South Korea has a population of more than 45 million people, which also make sense for being the 25th most populated country in the world. Not to be mix up with the Democratic People's Republic of Korea (North Korea), the Republic of Korea (South Korea) lies in the southern half of the Korean peninsula. Korea was liberated from Japanese occupation at the end of World War II, only to be faced with the Cold War struggle that divided the country into two separate states. The Southern democratic republic, and the Northern communist style government. South Korea has a democratic government that takes care of all citizens¡¯ equality, personal freedom and human rights..
After the Korean War, South Korea experienced rapid economic development and has continued to develop in today¡¯s modern world economy. It has becoming the largest in Asia after Japan and China. More and more people, especially those who wish to enter this modern day market start realize the importance of cultural knowledge due to the increases in business opportunity in this country.
Korea is deeply influenced by Confucian values than any other business culture compared to China. Confucian ethics has bring significantly affect to all aspects of working life, from management systems to interpersonal relations and though both Western and Japanese influences are becoming stronger, there is a deep well of conservatism within Korean society which makes change difficult, slow and somewhat painful.
Confucian ethics has plethora of social concerns, and include obligation towards others, respect for family, elders and authority, loyalty, honour, and filial piety Thus, as in countries like Japan and China, the quality of the relationships developed is the only key to business success at both a personal and a corporate level. A Korean saying the all-important that nature of networking and relationships is 'make a friend first and a client second.' The key to creating good relationships depends in one's ability to play the Confucian game. It is important to appear to be an honorable, trustworthy and respectable person.
Discussion
Meeting
Before doing business in Korea prior appointments are required and should generally be made a few weeks in advance. The most suitable times to arrange a business meeting are normally between 10am and 12pm or 2pm and 4pm. avoid include holidays like the Lunar New Year (around January/February) and the Moon Festival (around September/October). conduct business on a face-to-face basis, and is considered rather improper to discuss such matters on the telephone. The telephone is to be used only to confirm meetings.
i. First meeting
First meetings can often be completely dominated by the need to start the relationship-building process because personal relationship is 1 of the value or concept holding by them. . In order to be successful, it is vital to establish good, personal relationships based on mutual trust and benefit. Korean business culture is firmly grounded in respectful rapport and in order to establish this, it is essential that you have the right introduction and approach the company through a mutual friend or acquaintance at the appropriate level. Koreans spend a significant amount of time developing and fostering personal contacts. Therefore, time should be allocated for this process, particularly during the first meeting, which is frequently used to simply establish , hopefully, rewarding and long-term business relationship.
. Once good, solid relations have been recognised in Korea, continuous reinforcement and maintenance is vital. When entering a group meeting in Korea, the senior member of your party should enter the room first, then the next highest ranking person and so on. Koreans will also be seated according to rank. For instance, the most senior member of your delegation should enter the room first and should sit at the middle of the table
Punctuality is important as it is a sign of respect. If you realize that you may be a little late, it is best to call ahead to say so. That said, don¡¯t be surprised if top Korean executives arrive a few minutes late for appointments due to their extremely busy and pressured schedule.
It is also not unusual for Korean executives to cancel appointments with little or no notice. The cancellation may be due to an unexpected and unavoidable situation. However, if it¡¯s happened before, it may be a signal that they don¡¯t really want to do business or need to delay the process for some reason, and you were expected to have realized that.
ii. Name and greeting
When addressing a Korean, use his/her title along with her/his family name unless you¡¯ve been invited to do otherwise. If there is no title, use Mr/Mrs/Miss with the family name followed by the phrase "sonsaengnim," which means "respected person."
More and more Koreans use a Western (usually English) name as a courtesy to foreign colleagues/clients. However, you may want to make sure to also know their Korean name since, for example, Harry Kim may not be known as such among his Korean colleagues and trying to find a Mr. Kim is a Korean corporation is like looking for the proverbial needle in the haystack. It can help if you know his exact title and department.
When doing business in South Korea men greet each other with a slight bow sometimes accompanied with a handshake. When handshaking, the right forearm is often propped up by the left hand. . Western women doing business there will need to instigate a handshake with Korean men, as out of politeness, a hand will not be forthcoming.
iii. Business card and gift
The exchange of business cards in Korea is vital for initiating introductions. Korean¡¯s prefer to know the person they are dealing with. Therefore, it is important to emphasise your title so that the correct authority, status, and rank is established. It is advised to have the reverse side of your card translated into Korean. Cards should be presented and accepted with both hands and must be read and studied with respect and consideration before placing them on the table.
Gift-giving is a common practice within Korean business settings. Generally given at the first business meeting, gifts are often used to acquire favours and build relationships. You should allow the host to present his gift first and be sure to accept the gift with both hands. To avoid loss of face, gifts of similar value should be exchanged and gifts of greater value should be given to the most senior person respectively. The number 4 is considered to be unlucky in Korea. Therefore, one must never give a gift made up of 4 items. Gifts should always be wrapped. Alcohol, especially good single malt whiskey and brandy is always an appreciated gift. Good gifts for a first visit are office items, maybe with your logo on them. After this try and bring items of beauty and craftsmanship. Foodstuffs will also be appreciated. Avoid overly expensive gifts as this will require the recipient to match the value when they reciprocate.Do not open the gift in front of the giver. If offered a gift, it is good etiquette to offer some initial resistance. However, after the giver insists for the second or third time feel free to accept.
iv. Language
Korean is the national language of Korea, although Japanese is widely understood by the older generations who had studied under Japanese ruling (1910-1945). English is the language of business and is taught in schools. Most educated people may have studied English with a high concentration on reading and writing in school therefore making communication less difficult. However, not all of the Koreans speak English. It may be a good idea to learn some phrases in the language to get along outside of the office. When speaking English, make sure your Korean counterpart understands what you are saying. Emphasize and repeat your key points. Try to use short sentences and simple vocabulary. talk slow and repeat important words or phrases whenever necessary. To enhance communication and reduce the possibility of misunderstanding due to language, you may find it helpful to send written materials - brochures, marketing materials, proposals, etc. - in writing to your Korean counterpart some time prior to the meeting.
There is a contradiction at the heart of Korean communication patterns which is that, like the Japanese, Koreans want to preserve harmony and promote good relations but at the same time they have a tendency to become emotional if they feel that things are not going their way. This combination of the non-confrontational and the emotional probably stems from the historical sufferings of the nation and is best categorised under the concept of hahn. Hahn describes the feelings of unreleased frustrations developed during periods of extreme hardship in the past and which is still felt, in certain elements of society, today. If a Korean expresses obvious disquiet in a meeting it is fairly good sign that the meeting is floundering.
v. Communication style and decision making
Inhwa is drawing from Confucian beliefs, the term inhwa signifies the Korean approach to harmony and is closely related to the name of the village ¡°Inhwa¡±. To avoid disturbing inhwa, Koreans will often reply with a positive answer and show reluctance to give direct refusals. Koreans regard saying 'no' as poor etiquette and something to be avoided at all costs. It can, therefore, be difficult to get at the truth of their intentions. Unhappiness and disagreement will usually be voiced very vaguely through the use of such phrases as ' we will try' or that might be difficult but we will explore the idea.' Nor does 'yes' necessarily mean 'yes'. It might simply mean 'I have heard you' or 'I recognise that you have made a point.' Due to this vagueness of meaning, it is very often necessary to go over the same point many times, trying to extricate more meaning as time progresses. This obviously has the effect of making meetings longer and can be somewhat frustrating. It is important to maintain patience and politeness at all times.
Remember that communication is seen as a means to developing good relationships. Therefore, the way in which you deliver the message could, in fact, be more important than the message itself. It is important to maintain good body posture during meetings. Slouching or overly expressive body gestures could be disconcerting.
Korean companies traditionally been characterized by a high degree of both centralization and vertical hierarchy. Most large business conglomerates have been family affairs with the founder's family continuing to exert a great deal of direct executive authority. This has led to a system where most decisions are executed at the top and delegated downwards along strong lines of authority.
Basic Confucian tenets of respect for age, seniority and family have ensured an adherence to and acceptance of this system. The introduction of modern, western management theories (often introduced by American educated Koreans) will obviously add new tensions to this approach and the recent economic problems have added impetus to the calls for reform of Korean company structures and dependencies.
As well as the formal hierarchy which often stresses specialization of function and task, those dealing with Korean companies would do well to try to gain some insight into the informal structures which are often the real internal power mechanisms. These informal structures are usually dependent upon a complex web of personal relationships and loyalties and can be difficult to see or understand without the help of a local 'guide'.to inward investment.
One of the most important aspects of doing business in Korea is that of respect of your authority figures. Although business decisions are based on a consensus, it is the authority figures who make the final decision. which is similar to the system of nemawashi found in Japan. This system ensures that the group feels involved in the decision, whilst ensuring that the manager can still maintain an influence over the outcome.
The decision- making process in Korea is done collectively and up through the hierarchy and therefore does take more time than you may be used to. Try to be patient, and even if you¡¯re not feeling patient, try not to show it.
vi. Entertaining
A great deal of important business relationship building takes place in the bars and restaurants of South Korea. If invited out for dinner, it is advisable to accept as these are often the occasions where your South Korean contacts will really decide if you are a trustworthy honorable person ¡ª and consequently whether or not they wish to do business with you.
It is customary for the host to order the food, which all arrives at the same time. Korean food can be extremely spicy but milder dishes are also available. Wait until the host invites you to start. Do not leave chopsticks sticking into the rice bowl ¡ª place them by the side of your place setting on the chopstick rests when not in use. When passing food items around the table, use only the right hand - this is considered to be much more polite.
Korea has one of the highest per capita alcohol consumption rates in the world - so many business dinners are accompanied by some fairly heavy drinking. You do not, of course, have to drink a lot if you don¡¯t want to, but the Koreans will enjoy your company all the more if you join in with the general atmosphere of revelry. Legitimate reasons for not drinking include personal health conditions and religious beliefs. (It is not unusual to move on from the restaurant to a Karaoke bar where more drinking will take place and you will probably be asked to sing.)
Tipping is not customary in South Korea although many restaurants add a service charge to the bill.
General etiquette
i.) Be humble
Modesty and humility are important in Korean culture and therefore it is best to avoid over-selling yourself or your company¡¯ previous business achievements. When interviewing Koreans, you may want to keep this characteristic in mind ? the interviewee will either understate her/his abilities and achievements in the belief that you will be aware of them and that anything else would be rude or, in an attempt to live up to perceived Western expectation, he/she may exaggerate what would not be stressed normally in a Korean context.
ii.) Be prepared
The relevance of your delegation could also be judged on who is included. Their senior people would not be expected to have to deal with younger, more junior contacts from another organisation. Ensure a compatibility of levels within meetings. It is also important to be able to answer fully any technical questions thrown at you, so ensure that your delegation has the requisite level of expertise at its disposal, in order to avoid seeming ill-prepared or amateurish.
In order to show respect, some Koreans still do not make eye-contact for any length of time when in the presence of an authority figure. However, this is changing and you should make direct eye-contact when addressing business professionals and clients, as doing so is expected and is interpreted as an indication of your honesty and interest.
iii.) Do not criticize someone in public
The word Kibun has no literal translation in English, however, as a concept that permeates every facet of Korean life, it can be described in terms of pride, face, mood, or state of mind. In order to maintain a Korean¡¯s sense of Kibun, particularly in a business context, one must show the proper respect and avoid causing loss of face. In a culture where social harmony is essential, the ability to identify another¡¯s state of mind, often referred to as nunchi, is crucial to successful business ventures. For this reason, you must be aware of subtleties in communication, observing non-verbal and indirect cues that often suggest the true sense of what is being communicated. So, respect your partner. Koreans are extremely sensitive people. Make sure they don¡¯t lose face; don¡¯t put them in a difficult position.
South Korean Geert Hofstede Cultural Dimensions
South Korea's highest Hofstede Dimension is Uncertainty Avoidance (UAI) at 85, indicating the society¡¯s low level of tolerance for uncertainty. In an effort to minimize or reduce this level of uncertainty, strict rules, laws, policies, and regulations are adopted and implemented. The ultimate goal of this population is to control everything in order to eliminate or avoid the unexpected. As a result of this high Uncertainty Avoidance characteristic, the society does not readily accept change and is very risk adverse.
South Korea has a low Individualism (IDV) rank of 18. The score on this Dimension indicates the society is Collectivist as compared to Individualist. This is manifest in a close long-term commitment to the member 'group', be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations. The society fosters strong relationships where everyone takes responsibility for fellow members of their group.
Power Distance Index (PDI) that is the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally. This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. Power and inequality, of course, are extremely fundamental facts of any society and anybody with some international experience will be aware that 'all societies are unequal, but some are more unequal than others'.
Individualism (IDV) on the one side versus its opposite, collectivism, that is the degree to which individuals are inte-grated into groups. On the individualist side we find societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, we find societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. The word 'collectivism' in this sense has no political meaning: it refers to the group, not to the state. Again, the issue addressed by this dimension is an extremely fundamental one, regarding all societies in the world.
Masculinity (MAS) versus its opposite, femininity, refers to the distribution of roles between the genders which is another fundamental issue for any society to which a range of solutions are found. The IBM studies revealed that (a) women's values differ less among societies than men's values; (b) men's values from one country to another contain a dimension from very assertive and competitive and maximally different from women's values on the one side, to modest and caring and similar to women's values on the other. The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The women in feminine countries have the same modest, caring values as the men; in the masculine countries they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values.
Uncertainty Avoidance Index (UAI) deals with a society's tolerance for uncertainty and ambiguity; it ultimately refers to man's search for Truth. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations. Unstructured situations are novel, unknown, surprising, different from usual. Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures, and on the philosophical and religious level by a belief in absolute Truth; 'there can only be one Truth and we have it'. People in uncertainty avoiding countries are also more emotional, and motivated by inner nervous energy. The opposite type, uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible, and on the philosophical and religious level they are relativist and allow many currents to flow side by side. People within these cultures are more phlegmatic and contemplative, and not expected by their environment to express emotions.
Long-Term Orientation (LTO) versus short-term orientation: this fifth dimension was found in a study among students in 23 countries around the world, using a questionnaire designed by Chinese scholars It can be said to deal with Virtue regardless of Truth. Values associated with Long Term Orientation are thrift and perseverance; values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting one's 'face'. Both the positively and the negatively rated values of this dimension are found in the teachings of Confucius, the most influential Chinese philosopher who lived around 500 B.C.; however, the dimension also applies to countries without a Confucian heritage.
Conclusion
This assignment has explained the central importance of understanding one¡¯s country business cultural in order to succeed in the business.
