When selecting your negotiating team, make the effort to find out who will be the participants in the South Korean delegation. Then, ensure that the people you choose to represent your side match the rank of the South Korean members, since status is very important, and a mismatch may prove embarrassing to both sides. Generally, your representatives should be older and hold senior positions.
Negotiations
Negotiations tend to be very aggressive in tone, and punctuated by emotional outbursts; there is usually less of an emphasis on matters such as costs. You may find that your South Korean counterparts can be very frank and quick to express anger and frustration. Nevertheless, it would be a mistake to take everything said during these meetings literally, and you should strive to maintain your composure and patience. Maintaining a solid, cordial personal relationship with the South Korean side will help you get through the difficulties you may face during the negotiating process. Generally, personal involvement, rather than guidance from a specific set of rules or laws, is a key factor in problem solving.
Although it's important to have a firm position, insisting on having your own way, with no flexibility, will be viewed unfavourably by your Korean counterparts. Moreover, appearing to be in a hurry also puts you at a disadvantage.
If your contacts do not speak for what you may consider to be a long time (15-30 seconds), it is likely that they are giving careful consideration to what they've just heard.
Respect and deference are directed from the younger to the older, and authority and responsibility from the older to the younger.Make a point of acknowledging them first in a group. Younger executives can be easier to negotiate with, since they will often follow more Westernised patterns.
"Saving face" is an important concept to understand, a person's reputation and social standing rests on this concept. By remaining calm at all times, you will be perceived as being able to control your emotions, rather than allowing them to control you. Moreover, refrain from criticizing your competition or admitting that you do not know the answer to a question. You must do everything you can to prevent the occurrence of "losing face", that is, losing control of your emotions or otherwise causing embarrassment.
Female business travelers may find certain situations awkward or uncomfortable. If women will be part of your negotiating team, it is important that you tell your contact, since the South Korean side may need some time to accept this arrangement.
There is often a reluctance to give a direct answer of "no." Sucking in air through your teeth is one way to signal a definite answer of "no." This sound is used to indicate that there is a serious problem, even if on the surface, what is being said sounds positive. A response such as "maybe", accompanied by squinting the eyes or tipping the head back may also be used to disguise a "no" answer.
A "yes" answer should not always be taken literally. For example, a "yes" may be used to disguise a non-committal response such as "I'll think about it" or an outright "no." It is considered more important to maintain harmony and good will than to give a frank answer that causes distress.
Presentations and Meetings
One effective way of conducting a presentation is to break your information up into small segments, frequently pausing for question and answer periods. You may face extensive questioning, so remain patient. It's also an asset to recap the main points at the beginning and the end. Since smoking is very common in South Korea, it will be greatly appreciated if you allow for cigarette breaks when running meetings or conducting lengthy presentations. Even if the chief negotiator does not speak English, make a point of addressing him occasionally. Since triangles have negative connotations in this culture, these shapes should be avoided in your promotional material or visual aids.
During a meeting or presentation, you will have to take the initiative to discern if your audience understands you. Silence can be one sign that you are not being understood. Since "saving face" is so important, people will not admit in front of others that they are having difficulties. Moreover, South Koreans often prefer to reach a general agreement, and then work out the details later.
Alcohol and Business Entertaining
Korean businesspeople often believe that it may be difficult to trust a business partner until a few drinks have been shared. At other times, the only way to resolve a sensitive problem or close a difficult business deal is over numerous drinks.
It is common to be invited out after business hours to a Gisaeng house, bar, or dinner party where there will be a lot of alcohol. All comments and promises made on these occasions will be taken seriously afterwards. It is important to accept these invitations, but leave your spouse at home.
Typically, very little is said during meals and refrain from discussing business. South Koreans generally prefer to concentrate on their food, and a silent meal should not be a cause for concern.
Business Hours
Korea is 13 hours ahead of Eastern Standard Time. Business hours are normally from 9 am to 5 pm Monday through Friday, and 9 am to 1 pm on Saturdays.
Making appointments
South Korean businesspeople, particularly top executives, are extremely busy and their crowded schedules may cause them to be a few minutes late for appointments. Do not express anger or annoyance if your contact is late for an appointment. Business travelers, however, should always arrive on time.
The best times for business meetings are usually 10:00 a.m. to 12:00 p.m. and 2:00 p.m. to 3:00 p.m. Prior appointments are necessary. Business dinners are common, and meetings may take place in a local coffee shop. Business breakfasts, however, are rare.
Korean businesspeople vacation from mid-July to mid-August, so avoid trying to schedule appointments at this time of the year. Other inconvenient times include early October, a time of many holidays, and Christmas time.
Gift Giving
Gift-giving is often practiced in a business setting. Good gifts for a first trip include office items with your company logo or something that is commemorative of your home region. Your gift should be of good quality but modestly priced.
When you plan to give a gift to several people within an organization, be sure to give a gift of greater value to the senior person. The gifts you present to that person's subordinates may be similar, as long as they are of lesser value than the one you give their superior.
Business Attire
In business settings, standard attire for men includes a dark suit, white shirt, and conservative tie. Women typically wear very conservative skirt and blouse combinations or business dresses.
CONCLUSION
Doing business in South Korea has a longer timeline than doing business abroad. In addition to the role of building a personal relationship with your counterpart, you must leave plenty of room for negotiations. These counterparts will pursue an extreme position but will be prepared to gain some common ground. This way, you and your counterparts will have benefited from the agreement.
Delays in decision making on their part may be strategies in wearing you down to give in to their demands. Therefore, do not talk about deadlines which need to be met. Expect to make several trips to Korea before any agreement could be reached
BIBLIOGRAPHY
Morrison, Terri, et. al. Dun & Bradstreet’s Guide to Doing Business Around the World. Prentice Hall. Paramus, New Jersey. 1997.
Confucianism: The teachings of Confucius emphasizing love for humanity; high value given to learning and to devotion to family (including ancestors); peace; justice; influenced the traditional culture of China
