Korean Job Discussion Forums

[Threequalseven]

Since I came here about a year ago, I've noticed several businesses change - sometimes multiple times. A nearby convenience store closed down, reopened as a children's clothing store, and is now closed down again and being remodeled as something else. Another convenience store was completely gutted and reopened two months later as the exact same store with the exact same layout. A local gym - now a healthcare clinic. A local bar - now an underwear store. A live band club - bulldozed, now a hair salon. My favorite restaurant which was always busy - closed earlier this month. It's like a plague. By the time I find someplace I like, it's gone the following week.

Even at my academy, it's like they need to make a new rule every month. Business isn't as great as they'd like, so here's this month's solution: 3 more monthly essays; or, lets start giving weekly spelling tests; or, lets change the class hours; or, lets drop our reading books and replace them with internet reading books; or, lets add 6 more course levels to our curriculum and neglect 4 of the other ones. None of it ever seems well thought out, and there's never a set plan on actually implementing any of these ideas.

So, what gives? Is this like this everywhere in Korea? Why can't people here just leave things alone?

[nicwr2002]

I noticed it here in Gwangju, too. As for the convenience stores, that just over saturation and corporate leading retirees into thinking they can own a store and make a profit.

I had the same situation like you before. My favorite restaurant closed down and became some brand name food chain that was horrible. I guess they just saw won signs and sold out. I also discovered this place that had good onion rings and nacho pizza. The following week it was changed to some other brand name hof. Really there isn't much creativity or willingness to try something else I feel; it's either hiking clothes stores, cell shops, or some brand name restaurants that serve overpriced food that tastes horrible.

[wishfullthinkng]

"leave things alone"? if you open a business that no one wants or are a bad business man then of course you will go under.

take for example there's a street near where i live that is has more than half a dozen fried chicken shops in a very compact area. when one goes out of business (which seems to be the case quite often) then another one takes its place. it's flabbergasting and it's called bad business. trying to compete against 9 other fried chicken places right next to you is what koreans tend to try and do, but anyone who passed econ 101 knows that's not a very good idea.

as for your situations who could possibly know besides those involved? in a city that has more businesses in one block than most small american towns do in their entire township, turnover will be fast and often.

[Stan Rogers]

The high cost of rent is a real killer for many businesses.

Too much revenue is required just to break even.

[le-paul]

chicken was a good example.

This is what Ive noticed;

1/ Someone has an idea for a business, whether a clothes shop, coffee shop, donut stall. Whatever it is.
2/ Said person opens business.
3/ Next person comes along and notices that business is doing well and/or thinks - 'that's a good idea!'.
4/ Next person opens a business of the same type right next door to first business.
5/ And so on...

Eventually, you'll have 15 of the same type of thing right next to each other. Towel street, phone street,tool street, sock street etc. (These streets actually exist).

Not the perfect marketing strategy imo, but each to their own. One of the main reasons Id never put any of my money into a med./large size business in Korea. The only type of sucessful business Ive seen run by foreigners, is a foreigner bar. Otherwise Koreans will copy the crap out of it.


Also, if you look around Korea, you will notice only a slight variation of the type of retail, education and leisure establishment available. And look of buildings... One idea suits all.

[Steelrails]

Well as for the fried chicken stores, the bulk of their business comes from delivery. In a delivery-centered business model, being located next to competition isn't really the problem. You just want access to a large number of customers. The reason they are probably all located next to one another is that in all four directions are probably a bunch of mammoth apartment complexes, all within 10 minutes drive. Same with a lot of other delivery-focused restaurants.

Now, if you have confidence in your product, you should be able to put it into direct competition against someone else's and win their share of the fried chicken market. Not to mention that having at least a couple other people who offer a similar product near you can be good in warding off taste fatigue.

If your business is not succeeding or you think there is a better market out there, then why not shut down and turn to something else?

Also, when plunking down one's own wad of cash, the temptation to open something "new, exciting, different" suddenly becomes a lot more sobered. A Baskin Robbins seems a lot safer of a bet than "Rob's Puzzle and Board Game Emporium".

There are people who do open up "the new" in Korea. They either are gambling big, or tossing idle money around and seeing what happens.

Would you feel comfortable putting in a McD's right next to a Lotteria? Maybe, maybe not. Some might because they feel McD's offers a superior product and will grind out the competition.

If you don't have the stomach to directly compete against another business and drive them out, you don't have the stomach for business ownership. Invest your money some other way.

[OneWayTraffic]

And this is why Hollywood movies and big budget games tend to the derivative. Ironman 3 anyone? What about the batman reboot, or the latest installment of GTA?

Money doesn't like risk.

[Threequalseven]

Is it fair to say part of the reason Korean businesses don't experiment with "the new" is because it's such a homogenous country? How many people are willing to leave their comfort zone of kimchi and seolleongtang and try out a new Cuban restaurant instead?

It just seems if you open a chicken hof, and that doesn't work; then you open a convenience store, and that doesn't work; then you open a clothing store, and that's not working; what other options do you have except to try something new? I always thought that was what business is all about - coming out with the latest and greatest thing. Perhaps this is just a drawback of the copycat business culture here. I can see it now: *Tried and True, Nothing New!*

[Stan Rogers]

Loan officers at the bank don't like financing business experiments. They know what businesses make money and which ones don't. They lend to people who want to open a business using a model with a proven track record.

[optik404]

[War Eagle]

[thisisausername]

It's spooky how much the hagwons don't compete with each other.

Imagine a hagwon which was run like a good school. A place that actually had entry requirements and behavioural rules. A place that would actually expel chronically disruptive students. This place only hired effective, credentialed teachers. It might take a while but this place would gain a reputation with the incredible results they'd produce. People what eventually be willing to pay up to double what they were paying at the other place because they're best friend's kid that goes there just got top of the class.

But it seems like the Korean business model is always short term thinking.

[wishfullthinkng]

steel, would you buy the lease of a failed chicken joint that you KNEW was not only a failed chicken joint but had a long history of being a place that saw chicken joints come and go, just to open another one? these people are doing just that because they have a little extra money to burn with no other ideas and no matter which way you cut it, it's not a smart move.

you talk about quality product but these are all chains that are franchised. not one of them is remarkably different from the other. not that any of them are particularly bad either as korea does have it's friend chicken down pat, but there's also almost no distinguishable difference between any of them. none of them will be making the front page of any zagats, that's for sure.

as for the poster who mentioned opening up a cuban restaraunt, really? most the younger generation of koreans (older generation is even worse) i've met have barely left korea let alone know how to swim or ride a bike or take care of themselves without the help of family. you think they'd somehow know how to cook cuban food?

[Julius]

[Steelrails]