Avoidance As the First Choice of Default Managemenr Challenges in Overseas Korean Organizations‪.‬

INTRODUCTION Korean companies have pursued localization of their foreign subsidiaries as a way of penetrating developed countries' markets. However, the level of localization, represented by the number and authority of local staff, and autonomy of their subsidiaries, is relatively low (Ahn, 1998). Korean managers do not appear to trust local nationals, and local nationals have a low opinion of their Korean bosses. Several explanations have been given as contributing factors of these practices: relative lack of international experience of Korean companies compared to American and Japanese organizations (Park and Sohn, 1998); lack of global human resource management (HRM) strategy (Bae, 2004); unfamiliarity with the local culture; and ethnocentrism (Ahn, 1998).