South Korea Holds a Coming Out Party : U.S. Public Relations Firms Establish Footing as Door Opens for Olympics

When Burson-Marsteller’s small staff in Seoul was providing worldwide public relations for South Korea’s Olympic Organizing Committee, it had to refer any new business that came its way to Korean firms.

Now it can keep that business. The New York firm is believed to be the first foreign public relations firm to be granted a license to open a wholly owned communications and marketing branch in South Korea.

Its first account: Coca-Cola Korea. Burson-Marsteller will coordinate the soft-drink maker’s activities, including a pin trading center, related to the Olympics.

At least two other firms, Fleishman-Hillard and Backer Spielvogel Bates Worldwide, are also opening offices in South Korea to capitalize on opportunities arising because of the country’s explosive economic growth. Foreign companies are gaining access into South Korea under newly liberalized laws that permit outsiders to own an interest in some ventures.

“The general attitude is that Korea is emerging as Japan did 20 years ago,” said Robert E. Hope, executive vice president of marketing worldwide for Burson-Marsteller. “When Japan hosted the Olympics, suddenly the world saw Japan and its economy emerging. The Koreans believe the same thing will happen to them.”

Much as the 1964 Olympic Games in Tokyo were the coming out party for Japan, South Korea hopes the 1988 Seoul games will be a similar showcase for its new-found prosperity.

“In the past, we have had a lot of American and foreign companies dealing with Korean companies and we haven’t been able to assist them and so we have passed them to other firms in Korea. Now as those opportunities come along, we will be able to address them,” Hope explained.

Other Asian Offices

“It is only natural for Burson-Marsteller to have a continuing presence in Korea, the 12th-largest trading partner of the United States and the world’s fastest-growing economy,” said Harold Burson, chairman and founder. “Increasingly, Burson-Marsteller clients are focusing on this dynamic marketplace.”

Burson-Marsteller has offices in other Asian cities--Tokyo, Hong Kong, Singapore, Kuala Lumpur and Bangkok. A second Hong Kong operation provides public relations support to the People’s Republic of China.

“B-M/Seoul is part of our strategy to be the major communications and counseling firm in Asia,” said James H. Dowling, president of the agency, which also has offices in Los Angeles. “We believe that to be strong internationally, we must be strong nationally everywhere we operate.”

Other firms are taking similar strategies. St. Louis-based Fleishman-Hillard, for example, has been building a network of affiliate offices in Asia. In the past year, it has established relationships with advertising and public relations firms in Tokyo, Taiwan and Hong Kong. Fleishman-Hillard recently linked up with Nara Advertising of Seoul.

“Korea was just a natural next step,” said Kathleen DesRosiers, vice president at Fleishman-Hillard’s Los Angeles office and director of Fleishman-Hillard/Asia. The firm has no clients in South Korea yet.

Fleishman-Hillard elected to go the affiliate route after studying the Asian market for a couple of years because “we can’t absorb thousands of years of social and business culture. We need the Korean experts.”

Buys Interest in Firm

Many of Fleishman-Hillard’s clients will visit Seoul for the Olympics in September, but so far the firm hasn’t been asked to do any business for them there, according to DesRosiers. She doesn’t see the timing of Fleishman-Hillard’s move into South Korea as capitalizing on the Olympics. “The Olympics is value added. It has heightened awareness.”

Meanwhile, Backer Spielvogel Bates Worldwide has reached an agreement to acquire a minority interest in Diamond Advertising Ltd. in Seoul. Both agencies handle advertising for the South Korean car, the Hyundai.

Backer Spielvogel, a unit of Saatchi & Saatchi Co. of London, projects that South Korean spending on advertising will exceed the 29% increase for the entire Asia-Pacific region from 1987 to 1990. Backer Spielvogel also has operations in Japan, Hong Kong, Malaysia and Australia.