Live life to the fullest!

There is an old adage “an Englishman’s home is his castle” which basically gives insight into how important a house for the average British person is. Home ownership is much higher in the UK than in many other European countries (UK 67%, Germany 47%, Times source) where a much greater proportion rents or simply lives in apartments.

In Seoul where I live in a relatively small apartment since I moved to Korea I find that I miss having a house more than anything else (even Ambrosia Rice pudding!). When I find myself paying the same amount in rent for a one-room loft apartment that I paid to share a five bedroom house with three people in London I wonder about the nature of housing and even what living is all about.

From a social perspective I am not a ‘homely person’ per se, I enjoy being out and about exploring new places and meeting people. I would say that relative to most people, I do not require an overly comfortable or cosy place to live. I would happily sacrifice some creature comforts and space if I was saving money in rent. Although the overall cost of living is lower in Korea, rent that is in real terms more expensive than in London is clearly not beneficial for the local population.

This brings us neatly to the question (without getting too philosophical…) of what living is all about? I heard that in Hong Kong and Shanghai the size of most people’s accommodation is so small that they are more inclined to work longer hours because their place is without AC and less comfortable then the modern office.  This is obviously good news for companies to get more out of their employees but is having your office more attractive than your home really a good thing? If most urban people consider their home only to be a place for sleeping then additional decorations and luxuries seem superfluous.

Over the past few years in living in several places I have created a shortlist of ‘must-haves’. These include a good shower, comfortable bed and quiet environment (at least at night). Comfortable bed is one that can be relatively easily improved yourself, good shower is a case of testing before moving in, and quiet environment is choosing the right location in the first place. My list however highlights the main uses of my home- sleeping and washing, perhaps that is all I need…

In Korea it is rare for people to visit other people’s living spaces, to be invited is considered an honour. Personally ever since I left school I have always wanted to spend more time at people’s homes, hanging out instead of going out, but adults do this very infrequently. Some friends of mine recently bought a café, not for commercial purposes but as a space for themselves, picture Friends buying the café they meet in called Central Perk. They have created a place where they can go anytime they like and will most probably see their best friends, which I think is ideal.

I used to say that I want a house in New York, Berlin, London, Tokyo and Rio but now I am not so sure. Maybe I will move into a “goshiwon” or 고시원, which is basically a home as big as the bed that fills 80% of it and costs only $250 per month. For now I am going to focus on living life.

IKEA in Korea

IKEA is present in over 40 countries according to their website but not Korea. Why? I mean Korea is part of the G20 (remember Seoul hosted back in November), so surely the world's largest furniture retailer would want to open up a store or maybe even five...!

The market research suggests that IKEA has 90% brand recognition in Korea in the 20-40yrs age bracket according to the Brand Design Association of Korea. This would seem like a very attractive prospect for any company where the total market size is 5 trillion Korean Won (approx. $5 billion).

We come back to the concentration of the Korean economy (as discussed in earlier post) where 12 major manufacturers make up over 50% of the total furniture production in Korea. Clearly foreign corporations whilst seeing Korea as a lucrative potential market are cognisant that 'the timing must right'.

The case of Wal-Mart coming to Korea, managing to open 16 stores over several years and then failing is well known. They tried to take on the incumbents in their core market, the domestic hyper-markets (primarily Lotte Mart and E-Mart) closed rank and set out on a price war to successfully conquer Wal-Mart. Few countries can claim immunity from Wal-Mart's global reach.

But in the meantime before IKEA arrives, because the company has said they will enter within the next 3-5 years, their exists a quaint market of IKEA copy shops. Apparently there are over 200 registered companies in Korea who are in the business of importing IKEA furniture (mostly from China) and selling it on. Some even arrange their stores like mini-IKEAs, with the same fixtures and fittings. I will be watching closely to see how IKEA enters the Korean market and whether for the very first time in their history they adapt their model to the local conditions.

I personally am a fan of IKEA - so bring the Billy Bookcase to Korea!

The Power of the Ajuma (아줌마)

If you have ever been to Korea you will have come into contact with what some people call the 'third human species'. That's right, you thought there were only two in the world, however a third has evolved on the Korean peninsula. Said to have originally emerged during the late 1950s and early 1960s they are currently numerous, but face extinction within the next 20-30 years (if they turn out not be invincible as some reports suggest).

How can they be identified? Well Ajuma have a distinctive uniform that is both unique and said to be a source of their power. Hair is always observed permed, at certain times of the year the head may be covered by a sun visor (the type more commonly worn by croupiers and poker dealers). Neck scarves are common but not an essential part of the uniform. Clothing is generally tight fitting and practical, as Ajuma will travel in all weather and cover many miles every day. Occasionally hiking gear - fluorescent and waterproof - will be worn, as Ajuma are the sherpas of Korea. Legend* has it that an Ajuma once carried over 100 bottles of Makgeolli on her back to the summit of a mountain for sale to hikers.

So now you can spot them, you might have a better chance of avoiding them... However in Korea they are unavoidable due to their immense speed and cunning, they are able to squeeze into any space no matter how small to get off subway trains first, to locate any available free seat within a 50m radius and assume first position in any queue. In fact for most people, the first contact with an Ajuma is the dig in the ribs whilst waiting for elevator doors to open or such like.

Never incur the wrath of an Ajuma, the resulting rasping verbal lashing will stay with you for days. They are often to found in packs, evidently they share the same source of power and collectively they are a force to be reckoned with, confronting a line of Ajuma on a pavement to pass by will only lead to painful regret. Rarely will you see an Ajuma using a mobile phone, but on the off chance you see this rare event it will be reminiscent of some primitive form, squinting at something that is perplexing and curious. Their speech is generally rife with throat clearing.

Now Ajuma have been credited partially with the ascension of modern developed Korea, they are immensely hard workers, efficient users of resources and collectively are an army of workers which no other group in society would be able to fill. To a certain extent they are still the backbone of the country, in the sense that streets are swept, toilets cleaned, cheap restaurants abound and Korean food is produced is massive volumes.

Personally I wonder with the current immigration policy of Korea how the labour deficit will be solved in years to come as the Ajuma begin to reduce in number. For sure they are a dying race, they come from a generation of 'hard women', ones who were born in poverty with no home comforts, who sleep on traditional Korean beds - blankets on the floor and wooden 'pillows'. This kind of woman is not growing up in Korea any more, Ajuma did not go to university - they went to the school of hard knocks, they do not wear high heels - many are bent double from decades working in the fields...

Whilst some comparison can be drawn to the European Bag Lady, if there were ever to be a Mexican Standoff between the two, there is no doubt that the Ajuma would triumph over any Bag Lady without breaking a sweat. I cannot give any photographic evidence of this unique creature, but rest assured many Ajuma have photos of myself and other Western friends, as they demand group photos if they manage to corner us whilst hiking!

Beware the power of the Ajuma!

*read myth

Observations about Korean market environment

Korea is an open market economy with a difference. The success of the Korean economy is evident and well recorded, in the space of just over fifty years it has gone from 3rd world to virtually 1st world- an international aid receiver to donor. However there is a unique quality which seems to have helped speed the process, essentially it is an economic national patriotism that I haven't seen anywhere else in the world.

What I mean is that Korea did not simply open its doors for business and say "come on in!". Rather it has pursued a strategy of government supported companies carefully but steadily growing domestically to then go out into the world and dominate that particular industry whatever it might be. Look up 'chaebol' for more background information.

Similar to the model of Japan in previous decades, although Koreans are not fond of comparisons to the Land of the Rising Sun, many similarities can be seen. Just like Japan at first was known for cheap products and has since graduated to have a reputation for quality and innovation so Korea is the same. In electronics they came in at the low end and now lead the world in numerous home electronic product segments. Korea is surprisingly the fifth greatest patent applier globally, behind only USA, Japan, Germany and recently China.

Today Korean industries are exceedingly concentrated, in automotive Hyundai has over 45%, Kia has over 30%, with GM Daewoo and Samsung-Renault each taking around 8% each. Bear in mind that Hyundai and Kia are part of the same group!! This dominance is not perceived as a bad thing in the mainstream media as far as I can tell. Moreover the Korean incumbents are supported unreservedly, there is no overwhelming demand for foreign products, except at the high end.

Where else do we see this dominance? Well the kite mark denoting 'made in Korea' is visible every day in all kinds of places (windows, toilets, doorframes, street furniture, homeware etc). It reminded me that the same used to be evident in the UK. As a child I remember the BSI kite mark on things that these days would only ever say 'Made in China'...

Even in the new economy we can find such examples, Korean born search engines such as Daum and Naver virtually control all the access to the web in Korea. They have a combined market share of over 88%, the trends for the future do not seem to suggest Google will take over any time soon. We must not forget that Korea already is one of the most wired countries in the world with broadband access for the general population at 95%. 

In summary, although there may be a lack of choice in major markets, this is not something seen as a limiting factor. Of course the Korean companies are happy to keep it that way, fewer competitors, greater market share and higher profits. But also for Korea more widely, the jobs stay here and consequently the wealth and prosperity.

This is good for everyone - the foreign companies must simply try harder!