EXECUTIVE SUMMARY

The last two weeks have been quite exciting and rejuvenating. Yes, after a
grueling term 2 and the associated end term exams, we, the 65 batch mates
of EPGP 7, Class of 2016, finally headed to KAIST (Korea Advanced Institute
of Science & Technology), Seoul, South Korea for a ten day immersion
program lasting from 24/08/2015 to 04/09/2015. As such there is time gap +
3.5 hours

in between South Korea and India and as our classes were

scheduled from 0900 hours, 24/08/2015, Monday, so we left for Korea next
day, by early morning flight, after we finished with the end term exams of
second term on 21/09/2015.

The journey to Bangalore International Airport was arranged by IIM-B

administration department. We reached airport quite well in time and all the
formalities like tickets, visa, and airport transfer in Korea and Hotel bookings
had already been taken care of well in advance by EPGP and KAIST
administration department.

ARRIVAL IN SEOUL

Over all flight time lasted for close to 8.5 hours. South Korea is a small
country with an area of 100210 Sq. Km (109 ranking in terms of area) and a
population of 51 million approximately. Out of this population, close to 26
million reside in Seoul capital city itself, thanks to it being rated as most
livable city with second highest quality of life globally. South Korea (officially:
Republic of Korea) shares its north border with notorious neighbor North
Korea, on east with Japan and with China in west1, 2.

We arrived in Korea around 1800 hours Korean time (from here onwards) and
were escorted to our hotel, Gangnam Serviced Residences in Limousine
buses by KAIST students. The journey lasted for close to 1.5 hours as Incheon
international airport is at about 70 km from Seoul. But the journey was worth
the effort. Hotel Ganagnam serviced Residences is situated in a southern
planned area of Seoul city named Gangnam. The entire Gangnam area is
developed in grid pattern with each building and every street planned. The
roads

are

lined

with

skyscrapers,

five

stars

hotels,

supermarkets,

convenience stores, retail chains, cafeteria, fast food chains and numerous
restaurants.

Hotel Gangnam in itself was a quite an experience. Each room was equipped
with a small kitchen space and other much needed home utilities like large

sized refrigerator and washing machine. Overall, the stay for entire duration
was very comfortable and pleasant.

FIRST DAY: 24/08/2015

For the next 11 working days as had been laid out in thoroughly planned
academic schedule, we used to leave for KAIST by 0830 hours, post
sumptuous breakfast, in groups of two, by limousine buses. KAIST was at a
distance of about 8 km from our hotel and the journey used to take close to
45 minutes every day.

First day, at 0930 hours we were greeted by Administration department

members at the entry of campus. Later on, in the Lecture auditorium of
SUPEX building we received welcome from Professor Young Gul Kim, the dean
for KAIST business program and Professor Betty J Chung, the main organizer
for the immersion program.

Post initial pleasantries and exchange of gifts (a cultural practice very

important and respected in Korea) we began with our academic schedule.

FIRST LECTURE, Professor Betty J Chung, 24/08/2015, 0930-1200

The lecture was given by Professor Betty Chung. The main theme of the
lecture revolved around How to develop a Global Mindset which over a period
of time has become a critical success factor for todays global environment.
In the first part of lecture, Global mindset was well defined and then it was
compared with an individuals mindset. Next part of the lecture delved in
depth regarding core themes that influence behavior in Korean culture. This
becomes very important in the context when cultural dimensions influence
business interactions. Post initial introduction, an assessment quiz was
conducted to gauge how much people understood about Korean culture. This
was further followed by assessment of Globe Smart Profile where through
graphs an attempt was made to determine how aligned an individuals profile
is Vis a Vis Korean culture and values. Two core philosophies underlie Korean
culture: Han and Jung. Han means Regret or sadness stemming from
not achieving deeply sought after goal while Jung means Deep affection
or attachment to someone or group; a deep camaraderie. While Han
philosophy led to national drive, aspiration for the next generation and
sacrifice at all costs, the Jung philosophy led to teamwork, open mind and
frank communication and Loyalty and fraternity.

SECOND LECTURE, Jae Choi, 24/08/2015, 1330-1600

The speaker for the second lecture was Mr Jae Choi, the executive vice
president for DOOSAN Corporation (a major global conglomerate of South
Korea). During the course of the lecture, Jae gave a comprehensive view of
Doosans corporate strategy and the Doosan way.

Doosan is one of the oldest company in Korea with a history spanning across
117 years. Doosan started out as a Grocery store and over a span of 117
years transformed itself into a fortune 500 company. Over these years, the
focus of the company changed from (1) Consumer goods to Infrastructure
Support Business, (2) domestic company to a global company and (3)
company transformed itself from a local to a global leader. But the last 15
years, from 1998-2013 have been phenomenal, where Doosan witnessed an
increase of 6.4 times in revenue ( revenue increased from 3.4 KRW trillion to
21.6 KRW) and market cap increased by 21 times, from .5 KRW trillion to 11
KRW trillion. Various other aspects of Doosans transformation and the
associated reasons was further discussed.

CAMPUS TOUR, Administration, 24/08/2015, 1630-1800

The tour was organized by administration department of KAIST business

school. Members

of the administration committee along with some

volunteers gave us an insiders view of the campus and the relevant

facilities. KAIST business school is specifically renowned for its Finance
related research work and studies. For the same a state of the art Finance lab
has been installed in the institute by Bloomberg. To further augment the real
time experience, the institute also provides prospective finance honchos
with a seed money of 1 million dollars for investment related activities in
stocks and derivatives market.

WELCOME DINNER, Administration, 24/08/2015, 1830-2000

To further add to the value of hearty welcome, KAIST organized a welcome

dinner for us in a prestigious city hotel, Orchid Hotel.
During the dinner Mediterranean, continental and Korean food was served.
The dinner was in buffet style and was very lavish. The key highlight of the
event was introduction to Korean way of serving food and drinks.

SECOND DAY: 25/08/2015

THIRD LECTURE, the Chindia, Inkie Hong, 25/08/2015, 0930-1200

Professor Inkie is a renowned figure in the academic and professional circles

of Korea. The octogenarian is credited with starting the Korean Stock
Exchange. Further, Professor Inkie remained CEO of Daewoo Shipping &
Marine Engineering (DSME) for a significant period of time. Steering its way
to success and laying the foundation for it becoming the top 10 among the
ship building industry round the globe.

The term Chindia was actually coined by Mr Jairam Ramesh, an Indian politician and a member
of parliament. Actually, Chindia is a portmanteau word which refers to China and India
together in an economic perspective. India and China share remarkable characteristics: (a) Both
are geographically proximate, (b) both are among the fastest growing countries and, (c) together
both contain over one third of the worlds population. In a popular report by Goldman sachs
economists. Both China and India have been named countries with highest growth potential over
a period of next 50 years. In a way, India and Chinas economic strength is complementary as
China is strong in manufacturing and infrastructure while India is strong in services sector and
Information technology.

During the lecture, some other aspects of chindia too were covered like: (a) Global exports
market share of India and China, (b) Whether Chinese Yuan should be considered for reserve

currency instead of US Dollar, (c) Recent development of exchange rates and Regimes in
ASEAN, (d) Status of RMB Internalization.

Korea Exchange (KRX) visit, 25/08/2015, 1330-1630

The visit to KRX was organized by administration department. KRX is situated in Yeouido area
of Seoul, an area lined with skyscrapers belonging to financial institution and banks. The area is
a testament to the financial might of current Republic of Korea. Initially, three independent
identities stood viz: (a) Korea Stocks Exchange, (b) Korea Future Exchange & (c) KOSDAQ
stock market. All three were integrated together to form the current Korea Exchange, KRX,
under the Korea Exchange and Futures exchange act. As of January 2015, KRX had 1814 listed
companies in total with a combined market capitalization of over $ 1.2 trillion. Every day KRX
has trading sessions from 0900 to 1515 hours except for declared holidays. On 22/05/2015, KRX
joined United Nations Sustainable Stock Exchanges initiative in an event with United Nations
secretary general Ban Ki Moon and UNCTAD 2. Traded instruments have been divided under
various heads: (1) KOSPI Market Division: Stocks, Bonds, Exchange Traded Funds, Exchange
Linked Warrants, Real Estate Investment Trusts. (2) KOSDAQ Market division: Stocks. (3)
Derivatives Market Division: Index instruments like KOSPI 200 Index Futures, KOSTAR
Futures, KOSPI 200 Index Options. Also, Single stock Futures, Equity Options, Interest Rate
Instruments, Foreign Exchange Instruments and Commodity Instruments3.

Post the initial introduction and lecture at KRX, we were all given an opportunity to aggregate at
central hall of KRX where our group photo was taken.

FERRY RIDE ON HAN RIVER, 25/08/2015, 1630-1800

Post visit to KRX, we were taken for evening ferry ride on Han River. The ride lasted for 45
minutes during which we were blessed with a remarkable view of Seouls skyline with numerous
high-rises lined up along the shore of Han River. The most visible thing about the entire ride was
the cleanliness and maintenance of Han River as not even a single piece of garbage could be
seen. The water was absolutely clean and apt for recreational activities and water sports.

THIRD DAY: 26/08/2015

Consulting Session 1, Professor Betty J Chung, 26/08/2015, 0930-1200

More than consulting, this session was about what Korea is and how it developed post war.
During the session a major emphasis was laid on Korean culture and its people.

Some of the key terms which define Korean culture are: Hierarchy, Respect for authority,
Harmony, Noonchi, Saving face, Education, Patriotism and Pride, Group orientation and
Dependency, formality and protocol, Loyalty and duty to others, Diligence and self-sacrifice,
Relationship and Intimacy and Jung.

In later part of the session, through discussion of GM-Daewoo case, the impact of culture on
business was described through inclusion of Globesmart profile assessment dimensions. Survey
responses from non-Korean employees of this global conglomerate were discussed and some key
observations on Koreans and the culture were enlisted viz: Team spirit, More social, more family
oriented, Work ethic, Friendly and warm, Teamwork, loyalty, sacrifice, Emotional attachment,
Information coming from informal channels, Willingness to work hard, Community feeling,
Ability to execute, Willingness to discuss, Speed and dedication to achieving results.

At the same time, some negative aspects of working with Koreans were enumerated viz: Less
professionalism, no sense of urgency, not being direct, Absolute reliance on rules without
common sense, Keeping important information from me if something goes wrong, Not selfstarting, needs a lot of guidance, Endless discussions without decisions, Vagueness of
plans/planning, Lacks openness at times, Higher level of dishonesty against corporations and
government-fraud, Very emotional at work, Jump to conclusions, Resistance to change, Lacks
creativity and strategic thinking, Lack of productivity-waiting to be told what to do, Lack of
ownership and accountability, Labor union irrational behaviors, Unwilling to question seniors &

managers, Overly focused on personal relationship rather than results and Require that someone
must be blamed.

The session concluded with a commitment to ingrain at least 3 action steps to develop a global
mindset and cross cultural competencies to prepare oneself for the global challenge.

LECTURE 4, Mahindra- Korea, Dilip Sundaram, CEO, 1330-1630

More than a lecture, it was a question answer session where Mr. Dilip Sundaram, CEO of the
Mahindra Korea group discussed for what values the company stands for and what challenges
has Mahindra group faced since its entry into Korea.

Mahindra groups business is spread across 11 sectors and 18 key industries. Sectors include:
Automotive and farm sector, Information technology sector, Mahindra partners, Infrastructure
and Realty sector, Hospitality sector, Financial services sector, Systech sector, Two wheeler
sector, Aftermarket sector and Defense sector. Apart from the challenges of remaining
competitive in so many demanding sectors, Mr Dilip further enumerated the future tactical
strategies to be adopted by Mahindra group in coming years. A brief overview about upcoming
venture of Mahindra aerospace, was also given.

FOURTH DAY: 27/08/2015

LECTURE 5, Korean Economy, James Rooney, 0930-1200

This session revolved around Mr Rooneys early days to his present success in the financial and
capital market. Mr Rooney enumerated the importance of being a global citizen and how
important it is to immerse oneself in a countrys culture to become a successful businessmen.

LECTURE 6, Koreas Entertainment Industry, Professor Yong Gul Kim, 1330-1630

In the first part of lecture, Megatrends of the Global Entertainment Industry were enumerated.
There has been rapid evolution in the consumption of entertainment and that has been made
possible through four channels viz 1) Acceleration of Digital Contents Consumption 2)
Expansion of Consumers across All Generations Digital contents 3) Rapid Diffusion from Early
Adopters to Majorities 4) Creation of Willingness to Pay with the Emergence of Freemium
Model. If we go by the numbers, size of the global entertainment industry is not small at all as
when compared with other manufacture industries, size of the entertainment industry nearly

equals that of automobile and IT service industry. Surprisingly, broadcasting industry is larger
than the semiconductor industry, one of the strongest industries of Korea.

Next part of the lecture concentrated on opportunities for Entertainment Industry in Korea. There
are various reasons for the same, 1) Best online mobile infrastructure in world, 2) Increased
opportunities to enter China with Korea China FTA 2014, 3) Emergence of diverse business
models in the mobile environment, 4) Customer base enlarged by emergence of economically
stable middle aged group. This was followed by current crises which the Korean Entertainment
industry is facing like 1) Decreased sales of Individual content 2) Continual damage to the
original content providers by illegal replications 3) Decrease in population growth rate and
finally, 4) With the oncoming slow down, is china the land of opportunities or crisis?

FIFTH DAY: 28/08/2015

TRAVEL TO DSME, BUSAN

This day will go down in my memories as one of the most exciting day of my life.

Travelling part

Travel to Busan had been organized by KAIST by KTX Bullet train. It was an experience which
will last with me for all my life as for the first time I travelled by a bullet train. A distance of
close to 450 Km was covered by the bullet train in just 2.5 hours, even though it stopped at 8
stations apart from Seoul and Busan. All this was possible because of state of the art engineering
used to lay the entire track and manufacture of the train. The train sped through at a lightning
speed of 300 km/hour and on the way we got some beautiful glimpses of Koreas natural beauty.

The journey from Busan railway station to DSME lasted for 1.5 hours and again was very
adventurous as the road travelled along the sea shore with numerous tunnels. Some of the
tunnels, in fact, were underwater.

After reaching DSME, first of all, we were invited for sumptuous Mediterranean lunch buffet at
DSME office. Post that, a short presentation was given by the Professor Inkie Hong who was one
among the founding fathers of DSME.

The most fascinating part of the journey to Busan was the visit to DSME shipyard where we
witnessed a Gigantic jigsaw puzzle game happening in front of us in which giant ships were
assembled piece by piece to form, say, a 380 meter long oil tanker or a container ship.

Post visit to DSME, a small time excursion happened at Busans beach which lasted for about 1.5
hour. I enjoyed thoroughly as I took some dips in cold waters of Sea of Japan.

We returned back to Seoul by 2130.

SIXTH DAY: 29/08/2015

CONSULTING SESSION 2, Jae Choi, EVP Doosan, 1400-1700

During the session, Mr J choi discussed Mckinseys framework of approaching and solving a
problem.

Mc Kinsey defines and solves a problem with a 7 step approach. The respective steps are:

1] Define Problem (Think impact: what does the client need to know) 2] Structure problem
(Think disaggregation and early hypothesis: what could be the key elements of problem) 3]
Prioritize issues ( Think speed: which issues are most important to the problem) 4] Develop issue
analysis and work plan ( Think efficiency: where and how should the team spend its time) 5]
conduct analysis (Think evidence: what are we trying to prove/disprove) 6] Synthesize findings (
Think so what: what implications do our findings have for the client) 7] Develop
recommendation ( Think potential solution: what should the client do and Think next iteration:
what are the clients next priorities?)

Followed by the initial introduction of the framework, we were assigned a real time problem and
we had to find a solution for the same using the Mckinsey framework.

SEVENTH DAY, 30/08/2015, SUNDAY, FREE TIME

During the day, we, a bunch of batch mates, went to Seoul tower, the highest building and
observatory in Korea and to a nearby market, Myung Dong.

EIGHTH DAY: 31/08/2015

SAMSUNG INNOVATION MUSEUM VISIT, 0930-1200

Another remarkable day in the Korea immersion visit. In the morning slot of the day, we left for
Samsung hitech city, the global headquarters of this fortune 500 company. The company was
founded by Lee Byung- Chul in 1938 as a trading company for groceries and over a period of
next three decades, the company diversified into various other areas including textiles, insurance,
securities, etc4. Since 1990, Mobile phones and semiconductors have become the most important
source of income for Samsung.

During the office visit, we were ushered into the Samsung Innovation museum, a world class
infrastructure, with entire history and development of semiconductors and electronics industry
with a key focus on how Samsung achieved its present status over last so many years. The
museum was interactive in nature and had many original and classic replicas relevant to
electronics industry and that too in a working condition.

After a brief lunch break at Suwon, a nearby mega mall, we returned back to the headquarters to
attend an interactive session with Samsungs executive vice president, Sang Kim.

NINTH DAY: 01/09/2015

LECTURE 10, Ssangyong Mahindra, Tumbe Vasudev, CFO.

Ssangyong Motors (SM), a leader in SUV and Luxury sedans, was founded in the year 1954.
Today, it generates a revenue of over 3 billion KRW and exports vehicles to more than 80
countries. Initially, Donga motors was found in the year 1954. This entity merged with Sangyong
group in 1986 to form Ssangyong Motors. In the year 1997, SM launched its famous models,
Korado and Chairman Limousine cars. In the year 2001, another marquee SUV, Rexton was
launched under the stable of SM. Another merger happened with Shanghai Motors in the year
2004 but SM suffered a setback when labor union went on a strike in the year 2009. A major
breakthrough happened in the year 2010 when the SM got acquired by Mahindra motors.
Simultaneously, the company graduated from court receivership. Under the present management,
Ssangyong Motors is undergoing makeover under the following heads: [1] Strategic: 1) New
product development 2) New market penetration 3) Synergy 4) Labor management and
Harmony. [2] Organization: 1) Recruitment of High Caliber talent 2) PMS 3) Enhance training
[3] Functional: 1) ERP 2) Cash Management 3) Investor and banking relations 4) Productivity
improvement.

COMPANY VISIT 4, CJEM, 1330-1630

CJ E & M Corporation ( CJ Entertainment & Media Corporation) is a Korean entertainment and
media company. Formerly, it was known as O Media Holdings Limited. O Media Holdings
Limited was formed as a merger of : CJ Media, On-Media, Mnet Media, CJ Entertainment, CJ

Games, CJ Internet and CJ O shopping, a media division. It was in the year 2011 that the
company acquired its current name5.
There are four main divisions of CJEM: 1) CJEM Broadcasting Division owner of cable
television channels. 2) CJEM Film Division producer and distributor of movies and some TV
dramas. 3) CJEM Music performance Division producer and distributor of music releases. 4)
CJEM Smart Media Division operator of various entertainment and media websites5.

Post a brief Introduction about CJEM, we went for a tour of the facility. We visited the general
lobby area, Recording Studio, Music Studio and the Animation center.

Cultural Session 3, NANTA, 1630-1800

Nanta is one experience in my life which I will always cherish as the cultural show was beyond
all my expectations. The theme of the Nanta show revolves around making musical sounds with
routine utensils in a middle class Korean kitchen. All this artistry is portrayed in the form of a
play in which 3 male and 1 female chef do playful activities and form music from the kitchen
utensils while back biting their boss. The show lasted for a duration of 90 minutes and was worth
the time.

TENTH DAY: 01/09/2015

Lecture 11, Koreas Game Industry, Savannah Hahn, 0930-1200

The session was taken by Ms. Savannah Hahn who is currently the CEO, EA arts, South Korea.
EA Arts is global major in off and online gaming industry. The company was found by Trip
Hawkins in the year 1982. The company pioneered the concept of home computer gaming
industry and was equally notable for promoting designers and programmers of the game. By
2011, Electronic arts was the worlds third largest gaming company after Nintendo and
Activision Blizzard6, 7. Currently, EA develops many famous games like: FIFA, Madden NFL,
NHL, NBA Live, etc.

Lecture 12, Samsungs Global Strategy, Miguel Payan, Juan Triola 1330-1630

The session began with a brief overview of the Samsung Industry and its history. The story
revolved around how Samsung became a global conglomerate from its humble beginning. Later
on, the global strategists went on to describe what key steps led to Samsung achieving its present
status. Today, Samsung is a global conglomerate with more than 400000+ employees and a
valuation northwards of 300 billion USD.

Samsung took following key steps:

1] Regional Specialist Program: Nurture a pool of global Korean business leaders through a 1-2
years dispatched overseas special assignment.
2] Global Strategy Group: Develop a pool of global leaders to enhance business performance and
globalize Samsung.
3] Global Mobility Program: Develop understanding of Korean culture, networking at HQ level
for selected overseas employees, create synergies with home markets.
Out of these, the core objectives of Samsungs Global Strategy Group are:
1] Develop a pool of global leaders who understand Samsung and Korea.
2] Enhance Samsungs performance with fresh perspectives and innovative ideas.
3] Accelerate Samsungs globalization through various interactions with senior management.
The Global Strategy Group achieves its objectives through conducting four type of projects and
then delivering oriented recommendations that address: a) Strategy b) Operations c) Marketing
d) Corporate Development.
Global Strategy Groups projects deliver significant value and Impact to Samsung and its
affiliates by: a) Profitability driving initiatives and data driven strategies for affiliates b)
Implementation support for strategic recommendations c) Strategic Planning recommendations
for Joint ventures and Mergers & Acquisition activities d) Organizational recommendations and
change management support for initiatives.

The session concluded with Question and Answer session and guidance on how to proceed with
projects.
ELEVENTH DAY: 03/09/2015

Lecture 13, India and Koreas relations, Vikram Doraiswami, Ambassador, 0930-1200

The ambassador of India to South Korea, Mr. Vikram Doraiswami took the session and gave a
brief overview about current status of bilateral relationship between India and South Korea. He
was very specific about how the scenario has changed recently post Mahindras acquisition of
Ssangyong motors and Prime Minister Narendra Modis visit to South Korea on 18 th May 2015
for promotion of Make In India campaign.

COMPANY VISIT, General Motors, 1330-1630.

General Motors Korea is a subsidiary of General Motors company and is the second largest
automobile manufacturer in South Korea. The GM Korea shares its origin with Daewoo (the one
which split from parent company, Daewoo Group in 2001). Currently, GM Korea has four

manufacturing facilities in South Korea and a one in Vietnam. Further, GM Korea differentiates
itself by providing assembly kits, which are region and brand specific, to its affiliates in China,
USA, Australia, Germany, India and Brazil. In 2008, GM Korea was at its peak when it
manufactured 1.9 million vehicles (including Completely Knocked Down units). In January
2011, GM announced that GM Daewoo would be renamed as GM Korea to reflect Daewoos
heightened stature in global operations of GM8, 9.

TWELTH DAY: 04/09/2015

Consulting session three & Certificate Ceremony, 0930-1200

The last session of the Immersion tour focused on application of McKinsey framework of
analyzing and solving a problem. This was followed by CERTIFICATE CEREMONY for the
Immersion tour.

Later on, in the evening, a special networking session for the women in our batch was organized
at GwangHwa-Mun.

Last day at South Korea: 05/09/2015

In the early morning hours, at 0500 hours we departed for our flight to India.

Overall Experience and Impression

South Korea had suffered a lot during the war with its malicious neighbor, North Korea. So did
later. But over last three decades South Korea came out victorious from the ordeal. While Seoul
has been ranked as the second most livable city in the world (it really is!) South korea lags
behind none in the world, as far as manufacturing facilities are concerned.
The country, its culture and people are very lively and cosmopolitan. The entire demography has
been put to use and is thoroughly developed. Along with the industrial might which South Korea
has achieved, even though being a small resource less nation with an aging population of 50
million only, the country is active in sports as well.

There is lot to be learned from the Seoul city and South Korea, in general.