None of this sounds like "risk", more like the standard practice for doing business in a new foreign market.
I think you oversell the necessity of Nintendo having to engage in some sort of a drastic change to their business model.
People said the same thing about Nintendo's entry into Korea back in the day, and the Wii, despite not having content "tailored to their market" handily outsold PS3 and Xbox 360, and the DS was... well, the DS did what the DS did. All that with a much-reduced software catalog for both, no less, due to only releasing titles that were translated into Korean.
Wii U clearly never saw a release and 3DS didn't take off due to an even more reduced software library then before, which gamers in Korea were unhappy with and the thing that will make a change in Korea (according to analysts, anyways) is the release of region-free hardware so English and Japanese speaking residents of Korea aren't hampered by region locking. All signs point to the Switch being unlikely to have a region lock so far.
So you'll forgive me if I'm not going to take your word on the idea that Nintendo has to change its entire business model to see success, when we have been through this dog-and-pony show on American gaming forums discussing what we think a foreign nation won't want in their own market.