InterviewWhy Korean firms struggle to become global players

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Klaus Wehage, CEO of 10X Innovation Lab and Chief Strategy Officer of Global Copilot / Courtesy of Klaus Wehage

Many Korean companies aspire to expand overseas, but relatively few succeed.

According to a 2024 survey by the Ministry of SMEs and Startups, only 26.1 percent of venture companies were exporters. Among them, just 21.1 percent had established a physical presence abroad.

Large conglomerates and financial holding companies more frequently expand into other countries, but gaining recognition as a global brand is a different story.

Klaus Wehage, CEO of 10X Innovation Lab and chief strategy officer of Global Copilot, said the challenge is significant when a company’s mindset has been shaped entirely around the Korean market.

"How do you transition from being a very successful market leader in Korea to becoming a global market leader?" Wehage said in a recent video interview with The Korea Times.

"You have to reengineer the organization. And part of that is also reengineering your own mindset as a leader. Very few Korean founders or CEOs are able to do that effectively. That's why, in my view, the success rate for Korean companies remains relatively low."

Wehage is a serial entrepreneur and startup advisor whose extensive consulting experience with various governments and companies has earned him the nickname "Silicon Valley ambassador." He has worked with the Korea Trade-Investment Promotion Agency and the Korea Investment Corporation, as well as numerous Korean startup founders.

Many Korean companies face a familiar dilemma. They can achieve significant success without ever leaving Korea, but once growth hits a ceiling, they naturally begin looking abroad. That trend will only accelerate as Korea shifts into a low-growth era.

By that point, however, it’s often too late to restructure the organization for global business. Most companies are deeply accustomed to a Korea-centric mindset, with strategies and talent heavily concentrated in Seoul.

They tend to prioritize products and operations tailored exclusively to the domestic market. This poses even greater risks in financial services, where complex regulatory environments add another layer of difficulty.

"When they go global, they try to replicate the Korean way into the global market without any flexibility. You feel like you know things," Wehage said. "And that just doesn't work, because you're building a business in a new context, culturally, legally and operationally."

Another underlying obstacle is the lack of international talent. Korean remains the primary language of internal communication, even in companies with overseas ambitions. This creates a high barrier for attracting and retaining global talent and makes cross-cultural collaboration difficult.

"I remember meeting with the leadership team of a furniture design platform in Korea, and there were about 500 people at that time in the organization. I asked them a simple question: How many languages can you speak at the office? Barely English (in addition to Korean), to be honest," Wehage said.

A business-to-business event between international buyers and domestic sellers in the tourism sector takes place at COEX in Seoul, June 30. Yonhap

So how can a company, even if well-built locally, successfully shift its strategy for global expansion?

Wehage said strong alignment within the leadership team, especially from the CEO, is crucial as it will embed a global mindset in the organization. At the same time, companies must value and empower local expertise.

"When I speak to the founder and CEO, and if they are not committed to going global, I usually say, okay, you shouldn’t waste your time," Wehage said. "Many executive teams are barely engaged in international efforts, and often take the approach of, 'Let’s hire someone in that market to lead, but we’ll still dictate the strategy from headquarters.'"

A noteworthy example of effective strategy came from Blind, an anonymous app for workplace communities. When they sought U.S. expansion in 2014, Kim Kyum, the co-founder and former chief business officer at Blind, brought team members overseas from Korea and rented an apartment.

"They once hosted Microsoft employees to learn about their potential customers. They wanted to understand what they cared about and what they discussed in the workplace, so they could create the right environment for local users in the U.S.," Wehage said. "It's about really listening to customers and learning about the market."

As of April, the number of Blind's global users surpassed 12 million.

"Whatever decisions are made early on, you need to think, where is the global perspective? What is our future aspiration as an organization? It will impact the way you look at your products, organizational structures and also your culture," Wehage said.

This may also require incorporating at least some internationally experienced talent into the team early on, who understand diverse markets and can help shape a broader perspective. Equally important is empowering local teams abroad by fostering trust and autonomy, rather than micromanaging from headquarters.

"You can’t go in and just scale in multiple markets, unless you have a product that kind of spans across borders very easily," Wehage said. "If you decide to go global, then global has to be your top priority."