Kakao Corp. and Daum Communications announced that they will adopt the anti-hierarchical office culture of Kakao Corp. after their merger in October. All workers and executives will be required to call each other by English first names: “Some 1,600 employees currently at Daum will choose a new English name for this, and by doing so, we hope to further promote the two firms’ work ethics that prioritize openness and active participation as well as create a synergy effect between the two groups.”
From Yonhap: “Of course, it may feel weird or awkward for people to call each other by a foreign name, but we’ll see how this system settles in when business begins at the new Daum-Kakao in October,” said Kang Yukyeong, a communications official at Daum.
From Korea Times: “All workers at Kakao call co-CEO Lee Sir-goo by his English first name Vino.” Kakao employee Dallas said he felt “‘kind of awkward’ when he first joined Kakao about six months ago. ‘It didn’t take so long before I became used to being called my English name and calling others by their English names. I realized we are encouraged to make active communication in the office even with CEO.'”
State-sponsored Arirang News broadcast a piece, IT companies in Korea change corporate culture to promote innovation (video starts at 9:02): “Could the seemingly minor changes bring about real changes to Korea’s innovation potential? A recent innovation index ranked Korea 16th out of 77 countries– higher than Japan or China. But when it came to the so-called tolerance index, which measures how much a society tolerates different values and thoughts, Korea was ranked near the bottom at 62.”
The C- Word
News sources and quoted experts cited the move as an attempt to counter Confucian culture:
Yonhap stated in its article,”addressing employees of different ranks by their first name is uncommon in South Korea, where corporate culture is often perceived as rigid and is operated along regimented and hierarchical lines, a reflection of the country’s Confucian roots. Such hierarchy at workplaces is palpable in local companies….”
Arirang News aired a (translated) statement from Kim Jae-hee, Professor of Psychology at Chungang University, “if we look at our Confucianist culture, we were taught that there is a right answer to everything. We were never taught to look for new answers. To foster creativity, we need to learn that there isn’t just one correct answer to everything and understand there could be multiple answers.”
Arirang posed an interesting question: “Could the seemingly minor changes bring about real changes to Korea’s innovation potential?”
If so, how effectively and at what social or cultural cost?
I suspect that the change in some Korean major players’ corporate culture will carry over to Korean corporate culture in general. When casual Fridays and then casual dress came into corporate culture, employees liked and perceived it as a benefit. Employers saw casual dress as a no-cost benefit, and companies that resisted discovered how much the labor marketplace valued casual dress. I suspect that young, professional Korean talent will similarly place a value on casual address companies.
Will this spillover into wider Korean culture and be the end to Korea’s deeply rooted hierarchical culture? I think ‘yes’, and we are witnessing a seminal moment.