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Despite outside influences from its neighbouring countries, South Korea has maintained a distinct and homogeneous identity influenced by its religious and Confucian beliefs.
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South Korea Today
Korea was liberated from Japanese occupation at the end of World War II, only to be faced with the Cold War struggle that divided the country into two separate states: the southern democratic republic and the northern communist style government. The people of South Korea share a common pride in the country’s unique cultural and linguistic heritage that has emerged during this long and turbulent history. As a result, South Korea boasts an enriched cultural outlook that is reflected in its current business culture.
Korean Culture – Key Concepts and Values
Kibun – The word ‘kibun’ has no literal translation in English and even Koreans can sometimes disagree on its very meaning. ‘Kibun’ is a concept that permeates every facet of Korean life and can be described in terms of pride, face, mood or state of mind and feelings. 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 to identify another’s state of mind, often referred to as ‘nunchi’, is crucial to successful business ventures. For this reason, you must be aware of subtleties in communication, observing non-verbal and indirect cues that often suggest the true sense of what is being communicated. Failure to respect your counterpart’s ‘kibun’ might lead to a cultural misunderstanding or conflict.
Inhwa – Drawing from Confucian beliefs, the term ‘inhwa’ signifies the Korean approach to harmony and is closely related to the name of the village ‘Inhwa’. As a collectivist society, consensus is an important element in promoting and maintaining harmony in Korea. To avoid disturbing ‘inhwa’, Koreans will often reply with a positive answer and show reluctance to give direct refusals. In Korean business culture this manifests itself in an innate sense of loyalty, employee obedience and courteous and formal behaviour.
Confucianism – Confucianism became a common philosophy in ancient Korea bringing about significant changes and exerting considerable influence on the Korean people. With its roots set deep in Korean culture, Confucianism continues to pervade the consciousness of many Koreans, shaping the Korean moral system, its national laws and general way of life. The ubiquitous Confucian beliefs and values of contemporary Korean society highlight a plethora of social concerns and include obligation towards others, respect for family, elders and authority, loyalty, honour and filial piety.
Personal Relationships – In Korea, personal relations take precedence over business. In order to be successful, it is vital to establish good, personal relationships based on mutual trust and benefit. Korean business culture is firmly grounded in respectful rapport and in order to establish this, it is essential to have the right introduction and approach the company through a mutual friend or acquaintance at the appropriate level. Koreans spend a significant amount of time developing and fostering personal contacts. Therefore, time should be allocated for this process, particularly during the first meeting, which is frequently used to simply establish rapport and build trust. Once good, solid relations have been recognised in Korea, continuous reinforcement and maintenance is vital.
Doing Business with Koreans
The changing face of South Korea continues to evolve at an unprecedented pace. In the years that followed the Korean War, South Korea experienced rapid economic development. After the Asian financial crisis of 1997 and 1998, the government adopted numerous reforms which helped to open the South Korean economy to foreign investment. The country has since continued to prosper in today’s modern world economy. As a major exporter of cars and electronic goods, it has become one of Asia’s most affluent nations. The present-day increase in business opportunities in South Korea only increases the importance of cultural knowledge for those wishing to enter into this modern day market.
Korean business Part 1 – Working in Korea: Working practices in Korea
Structure and hierarchy in Korean companies
Working relationships in Korea
Korea business Part 2 - Doing business in Korea: Business practices in Korea
Korean business etiquette (Do's and Don'ts)
DO show modesty and humility as these aspects are extremely important in Korean culture. With this in mind, you must try to avoid over-selling previous business achievements.
DO make direct eye-contact when addressing Korean business professionals as it is important to indicate your honesty and interest. However, some Koreans do not make eye-contact for any length of time when in the presence of an authority figure as a sign of respect.
DO refrain from being overly impatient. The decision-making process in Korea is often done collectively and will therefore require more time.
DON’T address a Korean by his or her given name as it is considered extremely impolite. Korean names begin with the family name and are followed by a two-part or one-part given name. The correct way to address a Korean is with Mr, Mrs or Miss together with their family name. You should address your Korean counterparts using appropriate titles until specifically invited to do otherwise.
DON’T display criticism in public. It should be conducted in private where loss of face will be diminished. In a similar vein, opposing someone directly can also cause a Korean to lose face and should be avoided.
DON’T use large hand gestures or facial expressions. Talking or laughing loudly is also considered impolite in Korean culture.
Korean Culture Quiz – true or false
1. The number 4 is considered to be unlucky in Korea so never give a gift made up of 4 items.
2. When entering a group meeting in Korea, the senior member of your party should enter the room first, then the next highest ranking person and so on. Koreans will also be seated according to rank.
3. The colour red symbolises prosperity and happiness in Korea. Writing a person’s name in red ink means they will have success in the future.
4. Your Korean counterparts will prefer you to contact them directly and they appreciate you simply popping in to see them.
5. When visiting a Korean family’s home it is vital to take off your shoes when first entering the house in order not to offend your host.
Korean Culture Quiz – Answers
1. True.
2. True.
3. False. Signing a contract or writing a person’s name in red ink is the worst thing you can do in Korea, since this indicates that the person is deceased.
4. False. It is important to have a formal introduction to any person or company with whom you want to do business with in Korea.
5. True.
South Korea Today
Korea was liberated from Japanese occupation at the end of World War II, only to be faced with the Cold War struggle that divided the country into two separate states: the southern democratic republic and the northern communist style government. The people of South Korea share a common pride in the country’s unique cultural and linguistic heritage that has emerged during this long and turbulent history. As a result, South Korea boasts an enriched cultural outlook that is reflected in its current business culture.
Korean Culture – Key Concepts and Values
Kibun – The word ‘kibun’ has no literal translation in English and even Koreans can sometimes disagree on its very meaning. ‘Kibun’ is a concept that permeates every facet of Korean life and can be described in terms of pride, face, mood or state of mind and feelings. 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 to identify another’s state of mind, often referred to as ‘nunchi’, is crucial to successful business ventures. For this reason, you must be aware of subtleties in communication, observing non-verbal and indirect cues that often suggest the true sense of what is being communicated. Failure to respect your counterpart’s ‘kibun’ might lead to a cultural misunderstanding or conflict.
Inhwa – Drawing from Confucian beliefs, the term ‘inhwa’ signifies the Korean approach to harmony and is closely related to the name of the village ‘Inhwa’. As a collectivist society, consensus is an important element in promoting and maintaining harmony in Korea. To avoid disturbing ‘inhwa’, Koreans will often reply with a positive answer and show reluctance to give direct refusals. In Korean business culture this manifests itself in an innate sense of loyalty, employee obedience and courteous and formal behaviour.
Confucianism – Confucianism became a common philosophy in ancient Korea bringing about significant changes and exerting considerable influence on the Korean people. With its roots set deep in Korean culture, Confucianism continues to pervade the consciousness of many Koreans, shaping the Korean moral system, its national laws and general way of life. The ubiquitous Confucian beliefs and values of contemporary Korean society highlight a plethora of social concerns and include obligation towards others, respect for family, elders and authority, loyalty, honour and filial piety.
Personal Relationships – In Korea, personal relations take precedence over business. In order to be successful, it is vital to establish good, personal relationships based on mutual trust and benefit. Korean business culture is firmly grounded in respectful rapport and in order to establish this, it is essential to have the right introduction and approach the company through a mutual friend or acquaintance at the appropriate level. Koreans spend a significant amount of time developing and fostering personal contacts. Therefore, time should be allocated for this process, particularly during the first meeting, which is frequently used to simply establish rapport and build trust. Once good, solid relations have been recognised in Korea, continuous reinforcement and maintenance is vital.
Doing Business with Koreans
The changing face of South Korea continues to evolve at an unprecedented pace. In the years that followed the Korean War, South Korea experienced rapid economic development. After the Asian financial crisis of 1997 and 1998, the government adopted numerous reforms which helped to open the South Korean economy to foreign investment. The country has since continued to prosper in today’s modern world economy. As a major exporter of cars and electronic goods, it has become one of Asia’s most affluent nations. The present-day increase in business opportunities in South Korea only increases the importance of cultural knowledge for those wishing to enter into this modern day market.
Korean business Part 1 – Working in Korea: Working practices in Korea
Structure and hierarchy in Korean companies
Working relationships in Korea
Korea business Part 2 - Doing business in Korea: Business practices in Korea
Korean business etiquette (Do's and Don'ts)
DO show modesty and humility as these aspects are extremely important in Korean culture. With this in mind, you must try to avoid over-selling previous business achievements.
DO make direct eye-contact when addressing Korean business professionals as it is important to indicate your honesty and interest. However, some Koreans do not make eye-contact for any length of time when in the presence of an authority figure as a sign of respect.
DO refrain from being overly impatient. The decision-making process in Korea is often done collectively and will therefore require more time.
DON’T address a Korean by his or her given name as it is considered extremely impolite. Korean names begin with the family name and are followed by a two-part or one-part given name. The correct way to address a Korean is with Mr, Mrs or Miss together with their family name. You should address your Korean counterparts using appropriate titles until specifically invited to do otherwise.
DON’T display criticism in public. It should be conducted in private where loss of face will be diminished. In a similar vein, opposing someone directly can also cause a Korean to lose face and should be avoided.
DON’T use large hand gestures or facial expressions. Talking or laughing loudly is also considered impolite in Korean culture.
Korean Culture Quiz – true or false
1. The number 4 is considered to be unlucky in Korea so never give a gift made up of 4 items.
2. When entering a group meeting in Korea, the senior member of your party should enter the room first, then the next highest ranking person and so on. Koreans will also be seated according to rank.
3. The colour red symbolises prosperity and happiness in Korea. Writing a person’s name in red ink means they will have success in the future.
4. Your Korean counterparts will prefer you to contact them directly and they appreciate you simply popping in to see them.
5. When visiting a Korean family’s home it is vital to take off your shoes when first entering the house in order not to offend your host.
Korean Culture Quiz – Answers
1. True.
2. True.
3. False. Signing a contract or writing a person’s name in red ink is the worst thing you can do in Korea, since this indicates that the person is deceased.
4. False. It is important to have a formal introduction to any person or company with whom you want to do business with in Korea.
5. True.
