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Business Expansion Into South Korea

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Submitted By chefmazza
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Introduction Doing business overseas is often difficult for western businesspeople, we are used to a fast-paced environment in which decisions are made quickly, there is little or no time for "chat," and business life is kept strictly separate from personal life. In South Korea, all that changes. This paper examines some of the cultural practices that will affect a westerner trying to penetrate the South Korean marketplace.

Overview of Korea South Korea is "a very modern, advanced country with an excellent transportation infrastructure, modern architecture, highly advanced telecommunications and excellent hotels" (Doing business in South Korea). Though the country seems to be westernized, it is in fact very traditional; with respect for age, family and hierarchy all coming into play in business transactions (Doing business in South Korea). While Western business people are largely "exempt" from social constraints, they should be prepared to answer "rather probing questions" with regard to age, marital status, educational level and position within the company (Doing business in South Korea). The South Koreans ask such questions in order to establish a "social hierarchy," since business relationships there are largely based on personal ones (Doing business in South Korea). Confucianism is "still the strongest ethic in South Korea and reinforces thinking on behalf of the group" (Doing business in South Korea). Individualism is seen as selfish, which will be a shock to most westerners, who tend to prize it, since it is individual effort that is rewarded in western culture. In South Korea, however, proposals will fare better if they are presented in the context of benefiting the group. Because relationships are so important, "cold calling" doesn't work well here, and introductions are absolutely necessary to set up meetings.

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