tcworld | 4 / 2007 | Page 26

Between traditional values and modern standards

Most foreigners’ view about Korea is based on how it is portrayed in the media as well as how it appears during international events hosted in the country, like the 2004 soccer world-cup. From that perspective, Korea is viewed as a modern country, similar to most countries in the Western world. With modern buildings crowning the skyline, first-class telecommunications infrastructure and Western chain stores like Starbucks scattered throughout the cities, there doesn’t seem to be much difference between Seoul and many other major cities in the world. However, if you look below the surface you will find a whole different country with a diverse culture and unique values thriving in a modern society.

Within the last 50 years Korea raised from the ashes of the Korean War (1950-1953) into an industrial power house that ranks tenth largest in the world. This was achieved without any assistance of natural resources, as they hardly exist in Korea. The countries greatest resource has been, and still is, its people. The peninsula’s development into a major economic power was almost entirely based on people and their culture.

More and more Western people are working in Asia these days and large numbers of them are working in Korea. Even if they are not working in Korea itself, business people from around the world have a high chance of interacting with people in Korea. The old proverb “When in Rome, do as the Romans do” still rings very true in the fast moving modern business environment. In this regard, it is important to address and understand cultural diversity in Korea and how it impacts international business.

Basic cultural values
The Korean culture is surprisingly unified and stable despite some violent demonstrations by students or workers you might have seen on TV over the years. The people of Korea share a common pride in the country’s unique cultural and linguistic heritage that has emerged during a long and turbulent history. As a result, Korea boasts an enriched cultural outlook that is reflected in its current business culture.

The culture follows Confucius’ teachings of strong familial loyalty, the respect of elders, and the family as the basis for the ideal government. There is strong pressure within the society for conformity to the group. The welfare of the group takes precedence over the individual. This is shown in the employee’s obedience and loyalty to his or her employer and the tendency of high-ranking individuals having power over their subordinates. Consequently, decision making in Korea follows a formal procedure in which senior approval is necessary. Nevertheless, Koreans strongly believe in a democratic government where people have freedom of choice and the ability to speak their opinion freely.

A hierarchical society
For centuries Koreans have been living in a hierarchical society based on a number of different factors, like age, social status, gender etc. Each status has specific forms of acceptable behavior. This system has been greatly “westernized” within the last decade, but it is still of vital importance to Koreans and to foreigners doing business with Koreans, or living in Korea.

For example, Koreans exchange business cards when they first meet, not only for the name of the counterpart, but because they want to know his title. Knowing the title of the dialogue partner makes them feel more comfortable, as now they know how to behave. The higher the title of the counterpart and the more well-known his company, the more prestige he enjoys. When you are in a meeting with a group of people, you need to know whom to address during the discussion. For example, all important questions as well as decisions should be directed to the highest ranking persons within the meeting; other details can be discussed with people of lower ranks.

Because of the importance of social position and rank, and the necessity of knowing and following the etiquette that is appropriate for each level, it is very important for Koreans (and foreigners in Korea) to quickly determine someone’s status when meeting for the first time. Therefore Koreans sometimes ask personal questions during the first meeting (e.g. age), and foreigners shouldn’t take this as an offense but rather as part of this overall determination process.

Loyalty
Based on their Confucian culture, Koreans place loyalty among the most valued virtue. However, different from other Asian cultures, there is stronger emphasis on loyalty towards one’s superior than towards the company as a whole. This might be viewed as odd given the strong group focus of Koreans. However, when you consider that one’s superior is usually viewed as a father/ mother figure, it’s in line with Confucius’ idea of loyalty.

For foreign companies or foreign individuals working in Korea, this means that the relationship between managers and employees is of vital importance. Foreign employers in Korea have the responsibility to establish and maintain relationships with their Korean employees based on integrity and trust. Trust is not easy to earn among Koreans, but once it is earned, this trust will last a life time. Koreans tend to trust and honor those they know, respect, and have ongoing relationships with. Thus, maintaining good relationship is very important. Not to keep relationships will result in people leaving as soon as they find another opportunity.

Personal relationships – the most important factor of doing business in Korea
Strong personal relationships and personal connections are important for doing business worldwide. However, in Korea, this has been taken to a new level and new meaning.  Even in Western societies, blood relationships and school friends are important, but in the Korean society, this can be the entrance to all business relationships. The school you have attended, your relatives and the people you know, can make or break a business. So, the people you know (of course in good terms) will be a tremendous asset for doing business in Korea.

Of course, as a foreigner, it is difficult to cultivate these kinds of relationship. Therefore, it is essential for foreign companies as well as individuals to connect with people who have these ties, even though this might take some time and effort. Once solid relationships have been established, continuous reinforcement and maintenance is vital. 

Relationship between co-workers
In most Western work environments, co-workers are just people who work together. Some companies go beyond this and cultivate an almost family-like environment. In Korea, this type of family-like environment is the norm, not an exception. Due to this atmosphere, internal communication becomes increasingly nonverbal and learning how to communicate with Koreans by reading their emotions is not easy. In addition to a good command of the Korean language, one has to become sensitive to every nuance of nonverbal and body language, and know how to interpret it. Thus, it is highly advisable for the average foreign business person in Korea to take the advice from a very close and experienced Korean who acts as his or her cultural interpreter.

Moreover, foreign business people should be willing to spend time outside the normal business hours to really get to know their employees and superiors. This type of social gathering is where people really open up, so missing out on it will result in poor relationships with co-workers.

Hospitality
Startling to some foreigners is the role of hospitality in Korean traditional etiquette and ethics. Koreans are among the most hospitable people, and in business situations their hospitality can be so aggressive that it might surprise and sometimes even shock Western visitors. Like most Asians and some Westerners, Koreans have traditionally marked special occasions with extravagant meals and heavy alcoholic drinks. In business situations, it is customary for Koreans to exceed hospitality.

Foreign visitors should also keep in mind that the Western custom of “going Dutch” is not common among Koreans and will most likely be considered as offensive (or sometimes as cheap). So, especially in a business setting, you need to decide whether you will be paying the whole bill or if you let the other side pay for everyone. Splitting the bill is not an option. Of course the amount also needs to be considered, i.e. deciding how much is too little and how much is enough.

Cultural clash
These days there are multiple Korean cultures: one is the traditional Korean culture with all the characteristics mentioned above. However, there is an increasing number of Koreans who received their education in a Western culture or even grew up in a Western society. These people share an attitude and behavior that is closer to that of Western people than to that of Koreans. Even some of the young Korean-born and -educated people tend to have a more Western-style individualism and independence. So, when dealing with Korean business people, you need to learn about their background before deciding on the appropriate form of interaction with them.

Conclusion
Despite the many cultural complexities involved in doing business in Korea, for a growing number of foreign business people, the effort is well worthwhile. With heavy investment in telecommunication and a population that quickly adapts to new products, Korea is the ideal place to test and adjust any new hi-tech concept before launching in the world market. Plus, Koreans are sincere, warm and friendly people. The human factor cannot be overestimated in Korean business culture. Koreans are regarded as emotional people rather than people of reason or logic. They make deep commitments of friendship and loyalty that are permanent, if they are treated fairly and with respect.

Please keep in mind that the information provided above is a general and simplified view of Korean business culture. As everywhere, there are exceptions, not only with regards to individuals but also regarding groups.

Sung Cho leads and manages the Asian & Pacific regional operations of Jonckers Translation & Engineering. Sung has extensive experiences on both service provider and client side and more than ten years of engineering & business experience both in software development and localization. Sung.cho@jonckers.com www.jonckers.com