Antecedents and characteristics of informal relation-based networks in Korea: Yongo, Yonjul and Inmaek

Abstract

Although there has been a large amount written about Chinese Guanxi networks, a detailed debate concerning Korean informal relation-based networks is by comparison under-represented in the international business literature. This paper introduces and distinguishes between three forms of informal relation-based networks in Korea: (1) Yongo, (2) Yonjul and (3) Inmaek. Inmaek describes a social network in general, while Yongo networks draw primarily on existing kinship-, university/school- and regional origin-based ties. Contrary to Yongo ties, Yonjul ties exist for a purpose, often to secure personal gains and benefits. In all three forms, kinship-, university/school- and regional origin-based ties play primary, but not exclusive, roles. A better understanding of Korean informal relation-based networks helps contribute to the advancement of knowledge about the anatomy of informal institution, as well as to the growing field of indigenous management research, by identifying and analysing an influential contextual factor in Korea. In addition, it underlines important implications for management practices in Korea.

Keywords::

• indigenous management research
• informal relation-based networks
• Inmaek
• Korea
• Yongo
• Yonjul

Acknowledgements

Financial support is gratefully acknowledged from the DFG Graduate School 1613 Risk and East Asia at the Institute of East Asian Studies (IN-EAST). For helpful comments and suggestions, I am grateful to Changsoo Kim, Sunkung Choi and the anonymous reviewer.

Notes

^1. Two major management journals published special issues on this subject: Management International Review (edited by Holtbrügge, Narayanan, and Hui 2013, in press) and the Management and Organization Review (edited by Leung et al. 2012).

^2. Due to the interconnectedness between Yonjul, Yongo and Inmaek, the term Yongo itself tends to have a bad connotation in Korea today. However, Yongo itself is predetermined (cause-based) and has basically a neutral meaning. Being endowed with a large Yongo-based informal network is equivalent to being highly endowed with social capital. Only its deliberate misuse, which would be Yonjul (purpose-based), is clearly perceived as negative.

^3. According to classic social science theory, kinship and pseudo-family ties are said to diminish in line with increased democratization and economic development towards formal institutions and more open networks (Durkheim 1933). Though scholars observe this development in the case of China (Brennan and Wilson 2010; Guthrie 1998), the issue for Korea cannot be confirmed clearly (Lee 2000; Yee 2000).

Additional information

Notes on contributors

Sven Horak

Sven Horak is an Assistant Professor at The Peter J. Tobin College of Business of the St. John's University in New York City, where he researches and teaches in the area of international management. Before joining The Peter J. Tobin College of Business, he has been a post-doctoral fellow at the Graduate School 1613 Risk and East Asia funded by the German Research Foundation (DFG) and a research associate at the Mercator School of Management of the University of Duisburg-Essen, Germany. For a major German automotive supplier he worked with Asian OEMs located at the firm's headquarter in Germany and its regional headquarters in Japan and Korea. His research interests include the fundamental analysis of informal network structures, the influence of informal institutions on decision making behavior and Asian Management.