Expanding the Scope of Business Centers Is Essential
Practical Challenges Must Be Addressed Accordingly
"He was a guide in an unfamiliar market. An early recall is a national loss." This is the complaint of Mr. A, who exports content to Southeast Asia. Mr. B, the head of the Korea Creative Content Agency (KOCCA) Business Center, expressed that business has been disrupted since he returned to the headquarters in Naju. The Business Center is an institution that supports domestic content companies' overseas expansion. It provides specialized information and consulting on content to facilitate smooth negotiations and exchanges.
The Spain Business Center successfully held its opening ceremony on January 24th at the Korean Cultural Center in Spain, attended by local related organizations and company representatives. From the front row, left to right: Emilio Miguel Calavia, General Director of Casa Asia Madrid, Spanish Ministry of Foreign Affairs; Yoo Hyun-seok, Acting President of KOCCA; Jang Mi-ran, 2nd Vice Minister of the Ministry of Culture, Sports and Tourism; Jang Hyun-cheol, Counselor at the Embassy of the Republic of Korea in Spain; Pablo Conde Coral, General Director of the Spanish Trade and Investment Promotion Agency (ICEX). From the back row, left to right: Roberto Cueto, Professor of Video Communication at Carlos III University of Madrid; Diana Bruno, Director of ICEX; Daniel Thomas, Marketing Director of Salon de Comic Content; Mericel Puig, General Director of Salon de Comic; Byun Mi-young, Director of the Spain Business Center; Shin Jae-kwang, Director of the Korean Cultural Center in Spain; Jose Francisco Herrera Antonaya, General Director of the Madrid International Relations Department; influencer couple Jang Min; Alexander Hafner, actor and model.
There is a requirement more important than local laws, industrial policies, and market information. It is continuous interaction with local stakeholders. Each country's market and industrial ecosystem has a human network that drives technology and markets. It is not easy to enter from outside. A stepping stone is needed to break down the solid walls and maintain relationships. Mr. B performed his duties smoothly on site but was recalled due to the regulation limiting service to a maximum of three years. He handed over the baton to his successor without sufficient handover.
The gap inevitably becomes large. Each country's Business Center has only about ten to eighteen staff members. Even in major global cities like Los Angeles (LA) in the United States and Tokyo in Japan, there are fewer than ten people. The center head is overwhelmed responding individually to local content stakeholders. In Tokyo, they also have to manage CKL Tokyo, where domestic companies are housed.
The process of opening the way to local human networks is not easy. For example, in Japan, two major walls must be overcome. One is the Nemawashi (ねまわし) culture. It is a bottom-up approach where all matters are meticulously reviewed by the staff and then approved by the representative. This contrasts sharply with Korea’s top-down approach, where decisions come down from the representative. It takes a lot of time to reach decisions, making it difficult to adapt to the domestic sentiment accustomed to quick processing.
The other is the Aidagara (あいだがら) culture. Normal transactions only begin once a mutual trust relationship, not unilateral effort, is established. A lot of time and effort must be invested to gain the other party’s trust. Mr. C, who runs a content business in Japan, explained, "It is a barrier to entry on a different level from simple personal connections," and added, "This is why most businesses or transactions attempted through local acquaintances or brokers end without results."
The Brazil Business Center held its opening ceremony on January 23 at the Tivoli Mofarrej S?o Paulo Hotel, attended by local officials and others. From the left: Yuseong Hoon, Head of the Americas and Europe Export Support Team; Yoo Geon-yeong, President of the Brazil-Korea Chamber of Commerce; Marcia Klinger, Chairperson of ISPAC; Chae Jin-won, Consul General at the Consulate General in S?o Paulo; Kim Hyung-min, Director of the Brazil Business Center; Kim Cheol-hong, Director of the Korean Cultural Center in Brazil; Liara Oliveira, Chairperson of SPCINE; Mauro Garcia, President of the Brazilian Independent Producers Association.
Mr. Choi Ki-yong, CEO of CJ ENM Japan, shared his experience, saying, "If you want to do business with Japanese companies, you first need to spend 100 hours getting to know each other." He recounted, "In the year I became CEO, I attended a golf tournament hosted by Toei, a Japanese film distributor, which was meant for socializing. Content industry stakeholders gathered, but the only person I knew was a Toei official. Thinking about spending 100 hours with nearly 100 people was daunting."
KOCCA has established twenty-five Business Centers overseas. By the end of the year, five more will open, operating thirty centers in total. As the content industry grows, expanding the scope is indispensable. However, shouldn’t practical difficulties be considered as well? For newly established Business Centers, it takes about a year just to prepare locally. If key personnel leave by the time internal capabilities and sophisticated business infrastructure are secured, achieving ultimate goals will inevitably become difficult. Overseas support projects are truly all about personnel management.
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