Korea

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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.
Country starter pack Conducting business in Korea 53 4.4 DUE DILIGENCE AND AVOIDING SCAMS Australian firms planning to operate in Korea should commit to the highest level of corporate behaviour and familiarise themselves with Australian laws and penalties for bribery. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For further information on laws, intellectual property protection and other business practicalities, see Chapter 5. Dispute resolution Companies involved in international commercial disputes should seek appropriate legal advice in Australia or overseas. Austrade can provide referrals to legal service providers upon request. A number of international arbitration commissions exist to facilitate international dispute resolution. Deciding which arbitration body best suits your commercial needs is complicated, and requires the balancing of many considerations – and good legal advice. The choice of arbitration body will depend on a combination of convenience, cost, and the facts of the particular case. Scams There are a number of websites that alert consumers and businesses to scams, both in Australia and overseas. Watch for scam alerts at www.scamwatch.com.au. If you believe you are contacted by a scam, ignore the emails and delete immediately. Although Korea is considered a safe destination for foreign business travellers, exercise common sense like you would in Australia. Credit card fraud has been an issue in Korea recently. In 2014, more than 104 million credit card details were stolen by a contractor employed to improve the security systems at Kookmin Card, NongHyup Card, and Lotte Card. The credit card details were sold to loan companies to make cold calls to their owners. If you are buying something over the telephone or internet and want to use your credit card, make sure you know and trust the other party. If you want to provide your credit card details to a telemarketer, take their name and call them back on a phone number you find independently. Check over your credit card and bank account statements as soon as you get them so that if anybody is using your account without your permission you can tell your bank. While the Australian Government supports arbitration as a preferred method of commercial dispute resolution with foreign companies, it does not endorse any one arbitration body over another.
Page 1 and 2: REPUBLIC OF Korea COUNTRY STARTER P
Page 3 and 4: SURFACE AREA 99,400 square kmS GDP
Page 5 and 6: Country starter pack Introduction t
Page 21 and 22: Country starter pack Getting starte
Page 39 and 40: Country starter pack Sales & market
Page 47 and 48: Country starter pack Conducting bus
Page 49 and 50: Country starter pack Conducting bus
Page 51: Country starter pack Conducting bus
Page 55 and 56: Country starter pack Business pract
Page 83 and 84: Country starter pack Visiting Korea
Page 97 and 98: Country starter pack Engage with us
Page 99 and 100: Country starter pack Engage with us
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Korea

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