This contribution develops a model that explicates the origin and function of dynamic collectivism in Korean business organizations. Dynamic collectivism is a heuristic device, capturing dynamic and conflicting features embedded in Korean corporate culture. Specifically, we show how cultural legacy, founder leadership and social climate lead to dynamic collectivism. Next, we analyze dynamic collectivism in terms of multiple cultural dimensions, metaphors and behavioural norms. Finally, we show how dynamic collectivism influences business practices such as strategy formulation, organizational design and human resource management. Also, we discuss how dynamic collectivism could change in the near future along with rapid organizational transformations and globalization.