By Ludmila (Mila) Rusakova Golovine
In terms of economic success, it would be hard to find a country as impressive as South Korea. As the only country to have five consecutive decades of economic growth in excess of five percent, the prosperity of South Korea is a testament to both the peoples’ work ethics and the government’s sound economic policies. Although the business opportunities in South Korea are quite attractive, the differences between Korean and American culture can make one quite apprehensive about engaging in business there. Nevertheless, with proper effort and cultural study, one can be quite successful in Korean business.
The most important aspect that distinguishes Korean culture from the American one is the concept of “face”. This concept can be loosely defined as respect. However, it is a little more than that. In Korean culture, “face” can be both given and lost. “Face” is given through compliments and praise. Conversely, it can be lost by disrupting harmony or if someone publicly points out a mistake that someone has made. You must always keep this concept in mind, for it is very common in American culture to bring up mistakes and think nothing of it. Put quite simply, anything negative will have an adverse effect on your business venture.
Another aspect closely related to “face” is the idea of harmony in relationships. It is imperative to remember that in Korean business, maintaining a good relationship with each other means more than any business deal. This sentiment is also the reason why the initial meetings usually will not even concern the actual business deal. Koreans want to know the person with whom they are potentially doing business, which is why in the beginning they will want to find out more about their American counterparts than the potential business deal itself.
Punctuality on the part of guests is important to the Koreans. You should never be late for a meeting. Should you find yourself in a situation where it is unavoidable to be late, call your Korean counterpart immediately and explain. This should mitigate the situation. Nevertheless, do not be surprised if your Korean counterparts arrive late as they are not held to the same standard of punctuality as foreigners.
When meeting with the Koreans, it is imperative to recognize that they are from a formalistic culture. Therefore, proper etiquette is very important. In most cases, your counterpart will still give a small bow when meeting you. You should reciprocate in kind with the same length and depth of bow. A handshake will most probably follow. Please make sure that your handshake is firm but not aggressive as that will be badly perceived.
Business cards are just as important in Korean business as they are in most Asian countries. Unlike in American culture, they do more than just provide contact details. They are viewed as an extension of the person they represent. Therefore, you must treat the card with respect. Upon acceptance of the card, examine it carefully, read the person’s name and title out loud acknowledging the person’s status, and carefully place the card in your shirt pocket or preferably in a special card case. It is imperative that you not put the card in your pants pocket, for this is disrespectful and dismissive.
When negotiating with Koreans it is of the utmost importance that you remain patient. As stated previously, Koreans like to do business with people that they know and trust and this can only occur over time. Any attempt to rush the negotiations will be greeted with mistrust as there is a common misconception among the Koreans that Americans are only interested in a quick profit. You will want to demonstrate to them that you are in the deal for the long-term. This will put their minds at ease and actually speed along the process.
If business negotiations are proceeding well, your Korean counterparts will probably invite you out to dinner. Usually drinking will be involved. You must bear in mind that drinking is not viewed as negatively in Asian culture as in American culture. Typically the later you stay out will indicate how well the negotiations are going. Here again, this shows that the Koreans are comfortable with you and relationship building is progressing well. If you really want to demonstrate to your Korean hosts that you are sensitive to their culture, it would be a good idea at some point to toast to “the peaceful reunification of Korea.” This toast will signify that you are cognizant of the painful division of the Korean people since 1945, something that weighs heavily on the Korean psyche.
It is true that there are many subtle differences between Korean and American culture. However, this should not discourage you from attempting to engage in business dealings with these dynamic people. With just a modicum of study and cultural awareness, you can succeed in Korean business.
Ludmila (Mila) Rusakova Golovine, Founder, CEO, and President of MasterWord Services, Inc. can be reached by email at [email protected], by phone at 281-589-0810, or visit her website at www.masterword.com.
