Korean Culture

Before we talk about the business status of South Korea, lets get to know some interesting facts about Koreans.

Religion 

Buddhism 

Buddhism is one of the older religions in South Korea. It comes from the Mahayana branch of Buddhism, similar to China and Japan. It's influence in society has declined recently, but there are still many Korean's that practice Buddhism. 
Christianity 

Christianity has become more and more popular in recent years in South Korea. Christianity was introduced to Korea by the Jesuits in China. Catholics spread very quickly, but were persecuted by the King who perceived it as a threat. Protestants began to enter Korea in the late 19th century. Some of the world's largest churches will be found in Korea.

Holidays 

Korean New Years 

There are actually two Korean New Years. This is because Koreans go by two calenders; one being the same people use in the West, and the other being the lunar calender.

It is a big national holiday in Koreal, and occurs on January 1st just like it does here. During this holiday, many relatives get together to share time together and talk. In Korea, there are some old traditions that some people will still follow. One is to visit the oldest member of the family and bow toward them to show respect and to wish them a long life. The following day on January 1st people will pay respect to ancestors by offering food and wine. This ceremony is called Jaesa. At the beginning of the ceremony, the names of the ancestors are pinned to a board. The oldest family members bows and offers the wine to the ancestors who have passed away. Then, the names are burned. Later in the day, relatives talk about old times and eat food. The traditional food usually eaten on New Years Day is Duk Gook, a type of soup. Kimchi is always present.

The other New Years Day is the Lunar New Years. It is usually around February. People wear the traditional clothes called Hanbok. It also is a day relatives may get together. People will exchange gifts, and the children will definitely be happy because they are usually given money on Lunar New Years. Sometimes the Lunar New Years and the Solar New Years are pretty common and involve similar traditions. The main idea behind it all is to wish everyone a happy new year, good luck in the new year, same as everywhere else in the world, as well as pay respect to those who have passed away.

Independence Day 

Korean Independence Day represents when Koreans declared themselves independent from Japanese rule. It is on March 1st every year, and began in 1919 when the declared themselves independent from Japanese rule. Japan had taken over Korea in 1910. For the next 9 years, Koreans would live a hard life under Japanese control. Since they declared independence, every year they proudly stand for their independence from all foreign rule.

Chuseok 

Chuseok originally known as Hangawi, is a major harvest festival and a three-day holiday in Korea celebrated on the 15th day of the 8th month of thelunar calendar. Like many other harvest festivals, it is held around the Autumn Equinox. As a celebration of the good harvest, Koreans visit their ancestral hometowns and share a feast of Korean traditional food such as songpyeon and rice wines such as sindoju and dongdongju.

Business Status of South Korea

South Korea’s makes its way to the 34th freest economy in the 2013 Index by having a economic freedom score of 70.3 South Korea's proves that its economy declines in labor freedom and monetary freedom offset by gains in the management of public spending and fiscal freedom by scoring 0.4 point higher than last year. South Korea is ranked 8th out of 41 countries in the Asia–Pacific region.

South Korea has improved its competitiveness by strengthening fiscal fundamentals, earning back it's ''mostly free'' status that it last enjoyed in the 1998 Index. The country’s openness to global trade and investment has been capitalized by a vibrant private sector that is bolstered by a well-educated labor force and high capacity for innovation. South Korea has entered into free trade pacts proactively with leading economies including the United States and the European Union.
Although a sound legal framework is in place to strengthen the rule of law, corruption continues to undermine the foundations of economic freedom, eroding equity and trust in government. South Korea’s long-term economic dynamism will be shaped by the outcome of ongoing debates about the proper scope of government in the welfare politics and the free market.

 Business Status and Job market for Foreigners

 
Recently, it has been very hard for the foreigners to expand their business in South Korea because of the close-knit social ties in Korea's business world. Manufacturing industries which include semiconductors, automobiles and digital electronic has been very successful in South Korea. Hence, many steps were taken by the government to attract more foreign investment and increase the exports. Besides that, free economic zones in South Korea is a self-contained living and business districts that are established to attract foreign investment and expertise which can benefit the foreigners who are working in South Korea exports and imports.  The foreigner can also get air transportation and sea transportation and logistic complexes in the free economic zones.

In addition, the foreigner will have an extra opportunity to work an English teacher because English is a must for business communication as it is the  ''Lingua Franca'' in the business world. Although this career is highly supported by the government, it is still quite difficult to find a teaching job in big cities compared to rural places. Many Koreans always wish to work in teaching fields of employment because the local competition of the technology and IT sector are high. Besides that, language barrier has always been the main problem for foreigner because Korean language is very important in their country to find another jobs other than English teacher.

Source: http://www.internations.org/south-korea-expats/guide/working-in-south-korea-15577/south-korea-s-business-world-2
http://www.heritage.org/index/country/southkorea

Korean communication

Ø South Koreans prefer to do business with people with whom they have a personal connection. 

  Ø They develop their relationships through informal social gatherings that often involve a considerable amount of drinking and eating.

Ø Individuals who have established mutual trust and respect with each other will work hard to make each other successful

Ø South Koreans are direct communicators and they are not averse to asking questions if they do not understand what has been said or need additional clarification. 

Ø Never say no in every decision making and always say yes when communicate with south Korean people.

Ø Say good bye and bow to each other before leaving any social gathering.

Korean Greetings

When you are being introduced to a Korean, he will shake his hand with you and bow at the same time. Korean people will shake with their right hand, while the left hand either helps the right hand or touches the right arm near the elbow.It is can be rude for a man to offer a woman a handshake. Women usually do not offer handshakes first.

 Sometimes they use both hands to grasp the other persons hand.

They will also clasp hands momentarily while bowing slightly at the waist instead of shaking hands. 

Lastly, it will be completed with verbal greeting, saying "An-yung-ha-say-oh"  (literally "It goes peacefully")







Why do Korean people bow?

•  To show their respect to the senior
•  Friends do not bow with each other unless in public or a formal occasion
•  The person of lower status bows to the person of higher status
•  Bow during initial meeting in social gathering
•  Bow to each person when leaving a social gathering

Posture in bowing

Casual bow

This is the greeting used with colleagues or friends.Korean people will bow this way when they can’t perform the deeper bows. As an example, when they are in cramped spaces such as elevators or public transportation.

Respectful 30-45 Bow

This is the most common standard bow. It is used to greet almost anyone in order to show respect.

“Belly-button” Bow

The "belly-button"bow, also called navel bow, is mostly used by women in uniform .

It is commonly used by flight attendants and salespeople. They clasp their hands together at the navel position when bowing.

90º Bow

 

It’s a form of utter respect, an intentional showing of service and obedience.

It is also used to apologize.

Big Bow

It is also called knees-to-the-ground bow or deep bow.It is reserved for special occasions such as holidays, weddings, funerals, greeting elders after a long period of absence. Korean people thankfully bow down to the elders to show appreciation. They also bow down to ask for forgiveness for wrongdoings.

source:
http://english.visitkorea.or.kr/enu/SI/SI_EN_3_6.jsp?cid=940515
http://blog.korea.net/?p=2622
https://asia247.wordpress.com/2012/05/19/culture-shock-greetings-south-korea/
http://www.planetesl.com/resources/greetings.html

Korean Business Culture & Meetings

     Societal Context

• Follow The Confucian mind-set 
• Respect people of higher rank or age
• Strong sense of loyalty towards

     Language

• Has its own alphabet , hangul , consisting of 24 written characters ( 10 vocals and 19 consonants)

     Dress Code

• Suit and tie is mandatory for business meeting

    Business Card

•  Essential to bring business cards when having a meeting
•  Omitting to present the business card or giving an excuse is counted as an insult and disrespect
•  Presented after handshake or small bows
•  Received it with both hand or with one hand supporting the giving/receiving hand about the wrist or a bit behind 
•  If one or more card is received, they should be placed on the table so that all cards can be visible.
  

    Negotiation

• Koreans are impatient and make emotional, spontaneous decisions
• Be aware that a signed agreement, from a Korean point of view, will not always be considered an obligating agreement (starting point for further negotiation)
•  Even though Koreans want to see fast results, we cannot be too aggressive
•  Maintaining mutual trust and confidence in a business relationship is extremely valuable
•  Business partners should take the time to get acquainted in a relaxed and informal context (lunch, dinner & drinks)

     Meeting Etiquette

• Shake hands with expatriates after the bow
• Most senior person initiates the handshake
• The person who initiates the bow says, "man-na-suh-pan-gop-sumnida", which means "pleased  to meet you.''
• Wait to be introduced at a social meeting/gathering
• When leaving a social meeting, say goodbye and bow to each other respectively

                                  Both managers shake hands after agreeing on a negotiation.

                                   Both sided has finally made an agreement on a negotiation.

                         Both sides are pleased and happy with the negotiation that was made.

Korea Business Relationship

The People

Korea is one of the most homogeneous countries in the world, racially and linguistically. It has its own culture, language, dress and cuisine, separate and distinct from its neighbouring countries. Hard work, filial piety and modesty are characteristics esteemed by koreans. They are proud of their traditional culture and their modern economic success. Education is highly valued as the path to status, money and success.

Business Relationship

• Once you have established contacts with Korean business partner or client, it is important to nurture that relationship.
• Gift-giving is a common practice when doing business in Korea. The gifts given at the first meeting are intended to acquire favours and to build relationships. Wait until your host has presented his gift and use both hands to accept it. The gifts exchanged should be similar value, with that of greatest value going to the most senior person.
• It is also common to give gifts to your Korean business partners to mark major holidays such as Chuseok (Korean Thanksgiving) and Lunar New Year. Christmas is another time when it is common to give gifts to clients and partner companies.  
• If you are not based in Korea, do make a point of visiting the client/partner on every business trip here.
• Koreans worry that foreign business are only here to make a quick profit and run and therefore it is important to demonstrate that you have a long-term commitment to the market and to the relationship. 
• Koreans business people devote a great deal of time, energy and money in getting to know  the people with whom they are dealing in order to build long-term relationships. You willingness to participate is often interpreted as a measure of your sincerity and commitment.
• People who went to the same school be it kindergarten, middle-school or university, share a special relationship. The one who graduated first is the 'senior' (sonbae), while the one who enrolled later is referred to as 'my junior' (hoobae). There will always be a kind of mutual 'i owe you' relationship between sonbae and hoobae regardless of whether they attended school at the same time or many years apart.

Names And Titles

• It is considered very impolite to address a Korean with his or her given name. Address Koreans using appropriate professional titles until specifically invited by your host colleagues to use their given names.
• Americans should address a Korean with Mr., Mrs., Miss + family name ; however, never address a high-ranking person or superior in this manner.
• Korean names are the opposite of Western names with the family name first, followed by the two-part given name. The first of the two given names is shared by everyone of the same generation in the family, and second is the individuals given name. Example:  Lee (Family) + Dong (Shared Given) + Sung (Given). Dong Sung is the individuals given name. Address him as Mr. Lee or Lee Sonsaengnim (which means "teacher")

Body Language

• Koreans consider it a personal violation to be touched by someone who is not a relative or close friend. Avoid touching, patting or back slapping a Korean.
• Direct eye contact between junior and senior business people should be avoided. This is seen as impolite or even as a challenge.
• Do not cross your legs or stretch your legs out straight in front of you. Keep your feet on the floor, never on a desk or chair.
• Always pass and receive objects with your right hand (supported by the left hand at the wrist of forearm) or with your index finger.

Corporate Culture

• Koreans expect Westerners to be punctual for social occasions and business meetings. Call is you will be delayed. However, you may be kept waiting up to a half hour. This is not a sign of disrespect, but reflects the pressure of time on Korean executives.
• Professionals meeting for the first time usually exchange business cards. Present your card and receive your colleague's card with both hands.
• Building trust and relationship is vital to establishing a successful business relationship. This requires patience. Koreans prefer to do business with people they know.
• The first meeting is to establish trust/ so business should not be discussed. Be formal in meetings until the Korean delegation loosens up.
• Negotiations are generally long and require several trips. Be prepared for business meetings to go well beyond business hours.
• Koreans generally start negotiations at an unreasonable position and prepare to compromise. Koreans are tough negotiators and admire a firm, persistent negotiator, but refrain from being too aggressive.
• A low, deep bow from koreans at the end of a meeting indicates a successful meeting. A quick, short parting bow could mean dissatisfaction with meetings. Send a meeting review outlining all discussions and agreements to your Korean counterpart after you leave Korea. Make several visits during negotiations and after business is established.

Dining

• Sharing a dinner is vital to building friendship that foster trust. Your business success is directly related to your social relationships.
• Do not pour your own drink, but do offer to pour others. it is common to trade and fill each other's cup. To refuse is an insult. Women pour men's drink, but never another woman's drink. A woman may pour her own drink. Leave some drink in your glass if you don't want a refill.
• It is polite to pass or accept food or drink with your right hand while your left hand supports your forearm/wrist.

Gifts

• Gift giving is very common in Korea. Offer and receive a gift with both hands. wrapped gifts are never opened in the presence of the giver.
• Always bring a small gift for the host when invited to someone's home. example: small gift, candy, cakes, cookies, flowers, fruit. Do not give liquor to a woman. 
• It is common to exchange gifts at the first business meeting. Allow the host to present his gift first.

Helpful Hints

• Never use words like "fellow,""guy,""this man" or "that man". This is considered demeaning.
• Koreans are not Chinese. They are distinct from other Asians in food, language and culture.
• Deny a compliment. Don't say "thank you". It is impolite and shows a lack of humility.

Especially For Women

• Foreign women may have difficulty doing business in Korea. Although women are becoming more accepted in the Korean business place, Korean men generally prefer to negotiate with men.
• Korean women seldom shake hands. A Western women can offer her hand to a Korean man, but should not to a Korean woman.
• Foreign businesswomen should always act elegant, refined and very "feminine". Laughing and loud talking are frowned upon.
• Generally, woman wait for Korean men to make the first move.

Leadership skills

President: Park Geun-hye

 

Ms Park is the daughter of a former president 

Park Geun-hye, is South Korea's first female president, elected in a close-run contest in December 2012.The South Korean president holds full executive powers and the premiership is a largely ceremonial post.
 In 1974, at the age of 22, Ms Park became South Korea's first lady when a North Korean assassin shot her mother dead with a bullet intended for her husband.
Ms Park issued a public apology for human rights abuses committed under her father in September 2012, showing that she has zero tolerance over law breaking people, even if it's her relatives.
Ms Park, of the Saenuri Party, succeed Lee Myung-ba,  to strengthen South Korea's alliance with the United States and to take a tougher line towards North Korea  than his predecessor.
She promised to prioritise both national security and economic revitalization in her inauguration speech.
She offered a step-by-step trust-building process to North Korea but vowed she would "not tolerate any action that threatens the lives of our people and the security of our nation".
However, when the North announced it was restarting the mothballed Yongbyon nuclear complex, pulled its workers out of the Kaesong joint industrial zone and cranked up the bellicose rhetoric in response to US-South Korean military exercise, her relations with Pyongyang had turned into the first major crisis of her term. Not long after that, Ms Park has vowed to respond strongly to any provocation in order to protect the people of South Korea.
 
In May 2013, Ms Park had scheduled talks with the president of US, Barack Obama to strengthen ties between 2 countries so that the purpose "continued co-operation on denuclearisation of the Korean peninsula and countering the North Korean threat," can be achieved.

Chinese President Xi Jinping (left) welcomed his South Korean counterpart Park Geun-hye as an "old friend".

Dong Xiangrong, a researcher at the Institute of Asia-Pacific Studies at the Chinese Academy of Social Sciences, a government think-tank, says China gave an "extraordinarily warm welcome" to Park Geun-hye by inviting her on a state visit only four months after she took office in an interview with the People's Daily Online.
From this, Ms. Park proves that she's a worthy leader as she has good relationship between leaders of other countries as well. As a result, a stronger bond between other countries can be build more easily. After much discussion, a unity between South Korea and China is formed to fight against the threat of the North's nuclear programme.




Samsung's Chairman, Lee Kun-Hee




Samsung, one of most famous company today and the arch rival of apple is founded in South Korea, but who is the chairman behind the success of this prestigious company?



 South Korean mover and shaker Lee Kun-hee.

He was a visionary, able to inspire his employees to greater heights at faster speed than anyone thought possible by presenting a vision of the future to them.He ordered radical reforms at the company in 1993, declaring that Samsung was "second rate" by global standards and famously telling employees to "change everything except your wife and kids".

Who would have thought 20 years ago that Sony executives would be studying Samsung leadership management, instead of the other way around? To dismiss Lee Kun-hee's leadership abilities by burying it in a mountain of allegations and accusations ,  while some of them may be true, is doing a disservice to the leadership lessons that his reign could impart to a future generation of Korean leaders.

``Leaders and followers are both following the invisible leader , also known as a common purpose. The best executives put this common purpose clearly before their group . They must have the ability to share that conviction with others, the ability to make purpose articulate and then that common purpose becomes the leader." , written by Mary Parker Follett (1868-1933), one of the earliest American thinkers on leadership.

In short, Follett is speaking about the ability of a leader to convince his followers to see and achieve a certain vision of the future and the world. By doing this, the followers derive a sense of common purpose in life with the leader and one another. This common purpose then becomes the basis of everyday decisions, both big and small. The followers and the leader will then turn into a cohesive, innovative and efficient team that will inevitably be high-achieving as the common purpose(in a shared vision) acts as glue that binds them together.

Written by : Jason Lim a research fellow at the Harvard Korea Institute, researching Asian leadership models.

Despite resigning on April 21, 2008, Mr.Lee made a return on March 24 2010 to help solve Samsung's crisis. Under his leadership, he has successfully overcome the crisis and made what Samsung is today.

As of today, Samsung has managed to reach to biggest Smartphone Lead Over Apple since the first iPhone launch in 2007, not just in China but all around the world. what is the secret behind this? Lower selling price,  more varied models, and scrutiny from the top. Mr.Lee once said '' What surprised me most was that they( China Leaders) know very well about Samsung. They even have a group studying us.''  Of course, the other leaders of the company have to be given credit for the success, but there's no doubt that if it hadn't been for Mr.Lee's return, Apple would've dominated the electronics market by now.
  

This is what Lee Kun-hee did so successfully during his reign, and there's more to come.


Sources:
http://www.bbc.co.uk/news/world-asia-22162818
 http://www.bbc.co.uk/news/world-asia-china-23094147
 http://www.bbc.co.uk/news/world-asia-21738115
 http://www.bbc.co.uk/news/world-asia-pacific-15291411

http://timesofindia.indiatimes.com/tech/enterprise-it/strategy/How-Samsung-is-beating-Apple-in-China/articleshow/21359846.cms
 http://www.forbes.com/sites/parmyolson/2013/07/26/samsung-reaches-biggest-smartphone-lead-over-apple-since-first-iphone-launched-in-2007/
http://news.bbc.co.uk/2/hi/business/8584702.stm
http://www.koreatimes.co.kr/www/news/opinon/2013/05/352_23249.html