Korea

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30 Country starter pack Getting started in Korea Regional political risk: Tensions remain high on the Korean Peninsula, and the potential for armed conflict between South Korea and the nuclear-armed communist North remains. Australian businesses operating in Korea should therefore stay abreast of developments in the security situation. Historical grievances against Japan and an ongoing territorial dispute with Japan over an island known as Dokdo by the Koreans (and Takeshima by the Japanese) are also a source of ongoing political tension. For this reason, in Korea - the sea between Japan and Korea is referred to as the “East Sea”, not the “Sea of Japan”. The potential for armed conflict between Korea and Japan is considered extremely low. Protests: Korea is a stable and democratic society. However, disruptive and at times violent protests do occur. Australians and Australian businesses are unlikely to be the target of large-scale protests in Korea. The most likely effect of protests would be inconvenience in getting to meetings. Korea has been a member state of the International Labour Organisation (ILO) since 1991 and, as of 2011, had signed 24 of its critical conventions. Since 1992, the ILO’s Committee of Freedom of Association has received nine complaints from labour groups in Korea. Trade unions are legal in Korea but only 11 per cent of the workforce belongs to one. It is notable the government has refused to recognise any trade union set up by non- Korean migrant workers. Strikes are classed as illegal if striking workers resort to violence, unlawful occupation of premises or inflict damage to facilities. The suppression of illegal strikes has been known to result in heated confrontation between demonstrators and the police. Exporting Goods to Korea? Some specific issues and challenges that Australian businesses, particularly those selling Australian goods, might encounter include: • Registration of trademarks. The Korean Industrial Property Office (KIPO) has a “first file, first registration” principle. • Quarantine certification – when consignments turn up in Korea without the required quarantine certification, it is often too late at that stage to rectify the situation. • Food safety – taken very seriously in Korea. It has strict testing requirements for prohibited substances and tolerances for other substances. • Maximum residue limits for pesticides and veterinary drugs. • Detection of prohibited food additives and non-compliance with labelling requirements. • Shelf-life and expiry dates. • Problems with using multiple agents, including confusion for end users. • Packaging problems.
Country starter pack Getting started in Korea 31 CASE STUDY WorkWell Ergonomics Consulting Diana Underwood, President When Australian Diana Underwood moved to the Republic of Korea to marry her Seoul-based partner in 2003, she didn’t expect to end up establishing a successful business as the only foreigner registered to work in the area of ergonomics – even though she does not speak fluent Korean. Trained as an occupational therapist, Underwood has directed her passion into improving people’s wellbeing in the workplace by setting up her company WorkWell Ergonomics Consulting. She is not embarrassed by her lack of Korean language skills, but highlights the importance of learning some basic Korean and also delving into the culture. “Respecting your host country is fundamental when living and working in Korea,” says Underwood. “A great way of showing respect is simply by learning at least a few basic Korean phrases, for example ‘hello’, ‘thank you’, ‘excuse me’. Koreans see their language as difficult to master and are impressed when foreigners can speak any Korean.” “Don’t be deterred by not speaking the language,” says Underwood, who sometimes uses an interpreter when working with Korean clients. “It is possible to work in Korea without a lot of Korean but you do need to get local assistance to help you navigate business practicalities such as tax and banking. The assistance of a Korean speaker makes it infinitely easier and more efficient.” Australian business people should also note that in Korea, communication goes beyond simply what language you speak. Korean culture is very hierarchical and indirect – meaning processes are thorough and one needs to be aware that to save face, your counterpart is not going to openly disagree or admit they don’t understand. Underwood advises: “Be extra clear in your communications through stating things in multiple ways which will help verify understanding. Use openended rather than simple ‘yes/no’ questions and avoid negative questions as they may be misunderstood.” She suggests not relying only on verbal communication, but also confirming in writing to avoid any confusion and create a permanent record. As an Australian running a small business in Korea, Underwood also highlights the importance of understanding how Korean culture influences business practices. An example of this is the cultural emphasis on efficient and fast service which in Korea is fast and efficient. “The Korean work ethic is remarkable. You will experience some of the world’s best service culture with the most extraordinary deadlines set and met. This relates to ppalli ppalli – a Korean phrase which essentially means ‘quickly quickly’,” explains Underwood. In managing Korean staff, Australians need to recognise this ethic as their employees will generally demonstrate their loyalty and dedication by putting their manager and organisation first. “Koreans will work incredibly long hours to meet deadlines as not doing so is ‘loss of face’ for the employee and their boss.” Underwood says. “For this reason it is important to build and maintain relationships with your Korean employees but also invest in your Korean business relationships as you would in your professional skills.” Networking is therefore fundamental in Korea to build both personal and business relationships, but also your brand. “I have never felt like I have had to ‘market’ my business as in the Korean context, it is all about getting new clients through networking and word of mouth.” She calls this “one-on-one marketing” and attributes it to simply building trust and respect. A strong online presence is also vital. alwaysworkwell.com
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Page 3 and 4: SURFACE AREA 99,400 square kmS GDP
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Country starter pack Visiting Korea
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Country starter pack Engage with us
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Country starter pack Engage with us
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© August 2015, Asialink Business.
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Korea

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