Korea

52
Country starter pack
Conducting business in Korea
4.3 MEETINGS AND NEGOTIATIONS
It is considered polite to arrive on time or no more than a few
minutes early for appointments. Koreans generally keep a full
schedule, which early arrivals can disrupt. Arriving late is not
recommended as it can be viewed as a snub by your host. If
traffic or other problems delay you, call ahead to inform your
host that you are running late.
At an initial meeting, be prepared to begin with small talk.
Topics might include whether you are making a first visit
to Korea, your impressions of the country, your family,
favourite sports (golf is a clear favourite among Koreans,
along with soccer), and other interests.
Koreans are very hospitable and friendly, but negotiations
can be very aggressive in tone. You may find the Koreans
can be very frank and quick to express anger and
frustration. Nevertheless, you should not take everything
said during these meetings literally; strive to maintain
your composure and patience. Maintaining a solid,
cordial personal relationship with the Korean side will
help you get through difficulties you may face during the
negotiating process.
When negotiating over details, including price, your
first bid should leave some room for negotiation. The
starting positions of your Korean counterparts may
appear far too unrealistic, but they will be prepared to
compromise. In this way, both sides appear to have gained
significant ground. Although it’s important to have a firm
position, insisting on having your own way will be viewed
unfavourably, and appearing to be in a hurry may put you
at a disadvantage. But being flexible does not imply giving
in to unreasonable demands.
Be patient with delays in decision-making. Some Koreans
may use stalling tactics to “wear down” the other
side. However, things can move very fast if Koreans
see the right business opportunity. Respect silence in
communication. They need the time for translation and
prudence as subjective feelings are characterised as
crucial to the negation process. Nevertheless, objective
facts are becoming common factors. Depending on the
company culture and functional areas, some Koreans may
be very analytical and demand data, followed by even
more statistics.
Koreans have a more flexible attitude towards contracts
than Australians as they perceive them as a framework
for a business relationship, and open to continuous
adjustments over time. Even when aware of the legal
implications of signing contracts, most Koreans view the
contract as less important than the relationship between
individuals and companies. As a result, Koreans would
find it difficult to understand why, despite the excellent
relationship you have established, you are not willing
to change or overlook aspects of the contract as the
business partnership progresses. Being aware of how your
Korean counterparts view the documents will help avoid
misunderstandings, while ensuring that they are equally
aware of your position.