Japan and Korea have highly developed information and communications technology infrastructures and have recently reformed their higher education systems and encouraged e-transformation. However, Japanese universities have not embraced e-learning as wholeheartedly as their Korean counterparts. The paper concludes that this is due to governmental and institutional failure to develop a cogent vision and strategic plan for e-learning, to recognise the need for fundamental shifts in organisational cultures and structures and pedagogy and to provide training, funding, recognition and reward for such development. It attributes this to differences in the cultural perspectives, values and customs of the two countries' policy makers, managers and faculty members. The findings are seen to hold important lessons for other countries embarking on e-transformation.