To Survive in Paradise: Strategies of Korean Restaurateurs in Auckland

New Zealand Asia Institute Seminar on NZ and Korea November 16, 2012

Changzoo Song School of Asian Studies

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Portraits of Korean Immigrants in New Zealand

• Koreans are envious of Korean New Zealanders – Clean environment, good education system, leisurely

life style… • Indeed, Korean immigrants have enjoyed their life

in New Zealand • However, with low employment rate and income,

many have ben struggling • “A total crisis in NZ Korean community” (on-going

sense of crisis expressed in NZ Korean newspapers)

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Blue sky…

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Koreans in Census

• The 2006 New Zealand census: 30,792 Koreans in NZ • Third-largest Asian population after Chinese and

Indians • Most Koreans in NZ live in the Auckland region (70%) • Majority of them living in the North Shore (70%) • Young – nearly half under 25 years of age • One third of them are unemployed, the highest among

five Asian groups • This reflects the challenges they face in adapting to

different environment in NZ.

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Socio-economic Adjustments in New Zealand

• Korean immigrants experience occupational down-shifting

• High level of self-employment (higher than Chinese migrants) – “Kimchi Networks: Korean Employers and Employees in Auckland” by C.

Meares, E. Ho, R. Peace & P. Spoonley (Massey University, 2010)

• Why such high self-employment rate? – Language barriers – Economic disadvantage – Only low wage jobs available to them and sense of relative

status-lowering – Ethnic and class resources

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Ethnic entrepreneurship (self-employment)

• Factors influencing business entry – Economic disadvantage (push factors): lack of language skills,

prejudice – Cultural predisposition (pull factors): entrepreneurial traditions of the

ethnic group – Contextual factors: ethnic resources, opportunities, class resources,

ethnic enclaves • Ethnic Resources

– Access to inexpensive and reliable labour, i.e. family members – Access to cheaper finance (i.e., ethnic credit association such as gye) – In the case of ethnic Koreans, supports from homeland government is

increasingly important (proactive diasporic policies of South Korea: voting rights to overseas Koreas; allowing dual nationalities; networking Korean diasporas and so on)

• Class Resources: education, capital

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Cases of Ethnic Entrepreneurship in the Americas

• Very high self-employment rate (in the US highest among Asian immigrants)

• Finding ‘ethnic business niche’ and establishing ‘ethnic hegemony’ (controlling most of the processes in the business): (1) Dry cleaning business in the US; (2) Garment industry in Latin America; and (3) Sushi business in the US to a certain degree

• Success Factors – Conventional Factors -- Economic Disadvantage, Ethnic Resources, Ethnic enclave,

Middleman minority strategies, Niche seeking based on ethnic and class resources

– Historical and international economic environmental factors:

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Garment and sushi: historical and global economic environmental factors • Garment Industry

– Timing: Old, retiring migrants (Jews) and new and younger migrants (Koreans) in North and South America

– Changes in global economic environment • Fabric production shift from Europe to Asia • Korea’s dominance in garment manufacturing and fabric production

– Existence of cheap labour: • Illegal Latino migrants in the US • Bolivian migrants in Argentine

• Sushi business – Culinary cultural changes in the West and soaring demand in sushi in the late 1980s – Aging and shortage of Japanese immigrants – Colonial legacies in Korea

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Perceived Problems in NZ business environment

• Small market • Language barrier • Racism and discrimination • Competition among Koreans (and Asians) • “Conservativeness” of the main stream

culture

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Business Environment for Koreans in NZ

• August 2012 Good Day New Zealand reports: • About 2,000 Korean businesses listed in

Auckland • Koreans concentrated on 10 businesses

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Business Details Number

Construction Building, painting, plumbing, flooring … 220

Restaurants Korean, Japanese, Chinese, cafes 200

Real estate agent 170

Religious organisations Christianity, Buddhism and others 150

Hair salon & skin care 130

Health food stores 120

Groceries & marts 100

International students services

About 9,000 Korean international students in Auckland

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Automobile Service, accessory.. 70

Cleaning 50

Concentrated on 10 business

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Korean Restaurants: changes • Food related industry in NZ - Monthly 300 million • Korean-owned restaurants in Auckland 200 • Before 2000: 3-4 big restaurants for Korean tourists • 2000-2005: Increasing number but only catering Koreans • 2005-2007: Toughening competition

– Some moved to Japanese restaurants – But, the number continuously increasing

• 2007-2009: many restaurants went bankrupt (30% closed) – More localised restaurants appeared (cafes, bars…)

• 2009-present: increasing sizes – Specialisation (BBQ rib, sundae soup…) – New generation owners appeared

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Strategies: moving to Japanese food

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Strategies: Aiming for Chinese

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New Trends: de-ethnicisation

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De-ethnicisation

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Other Trends

• Utilising Hallyu as a resource • Bringing new ideas from Korea: specialised

menu, transnationalism • Expanding to other ethnic market

– Sushi – Aiming for Chinese New Zealanders

• De-ethnicisation – Fusion foods – Aiming for main stream

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From Puffer Restaurant to…

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Kangnam Style Buffet Restaurant

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Going mainstream: lunch bars, cafes, and bars

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Conclusion

• Korean ethnic entrepreneurialism • Continuous changes and adaptations • Strategies: Ethnicisation, de-ethnicisation, Japanisation

Sinicisation, assimilation, transnationalism • Only 20 years of business history and still in the

process of adjusting • Eventually will find niches while adapting to the

changing realities • Contributing to the enrichment of culinary culture of

New Zealand

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