South Korean Business Culture and Etiquette Business Style Koreans prefer to do business with people they know, so an introduction from a trusted third party may be necessary. The first meeting is generally used to establish trust and rapport which are vital to the success of business relationships. Koreans value a strong work ethic. Punctuality and deadlines are diligently adhered to, and commitment to overtime, or reluctance to leave work on time, is common. Employees and employers are reluctant to ask for or grant time off, other than sick days or family-related circumstances. Korea has traditionally adhered to a six-day work week (Monday to Saturday, or half Saturday), but many offices are moving towards a five-day work week. July and August are popular vacation months for many business people, so try to schedule your appointments around that time, as well as other major Korean holidays. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The Korean economic climate still operates through a patriarchal and male-dominated approach. Foreign business women are capable of doing business, but may have to overcome a certain level of discomfort among their Korean male colleagues. Korean businessmen may feel more comfortable if visiting women adopt a refined and modest demeanor and use calm tones of voice. Visiting female managers from more egalitarian cultures may experience great frustration when less senior male members of their team are accorded deference and respect by their Korean counterparts, while their opinions are ignored. Visiting teams who suspect they may encounter this difficulty are advised to consider in advance how to respond to encounters with this cultural gap. Etiquette The traditional greeting and departure gesture is a bow. Greeting men is often accompanied by a handshake. To show further respect, support your handshake, always done with the right hand, by grasping the right forearm with the left hand. Korean women generally don't shake hands. A non-Korean woman may offer her hand to a Korean man, unless he has a higher status, in which case he will initiate the handshake. Be attentive to context and behavior. Eye contact generally conveys attention, although constant eye contact is less appropriate between people of different ranks or between men and women. Physical contact, unless it is from family or close friends, is generally inappropriate. A smile from your Korean counterpart may not indicate approval, but rather embarrassment that he cannot announce publicly. Likewise, a nod during conversation may not indicate agreement, but simply understanding. Other than a handshake, it is inappropriate to physically touch – with a pat on the shoulder or a pat on the back – a Korean. While sitting, keep your feet on the floor; feet are considered dirty and the soles (even if covered by shoes) should always be facing downwards, so avoid stretching your legs or crossing them so that you point the sole of your foot towards someone. Pass objects with both hands or with the right hand supported by the left at the wrist or forearm. Do not point with your index finger. Don't call a person with only one index finger. To wave, extend your arm with your palm facing down and move your fingers up and down. Calling someone of higher position than yours isdisrespectful. Negotiating Negotiating in South Korea can be a rather formal affair. There is prescribed etiquette for most situations in the country and it is important to familiarize yourself with the correct protocols to gain both the respect and trust of your business counterparts. Most South Koreans are not fluent in English and you will likely need to hire a translator. A good translator can help you understand the unique cultural aspects of your counterparts' behavior, allowing you to negotiate effectively. Keep in mind that South Koreans can be difficult negotiators. This does not, however, take away from their emphasis on a strong and friendly business relationship. Respond the same way if they get competitive, but make sure you maintain a good balance between competition and a friendly atmosphere. Meetings South Korea's business culture is highly nuanced and expected behavior is often significantly different from Western social norms. Take time to familiarize yourself with South Korean culture so you can establish a solid foundation of trust and cooperation. A stable, long-term relationship is considered a priority in the business world, and it is important to make an effort to interact with your counterparts on their terms. Preparation: It is a good idea to use an intermediary when making first contact with a potential trading counterparty. The intermediary can help create a feeling of trust during the early stages of the business relationship. He or she can also help bridge the cultural gap between you and your counterparts. A chamber of commerce, bank or embassy can help you find an appropriate contact to fill this role. Send your stakeholders information about your company, its achievements, expertise and what makes its products superior to those of similar companies. South Koreans like to be well informed about their potential trading partners. They also take hierarchies seriously. Provide them with a list of team members before the meeting. List each member of your team in hierarchical order and include titles, roles and qualifications. You will probably need a translator at the meeting. Find out in advance and include extra time for translation in your schedule. Choose a translator who is multicultural and multilingual. A good translator can also help you understand important cultural nuances. It's probably a good idea to hire a male translator, as South Koreans often don't consider women entirely equal in the workplace. If your interlocutors offer to provide a translator, politely decline: you want a translator who is part of the same team as you, to give you the maximum advantage. Be sure to plan a strategy with your translator before the meeting. Have a practice session. It's important to make sure you work well together. Using a few phrases in South Korean can make a good impression on your co-workers. Scheduling In South Korea's formal business environment, meetings must be scheduled well in advance. Keep in mind that your South Korean colleagues may be reluctant to let you know directly if they are not interested and may instead respond with a very weak expression of interest. Your intermediary can help you tailor your presentation to your specific audience. Make sure you put together a well-developed presentation; include a complete agenda and a clear proposal. You will need to bring all the necessary equipment for your presentation. When scheduling your appointment, be sure to request those items you cannot provide (such as a sound system or projector). Work Attire Koreans tend to dress well and quite conservatively. If you fit inthis dress during the visit, shows respect for the host culture. Standard attire for men is a professional Western-style suit in dark or muted colors, as well as a white shirt and tie. A dress is standard regardless of the weather or season. Professional women should wear conservative business attire or suits in dark or muted colors, and avoid revealing or tight-fitting clothing. Since many people sit on the floor in restaurants, it is best to avoid short, tight skirts as they are impractical anyway. Sleeveless tops and miniskirts are considered unprofessional, although a nice jacket over a sleeveless top would be acceptable. The dark, traditional, muted color palette of the past is starting to give way to brighter colors, especially among younger generations of employees. Visitors should, however, refrain from dressing in bright colors until they have a better sense of the movement inside, the business climate of their host. Dressing smartly will improve your colleagues' opinion of you. Avoid rich-looking jewelry, which your counterpart might consider ostentatious. Meeting Protocol South Koreans conduct business with great formality. It is important to respect their customs and interact with them on their terms to establish a solid foundation for your business relationship. Entering the meeting room: Hierarchy Your team of interlocutors will enter the room in hierarchical order; the oldest member will sit in the center of his side of the table. You should enter the room in a similar way. Pay attention to how people on the South Korean team are treated. Superiors are treated with a lot of respect, and subtle acts of deference will tell you how the team is structured. Introductions Introductions are accompanied by a polite handshake: avoid offering a friendly "Western-style" handshake. Younger South Koreans sometimes bow slightly to those who are older or older than them. Forms of address Address your interlocutors using the titles Mr./Mrs./Miss and their surname. Names are very personal in South Korea and are only used by close friends. Some older South Koreans prefer that their name not even be said aloud when they are in the room. Many South Koreans share common surnames, and, in large companies, people may be known by their titles, surnames, and departments, for example "Mr. Kim of Engineering". Professional and academic titles are a sign of prestige and should be used whenever required. These titles are used after a person's surname, for example "Kim, paksa" (Dr. Kim). The honorific "Son Saeng Nim" (teacher or honored person) is an appropriate title for an elder. Business Cards Business cards are exchanged using both hands. Having one side of your card printed in Korean will be well received. Take a minute to study your counterpart's card out of respect before putting it away. South Koreans usually list their names in English for ease of pronunciation, as a courtesy to foreign business counterparts. Be sure to include your title and any special titles or qualifications on your card. Bring plenty of them, as cards are constantly being exchanged. Body language Ask your translator to give you advice on body language so you can synchronize what you say with the correct gestures. Avoid physical contact and don't stand too close to your colleagues. Large hand gestures are considered rude. Making eye contact is a sign of interest and respect. South Koreans often nod in understanding;a nod does not necessarily signal agreement. Some gestures common in Western cultures mean something completely different in South Korea. Holding your palm facing up and waving your fingers up and down means goodbye to Westerners, but "come here" in South Korea. American symbol "okay", with the thumb and forefinger forming a circle, means money. Winking has no meaning in South Korean culture, and beckoning is only used for animals. Never point the finger at a person or thing; instead use an open hand, palm up. Decision-making power structures: Confucianism, a philosophy that emphasizes social order, is rooted in Korean society. Everyone has a distinct place and role within a structure, be it the family or the workplace, and those with seniority, whether by age, education or job position, get more respect. Employees with more education and seniority are traditionally the ones who advance through the ranks. However, the business climate is slowly shifting towards a more performance-based merit system. However, respecting this social order, Koreans rarely act as individuals, but rely on group cohesion. The top-down management structure is slowly becoming more inclusive of group opinions and consensus. Top managers, therefore, in some cases act more as coordinators of the process than as actual coordinators-decision-makers. Note that in Korea the title "director" is often assigned to mid-level positions. This creates a possibility of confusion if the visiting team is from a place that uses titles differently. For example, in the United States, a director may be equivalent to a company president. Especially if your company's position places you higher than middle management, you may want to investigate the Korean understanding of your title and make changes to how you present yourself accordingly. Key Contacts: - Although many companies adhere to a hierarchical structure, many responsibilities are also delegated to subordinates. It is essential that respect is given to all levels of employees, not just the other party or immediate superiors. Gifts and Bill Splitting It is customary to exchange small gifts with business counterparts. If you offer a gift, your counterparts will likely reciprocate, so make sure your choice is within a price range they can afford. Money can also be exchanged before or after signing a contract; this is not considered a bribe, but it is probably best to confer with a business advisor for guidelines. Money should be given in an envelope and gifts should be wrapped. Opening a gift in front of the giver is considered a sign of greed. Liquor is a good choice when exchanging gifts with men; if you offer liquor to a woman, indicate that it is for her husband. If you accept a gift, you assume obligations. It is acceptable to politely refuse, unless the gift is offered in a purely social context. You may be invited for drinks or dinner after the meeting. These sessions can often last late into the night. You may find that your senior colleagues will not attend; feel free to politely decline the invitation so you can get some rest before negotiating the next day. South Koreans see entertainment as an integral part of building a business relationship. You will probably be invited to join your colleagues at expensive restaurants. It is important to reciprocate these invitations. The host pays the bill at the end of the meal, although it is customary for guests to pretend to offer to pay. When.