[Expert Column] When the Foundation Falters, So Does the Future: Korean Organizations in the U.S. Must Embrace Cultural Integration as the Only Path Forward

>>The Korea Daily - Expert Column Article<<

Written by Stella H. Kim, SPHR

Published October 15, 2025

[HRCap 2025 Localization Playbook Series]

⑤ HR Strategies for Korean Companies in the U.S.

- Redefining Identity From a “Korean Company” To a “Global Organization”

Stella H. Kim, SVP, Head of Americas & CMO at HRCap

The U.S. labor market highly prioritizes organizational culture and operational transparency.

On public platforms like Glassdoor and LinkedIn, employees and candidates share real-time reviews on workplace culture, leadership, communication, and management practices, further shaping public perceptions of companies. Organizations lacking clearly defined policies or operating frameworks struggle to deliver a consistent employee experience, resulting in higher turnover and reputational decline. According to the Society for Human Resource Management (SHRM), the average second-year turnover rate among small and medium-sized companies in the United States is roughly 37%, with culturally unstable organizations experiencing even higher attrition.

Many Korean companies entering the U.S. market heavily prioritize business expansion and rapid hiring during their early stages. However, without stable operations and cultural foundations, such expansion often leads to confusion, high turnover, and legal exposure. As a Global Total HR Solutions Partner, HRCap has witnessed for the past 25 years that many Korean companies face rising internal conflicts, HR disputes, and even lawsuits within the first one to two years, largely due to weak cultural and operational structures. When standards are unclear, even minor misunderstandings can erode trust and trigger a domino effect of turnover.

So then, what and how must Korean companies change? The answer lies not just in business expansion but in strategic operational standardization and deliberate cultural integration.

First and foremost, companies must localize their policies and processes. This goes beyond meeting formal compliance requirements to setting the foundation for preventing potential risks and ensuring consistency in the employee experience. Employee handbooks covering working hours, leave, benefits, safety, health, diversity, and inclusion must be systematically redesigned to meet U.S. labor laws, standards, and workplace expectations, rather than being simple English translations of headquarters’ documents.

Additionally, organizations must standardize their corporate language and global communication practices. Many Korean companies continue to conduct internal meetings and maintain policy documents in Korean, leaving many local employees excluded and uninformed. In the U.S., language serves as the infrastructure for cultural integration. To ensure transparency, fairness, and inclusivity, all policies, announcements, and meetings must be conducted primarily in English, enabling shared understanding and alignment across both local and global teams.

Finally, companies must clearly redefine their corporate identity from a “Korean company” to a “U.S. based global organization with Korean headquarters.” Internally, this means shifting away from HQ-centric decision-making structure and empowering local leadership to have operational autonomy. Externally, companies must align their brand, language, and culture so they are truly recognized as global enterprises. Only then will top talent view these organizations as platforms for long-term career growth and commit to their vision.

To build lasting cultural trust, Korean companies must focus on these three foundational pillars:

1. Localize policies and processes to align with local laws and market standards

2. Standardize language and communication in English

3. Redefine identity from a “Korean Company” to a “Global Organization”

HRCap partners with client organizations to help implement these strategies by establishing HQ–local governance frameworks, building risk management dashboards, standardizing 90-day onboarding and cultural orientation programs, and delivering leadership and cultural coaching for managers.

Culture and operations are the heart of an organization and its true source of competitive advantage. Only companies that embed these foundations early can earn trust, retain top talent, and achieve sustainable growth. Those that prioritize expansion over structure will continue to inevitably face the limits of eroded trust and organizational instability.

Stella H. Kim, SPHR

HRCap – SVP, Head of Americas & Chief Marketing Officer