Korean companies urged to revamp communication at work

John Quinn, co-founder of litigation firm Quinn Emanuel, delivers a speech during the CEO Summer Forum hosted by the Federation of Korean Industries (FKI) at Lotte Hotel Jeju, Friday. Courtesy of FKI

SEOGWIPO, Jeju Island — Korean companies are being urged to overhaul their corporate culture, characterized by a reluctance to deliver negative reports to high-level executives, because that practice is causing delays in international litigation, according to John Quinn, co-founder of litigation firm Quinn Emanuel, Friday.

“There is a reluctance (among Korean firms) to tell higher-up people bad news,” he said on the sidelines of the 2024 CEO Summer Forum held by the Federation of Korean Industries (FKI).

“There is a tendency to not impose on the time of higher-up people and to protect them. The reporting and approval processes can be delayed (under the scenario).”

Such situations are commonly seen in Korea’s major conglomerates, where most large global firms are family-run. In these companies, a key responsibility for many executives is to safeguard the interests of top management, who are typically second- or third-generation members of the founding family.

“Korean companies are ideal clients, as they tend to be very loyal to their organizations,” he said.

“That is not something that you can take for granted in the U.S. But litigation is a battle, so there is a winner and there is a loser. You really have to think very carefully about whether you want to bring a lawsuit and what should be gained. I think there is too much protection.”

Quinn Emanuel is one of the world’s largest law firms specializing in business litigation. With over 30 offices across 11 countries, the firm has grown to employ more than 1,000 lawyers globally in the three decades since its founding.

He also advised Korean companies to pay extra-attention to what their employees are writing on documents.

“There is a whole industry in the U.S. of drilling down on electronic data and trying to find out how people have manipulated the deleted data, and that is extremely dangerous,” he said. “You can lose a case if you destroy the documents.”

Judges in the U.S. may end up having a negative perception of companies which committed such suspicious acts, according to him.

“You have to be really careful when training your employees as to what they write,” he said.

For instance, he urged Korean companies not to leave any comments such as, “Let’s take this offline,” or “Please delete after reading,” as this gives a sense of suspicion, according to Quinn.

He also emphasized the importance of adapting to the legal systems of each country to achieve sustainable growth in international markets.

“Korean companies need to adapt to the legal systems and understand how to win in those systems. But the most important thing is to make sure that you have the right lawyer," Quinn said.