Professional Documents
Culture Documents
Vietnam National University Ho Chi Minh City International University
Vietnam National University Ho Chi Minh City International University
INTERNATIONAL UNIVERSITY
MULTICULTURAL MANAGEMENT
Students:
Nguyen Van Tung BABAIU16048
Le Anh Xuan BABAIU16106
Nguyen Huu Quynh Nhu BABAIU16100
Intercultural competence is no longer seen as a soft skill but is now a required skill of anyone
wishing to work internationally. A lack of cultural sensitivity can lead to lost business, a failed
assignment, poor client relationships, staff attrition and ultimately wasted time and investment.
Many expatriates struggle to adjust to a new culture when they travel internationally. This can
create tension for all members of the family. Luckily, training for expatriates has been proven
most successful at helping expatriates adjust.
Table of Contents
Overview .................................................................................................................................... 2
1. Managing culture and country shock ..................................................................................... 4
1.1 Overview of the role of ‘culture’ within international business ...................................... 4
1.2. Brainstorming ways in which differences can be resolved ............................................. 4
1.3. Guidelines and tools on adapting and dealing with cultural differences ........................ 5
1.3.1. Learn a few key phrases ........................................................................................... 5
1.3.2. Learn culture in Korea ............................................................................................. 5
1.3.3. Promote appreciation of cultural differences. .......................................................... 5
1.3.4. Be open to trying new things. .................................................................................. 6
1.4. Advice on how to deal with culture shock and homesickness ........................................ 6
2. How culture impacts a South Korean business practices....................................................... 7
2.1. Non-verbal and body languages...................................................................................... 7
2.2. Collectivist society .......................................................................................................... 8
2.3. Power Distance and Hierarchy in South Korea .............................................................. 8
2.4. Korean Confucianism and Collectivism ......................................................................... 9
2.5. Personal Relationships for Doing Business .................................................................... 9
2.6. South Korean Business Etiquette .................................................................................. 10
2.6.1. Greeting.................................................................................................................. 10
2.6.2. Business Cards ....................................................................................................... 10
2.6.3. Business Meeting ................................................................................................... 11
2.6.4. K-Type Management Style .................................................................................... 11
2.6.5. Gift Giving ............................................................................................................. 12
3. Essential information to live in South Korea: ...................................................................... 12
3.1. South Korea’s General Information .............................................................................. 12
3.1.1. Location ................................................................................................................. 12
3.1.2. Climate ................................................................................................................... 13
3.1.3. History.................................................................................................................... 13
3.1.4. Politics.................................................................................................................... 14
3.1.5. Demography........................................................................................................... 15
3.2. Beliefs ........................................................................................................................... 16
3.2.1. Religious beliefs..................................................................................................... 16
3.2.2. Superstition ............................................................................................................ 16
3.3. Values ........................................................................................................................... 17
3.3.1. Personal Value of Korean ...................................................................................... 17
3.3.2. National value of Korea People ............................................................................. 18
3.4. Etiquette & Customs ..................................................................................................... 18
4. Working with South Korean ................................................................................................ 19
4.1. South Korean business protocol.................................................................................... 19
4.2. South Korean verbal & non-communication ................................................................ 20
4.3. South Korean Negotiating Style ................................................................................... 21
4.4. Recommended steps when working with Koreans ....................................................... 21
Conclusion ............................................................................................................................... 22
References ................................................................................................................................ 23
1. Managing culture and country shock
To reduce the impact of culture shock, allow for successful relocation, and also develop
management skills to include the ability to lead, motivate and communicate across cultural
lines.
1.1 Overview of the role of ‘culture’ within international business
Recognizing and understanding how culture affects international business in three core
areas: communication, etiquette, and organizational hierarchy can help you to avoid
misunderstandings with colleagues and clients from work and study abroad and excel in a
globalized business environment.
Effective communication is essential to the success of any business venture, but it is
particularly critical when there is a real risk of your message getting lost in translation. In many
international companies, English is the de facto language of business. But more than just the
language people speak, it is important that how people convey their message. Moreover, while
fluent English might give people a professional boost globally, understanding the importance
of subtle non-verbal communication between cultures can be equally crucial in international
business.
Along with differences in etiquette, come differences in attitude, particularly towards
things like workplace confrontation, rules and regulations, and assumed working hours. While
some may consider working long hours a sign of commitment and achievement, others may
consider these extra hours a demonstration of a lack of efficiency or the deprioritization
of essential family or personal time.
Organizational hierarchy and attitudes towards management roles can also vary widely
between cultures. Whether or not those in junior or middle-management positions feel
comfortable speaking up in meetings, questioning senior decisions, or expressing a differing
opinion can be dictated by cultural norms. Often these attitudes can be a reflection of a
country’s societal values or level of social equality. The hierarchy helps to define roles and
responsibilities across the organization. This also means that those in senior management
positions command respect and expect a certain level of formality and deference from junior
team members. When defining roles in multinational teams with diverse attitudes and
expectations of organizational hierarchy, it can be easy to see why these cultural differences
can present a challenge.
1.2. Brainstorming ways in which differences can be resolved
Brainstorming is the default way in which many teams and organizations come up with
new ideas. And it’s commonly said that the more diverse the group, the greater the potential for
innovative ideas. People can do to tap the diverse range of ideas from a global team is to help
participants improve their cultural intelligence. In addition, here are a few simple strategies to
use when brainstorming with a global team.
First is to clearly define the objective. Any brainstorming session should clearly define
the purpose and desired outcome. Most intercultural challenges begin with clashing
expectations. To address this, people can write down his/her understanding of the objective,
and in the meeting, briefly go over what people wrote. People can check for understanding by
asking others how they might explain the objective to others on their teams.
Second is do not spring a brainstorming session on a global team. Those who prefer to
have time to generate ideas independently or by consulting others will feel better prepared to
participate, people need to force yourself that you are going to ask others to share their ideas
first.
Final is to make explicit if you want participation from everyone. And assure the team
that the goal is not to have everyone talking equal amounts of time but to ensure that input and
ideas come from everyone. Offer a variety of ways for input to be offered. For example, those
who come from a more collectivist background may prefer to spend some time discussing ideas
together before hand and share them collectively with the group. But by being more thoughtful
and strategic in how you approach brainstorming, you will increase participation and yield
more, and more innovative, ideas.
1.3. Guidelines and tools on adapting and dealing with cultural differences
1.3.1. Learn a few key phrases
Because clear communication is essential for effective functioning, it is necessary that
each person understand what your clients and customers need. Depending upon the number of
clients or customers with whom you work and the amount of diversity, it may not be possible
for you to learn all the languages, but learning a few greetings and key phrases can go a long
way.
1.3.2. Learn culture in Korea
Taking the time to research or inquire about another’s culture can go a long way to
make them feel comfortable. Learn about the things your clients and customers like and value:
their food, their customs and protocol, business practices and what they do for fun. Because of
your extra effort, the people with whom you work will feel appreciated and will be more apt to
recommend you and do business with you in the future.
1.3.3. Promote appreciation of cultural differences.
Set aside a special day where you ask a few employees or co-workers to share aspects
of his or her culture or a client’s culture with everyone about the foods, ceremonies and other
aspects of that culture. This will not only promote socialization, it will give each person the
opportunity to learn about and appreciate one another’s culture.
1.3.4. Be open to trying new things.
While traveling to visit clients in other countries, be open to trying new things like the
food at least once. Even if people like something, they will be appreciated for making the effort.
If people are allergic or prefer not to partake in something (like drinking alcohol) do not
compromise their own values, however, to accommodate theirs. You are permitted to
respectfully decline. The idea is not to create boundaries, but to build bridges and open the
door to cultural differences
1.4. Advice on how to deal with culture shock and homesickness
Moving to Korea and adjusting to life there can be an adventurous, and at times
shocking, experience. Generally, the first several weeks are especially chalked full of new
experiences. During lasting up to 3 months in a foreign culture, new food and new people, new
modes of transportation, new professional expectations, a new home and all of the surprises,
struggles and exciting moments of experiencing a new culture can be simultaneously exciting
and overwhelming. People who have spent prolonged periods of time traveling prior to living
in Korea may have an easier time dealing with homesickness than those who are abroad for the
first time. Regardless, homesickness is a natural part of the process which comes and goes, but
this combined with the different stages of culture shock can be distracting at times. Often both
homesickness and culture shock are accompanied by levels of anxiety, a desire to withdraw,
and/or feelings of depression. Feeling like this is not abnormal when far away from home for
an extended period of time, and there are things Korean can do to address the discomfort
associated with homesickness
Distress experienced as a result of homesickness can be addressed in a number of ways.
The following is a list of simple suggestions for dealing with these feelings. Establish effective
communication with loved relatives from home. It is important to get your lines of
communication with home established in a reliable way. It gives you a realistic and convenient
way to connect with friends and family back home. Reminding yourself of the security of your
home connection is often paramount in coping with homesickness. Secondly, find basic
comforts from home is one way to reduce the homesick. Finding some of the basic comforts
of home in Korea can often be difficult but those such items often help expats feel like their
new apartment in Korea is truly home. Plan an adventure is good method to reduce the
homesick and reduce the culture shock. In addition, it may help people experiencing
homesickness to consciously focus on something else. South Korea boasts some amazing 4D
movie theatres with English movies. In addition to a unique experience at a Korean baseball or
soccer game, there are a number of countryside parks, beaches and travel destinations in Korea.
Developing a new level of appreciation for the Korean culture can also help. Some cultural
events like New Year celebrations and seasonal festivals like the Lantern Parade to help support
a new and appreciative understanding of the Korean culture as the broad and supportive social
networks adjust to a new culture in a healthier way. With organizations like Adventure Korea
and Meet Up in Korea, there are always ways to meet other people, network and have new
adventures. Getting connected can be a notable relief in the midst of adjustment
While homesickness rarely becomes a significant issue, there are additional resources
to support expats in Korea that experience prolonged or intense levels of emotional discomfort.
One particularly well reviewed counseling and professional development service in Korea,
Adaptable Human Solutions, works mainly with expats. The important thing is that you are
prepared to cope in the midst of this upcoming change. With good communication, good
networking, a variety of good cultural experiences, and the availability of a few comforts from
home now and then, absolutely that people will be so busy with new friends and new
experiences that homesickness rarely becomes more than a brief bump in the road. The
memories and rewards that come along the way in Korea are truly special and hard to forget.
Homesickness, if managed well, is rarely something to recall amidst the excitement of your
Korean experience
Suggested materials to research comprehensively this theme.
The Culture Shock Tool Kit: Three Strategies for Managing Culture Shock - by Margarita
Gokun Silver
Kiss, Bow or Shake Hands: The Bestselling Guide to Doing Business in More Than 60
Countries" by Terri Morrison and Wayne A. Conaway.
2. How culture impacts a South Korean business practices
Addressing fundamental issues (hierarchy, management styles, communication etc.)
that guidance audiences how South Korean Culture affects social and personal interaction.
2.1. Non-verbal and body languages
In South Korea, the way of paying attention to others’ non-verbal and body languages,
as well as the tones. People need to learn from others’ non-verbal and body languages, as well
as the tones to get the real meaning of what they said. The good example could be: A Korean
may say to you that “Are you hungry?” He/she is actually saying “I am hungry, can we eat
now?” So, if you answer “No”, it would hurt him/her. The correct answer would be to ask the
Korean what he/she wants to eat. From the discussion above, Vietnamese must learn to
understand it and know how to react to this unique culture, in order to corporate better with
South Koreans
2.2. Collectivist society
As a collectivist society, the consensus is an important element in promoting and
maintaining harmony in South Korea. Usually Koreans like to give positive answers and avoid
or reluctant to give direct refusals. They do not want to hurt the harmonious environment by
giving negative answers or refusing others to cause face losing. In the business world, this term
requires that subordinates be loyal to their superiors and that superiors be concerned with the
well-being of subordinates. In South Korea, people believe that a person owes total loyalty to
parents and authority figures, notably rulers, elders, and organizational leaders, as well as those
who are in high hierarchical rankings in their hierarchy. Therefore, workers see themselves as
they owe the same loyalty to their employers and supervisors as to their parents and family
elders. In the business world, Koreans show their respect to their employers and supervisors,
and usually avoid conflicts as much as they can, if they have different opinions. They would
like to obey the employers’ and supervisors’ orders to show their loyalty, and expect to get
confirmation and satisfaction from their employers and supervisors. On the other hand, their
employers and supervisors are usually concerned with the well-being of the subordinates.
Therefore, Vietnamese people need to keep in mind that it is important to perceive how the
respect to the high- level managers, and avoid direct conflicts, especially in public.
2.3. Power Distance and Hierarchy in South Korea
South Korea is a country with high power distance and hierarchy. Usually, the eldest
person in the gathering initiates activities, such as entering a room, greeting and eating. The
person of lower status bows to the one higher. Similar to other traditional societies, for
example, the higher positioned persons and senior member are expected to seat in the center or
head position, and always get their food first served. The society has higher level of inequality,
and individuals and society in South Korea are more unequal. The high-power
distance/hierarchy does not only exist in the personal life, but also in the business world.
Therefore, in order to collaborate well with South Korean companies, Vietnamese ones must
be aware of the higher power distance, and show their respect by sending the right officials to
successfully negotiate the deals. On the other hand, the senior manager is usually the decision
maker. Junior staff may possess more knowledge of the issues in hand, so it is important to
engage with them as well. They may not offer an opinion, however, until the senior member
of staff has passed judgment. Therefore, Vietnamese people should focus on the decisions
made by the Korean senior managers, and at the same time, maintain the contacts with the
junior staff. It is suggested for the Vietnamese people to send documents, such as proposals,
company brochures, and marketing materials, to the decision makers as well as the junior staff
in advance.
2.4. Korean Confucianism and Collectivism
Confucianism permeates the Korean life. It influences both the personal lives and business
world in a high extent. In general, Confucianism influences South Korean society very much
in many different ways, such as the status, social contacts, relationships with others, etc. For
example, Korean status is determined by age, gender, education, family background, wealth,
occupation, and political ideology. Social contacts determine success. Genealogy and
backgrounds are important and determine how people are treated in the hierarchical society.
South Koreans tend to be very friendly, and their culture has a strong emphasis on group ties.
An individual is expected to consider the benefits and interests for the whole group/community
which he/she belongs to. The Korean society, as a collectivist society like many other Asian
countries, requires people living in a harmonious “family”. The impact of this culture to South
Korean business manifests especially in decision making and negotiations. Usually, it takes
longer for South Koreans to make a final decision, because all of the members need to consider
others’ opinions and values. The decision is based on the careful consideration of the interests
of the whole team. Therefore, when negotiating with South Koreans, Vietnamese people should
be aware of this culture, and be patient during the negotiation process, or be prepared that the
negotiation process may take more than one meetings to complete the deals. They should also
appreciate the collectivism, and think in terms of the good of the whole team, to successfully
negotiate business with Koreans.
2.5. Personal Relationships for Doing Business
In South Korea, the personal relationships are essential for doing business, and usually
established before the beginning of the business process. In order to be successful, it is vital to
establish good personal relationships based on mutual trust and benefit. Korean business
culture is firmly grounded in respectful rapport. In order to establish the personal relationships,
it is very helpful to be introduced by a mutual friend or acquaintance at the appropriate level.
Once the foreign company is successfully introduced to the Korean one, it is important to send
the relevant documents, such as proposals, company brochures, etc. to get the contacts. After
establishing the personal relationship, it is suggested for the foreign company to maintain the
relationship by continuously contacting the Korean company. Therefore, time should be
allocated for this process, particularly during the first meeting, which is frequently used to
simply establish rapport and build trust. Once good, solid relations have been recognized in
South Korea, continuous reinforcement and maintenance is vital. Vietnamese people or
companies should be patient doing business with Korean ones, and take the business as a long-
term one instead of one-time deal. The better and stronger the personal relationship with the
Korean company, the more successful the partnership would be.
To more understand the personal relationships in South Korea, foreigners and foreign
companies should be aware that it is a collectivist society. People are not comfortable doing
business by individuals. In other words, Koreans are not willing to do business with a stranger
without friends’ introduction and support. By introducing and establishing the personal
relationships, South Koreans would be more willing to consider the foreign company as a part
of the group, and thus, they would collaborate for the interests and benefits of the whole group.
2.6. South Korean Business Etiquette
South Korea has its own unique business etiquette, and all of the etiquette is influenced
by their unique cultures in some extent. Acquiring this culture is essential for foreign
companies to do better business with South Korea. South Korean unique business etiquette
mainly exhibits in six aspects, which are introduction, greeting, business cards, business
meeting, K-Type management style, and gift giving.
2.6.1. Greeting
In South Korea, greeting is one of the steps that businessmen do not want to skip. It usually
happens after the introduction. The usual greeting between men is a bow, accompanied by a
handshake. To show respect, the left hand is placed below the right forearm while shaking
hands. Women do not shake hands as frequently as men. During greeting, maintaining the eye
contact is appreciated. Many foreigners who had some experience of doing business with
Koreans said that they learned the unique greeting culture during their stay with Koreans. Every
time when they met with their Korean partners and colleagues, every Korean bowed to each
other, and then followed by a handshake. The bowing also happened in restaurants whenever
they visited restaurants with their Korean partners and co-workers. Every host or owner bowed
to customers when they went inside. The bowing is one of the most surprising cultures to most
foreigners.
2.6.2. Business Cards
South Koreans attach importance to business cards exchange, with their certain way.
Usually, after the handshake, business cards are exchanged between professionals during initial
encounters. The cards are presented and received with both hands. It is recommended that
foreigners obtain bilingual business cards with Korean on one side and English on the other
side. When you present your business card to Koreans, please keep in mind that the Korean
language side should be facing up, with your both hands. People are expected to handle the
business card by their right hand, if they need to pass the card to others. After receiving the
card, it is suggested to nod your head to show your respect and thanks. Once you receive it, try
not to stare too hard at those business cards as it will come across as impolite and/or possibly
offend the Korean businessmen.
2.6.3. Business Meeting
Because business is based on personal relationships and trust in South Korea, usually it
takes longer to complete a deal. Therefore, it usually takes several meetings to finish the
business. The first meeting is usually a start of the business-relationship building process. Very
little might be discussed which relates to the actual business in hand for a while, with most
time being spent exchanging pleasantries, discussing travel and other small trivia. Meeting with
South Koreans would sometimes be a frustrating cultural shock for Vietnamese if they do not
understand the process of developing real business with Koreans. It is important for
Vietnamese not to show impatience or irritation at this stage. It is suggested for Vietnamese
workers that they could view the first meeting as an essential first step or investment in creating
a rewarding, trustable and long-term business relationship.
Regarding the negotiation in business meetings, foreign companies, like Americans, need
to keep in mind that the society is a high hierarchy society. Therefore, they need to know who
the decision maker is, and contact the person prior to the actual meeting. Usually, the senior
managers are the decision makers, and junior staff is playing a role as supportive. American
companies should focus more on what the senior managers think about during the negotiation.
However, this does not mean that they could ignore the junior staff. It is recommended for
Vietnamese companies to keep contacts with the whole team, because one of the management
styles of South Koreans is team-oriented.
2.6.4. K-Type Management Style
Korean management style, called K-Type management, consists of top down decision-
making, paternalistic leadership, clan management, personal loyalty, compensation based on
seniority and merit ranking, high mobility of workers. The organization structure of companies
are highly centralized and formalized with authority concentrated in senior levels. Major
decisions go through a formal procedure of approval from top levels of management. When
working with Korean companies, Vietnamese ones should value the decisions made by the
senior managers. Korean society values harmony as one of its most important honors, both in
personal life and business world. Vietnamese companies should keep in mind that they need to
avoid conflicts, especially in public, with senior managers. They do not want to disturb the
harmony to take the risk of ruining the business.
2.6.5. Gift Giving
In South Korea, gift giving is part of doing business. It is done to secure favors and build
relationships. Gift giving in South Korea is not seen as a bribery or corruption. Normally,
business gifts should be of good quality but inexpensive. The gifts from the givers’ home
country would be much appreciated and impressive, regardless of the price. The gifts should
be wrapped before giving, and opened in private rather than in the presence of the giver. When
handing out more than one gift, the giver(s) need to make sure that senior members are given
gifts with greater value than junior members, because respect for seniors is everything in South
Korea. When you are given a gift, it is polite to seem to refuse the gift a couple times before
accepting.
Those items discussed above are part of the unique business etiquette in South Korea.
Understanding them before doing business with Koreans, is very important and critical.
Besides those items of Korean business etiquette, there is some other business etiquette that
Vietnamese people.
Additional material to comprehensive this theme:
Bae, J., Rowley, C., & Sohn, T. W. (2012). Managing Korean business: Organization, culture,
human resources and change. Routledge.
Koo, H. (2001). Korean workers: The culture and politics of class formation. Cornell
University Press
3. Essential information to live in South Korea:
To understand how life is in South Korea in order to maximize potential when working
there. And to gain a competitive advantage through understanding the local culture, values and
ways of doing business
3.1. South Korea’s General Information
3.1.1. Location
South Korea, country in East Asia. It occupies the southern portion of the Korean
peninsula. The country is bordered by the Democratic People’s Republic of Korea (North
Korea) to the north, the East Sea (Sea of Japan) to the east, the East China Sea to the south,
and the Yellow Sea to the west; to the southeast it is separated from the Japanese island
of Tsushima by the Korea Strait. South Korea makes up about 45 percent of the peninsula’s
land area. The capital is Seoul (Sŏul). The area of South Korea is 97,230 sq km.
South Korea Map
3.1.2. Climate
South Korea is influenced by a mixture of a humid continental climate and a humid
subtropical climate. The country has four changing seasons: winter, spring, summer, and
autumn. Winter lasts from November to February and is marked by moderate to heavy
snowfall. Spring begins in March and is relatively short. Summer comes in June to September
with temperatures that can reach up to 30°C. The monsoon season usually starts in late June
and lasts until the end of July. In September, autumn arrives with a rather light, windy and dry
climate.
The average weather for Korea based upon region data - Weather-Guide.com
3.1.3. History
Because the Korean peninsula is located between China, Japan, and Russia, it has been
subject to foreign invasions throughout recorded history. Korea was ruled by the Chinese for
several hundred years in the early centuries AD. During this time, China established a lasting
influence on Korean culture, especially through its language.
In 1876 the Kanghwa Treaty opened Korea to Japan and to the West. After many wars,
Korea was taken over by Japan, which brutally ruled it from 1910 to 1945. During this period,
Koreans were treated terribly by the Japanese. Women were kidnapped and used as sex slaves,
and many innocent people were horribly murdered. Many Koreans still mistrust the Japanese
because of this.
After World War II (1939–45), the peninsula was divided by the Soviets and the
Americans. The thirty-eighth parallel became the line separating the zones. Eventually, the line
separated two distinct countries: North Korea and South Korea. They have fought one war
(1950–53) and have been preparing for another ever since. The border is one of the most
heavily armed borders in the world. The United States has maintained troops in South Korea
for about fifty years in case of an attack by North Korea. The two countries are still technically
at war with each other. South Korea's government has an elected legislature and a strong
executive branch.
Conclusion
More and more foreigners and foreign companies have been doing business with Korean
and Korean companies for the last decade as many Korean companies become major players
in global markets with their impressive performance. As foreigners and foreign companies are
more involved in business with Korean and Korean companies, they would often face some
difficulties of handling their daily business with Korean and Korean business people because
of different expectation, practices and behaviors in each stage of business. Most of those
differences come from cultural differences between Korea and other countries. Although
Korea is regarded as one of the most internationalized, many Koreans still keep their
traditional culture very much and follow their tradition, custom and practice developed from
their culture significantly in doing business. So, understanding the Korean culture, tradition
and custom helps foreigners and foreign companies do their business with Korean and/or in
Korea efficiently and effectively and finally enjoy all kinds of successes with their business.
Foreigners and foreign companies will be more familiar with the way how to do business
with Koreans and in Korea if they understand more about the Korean value system based on
its culture and recognize the impact of those six parts of South Korean unique cultures to its
business. The more foreigners understand the Korean culture, the more they could enjoy their
business with Koreans and in Korea.
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