Cambodia Insight
When abroad, seeing advertisements by Korean companies installed at airports, roads, and shopping malls fills me with a sense of pride. Along with large corporations representing Korea internationally, many small companies also play a crucial role in representing the nation. These small enterprises specialize in forming close relationships with local communities, directly communicating with them, and showcasing Korean technology and services. Today, we’ll explore the interior design business in Cambodia and the social contribution activities of Yoonjung Na, CEO of ‘SDY COMPANY.’
◆Why did you choose to start an interior design business in Cambodia, among many countries in the world and even within Southeast Asia?
▶Initially, I moved to Cambodia for work related to the textile industry. However, when a significant societal issue arose with a sharp increase in wages for garment factory workers, I realized that Cambodia’s economic focus was shifting from the garment sector to construction and development. Through relationships with local friends, I became acquainted with the timber business and spent two years preparing for a business transition. Eventually, I acquired a nearly bankrupt timber factory and officially started in the interior design business.
◆That sounds like a dramatic transition. What challenges did you face in the early stages of the interior design business, and how did you overcome them?
▶In the beginning, resolving unexpected debts from the acquired factory and reconstructing its broken systems were incredibly challenging. Securing clients was the biggest hurdle. From the start, I focused on the local market, striving to establish relationships with local businesses. Despite the narrow profit margins typical of the local market, expectations for a premium Korean company were paradoxically high. I poured my efforts into meeting those expectations by upgrading our company’s systems and hardware. Gradually, we secured major local clients and distinguished ourselves from other local and Korean interior design companies in Cambodia, overcoming the initial difficulties.
◆It’s hard to imagine the obstacles you had to face. Having overcome such difficulties, could you tell us about the current trends or notable changes in Cambodia’s interior design market? What design styles or preferences do local clients usually demand?
▶The trend is shifting towards modernized designs and accessible materials, particularly among the younger generation and middle class. The upper class often prefers a blend of modern styles with luxurious touches unique to Cambodia, incorporating European materials like those from Italy and France. Many clients want to mix classical Cambodian elements with modern styles. Initially, I found these preferences challenging to understand, given my Korean taste and sensibilities. However, through trial and error, I developed the know-how to harmonize Cambodia’s traditional elegance with modern aesthetics.
◆To adapt to these trends and meet local demands, what strategies does SDY COMPANY employ, and how do you maintain or enhance your competitiveness?
▶SDY’s greatest strengths lie in three key areas: (1) owning our own production line, (2) handling everything in-house from project planning, design, and construction to execution, and (3) positioning ourselves as a local company run by a fully localized Korean. During the COVID-19 pandemic, many foreign companies closed down and left Cambodia due to economic conditions and international uncertainties. We demonstrated stability as a local-oriented company. Our ability to complete projects seamlessly without outsourcing allowed us to cater to both high-end and low-end client needs, giving us a competitive edge in securing local projects. We blend Korean trends and aesthetics with the needs of the Cambodian market, delivering cutting-edge designs tailored to clients’ budgets.
◆Are there any projects you’ve worked on that you’d like to highlight for our readers?
▶Among projects for Korean clients, the most recent one is the ‘Booyoung Town’ shopping mall and a health and sports center set to open early next year. During the post-pandemic economic slump, BOOYOUNG Group, as one of the leading Korean conglomerates in Cambodia, has spearheaded efforts to create a Korea Town by opening a Korean-style shopping mall and multi-sports center. I feel immense pride in being involved in all stages of this project, from planning to construction, and I’m grateful to BOOYOUNG Group for leading these efforts.
For local projects, participating in last year’s ‘Southeast Asian Games’ athletes’ village project remains one of the most memorable experiences. Being part of such a historic event in Cambodia has instilled a sense of pride in our employees and will serve as a powerful driving force as we navigate various moments in the future while managing the company.
◆It’s impressive that you’ve left a significant mark as a Korean company in Cambodia. Based on the services and products you currently offer, do you have plans to expand into new business areas?
▶While we continue to focus on furniture, doors, and interior construction, we plan to expand into retail and franchise businesses by 2025. We’re working on the final preparations for this expansion. Through synergies with our subsidiary, ‘K`v Entertainment,’ and sister companies, we aim to maximize the strengths and know-how of our existing businesses.
◆ We are excited to see the various directions SDY will evolve in the future. How do you view the interior design market in Cambodia? What is its current state, and what are your expectations for the next 5 to 10 years?
▶As incomes rise, Cambodia’s interior design market continues to experience rapid qualitative growth. I expect comprehensive interior retail businesses, like IKEA, to soon enter the Cambodian market. Given the relatively thin middle class, the market will likely remain polarized between ultra-cheap Chinese products and premium European and American products. In this landscape, we will focus on positioning Korean products and technology effectively to capture market share.
◆We’ve heard that SDY COMPANY is actively engaged in social contribution activities. What led you to begin employing people with disabilities, and what is the company’s vision in this regard?
▶ The beginning was when we started supporting a vocational school for people with disabilities run by a Catholic church. While providing regular support, we were told that despite honing their skills diligently at the vocational school, many graduates struggled to find employment after graduation. This led to a suggestion to hire a small number of graduates, and that`s how we began employing people with disabilities. As the first group of employees adapted well and stayed with us long-term, we continued hiring graduates from subsequent classes. Today, many of them are contributing diligently and reliably in our factory production lines, excluding the fieldwork lines.
Initially, our actions were not driven by lofty ideals like social contribution or humanitarianism but by circumstances and chance. Over the past seven to eight years, this has evolved into a commitment to fulfilling our social role in a meaningful way. While our primary purpose as a company is to generate profit, we also strive to create a workplace that fosters mutual respect and recognition, making ‘COMPANY FAMILY SHIP’ a reality.
◆ What began as a chance initiative has grown into a significant vision. However, it seems the process wasn’t as smooth as your natural explanation makes it sound. What new challenges did you face when employing people with disabilities, and what measures or improvements have you implemented to create a work environment where they can perform effectively?
▶Bridging the gap between employees with and without disabilities was our biggest challenge. While well-meaning phrases like ‘caring and helping with love’ sound good in theory, they can feel impractical to non-disabled employees who face daily struggles. We focused on identifying tasks that disabled employees could excel at and worked to elevate their abilities in these areas. This approach eliminated prejudices and feelings of reverse discrimination. For instance, while physically demanding tasks are assigned to non-disabled employees, disabled employees specializing in certain roles often outperform others with their exceptional skills and dedication. Over time, this led to the elimination of biases, and all employees came to see each other as valuable team members.
We did not implement physical adjustments like ramps or slopes in the factory but ensured a significant proportion of employees with disabilities, creating a cohesive group with a sense of pride and belonging.
◆ You have clearly outlined a few situations, but your passion for creating a workplace that employs people with disabilities stands out above others. What are the primary roles that employees with disabilities perform within your company, and how has this impacted your corporate image, as well as your relationships with customers and partners?
▶They play pivotal roles in technical areas, including inspection. Their passion and dedication often set a positive example for non-disabled employees. Since employing people with disabilities has become second nature to us, this is the first time we’re sharing these efforts publicly. As such, we haven’t had the opportunity to gauge its broader impact on our image or relationships (laughs).
◆What is the societal perception of employing people with disabilities in Cambodia? Are you involved in related social activities?
▶In Cambodia, employing people with disabilities often requires employers to accept certain financial and physical costs. There’s still a considerable stigma, especially towards those with congenital disabilities, particularly among employees from rural areas. However, within SDY, these biases no longer exist. Our employees recognize their disabled colleagues as diligent coworkers. While I’m unsure of the broader societal perception, we’ve quietly contributed to worthy causes, such as providing furniture, doors, or minor interior work to places in need. Calling these acts ‘social contributions’ feels too grandiose for what we do.
◆ I don’t think it’s something to be embarrassed about at all. Your contributions so far could serve as an excellent model for other Korean companies operating abroad. Based on your experiences, what advice or recommendations would you give to other companies regarding social contribution activities?
▶Our company received an award from the Cambodian government for our contributions. While the monetary value of our efforts may seem modest, their continuity over eight years eventually garnered recognition. I believe that by operating within one’s means without overextending, anyone can commit to something wholeheartedly and consistently. To other companies, I recommend adopting the mindset of a marathon runner.
◆ This concludes our look into the origins and long journey of SDY, as well as the positive impact it has made while deeply rooting itself in Cambodian society. Lastly, what is your ultimate goal as a business leader in Cambodia?
▶Having lived in Cambodia for 17 years, this place no longer feels foreign to me. My goal as a leader is for all employees to feel that SDY is a company where they can sustain their livelihoods without worry and where they find meaning in their work. It would be ideal if everyone could earn ample compensation as well. Externally, we aim to build trust with clients. Internally, I’ll strive to create an environment where employees can unleash their full potential.
“Trust SDY.” Keep fighting today as always.
This article was first published here in Korean: [인터뷰] SDY COMPANY 나윤정 대표: 인테리어 사업과 사회공헌 > 사회 | 캄보디아인사이트
