Tips on Doing Business in South Korea

Koreans are more independent and individualistic than their Asian neighbors. They are the most straightforward of all Asians but can also be defensive, a trait stemming from a history of invasion by their neighbors.

Foreigners should attempt to show proper respect to Korean supervisors. This includes not putting anything on the manager’s desk (not even sales literature) during a presentation. Korean executives are very territorial about their desks.

Koreans do not maintain as much eye contact as North Americans. As a general rule, Koreans of equal status will look at each other only half of the time during their conversation. When persons are of unequal status, the lower-ranking person will often avert his or her eyes during much of the conversation. Extended or intense eye contact can be associated with anger. North Americans who try to maintain continuous eye contact with a Korean may appear hostile or aggressive.

Negotiating

• At each meeting, take time to talk to your counterpart. The first meeting should be solely for that purpose; never jump right into business discussions. Expect tea to be served at the beginning of the meeting; it is good manners to accept this sign of hospitality. Retain your formality as long as your counterpart does; do not become “chummy.”
• Do not be fooled into thinking that Korea is completely westernized because of its façade of modernization. While the younger generation is open to globalization, traditional values run deep, especially with the older generation. You may find younger executives easier to negotiate with, as they will follow more westernized patterns.
• Business will tend to take place at a slower pace than in Europe or North America. Be patient with delays in decision-making. Often, this is a tactic to wear down the other side. Therefore, do not talk about your deadlines. Expect to make several trips to Korea before reaching an agreement.
• Do not be surprised if a Korean executive does not call you back immediately when you notify his or her office of a problem. Korean employees are very protective of their supervisors’ harmony and traditionally will not upset their boss with a problem until the timing is just right. This is especially true at the start of the workday.
• Find out who will be included in the negotiating team for the other side and match the rank of the persons represented. Status is very important, and a mismatch may prove embarrassing to both sides. Generally, representatives should be older and hold senior positions in the company.
• Although this is changing, it is still not common to have women participate in business in Korea. This means that women will have the additional challenge of overcoming an initial hesitancy. It is best to consider this factor and mention to your Korean contact that a woman will be included in the team. This will allow them some time to adjust to the situation.
• Negotiations in Korea will be much more emotional than in Western countries that stress logic and the bottom-line cost. Mutual trust and compatibility will be the basis of a good business relationship. Also be prepared for the style to be aggressive at times. Koreans are much more direct and quicker to express anger or frustration. Remain calm yourself, and do not take everything said during these sessions seriously.
• Consider sending your proposals in advance of your visit for your host to preview. At a presentation, recap the major points at the beginning and the end. Break up the information into small segments with pauses and question-and-answer periods in between. Be patient with extensive questioning. Address the chief negotiator occasionally, even if he does not speak English. Do not use triangular shapes in your promotional material, because triangles have negative connotations.
• Look for cues that your counterpart did not understand you. Silence is one such sign.
• Do not ask or expect Koreans to tell you when this happens, as it will embarrass them. Instead, rephrase your statement or inquire if they would like more information.
• The use of a translator is recommended to avoid these miscommunications. Make a beginning bid that will leave you plenty of room to negotiate. Your counterparts will start off with an extreme position but will be prepared to meet you in the middle. This way both sides come away having gained a lot of ground.
• Brute honesty is not appreciated in Korea. While a direct “no” is more accepted in Korea than in other Asian countries, Koreans are not as direct as many westerners. To avoid saying “no,” Koreans will often give the answer they think the other wants to hear. It is more important to leave you with good feelings than to be accurate and cause you dismay. Therefore, learn to listen to subtleties by asking questions that do not require a yes or no answer. A “yes” or nod of the head may mean “maybe” or “I understand.” A “maybe” usually means “no.” A negative response is sometimes indicated by a squint of the eyes or by tipping the head back while drawing air in through the teeth and waiting for you to speak again.
• Be sensitive to the overall length of the meeting. If the Koreans appear curious, take this lead and pursue it. If they return to social chitchat, take this as a sign that they are finished discussing business for the day.
• Bow at the beginning and end of a meeting. An exit bow that is longer than the greeting bow is an indication that the meeting went well.
• Treat the elderly with respect. Acknowledge them first in a group, and do not smoke or wear sunglasses when they are near. If you meet in a doorway, allow the older person to pass through first.
• Modesty is very important. Do not enter a home or office until you are invited, and do not seat yourself until you are asked to do so. Wait for the invitation to be extended several times before accepting. Be modest about your position and accomplishments in your company, and if you receive a compliment, politely refute it. Expect others to do the same. This should not stop you from complimenting another, however, as compliments are appreciated.
• Not losing “face”—the dignity of another person—is a very important and delicate matter. Therefore, never embarrass another person, especially in public. Never criticize your competition or admit that you do not know the answer to a question.
• Do not confuse Korean history and culture with those of any of its Asian neighbors. Korea has a distinctive language, history, and culture, and they are very proud of this. This pride and sense of history is quite strong and constitutes a large part of their selfimage. Koreans are especially sensitive about Japan, so do not bring gifts from Japan or make reference to personal contacts there.
• Be careful not to overly admire an object belonging to another person; he or she may feel obliged to give it to you.
• Koreans tend to be suspicious of people they do not know, or people with whom they do not have a mutual contact. Try to obtain a personal introduction.
• Be prepared to give out a lot of business cards. Have your name, company, and title printed in English on one side and in Korean on the reverse. Cards are very important, since they indicate your rank and are a key to the respect you deserve in their culture.
• Offer your card with your right hand. Never place a Korean’s card in your wallet if you intend to put your wallet in your back pocket. Never write on a business card.
• Do not sign a contract or write a person’s name in red ink. To many Buddhists, this indicates that the person is deceased.
• Do not be surprised if you are asked personal questions, such as how much you paid for something or your salary. These questions are not considered in bad taste in Korea and often reflect an attempt to determine your rank and status.
• Attempts by foreigners to adhere to Korean modes of etiquette will not go unnoticed and may be instrumental in your eventual business success.

Taken from Kiss, Bow, or Shake Hands - The Bestselling Guide to Doing Business in More Than 60 Countries (2006) by Terri Morrison and Wayne A. Conaway.

The article above is only a sample. If you enjoy this kind of stuff, HERE is an extract from the book [pdf format] containing the complete entry about South Koreans.

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