...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...
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...Business Etiquette of South Korea The environment of the large American corporation is an extreme, complicated, and dynamic place. The corporate structures of the vast majority of these substantial companies are mainly quite similar: they each contain departments such as marketing, finance, human resources, and information technology. Compare any two major companies, such as Microsoft and Exxon, and one will see these similar departments working towards their own goals, but in completely different ways and in a myriad of styles. Differences such as dress code, management techniques, moral values, business strategies, and even location can make each company a unique world unto itself. American employees are trained and experienced in dealing with one another in order to obtain a mutually beneficial outcome. But in today’s global economy it is virtually impossible to succeed as one of these large companies without extreme contact with other cultures and familiarity with their business etiquette. South Korea is a prime example for cross-culture training and understanding of foreign business practices. With South Korean based companies such as Samsung, LG Electronics, and Hyundai/Kia, and the country’s incredible record of growth over the past few decades, Forbes Magazine has rated South Korea the 30th best country in the world for business. (www.forbes.com) In order for a U.S. company to make progress with a corporation, or even attempt to enter the South Korean market,...
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...Global Business Cultural Analysis South Korea By: Erik Mays Liberty University BUSI 604 Dr. Romanoski May 9, 2014 Abstract In this research paper I will be analyzing the cultural perspectives of doing business in South Korea. In doing so, I will be answering the four major questions as it relates to the major Elements and Dimensions of culture in South Korea. Also, since the dimensions of culture in any nation are many, it is necessary to analyze each category that makes up the Dimensions of one’s culture, these categories have been in place for many years in any given country. If we simply consider the Dimensions of Culture in the United States alone, which range from Religion to our Ethical standards, it would be clear that there are many categories within each of those. Therefore, it is important to analyze each category in detail, in an attempt to determine exactly what it will take to do business in that country or any country across the globe. This research paper will attempt to identify those major elements and dimensions of culture in South Korea. Once these elements and dimensions have been identified, it would give a clearer picture on how South Koreans integrate those elements and dimensions into their everyday business. Also, when comparing South Korean and the United States culture and business, there would naturally be implications that should be considered for US businesses that want to do business in South Korea. This research will also address those...
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...Global Business Cultural Analysis of South Korea John Smith University of Rochester BUS 800 – INTERNATIONAL BUSINESS Dr. Peterson March 6, 2015 Abstract Today, the United States conducts a substantial amount of business with South Korea. It is important that American managers, entrepreneurs, and businessmen understand the South Korean social, cultural, and religious dimensions of the nation. The South Korean culture and customs are uniquely different from those of the United States. The culture and customs of the United States are based on European traditions and religious Christian beliefs. The culture and customs of South Korea are based on Confucianism’s way of life, Buddhism’s individual salvation, and since the 1950’s Christianity’s redemption of the soul. American businesses that incorporate South Korean culture into American business practices will develop long lasting business relationships with their South Korean counterparts. American businessmen working in multinational corporations have adjusted well the collectivist culture of South Korea. Multinational enterprises considering cross border business in South Korea can feel safe investing in South Korea. Keywords: South Korea, United States, cultural dimensions, multinational business, Hofstede. Introduction South Korea is one of the United States most important strategic and economic partners in Asia. Members of Congress tend to be interested in South Korea for political purposes. South...
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...” discusses how women in South Korea are conflicted when it comes to their careers. Although, the women of South Korea are slowly changing the corporate culture there are some men who are resistance to change. They’re use to the educated women of South Korea choosing the traditional career path, careers in the fields of education. But due to the Asian financial crisis in 1998 where thousands of men lost their jobs or took pay cuts, and their wives had to assist financially. Due to this situation women started small businesses and worked part-time job, and a couple of years later the Korean government banned gender discrimination in the workplace, requiring businesses with 500 employees to provide child-care facilities, creating additional opportunities for women. This minicase shares a story about a Korean women name Choi Dong Hee who worked for SK research arm she was the only woman who’d worked for the company. Choi believed that the company didn’t recognize nor did they utilize her talent. So, Choi demonstrated her talent by creating and conducting a yearlong study recommending the company to modify their policy permitting subscribers to use any wireless portal. Choi proposal was denied, but she didn’t give up she was consistent, dedicated to her vision, and convincing. In the end SK adopted Choi’s policy, and SK quickly recognized that the women’s viewpoint can assist SK with serving its customers (McGraw-Hill, 2012). SK’s Business Strategy Since 2003, SK Telecom...
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...Social Factors Affecting Businesses in South Korea Social factors refer to the influences in a group of people’s lives or a nation at large that cause them to behave in a certain way or adapt a certain system of living. South Korea is affected by its distinct and homogenous belief system that has created a sense of pride in its people and this consequently influences every avenue of their lives. It is also known for its s technological advancements and innovations which have been mashed up with the culture but this still makes it a good market for the DUBAL Company. The first factor that the company will face is the South Korean culture that embraces a culture of gift giving in order to create trust and these are given within the first meeting. It is very important that the gift is received with both hands and that the host gives his gift first which is met by a gift of equal value in order to save face (Communicaid Group Ltd., 2006). The DUBAL Company will thus have to take such cultural practices into serious consideration as the S.Koreans take personal relationships very seriously. The second factor to be considered is that South Koreans expect contracts to be signed at the beginning and not at the end of negotiations unlike with other cultures though they expect the terms of the contracts to remain flexible enough. The DUBAL Company will thus have to make room for such practices as the S.Koreans do not take the contract to be more important than the creation of good...
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...South Korea I. Cross Cultural Differences A. Language: One of the most difficult cross cultural differences to overcome is the language barrier that exist between South Korea and the United States. South Korea officially speak and write the Korean language this helps to unite the 65 million people living on the Korean peninsula, and it will be important for any company seeking to do business in Korea to use representatives who are fluent in writing, speaking, and using the subtle nuances of body languages expected in the Korean language in order for Korean investors to feel that our company truly cares about the Korean way of life. Following this paragraph there are a few of the faux pas that would be seen innocently in America, but would offend a South Korean business person. 1. Written language: It will be important for any company moving to South Korea to be sensitive when it comes to translating written documents while red ink is often used in editing, or to grab attention. However, the names of individuals should never be written in red ink in South Korea because red ink is used to list the names of the dead and is considered bad luck. 2. Body Language: South Koreans use a unique blend of eastern and western culture where they first bow, and then shake hands. It is important to note that the person of lower status initiates the bow, but the person of higher status will initiate the handshake. Any representatives sent to business meetings with South Korean investors...
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... And South Korea 대한민국 Introduction South Korea and Japan have had a close relationship from ancient history to the present day. Because of this reason, their economic growth and development have similarities and disparate differences. This paper will discuss some of the two countries’ major characteristics including geographic, social, and political characteristics and look at their histories and economies. Another reason that it is natural to compare them is their economic growth has mirrored one another. Both emerged from a war with its economy devastated and its infrastructure in ruins. Both countries changed with the economic climate of the time and took advantage of foreign investment in order to rebuild. Finally, both countries used their strengths to develop their economies to the point that they are world leaders in their field. Finally, both counties enjoy close political and economic relations with the United States, with each country being among our Top 10 largest trading partners. We have been a good friend to both, which has helped to stabilize relations in the regions between the two. Brief History (Since World War 2) The Korean Peninsula was occupied by Japanese forces for 35 years, from 1910 until the end of WW2 in 1945. Due to existing agreements, Japanese forces in Northern Korea surrendered to the Soviets and those in South Korea to the United States. The Korean War (1950-1953) was an attempt by communist North Korea (with China’s...
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...Threats 16 Objectives and Market Entry Strategy 16 Objective 1(Short term: 12 months) 17 Objective 2 (Medium Term: 1-3 years) 17 Objective 3 (Long Term: 3-5 years): 18 Internationalisation objectives 18 Marketing Mix 19 Product 19 Price 21 Table 6 21 Table 7 21 Promotion 22 Place 23 People, processes and physical evidence 24 Implementation 25 Table 8 26 Figure 3 26 Figure 4 27 Control 27 Figure 5 28 Bibliography 28 Executive Summary This report has been produced to provide Iceland Foods Group with a strategy to further internationalise. After investigation of potential countries it was decided that South Korea was the best market to enter. Analysis has been undertaken into both the external and internal environments with regards to South Korea and Iceland. Research into the frozen food sector in South Korea has shown the market is growing .The success...
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...Situation The United States-South Korea Free Trade Agreement (KORUS FTA) is a trade agreement between U.S. and South Korea. Signed on June 30, 2007 by President George W. Bush still has to be approved by Congress. This Free Trade Agreement would be the largest for South Korea and the second largest for US, after the NAFTA. As the fourteenth largest economy of the world, South Korea is the seventh largest trading partner of the United States. An agreement was reached in which it was concluded that an FTA between both countries would increase the investments industry and bilateral trade. In the proposed FTA issues like trade, investments, autos, agricultures, and financial services were included. However, there has been some dispute over the KORUS FTA (mainly about the auto and agricultural industry), which hasn’t allowed it to be finalized. U.S. debates about the non-tariffs impact South Korea can impose on the beef and automobile industry. Recommendations: In order for the KORUS FTA to be eligible for approval and both parties can be benefit from economic growth, an alliance, and stability, some changes need to be done. This review recommends approval to change the following key point of the agreement: • Auto industry: 1. The United States should ensure the complete or mostly elimination of South Korea’s non-tariff barriers that are created without input from foreign automakers and forced without warning. For example, the license plate size, keyless entry systems...
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...Bringing Western Culture to South Korea via Nursing Home, Plastic Surgery, Clothing and Makeup Jacob Schwarz Executive Summary My reason for writing this study is to determine the feasibility of building a nursing/retirement home, a plastic surgery outpatient center, and a cosmetic and clothing store in Seoul, South Korea. In my opinion, South Korea is welcoming to this venture; this can be seen in the upcoming research. In this report, I explore the geography of Seoul, South Korea. I learn of the growing, large, population and the population density of 45,000 people per square mile (“Population Statistics,” 2013). Next, I review the demographics and find out that minority groups consist of 2.2% of the population (Population Statistics, 2013). While reviewing the demographics I found that the education system is extremely strict; though it is more lenient now, it is still success driven (Chakrabarti, 2013). I also found that religion is not going to be an issue with this venture, in my opinion. There are two major religions; the major Christian religion will be implemented in the venture (Koo, n.d.). Education and demographics are important to a global business venture, though I believe the economy is most important. I present information about South Korea’s economy, and how it has transformed from an aid recipient to a donor country (Globalization, n.d.). Here is where I mention the chaebol’s success, which accounted for 55.7% of South Koreas GDP in 2010 (Globalization...
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...Measuring and comparing business cultures South Korea Vs Spain Ivan Kuzevanov - Panagiotis Sarantidis – Jaime Carvajal Treschov Alexey – Maria Safarovic World Business Cultures [pic] Business culture in South Korea The Republic of Korea (South Korea) is a constitutional democracy, has a population of roughly 51 million people, occupies a land of 99,720 square kilometers, and its currency is called Won ($USD=1073,43KRW, 3/3/2014). About 50% of the population practices religion (10,7 mil. Buddhists, 8,6 mil. Protestants and 5,1 mil. Catholics). The country of Korea was occupied by Japan since 1910 and it was split up after the Japanese loss in 1945, under the agreement that the north part would be administered by the Soviet Union, while the southern part by the U.S.A., and is divided to North and South Korea to this day. Geert Hofstede’s Cultural Dimensions Power distance At an intermediate score of 60, South Korea is a slightly hierarchical society. This means that people accept a hierarchical order in which everybody has a place and which needs no further justification. Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates expect to be told what to do and the ideal boss is a benevolent autocrat. Individualism South Korea, with a score of 18 is considered a...
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...YuFong Fan (ID No. 0655330) & Jitin Kochhar (ID No. 0654351) ITM151: Global Trade Research Assignment #2 Research Outline 1 Oct. 14, 2012 Professor Floyd Simpkins St. Clair College COUNTRY A: JAPAN 1. Political Environment Political Stability: Political stability of the country indicates towards the positive or negative affect on the Trade of a particular product. Our product is Canadian chocolate which can have a great potential to perform business in Japanese market because of its strong Political Stability. The Political Stability is based on a given country's record of peaceful transitions of power, ability of a government to stay in office and carry out its policies vis a vis risk credible risks of government collapse. Japan’s Political Stability index is 9 on a scale of 10. This shows a high Political stability. (Watch, 2011-2012) Barrier: Import Tariff Rate: 10% (Tariff, 2011) Risks: • Strict Trade policy for chocolate trading. • Diplomatic events in surrounding countries, results in less trade. Opportunities: Japan is the world’s fifth largest agri-food importer and one of the most significant export destinations for Canadian agri-food products. More and more Japanese consumers are willing to pay a premium price for quality food with healthy ingredients, as these consumers are increasingly interested in their health. This makes Japan a potentially attractive market for Canadian exporters of high-quality chocolate...
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...PESTLE analysis PESTLE ANALYSIS Summary South Korea has been politically stable since becoming a democratic state. However, its relationship with North Korea continues to present a strong challenge. South Korea fell into a brief financial crisis in 1997 due to structural weakness in the banking sector, however strong economic and financial reforms quickly countered the downturn and put the country back on a growth path by the following year. With the opening up of markets after the financial crisis in 1997, the country became one of the largest technology markets in the world. As far as social issues are concerned, the country has low population growth and fertility rates, leading to an ageing population. Furthermore, the country has a highly qualified labor force, which makes it possible to both produce and commercialize advanced technologies. The country is also well equipped with extensive broadband network and telecommunication facilities. Legal procedures in the country are time consuming and complex, which makes it very difficult for foreign investors. The environmental scenario of the country is characterized by the breach of emission standards, which is reaching unreasonable limits in spite of its relatively small area and population in comparison to other countries. Republic of Korea: Country Analysis Report – In-depth PESTLE Insights © Datamonitor. This brief is a licensed product and is not to be photocopied Published 06/2008 Page 11 PESTLE...
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...have gained working with other similar situations. South Korean business would be the choice of a new client. In order to effectively adhere to their needs the choice of approach would be the regiocentric staffing approach. This approach will allow us to have an understanding of HRM policies that are given across all the subsidiaries. “This approach considers the needs of the entire region and managers from the host country are often selected for managerial positions in their own country and some may be promoted to regional positions” (McGraw-Hill, 2011). This lets our client know that we are all about finding the best person for the job. This is somewhat the same of what is done in the military in South Korea. The SOFA agreement prevents the United States Government from hiring mostly Americans for the jobs. The agreement is that the Korean Nationals are to hold at least 75% of the jobs on base. That has proven to be true. Every store and restaurant on every base in South Korea is operated by Koreans. It is not easy for any American to get a simple part time job. This is why regiocentic staffing would prove to work effectively. That way jobs are filled based on their nationality in order to keep the confidence of having a new client relationship with the United States. 2. Identify the areas of overlap in the new client organization with others that you have had as clients. Areas of overlap are that Koreans Nationals do business differently. In the United States it may take a person...
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