Korea

Country starter pack
Conducting business in Korea
47
Having chosen your strategy for establishing your business,
you must consider how to conduct business in Korea.
This includes understanding Korean business etiquette
and culture, developing business relationships, choosing
business partners, negotiating, holding meetings, and
carrying out due diligence.
4.1 KOREAN CULTURE AND
BUSINESS ETIQUETTE
The 2015 Australian International Business Survey (AIBS)
identified that local language, culture, and business
practicalities as the largest single barrier to conducting
business in Korea for Australian businesses. For this reason,
it is crucial to understand some fundamental Korean
cultural practices within the business context. Korean
culture is steeped in Confucianism, which emphasises
respect for education, authority, and age. Although modern
Koreans may not adhere to Confucian principles as rigidly
as previous generations, these principles continue to
underpin many customs and business practices.
Age and status: Respect for age and status are very
important in Korean culture, with hierarchy affecting all
aspects of social interactions. Everyone has a role in society
as a result of hierarchy - therefore it is vital to respect it.
Koreans are most comfortable interacting with someone
they consider their equal. Status is largely determined by
someone’s role in an organisation, which organisation they
work for, which university they went to and their marital
status.
Business cards: The exchange of business cards is an
essential part of initial meetings. It allows Koreans to quickly
determine their counterpart’s all-important position, title
and rank. While still standing, you should politely hand
a business card over with two hands, and receive one in
return. Do not simply drop the card into a pocket; instead
take a few seconds to review names and titles. If you are
sitting down, place it on the table in front of you for the
duration of the meeting.
Korean names: Korean family names are mostly of one
syllable, while given names tend to have two. The family
name comes first (Kim Tae-Woo, for example). Until you
are on very good terms with a Korean counterpart, it is best
to use the family name preceded by an honorific (such as
Mr), whether speaking directly to them or about them to
another Korean. In settings that call for great respect or
formality, you should use your counterpart’s formal title and
surname (Chairman Lee, for example). Some Koreans who
have lived overseas may have adopted a Western first name,
and prefer that it is used over their family name. Some also
view their name as a very personal thing, so a suggestion to
work on a first-name basis may be slow to be offered.