...Korean Business Etiquette Tips While North Korea is still attempting to transition from a planned economy to capitalism, South Korea has a thriving, trillion-dollar economy, the 4th largest among Asian countries. Because of this, South Korea is an ideal place for business people to develop new clients and colleagues for expanding into Asian markets. As with any international business interaction, knowing the ins and outs of proper business etiquette will be key to your success. Because just a few missteps could cost you a business deal, practicing proper Korean business etiquette will impress your Korean colleagues, demonstrate your finesse in the business world and help you solidify a lucrative new business relationship. Korean Business Meeting Etiquette Korean business meeting etiquette is highly ritualized, as the Koreans' appreciation of conformity, rules and order dictates specific ways of doing business in Seoul and throughout South Korea. Here are some Korean business etiquette tips to help you appropriately interact with your foreign colleagues: • Avoid saying 'no' directly. Instead, indicate disagreement or reluctance by inhaling air through closed teeth, tipping your head backwards and/or saying 'maybe.' • Break up your speech with pauses for questions and to facilitate translation. Try to pause between points you articulate allowing your colleagues time to listen to the Korean translation, digest your information and ask you questions. It is also important...
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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...
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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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...specific given country (South Korea), economic, socio-cultural and legal and political environment. Economic environment Past four decade South Korea showed an impressive growth as well as global integration to become a high tech industrialized economy. In past in 1960s, the Gross Domestic Product (GDP) per capita was compared to the poor countries (Africa and some parts of Asia), by 2004, it joined the trillion dollar club of world’s economies and currently in the top twenty largest economies (Globserver Asia, 2013). They achieved this by placing the system of close government and business ties, also including directed credit and import restrictions (Central Intelligence Agency, 2013). In 2012 due to the market slowdowns in United States, Eurozone and China, the economy has experienced slow growth. Though it is the 8th largest exporter in the world ($548.2 billion) which decreased 0.21% from prior year. The export goods are semiconductors, wireless communications equipment, motor vehicles, computers, steels, ships and petrochemicals (Central Intelligence Agency, 2013). In 2012 the country’s GDP was $1.622 trillion which ranks 13 on the world scale which increased 2.7% from previous year, and a GDP capita in US dollars was $32,400. The real GDP growth rate was 2.7%. The unemployment rate was 3.8% and the inflation rate was 2.2% (Central Intelligence Agency, 2013). Socio-cultural environment Main language spoken and written in South Korea is Korean. The religious belief...
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...successfully enter the country of South Korea. South Korea has strong ties to the United States government and has a similar quality of living as the United States there will not be a huge labor cost advantage however, there won't be a disadvantage. This report however, will focus on cultural differences not the business model for entry which should be done with a joint venture with a local company. Major potential cross cultural issues could be the following Language Barriers, Foreign Culture, Environment, Labor, and Ethical Differences. We will look at these one at a time. Language Barriers the spoken Language of South Korea is of course Korean so Company A will need a interpreter that is fluent in both Korean and English and have a very good understanding of both cultures to avoid confusion during translation and to avoid offending the two parties. Company A will also have to have all documentation translated and then translated back to ensure that the communication is consistent in both directions. It is also important to understand body language and gestures. A great example of this is when meeting it is proper protocol to bow and shake hands with the person of lower status initiates the bow and says "man-na-suh pan-gop-sumnida" which is similar to saying "pleased to meet you" then the more senior person initiates the hand shake. Information is received prior to the meeting. Another example is when gift giving or presenting your business card after meeting someone you use...
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...Culture has a major influence on international and local businesses. Firms today have to deal with the reality of cultural diversity not just on the international business scene but also within their organizations. Understanding this diversity and successfully interpreting it helps to realize and take advantage of the opportunities provided by globalization. Analyzing the cultures of triumphing companies and countries helps to compare, contrast and learn from their path to glory. Based on these facts, this research paper will study three different successful electronics companies from three different countries/cultures. These are Apple Inc. of USA, Samsung Electronics of South Korea and Sony Corporation of Japan. Apple and Sony Corporation are both involved in many types of business activities and Samsung Electronics is part of a larger multinational conglomerate (Samsung group) which comprises numerous affiliated international businesses. However due to size and commonality of products, this research will focus on their electronics business with specific attention to Mobile devices (Smartphone and mobile computing devices). This research paper will briefly touch up on the activities of the three companies and how cultures of their respective countries influence their corporate culture, management style and overall business activities. The purpose of such research is to analyze the corporate culture of each company in relation to their respective country of origin and present a comparative...
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...Mia Rose December 11, 2013 When conducting business with foreign countries it is important to be knowledgeable in many aspects of that country. There are many differences between foreign countries and the United States when it comes to dealings with business transactions. For example business partners within the United States tends to lean towards an interpersonal level and having other form of relationship outside is frowned upon. In Asian countries businesses will not even begin negotiating until a relationship is built and there is a level of trust. The use of a middle man can be helpful when negotiating in order to gain an understanding of the background information of the foreign negotiators. Aside from the importance of etiquette and social customs it is important to know the negotiating tactics employed. When doing business with China, Japan, and South Korea it is important to know the differences between each individual country. While they are all Asian countries and there are many similarities in etiquette there are many differences when dealing with negotiations. Before negotiations starts one must be conscientious of attitudes and styles, the sharing of information, pace of negotiations, and bargaining. China and South Korea share the attitude and style of distributive and contingency, while Japan is more cooperative. The Japanese see “negotiating as joint problem solving”. (Lothar Katz) China and South Korea’s distributive and contingency style of...
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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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...Values, Norms, Traditions, and Narratives of North Korean Culture Even though the cultural values of North Korea are always evolving,I felt that the following values and norms are fundamental to their culture. Harmony in personal relationships is a dominant force in a Korean’s life (Moerch). Facts, logic and conclusions are often not nearly as important as how one is looked upon by others. Friendships are tight-knit and valuable. It is an insult to refuse a friend’s request. It is even less forgivable to fail a superior. These friendships are possible because everyone does his or her best to preserve the harmony of good feelings. The bearer of bad news may smile to soften the blow, or they may avoid giving the news, even if s/he is merely the messenger and in no way responsible for it. It is very hard for Koreans to admit failure and it is devastating to lose face in Korean culture. The directness of Westerners is thoroughly unpalatable to many Koreans (especially older and/or more traditional people), whose self-esteem is often on the line. In Korea, it is very important to maintain “kibun” or the feeling of being in a in a comfortable state of mind. Kibun has no literal translation in English. However, 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...
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...Doing Business in South Korea South Korea has to be classed as one of the world’s great economic success stories. Along with Taiwan, South Korea is the only country which has recorded five consecutive decades of economic growth in excess of 5%. This is an amazing achievement which is the result of careful governmental macro-engineering, sound business practice and sheer hard work from the population at large. Economists feel that, given the lengthy stagflation seen in Japan, that it will not be too long before South Korean levels of prosperity are at a par with Japan. Both South Korea and Japan are intensely conformist societies (one of the many similarities between the two countries) but they differ in one fundamental thing. When faced with hardship or adversity the Japanese tend to turn inwards and backwards towards the familiar and comfortable whereas the South Koreans are absolute masters of change and rebuild. If things aren’t working, they just change them and they have proved adept at doing this very quickly and very effectively – you only need to look at the contrasting reactions to the crisis that hit Asia in the 1990’s. Japan is, arguably, still recovering while South Korea has long been in rude health. South Korea has also re-invented itself as the cultural epicentre of Asian culture. Korean pop music, or K-pop, has been exported with great success all over the continent and Korean TV dramas are watched from Tokyo to Beijing. South Korean films are...
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...Global Business Cultural Analysis: Republic of Korea Abstract The purpose of this paper is to provide information to business professionals about the Republic of Korea, the Korean culture, and the peculiarities of conducting business in this country. The topics discussed include a brief historical background about the nation, its dimensions of culture, how these elements are integrated by Koreans, and a comparison between these characteristics and American culture and business practices. The paper examines the implications for US firms wishing to do business in Korea using Hofstede’s Dimensions of culture, a SWOT analysis, and FDI analysis. Keywords: culture, religion, Confucianism, innovation, export, KORUS FTA Historical Background of Korea The Republic of Korea (ROK) is commonly known as South Korea. For the remainder of this paper, the ROK will be synonymous with "Korea". Korea is located in northeast Asia on the Korean peninsula between the Yellow Sea and the Sea of Japan. It borders the Democratic People's Republic of Korea (DPRK), also called North Korea (nK), immediately to the north, across the 38th parallel. Korea's total land area is nearly 62,000 miles, slightly larger than Indiana (www.cia.gov). It has an ethnically homogeneous population of over 49 million people, 83% of which live in urban areas (www.cia.gov). According to legend, Korea's birth as a nation was in 2333 BC with its early inhabitants coming from and heavily influenced by China...
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...KOREA Managing International Cultural Differences Fall 2010 Introduction The Republic of Korea, also known as simply South Korea or even just Korea has an extremely long, rich, and varied history. Some Korean mythology has the origins of Korea dating as far back as 2333 B.C. The first settlements occurred 700,000 years ago. The Goguryeo kingdom prospered from 37 B.C. until they fell to an alliance of Silla and Tang forces in 668 A.D. The Unified Silla Kingdom promoted development of culture and arts, and the popularity of Buddhism reached its peak from 676 – 935 A.D. The Goryeo Dynasty was established in 918. Buddhism became the state religion during this time and greatly influenced politics and culture. The Goryeo Dynasty’s strength decreased gradually in the latter half of the 14th century. The Joseon Dynasty was formed at the end of the 14th century and during this time Confucianism became the state ideology. The Joseon Dynasty produced the Korean alphabet, which was invented in 1443. Their power declined because of the Japanese invasion of 1592. The Japanese annexed Korea in 1910 and the Korean people suffered under their rule until Japan surrendered in 1945 to the United States of America which ended World War II. The economic and business industry continued to develop and change throughout this long period of history in which Korea was alternately controlled, occupied, unified, invaded, at war, at peace and at a cease fire by and with various other...
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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. 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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...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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...Korean Vs Us Management Essay Compare and Contrast US managers with the Managers of the Rebublic of Korea – business Introduction We have chosen to compare and contrast U.S. managers withthe managers of The Republic of Korea (ROK). The ROK is a tinynation of 42,621,000 people residing precariously on the southernhalf of the Korean Peninsula (Cook l995). It has a very highpopulation density with 1.121 persons/ sq. mile. They areethnically homogenous with 99.9% being Korean and .01% Chinese. The age distribution is 30% under 15 years of age and 4.3% overage 65. They have a life expectancy of 73 years of age forfemales and 66 year of age for male. The primary religions are Confucianism, Mahayana Buddhism,Ancestor Worship, Shamanism and Ch’ondagyo which account for 66%of the population with another 28% practicing the Christianreligion. The Han’gul writing system is the official language of Koreawith English being widely taught in many schools. The governmentis made up of the executive and legislative branches. The Headof the State or the Executive President is elected by directpopular vote for a 5 year term. The Legislature is comprised ofa 299-member National Assembly which is elected on a 4 year termby universal adult suffrage. The economy is estimated to produce GDP of US $121,310million with a per capita income of US $4,045/ year. The totalnumber of persons active in the economy was 16,900,000 with a 3%unemployment rate and a literacy rate of over 90% (East 1990). Koreans are...
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