* Background to Business in South Korea
Korea is probably more influenced by Confucian values. the value of collective group harmony, respect for authority (and therefore management), as well as the embracing importance of family, clan and friendship.

the value of collective group harmony, respect for authority (and therefore management), as well as the embracing importance of family, clan and friendship.

Confucian Ethics
Confucian Ethics

Thus, as in countries like Japan and China, the quality of the relationships developed are the real key to business success at both a personal and corporate level.

The key to creating good relationships lies in one’s ability to play Confucian game…..
“make a friend first and a client second”
“make a friend first and a client second”

* Honorable * Trustworthy * Respectable person The economic downturn experienced in South Korea during the Asian currency crisis (as well as many other Asian countries) precipitated a period of great introspection which has in many traditional beliefs and approaches being challenged both internally and externally. Thus, South Korea is a business culture at a significant crossroads with a great need to find an accommodation between traditional values and modern management practice.

* South Korea Business Structures Korean companies have traditionally been characterized by a high degree of both centralization and vertical hierarchy.

Large Chaebols (large business conglomerates)- 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.

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. * South Korea Management Style
Managers expect that their instructions will be obeyed and this expectation of obedience is usually fulfilled.
Loyalty
Loyalty
Obedience
Obedience
Confucianism
Confucianism It is useful to think of the manager as a father who, in return for loyalty, respect and obedience, gives the subordinate support and help at all times.
The Korean concept of inwha, which emphasizes the harmony necessary between people of equal rank and standing. Thus, it is important that group situations are characterized by lack of confrontation and blame. The good manager spends a great deal of time and effort ensuring that his team has a good working relationship and that all members feel fully integrated.
The Koreans also employ a process of consensus decision-making in certain situation. This system ensures that the group feels involved in the decision, whilst ensuring that the manager can still maintain an influence over the outcome.
Managers are expected to take a holistic interest in their subordinates and this necessitates greater involvement in much more personal areas of life than would be expected in Anglo-Saxon countries, where work and private are very strongly separated.

Prepared by: Frances Shand M. Cagas BSBA-2