innovation, entrepreneurship and meritocracy meant to attract a talented workforce.
However, the COVID-19 pandemic and the resulting adoption of work-from-home (WFH) practices by some Korean firms provides a golden opportunity to break bad management practices and correct some of the country's social problems at the same time.
As many as two-thirds of Korean companies in industries where remote work is possible, such as finance, culture and education, have allowed WFH during the pandemic, according to one survey. Stress-inducing demands on employees' time such as company dinners went out the window. The result has been increased demands by employees for more flexibility in their working conditions in the future.
It is up to corporate management and government policymakers to heed that call. Remote work appears almost perfectly designed for a tech-savvy society like Korea and many have embraced the idea that they did not have to spend long hours commuting to work every day. The only downside is that the "always on" ethos has blurred the line between personal and professional time, but that was also a big problem under the traditional management structure.
Some Korean companies, such as technology services firm Line Plus and real estate app operator Zigbang, have already announced they will allow employees to either work from home permanently or adopt a hybrid workweek with some days in the office.
Line Plus said it took the move because it found that remote working boosted work efficiency while improving the quality of life for employees. This follows in the footsteps of such American tech giants as Facebook, Twitter and Apple that have adopted hybrid work practices.
But the benefits of WFH go beyond improved worker efficiency and saving costs on office space. It can help address some of Korea's deepest social issues.
Take Korea's falling birthrate, among the steepest in the world. This problem has been blamed on long office hours and commute times. The lack of childcare services in most companies and alternative public facilities has meant that women have had to drop out of the workforce if they want children. The result is that Korea also has the lowest female workforce participation among advanced industrial countries. WFH would help solve this problem. It would allow young mothers to continue working while taking care of their babies at home.
In addition, WFH would help relieve the chronic problem of high property costs in Seoul by allowing many employees to work remotely from locations where real estate prices are cheaper. The government has struggled for decades to stem the growth of the Seoul metropolitan area and encourage decentralization by relocating industries and government services to other cities. The promotion of WFH could prove a key element in achieving this goal.
Finally, WFH would help hone Korea's digital industries, encouraging the growth of everything from remote working apps to cloud computing. It can also help boost a company's environmental, social and governance credentials with financial investors.
It remains to be seen whether Korea's hidebound managerial class is willing to accept the changes. Many will continue to believe a full office promotes productivity, innovation and camaraderie despite evidence to the contrary, while providing them with a power trip at the same time. They will likely argue that remote workers are less engaged and consequently less productive.
But companies that accept hybrid working conditions could find that they will be able to hire the best and brightest among those who prefer greater flexibility. It will be interesting to watch what the chaebol will do and whether they will try to reimpose restrictive office rules.
The government could set an example by allowing civil servants to work from home a few days a week or even setting up remote-working hubs throughout the country.
Korea may be about to enter an interesting new era in its work culture.
John Burton (johnburtonft@yahoo.com), a former Korea correspondent for the Financial Times, is a Washington, D.C.-based journalist and consultant.
 |
I was reminded of this when I read a story recently in The Economist about how traditional Korean work culture is even infecting the performance of digital startups despite their promises of flat hierarchies, flexible work and young, innovative workplaces.
Korea's authoritarian management culture may have been justified during the country's rapid industrialization push in the 1960s and 1970s because it proved reasonably effective in marshalling large manpower resources to achieve ambitious economic goals. But it looks out of date in a new industrial age that puts a premium on innovation, entrepreneurship and meritocracy meant to attract a talented workforce.
However, the COVID-19 pandemic and the resulting adoption of work-from-home (WFH) practices by some Korean firms provides a golden opportunity to break bad management practices and correct some of the country's social problems at the same time.
As many as two-thirds of Korean companies in industries where remote work is possible, such as finance, culture and education, have allowed WFH during the pandemic, according to one survey. Stress-inducing demands on employees' time such as company dinners went out the window. The result has been increased demands by employees for more flexibility in their working conditions in the future.
It is up to corporate management and government policymakers to heed that call. Remote work appears almost perfectly designed for a tech-savvy society like Korea and many have embraced the idea that they did not have to spend long hours commuting to work every day. The only downside is that the "always on" ethos has blurred the line between personal and professional time, but that was also a big problem under the traditional management structure.
Some Korean companies, such as technology services firm Line Plus and real estate app operator Zigbang, have already announced they will allow employees to either work from home permanently or adopt a hybrid workweek with some days in the office.
Line Plus said it took the move because it found that remote working boosted work efficiency while improving the quality of life for employees. This follows in the footsteps of such American tech giants as Facebook, Twitter and Apple that have adopted hybrid work practices.
But the benefits of WFH go beyond improved worker efficiency and saving costs on office space. It can help address some of Korea's deepest social issues.
Take Korea's falling birthrate, among the steepest in the world. This problem has been blamed on long office hours and commute times. The lack of childcare services in most companies and alternative public facilities has meant that women have had to drop out of the workforce if they want children. The result is that Korea also has the lowest female workforce participation among advanced industrial countries. WFH would help solve this problem. It would allow young mothers to continue working while taking care of their babies at home.
In addition, WFH would help relieve the chronic problem of high property costs in Seoul by allowing many employees to work remotely from locations where real estate prices are cheaper. The government has struggled for decades to stem the growth of the Seoul metropolitan area and encourage decentralization by relocating industries and government services to other cities. The promotion of WFH could prove a key element in achieving this goal.
Finally, WFH would help hone Korea's digital industries, encouraging the growth of everything from remote working apps to cloud computing. It can also help boost a company's environmental, social and governance credentials with financial investors.
It remains to be seen whether Korea's hidebound managerial class is willing to accept the changes. Many will continue to believe a full office promotes productivity, innovation and camaraderie despite evidence to the contrary, while providing them with a power trip at the same time. They will likely argue that remote workers are less engaged and consequently less productive.
But companies that accept hybrid working conditions could find that they will be able to hire the best and brightest among those who prefer greater flexibility. It will be interesting to watch what the chaebol will do and whether they will try to reimpose restrictive office rules.
The government could set an example by allowing civil servants to work from home a few days a week or even setting up remote-working hubs throughout the country.
Korea may be about to enter an interesting new era in its work culture.
John Burton (johnburtonft@yahoo.com), a former Korea correspondent for the Financial Times, is a Washington, D.C.-based journalist and consultant.
![[ANALYSIS] China's ban on Micron tests Washington-Seoul alliance](https://img.koreatimes.co.kr/upload/thumbnailV2/1785a57b07ae45a7b7db49fdf4acd720.jpg/dims/resize/178/optimize)
![[INTERVIEW] Long-awaited extension of Korean Pavilion at Venice Biennale to be pushed forward](https://img.koreatimes.co.kr/upload/thumbnailV2/d8d5090875824ce08a90bb2c5a8f8c05.jpg/dims/resize/178/optimize)
