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

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.