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Lecture Notes - Answers - Final-Term Test
Lecture Notes - Answers - Final-Term Test
Lecture Notes - Answers - Final-Term Test
W 9_1
Essential Elements
of Korean Business Etiquette
1. Family-Centric Values: Korean society places a strong emphasis on the family unit.
Individuals are expected to prioritize the welfare and reputation of the family above
personal interests. This is often seen in the commitment to providing financial and
emotional support to family members, including adult children caring for their
parents.
• Not be able to order a meal for one person, but for four or five people
minimum. This is because, it is not usual for Koreans to eat, drink, or live alone,
so their meal plans are adjusted accordingly.
• In 1996, Korea entered the Asian Financial Crisis which caused huge damage to
the Korean economy and businesses. In order to avoid bankruptcy, it proceeded
with loans given by multiple lenders (the IMF was the biggest one). Korean
government launched nationwide campaigns which involved ordinary Koreans
donating personal gold treasuries. Women were giving up their very own golden
wedding rings, athletes their golden medals and others their ‘lucky’ golden
items. The Koreans knew that they were in this problem together and the only
way to solve it was by working on it together.
Essential Elements of Korean Business Etiquette 2
Gibun
• “Reason-Based" cultures, rationality and logical thinking take center stage
in decision-making processes. These cultures prioritize objectivity, data
analysis, and critical thinking. Decisions are often based on factual
information, cost-benefit analyses, and systematic evaluation of available
options.
Historical Factors
• Rituals and Traditions: Korean culture is replete with rituals and traditions that
reflect emotional significance. These traditions, from bowing to ancestral rites,
emphasize the importance of emotions, respect, and maintaining connections
with one's heritage.
• Hospitality and Generosity: Koreans are known for their hospitality and
generosity towards guests. The emotional aspect of making guests feel welcome
and valued is deeply ingrained in Korean culture. This emotional investment in
relationships is reflected in hospitality practices.
2. Emotion : Gibun vs. Gamjeong
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Essential Elements
of Korean Business Etiquette
Part 2
Relationship Building
Nunchi
• literally translates as “eye-measure.”
• A person with “quick” nunchi can rapidly assess the overall mood
and nature of relationships and hierarchies within any given social
setting — and know how to respond appropriately.
Face Saving
Chemyeon
• The concept of “face” (체면) also exists. Never correct/criticize someone in
public..
• Although becoming less important, gender is still a factor. Married males over
40, or “ajeossi”, are perceived as having a higher position in society. Women
still handle domestic duties, even when they have their own careers. Some
female managers will serve tea or coffee in business meetings.
• In business you will either be a 갑 (gahb), “the party with power and money” or
을 (uhl), “the party without”. Some examples of this are “employer and
employee” or “buyer and seller” relationships.
Fall 2023 Korean Culture
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Relationship Building
because it can determine whether you will close the deal or not.
➢ In Korean culture, social status plays a significant role in relationship building, and
individuals are expected to interact with others in ways that reflect their respective
positions in the social hierarchy
1. Honorific Language:
If a younger person is speaking to an older or higher-ranked individual, they would
use honorific language forms.
• Are you eating? : "먹어요?" vs. "드세요?"
• Are you going to sleep? : “잘거야?” vs. “주무실래요?”
2. Bowing:
When greeting someone of significantly higher social status, a person may
perform a deeper and more extended bow.
3. Seating Arrangements:
In a formal meeting or event, the highest-ranking or most respected individuals
typically sit at the head of the table or in a central position, while those of lower
social status or age may be seated further away from the central seat.
4. Titles and Prefixes:
When addressing a teacher or mentor, it's common to use the title "선생님"
(seonsaengnim) as a sign of respect. For instance, addressing a teacher as "김 선생
님" (Kim seonsaengnim) is a polite way to show respect for their position.
5. Apologetic Gestures:
If a younger person makes a mistake in front of an older person, they may bow
deeply and apologize repeatedly, expressing a higher level of regret and remorse
compared to a similar situation involving peers.
6. Hand Gestures:
When offering or receiving something from an older or higher-status individual, it is
customary to use both hands.
• Don’t wave your hand when you have just met someone in a business
environment.
• Silent bow can be seen as rude, so make sure to give a verbal greeting
such as hello, nice to meet you, thank you, or good-bye.
• Elders may touch the back of your hand with their left
hand while shaking hands to show amicability.
“Foreign business people don’t need to get hung up on when and how to bow.
South Koreans don’t expect foreigners to bow, however, they will appreciate it as a
demonstration of knowledge and respect for their culture”
– Lafayette de Mente
➢ Etiquette is similar when people are parting, with the expectation being to wait
for the older or higher positioned person to take lead and leave first, shaking
hands or waving to say goodbye. In this case, the other side can bow to answer
and also say farewell.
➢ People of identical status can shake hands or wave hands to each other, but if
someone with lower status does that, it would be considered ill mannered.
Social Status &
Relationship Building
• Do take a business card with both hands and take a moment to examine it
and comment on it before putting it away in a case.
• Don’t just take a business card and stuck it away in one of your pockets as
soon as you receive it, this is considered very rude.
• Never place the card in your trousers’ back pocket and sit on it.
Fall 2023 Korean Culture
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Relationship Building
Part 2
유재석
YOU Jae Seok
(Jae Seok YOU)
• Both the personal names are considered to be first names. The concept
of a ‘middle name’ is not followed in South Korea.
• When addressing a Korean, use his/her job title along with her/his family
name unless you’ve been invited to do otherwise. If there is no title, use
Mr./Mrs./Miss with the family name.
• Korean business people devote a great deal of time and energy into
getting to know the people with whom they are dealing in order to
build long-term relationships.
Social Status &
Relationship Building
4. Honoring Supreiors
Be modest and humble when dealing with Korean business partners
• The key to success is being moderate and humble when describing and
demonstrating your abilities, competencies, and achievements while
clearly acknowledging that you are not ‘perfect.’
• If you don’t get along with your boss, it’s because you’re a bad
worker. This can be frustrating but it’s better to just try to accept
cultural differences rather than fighting them.
• Always greet your boss.
I was once asked to teach an overtime class. This was problematic both because it was
unpaid and because I didn’t have time to prepare. Instead of getting upset that I was
put in the situation, I said I was very sorry that it was not possible. I kept apologizing
and saying I wished I could. My boss was disappointed I didn’t take the class but
because I declined in a respectful way, we were still on good terms.
Social Status &
Relationship Building
4. Use both hands when giving or receiving a gift. Gifts are not opened in the
presence of the giver, unless you are a very good friend. If so, you can ask
him/her, 'Do you want me to open it?’
5. Whenever a person receives a gift, it is customary for the recipient to give
another gift of similar value in return at a later time.
6. When you give a gift, ensure that it is compatible with the recipient's economic
means because if he or she cannot reciprocate, 'loss of face' will result.
If you receive a gift that is far too extravagant and a potential bribe,
send it back, citing your firm's policy not to accept a gift with a certain
$ amount. You should be very polite in returning it and express your
gratitude and regret for not being able to accept such generosity.
• The limits on the value of gifts for government related jobs (30/50/100
rule):
https://bcck.or.kr/bcck/foreign-companies-know-kim-young-ran-law/
Fall 2023 Korean Culture
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• Be aware of the reality that if these meetings get canceled, it often happens
with little or no advance notice. If it happens once, it’s probably of no
malicious intent but because something unavoidable popped up.
• However, if the same person repeatedly cancels on you, it could indicate that
they’re not that interested in doing business with you. Or possibly that doing
business with you must be postponed for some other reason.
• If you will be late, be sure to call ahead and let them know. Punctuality is a
sign of respect.
• Keep in mind that if your meeting is in Seoul, you may run into heavy traffic or
have challenges finding a taxi.
• Additionally, some of the buildings may not be easy to find, even for the taxi
driver. Given that, make sure you factor in a minimum 30-minute time buffer.
Before you meet…
• Your age and job title relative to others determines how you
communicate and behave. A higher age/job title will give you more
credibility.
• Most Koreans have been exposed to western culture through movies and
TV shows, and will often have their favorites. This can be a good dinner
conversation topic. Many have studied abroad or interacted with native
English speakers at private academies.
• Those who work at these companies often have graduated from SKY (Seoul
National University, Korea University, and Yonsei University). These
universities are considered the best and society tends to respect/envy their
alumni. Doing business with them can take a different tone.
• Greetings
✓ Situation 1: If the highest ranked person introduces themselves first, you can do the
same after.
✓ Situation 2: If they reach out for a handshake, you can shake their hand. Bow slightly
and shake with a loose grip using two hands (a firm grip is a sign of aggression) after
the oldest/highest ranking person reaches out. Repeat the same action with the next
most senior person in the company on down.
✓ Situation 3: If they pull out the business card, you must accept it, then produce yours.
Repeat the same action with the next most senior person in the company on down.
✓ Situation 4: If they do nothing, make sure to introduce yourself first to the person with
the highest position in the company.
• Koreans can be vague by Western standards, especially during the first
meeting. They will not settle on numbers, dates and specifics.
• Make sure not to be too eager or forward. Let things happen at their
own pace.
• Someone saying that “they aren’t sure” or “don’t know yet” can be a
polite and indirect “no”. It also could mean they really don’t know.
• You will most likely receive a gift near the end of the meeting. Accept
the gift with two hands and thank them. Do not open it in their
presence.
After the meeting…
• Don’t say no to the first shot of alcohol and make sure you finish it in one gulp
(Koreans call this 원샷, one shot).
• Don’t talk about business during meals, unless the subject is brought up first.
• The oldest person or the person inviting usually pays for the entire meal. You
might find yourself fighting for the check. If you’re the seller, regardless of age,
make sure to fight extra hard for the check. If you absolutely need to pay,
pretend to go to the bathroom near the end of the meal and pay at the front
(this would only be acceptable if you’re a seller).
FAQ
Q. What’s the best time for a business meeting with Koreans?
It’s best not to schedule meetings during lunch or dinner as those times are
strictly for eating. 10 am in the morning and 2pm-4pm in the afternoon are safe
choices.
✓ Men wear a black suit with a white shirt and a discrete colored tie.
✓ Women wear conservative skirts and white blouse.
Office Call Protocol
• Office calls in Korea should be treated as formal affairs, especially if you are
visiting a company for the first time.
• It is not only polite but expeditious to make the appointment well in advance,
and advise the people you want to see what you want to talk about.
• Another approach-and often the best one-is to seek the assistance of a local
go-between or consultant who can sound the company out on your behalf.
Fall 2023 Korean Culture
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3. Cultural Understanding
• the emphasis on mutual respect and understanding of different
cultures in Korean business culture.
4. Face-to-Face Interactions
• utilize in-person meetings and social gatherings to strengthen
relationships between companies.
• Dinner is the largest meal of the day and normally occurs between 7pm
and 9pm.
• It is customary for the host to order the food, which all arrives at the
same time.
• Unless your hosts raises it first, avoid discussing business during a meal.
• Although chopsticks are the most predominantly used utensils (as well
as spoons for soups and noodles), you may ask for forks or knives when
dining in larger cities.
• Never pick up any food with your fingers. Fruit is eaten in slices with
forks.
• The host is expected to pay for the meal; nevertheless, a good-natured
argument over who will pay is to be expected. It is also polite for the
foreigner to offer a reciprocal dinner invitation.
VS.
Drinking Culture in South Korean Business
• It’s often during these interactions that the real business is done and strong
working relationships with business partners are formed.
• However, if for some reason you can’t drink – such as religious reasons – be
honest with them about it. If you’re just not a fan of alcohol, be honest about
that, too.
• Koreans do business around the world, so they’re familiar with different customs.
They’ll be understanding, but it may take more time to form a stronger business
relationship with you.
• Pour others’ drinks rather than your own. If the person next to you has a half-full
drink, you are obliged to refill it. If you refill your own, you cause that person
next to you to lose face.
• Turn your face away to drink when drinking with someone senior to you.
Business Meetings and Dinings
5. Sensitive Topics
Korean history and landmark
Daily life
Politics
Personal financial situation
Language
Future plans
Religion Travel
• Much like a western working place, it’s important to avoid discussing
sensitive topics.
• Many Koreans will have strong opinions on these issues, some even
opposed to their other Korean colleagues. Try not to introduce topics
that could disrupt social harmony as this won’t be seen as a good
sign to do business with you.
Fall 2023 Korean Culture
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• Face and Harmony: The cultural value of preserving "face" and maintaining
harmony influences decision-making approaches. Conflicts may be avoided, and
decisions crafted to minimize negative impact on relationships.
2. Consensus-Based Decision-Making
2. Negotiating Korean-styles
Negotiating Korean-Styles
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2. Controlling Competition
Several factors contribute to the high level of competitiveness in South
Korea:
1. Economic Development
• Achieved rapid economic development over the past few decades,
transforming from a war-torn country into one of the world's major
economies.
• This economic success has fueled competition as businesses strive to
maintain and improve their positions.
3. Chaebols
• Large, family-controlled conglomerates known as chaebols dominate the
South Korean business landscape.
• The competition among these conglomerates, including Samsung,
Hyundai, and LG, contributes to the overall competitive nature of the
economy.
4. Limited Domestic Market
5. Export-Oriented Economy
6. Globalization
• South Korea's integration into the global economy has intensified
competition.
• Companies face challenges not only from domestic rivals but also
from international competitors.
• This globalization has forced businesses to strive for competitiveness
on a global scale.
7. Education System
1. Antitrust Laws
4. Start-up Support
• Initiatives and policies to support start-ups and entrepreneurs
contribute to a diverse and innovative business landscape.
Decision Making and Negotiation 2
• It's important to note that these practices are not universally applied,
and many Korean businesses adhere to transparent and ethical
standards. However, in some cases, delays and indirect
communication may occur for various reasons.
1. Decision-Making Timeframes
• Korean business negotiations and decision-making processes may take longer
than expected.
• Delays can occur due to the emphasis on consensus-building, hierarchical
approval processes, and careful consideration of all aspects before finalizing
decisions.
2. Indirect Communication
• Koreans often use indirect communication, and messages may be conveyed subtly
or through non-verbal cues.
• This indirectness can lead to challenges in understanding the true intentions or
expectations of business counterparts.
3. Avoidance of Confrontation:
• Open confrontation or disagreement may be avoided in Korean business settings.
• Instead of directly expressing disagreement, individuals might use more subtle ways to
communicate differences to maintain harmony.
4. Saving Face:
• The cultural value of "saving face" is significant in Korea. Individuals may avoid
expressing negative opinions directly to prevent embarrassment.
• This can lead to delays in addressing issues, as problems may be handled discreetly to
avoid public embarrassment.
5. Negotiation Tactics:
• Negotiations may involve strategic delays, with negotiators taking time to assess the
situation and gain a better position.
• Giving the appearance of hesitation or indecision can be a tactic to gather more
information or concessions.