Culture Report
South Korea
South Korea as a Business Destination
Introduction
- 11th largest economy by GDP
- Global leader in patent activity and information technology
- Highest broadband penetration in the world
- Ranked 4th out of 189 countries in ease of doing business by the World Bank
Cultural Aspects
Cultural Aspects of South Korean Business Practices
Principles and protocols
Deep-rooted principles based in Confucianism
Principles and protocols
Building trust and relationships over time is required for success
Protocol, rank, status, and respect play critical roles
Non-verbal communication
Non-verbal communication and greeting
Do not touch
Give and recieve with both hands
Following a bow, both parties shake hands
- Left hand placed beneath the right forearm as a demonstration of respect
- Bows and handshakes occur at every meeting, regardless of formality
Introductions and small talk
- Business relations require small talk
- High value on personal relationships
- Introductions should be executed by a third party
- Signals mutual respect and trust between parties
- Small talk is not common in regular life
- Silence is considered respectful
Business Card Presentation
Business cards
The importance of an individual's business card is great
Receiving the card is a two-handed affair
Offer the card with both hands or one hand with opposite hand under the elbow
Power distance & Individualism vs. collectivism
Power distance & Individualism vs. collectivism
Collectivist, group and collective good prioritized.
High, respect for authority and obedience to superiors.
Uncertainty avoidance & Masculinity vs. femininity
Uncertainty avoidance & Masculinity vs. femininity
High, preference for clear rules and predictability.
Highly masculine, traditional gender roles and values emphasized.
Long-term vs. short-term orientation &
Indulgence vs. restraint.
- Long-term, emphasis on persistence and planning for the future.
Long-term vs. short-term orientation & Indulgence vs. restraint
- Restrained, preference for moderation and self-control.
Tailoring Presentations
Tailoring presentations
- Respectful, formal, and avoid excessive self-promotion.
- Provide clear and concise information.
- Be prepared for questions and follow-up discussions.
Negotiating in South Korea
Negotiating in South Korea
- Meetings can last for hours
- Don't show signs of impatience or irritation
- Respect hierarchy and punctuality; call ahead if running late.
- Management style is influenced by the Confucian system of "Inhwa": harmony between different ranks
Gift Giving
Gift Giving in Business
- Saying goodbye includes a formal presentation of a gift to the most senior level manager
- Important for establishing and maintaining relationships.
- Choose something meaningful but not excessive and present it respectfully and humbly.
Summary
- South Korean culture values non-verbal communication and hierarchy
- Hofstede dimensions show collectivism, high power distance, and a preference for long-term orientation
- Presentations should be respectful and informative, while negotiations should prioritize relationship-building and respect
- Gift giving is an important part of South Korean business culture, but should be done with caution