Doing Business in Korea – 3 Must Knows

THE GREAT SOUTHERN GATE to the city of Seoul is officially called ‘Sungnyemun’ in Korean, which can be translated as The Gate of Exalted Ceremonies or sometimes The Gate of Courtesy and Respect.

If you’re kicking off business in South Korea, and don’t know all that much about the country, it pays to bear the Great Southern Gate in mind.

Despite all the glitz and glamour of modern South Korea, it’s sometimes forgotten that Korea has a long and proud history. Many of its customs and traditions still permeate modern-day life, which includes its business culture.

Let’s look at just 3 of the basic must-knows for doing business in Korea.

1.    CONFUCIANISM AND THE FAMILY

Koreans are an emotional and spiritual people. They’ve been called the ‘Welsh of Asia’ for their love of music and church. They also play a mean game of rugby.

A quarter of the population is practising Buddhist (many more are non-practising), a quarter is Christian, and at least as many believe in the shamanist principle that the world is inhabited by spirits that live in nature and that can be summoned or placated through rituals involving incantation, music and dance.

Woven into all these beliefs is a powerful strand of Confucianism, which emphasizes the importance of family, the authority of elders and of ancestor worship.

As in many Asian societies, eldest sons are expected to financially support the family and to carry on the family name by marrying and having sons of their own.

Children are raised to believe they can never repay their debt to their parents, hence the popularity of ancestor worship. Ancestral ceremonies for the previous three generations (parents, grandparents, and great grandparents) are held several times a year.

2. MEETING AND GREETING

These traditions underpin they way business is conducted in South Korea. There are rules of protocol when greeting a Korean, although they are not quite as set in stone as those in Japan.

A person of lower status bows to a person of higher status but the most senior person will offer the handshake that follows after the bow (a good example of the Korean taste for mix-and-match).

They will say ‘pleased to meet you’ in Korean but unless you are fluent in their language, don’t try to reply. A smile and a handshake usually do the trick, plus a business card. However, make sure that you wait to be introduced at a social gathering and when you leave, say good-bye and try to give a short bow (not a Mr. Bean parody) to everyone present.

Remember that women also require a handshake and bow, although the Confucian ethic still relegates women to a lower position in Korean society than men. Women usually appear quiet and submissive in public. In reality, women wield considerable power behind the scenes, often managing the family finances and wellbeing and they are increasingly visible at management level.

Don’t be fooled by the Korean male walking through the door ahead of his wife and her helping him into his coat!

An interesting difference to other Asian countries is that a Korean may very well look you straight in the eye when presenting himself. There’s a certain directness in the Korean approach to foreigners. This is possibly explained by the extreme emphasis Koreans place on the importance of the visual. Koreans will draw initial conclusions about you based also entirely on what you look like.

So remember to keep up your standards of personal branding so that your project the kind of stylishness, confidence and culture that is so much part of modern Korean life.

Business card etiquette in Korea is much the same as in the rest of Asia. Present the card in both hands with the Korean translation uppermost and the characters facing your counterpart. When receiving a card, take it formally in two hands and don’t slip it into a back pocket. Read it carefully, register the title, and don’t write on it.

Your business card should also show your job title, thereby allowing your Korean counterparts to understand your place in your company’s hierarchy. Be respectful with it.

3. SAVING OR LOSING FACE

In South Korea, as in other Asian societies, face is central to the way business and social relationships work. Through their social etiquette and behaviour, Koreans aim to preserve a harmonious environment in which a person’s kibun can remain balanced. Kibun literally means mood or inner feelings.

Any damage to kibun damages the business relationship. This means that Koreans often appear helpful, polite and friendly on a personal level but they will aim to do nothing that upsets kibun, such as middle management always saying ‘yes’ when they mean ‘no’, never giving a straight answer, never assuming personal responsibility for anything.

The best way to handle kibun is not to demand yes or no answers, as in Japan, and to accept the need for slow consensual decision-making. Given Korea’s history of subjugation and being threatened, it is vital to treat South Koreans with proper respect and to avoid any situation in which they or their country might appear to lose face.

Contradicting someone openly, criticising them in front of someone else or patronising them are a sure way to lose business.  Always give face through sincere compliments, showing respect or doing something that raises self-esteem.

If you remember these 3 must-knows you will be on your way to forming the kind of long-term business and personal relationship that is the key to doing business in South Korea.

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