Korea

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24 Country starter pack Getting started in Korea Using interpreters Korea’s official national language is Korean. However, most Koreans engaged in international business speak English, and younger people generally speak some as well. Korean is spoken fairly uniformly throughout the country, with only slight regional variations. In most business situations, having an interpreter is not necessary. But it can be an advantage in complex negotiations and when dealing with groups of more than five Koreans. In these situations, participants will often break into Korean to discuss aspects of the conversation they may not have understood or to clarify issues with each other. Whether or not you have an interpreter, learning a limited amount of Korean will send positive signals and will be appreciated by Koreans with whom you are conducting business. If you plan to establish a longterm business in Korea you should consider having your own regular interpreter or bilingual staff. They can also assist with any cultural nuances a non-Korean may not be familiar with. There are a range of considerations to take into account when hiring an interpreter: • Check the interpreter is professionally trained and experienced. • You need trust and confidence in your interpreter in communications and presentations. • Your interpreter should have an effective technical understanding of your business and approach. They should be fully briefed before important meetings and, where necessary, provided with a list of terminology well in advance. Translators: Interpreting and translating are two different disciplines with totally different skills. Interpreters are for oral interpreting and translators are for written translation. Although many people have both skills, some of them specialise in one discipline. Decide which one you want. Finding an interpreter or translator: The best way to find the right translator or interpreter is to rely on the recommendation of someone you trust who has used them before. Proficiency in Korean alone does not make someone a good interpreter. It’s not advisable to hire an interpreter or translator straight off the internet or a trade directory unless they have reputable third party endorsements. The Australian Embassy in Seoul provides a list of recommended translators. Is Korea a viable option? Have a detailed financial plan that considers: • Regular visits to the market and possible provision of samples • Hiring dedicated staff in Korea to assist with start-up • Business advisory services and legal consultants • Updates and adjustments as you collect more data and knowledge • Contains scenario planning and risk mitigation approaches. Out of respect, Koreans may not portray the true meaning of what is to be communicated if they fear it will offend the Korean interpreter recipient. For this reason, it can be helpful to use a Korean interpreter with extensive experience of Western culture and whose Korean culture will not outweigh their loyalty to your company. Cost: The cost of hiring an interpreter could vary depending on the nature of the meeting (ranging from informal factory visits to formal business meetings or seminars), the duration of the meeting and whether the meeting is in Seoul or elsewhere. The average cost of hiring an interpreter for an informal meeting within Seoul would be from around $450 for half a day and up to $1,000 for a full day. Financing your Korean business venture Understanding the additional costs associated with conducting business overseas is essential to making an informed decision on whether you are ready to take the plunge. The main differences in Korea compared to operating in Australia may include: • A longer cash flow cycle, which could increase the pressure on cash flow and working capital • Being further away from clients, which can increase the risk of non-payment and makes it more difficult to collect debts
Country starter pack Getting started in Korea 25 • Getting paid in other currencies, which can expose you to foreign exchange risk and affect profit margins • Greater difficulty accessing finance, as Australian banks are often reluctant to accept overseas assets as security for loans • A longer timeframe to recover the upfront costs of establishing operations, which can reduce the cash flow and working capital available for domestic operations. Adequate funding will be critical to your success, and having a detailed financial plan is crucial. You may be eligible for financing from a variety of sources in Australia – depending on the nature of your business in Korea. Your financing options could vary according to whether you are exporting, importing or investing. A wide range of funding options exists, with various grants, venture capital, and equity sharing deals increasingly commonplace. However, banks remain the easiest and most approachable source of funding, with most of them offering tailored services. Your existing bank manager may be your best first port of call. Venture capital could be an attractive alternative financing vehicle if you are comfortable with a third party taking an equity stake – and a share of the profits – in your business. As a first step to research the venture capital market, go to the Australian Private Equity and Venture Capital Association Limited website at www.avcal.com.au. Government assistance — both federal and state – is available to Australian businesses wanting to expand overseas, especially exporters, through a number of grants, loan facilities and reimbursement schemes. These include Export Finance Insurance Corporation (Efic) – the Australian Government’s export credit agency, go to: www.efic.gov.au; and the Export Market Development Grants (EMDG) scheme, administered by Austrade. Full information on EMDG can be found at: www.austrade.gov.au/EMDG. Individual state and territory government websites also contain information on what financial assistance they can offer. Other sources of finance you could consider early on include: • A joint venture arrangement with a trusted partner in Korea • Receiving an equity investment from a sophisticated individual investor or ‘angel investor’. Risks Your research into any overseas market, along with the opportunities, should also include careful assessment of the risks associated with doing business there. While Asia presents Australian businesses with numerous opportunities for growth, going offshore entails increased risks that need to be identified, managed, and reduced as far as possible. Your business’s risk management strategy also has to include thorough due diligence.
Page 1 and 2: REPUBLIC OF Korea COUNTRY STARTER P
Page 3 and 4: SURFACE AREA 99,400 square kmS GDP
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Page 21 and 22: Country starter pack Getting starte
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Page 39 and 40: Country starter pack Sales & market
Page 47 and 48: Country starter pack Conducting bus
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Country starter pack Business pract
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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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