You are on page 1of 5

Ayesha Jilani

IMS 4320. 501

Professor Tom Henderson

Individual Paper: South Korea


There are a few main concepts of South Korean culture that influence the way Koreans

do business. One of them, Kibun, which roughly translates (in the context of business) to

stability and balance in work and personal life. Koreans not only strive to maintain their own

Kibun, but also to avoid disturbing others’. Kibun focuses on the way others feel—consequently,

people in South Korea (both higher-ups and subordinates) tend to evaluate their words and

actions in relation to how they would affect the other’s Kibun. Although South Koreans tend to

be very careful and understanding of each other’s’ Kibun, many misunderstandings can arise

with relation to foreigners do due a possible clash of cultures. People in South Korea tend to be

very mindful of body language and tone of voice. While tone of voice and enunciation or certain

words or phrases in English do not affect our understanding of them, the meanings of Korean

phrases can differ vastly based on the tone of voice and pitch one uses.

One other aspect of Korean culture that affects business is Inhwa. Inhwa refers to the

maintaining of harmony between higher-ups and those who are more subordinate and was

derived from Confucius beliefs. It stresses that even in times of disagreement, a person respond

politely and show loyalty to higher-ups. The main purpose of Inhwa is to preserve a harmonious

work environment and foster positive feeling between coworkers. Here in the U.S., however, we

believe in the right to express our opinions freely regardless of how another person feels.

Obviously, some employees in the U.S. are more considerate than others, but overall, our

business culture promotes freely voicing opinions and getting our points across in the most direct

way possible.
Ayesha Jilani

IMS 4320. 501

Professor Tom Henderson

Individual Paper: South Korea


Confucianism is ingrained in South Korean culture. Particularly, the five morals that

govern human relationships, which are as follows: Justice and righteousness should mark the

relations between sovereign and subject, there should be proper rapport between father and son,

separation of function between husband and wife, the younger should give precedence to the

elder, and that faith and trust should reign over relationships between friends. These values

further emphasize the general principle of business culture in South Korea—that loyalty to one’s

higher-ups, respect to coworkers, and a harmonious work environment must be maintained.

Social considerations in South Korea also stem primarily from its culture and values.

Korea, as a nation, has a high power-distance and hierarchical system. Whether in a business

environment or between family members, the concept of elders being in more powerful positions

is common. In businesses, it is expected of younger employees to show the highest level of

respect to their superiors by standing when they enter a room, bowing to them in greeting, as

well as through other forms. People in South Korea, at work and elsewhere, rarely call each other

by their first names. Instead, they refer to one another by their title. For example, in school,

younger students refer to older students as brothers and sisters (female to female: “unni”, female

to male: “oppa”, male to male: “hyung”, male to female: “noona”) and upperclassmen

(“sunbaenim”/ “sunbae”). In a professional environment, the titles are more formal—rather than

referring to one another as brothers and sisters, they use miss and mister (by adding “-ssi” to

one’s name).

In order to successfully do business in Korea, it’s important to establish personal

relationships with your business partner. It’s also helpful to have a mutual friend, as that helps
Ayesha Jilani

IMS 4320. 501

Professor Tom Henderson

Individual Paper: South Korea


establish some level of trust and understanding. Additionally, once a solid relationship has been

established between people, reinforcement and maintenance of that relationship is essential. In

South Korean culture, relationships (friendships as well as professional relationships) are viewed

as lifelong. Therefore, it is extremely important to value and maintain relationships, even if it is

just a business relationship. Breach of trust or dissolution of relationships is highly looked down

upon in South Korea, whereas in the U.S., it’s understood that most business relationships are

very short-lived. In addition to these aspects of Korea’s business culture, gift-giving and

management style are also very important.

In terms of economic growth, South Korea has come far. It ranks as the 11th largest

economy in the world and the 4th largest in Asia. As of this year, it has been recorded that Korea

has the 13th highest GDP. The South Korean economy consists of public and private enterprises,

making it a mixed economy. Its GDP per capita is 202% of the world’s average, which—in

addition to some issues with political stability—has made even basic economic reform nearly

impossible.

Additionally, South Korea’s economy relies heavily on certain conglomerates (Samsung,

etc.) and business as large as these sometimes fester corrupt practices. Although South Korea has

enacted an anti-corruption act (which is strictly enforced), no business—in South Korea or

elsewhere—is completely safe from corruption, regardless of what precautions they may take.

Last year, a major corruption scandal broke out regarding the former president of South

Korea, eventually leading to her impeachment.


Ayesha Jilani

IMS 4320. 501

Professor Tom Henderson

Individual Paper: South Korea


Currently, under president Moon Jae-In, South Korea (as a whole) seems to be doing

much better than under its previous president. However, South Korea seems to be in a bit of a

rough spot as an ally of the U.S., who has increasingly tense relations with its neighbor, North

Korea. While South Korea tends to be in good (or, at least, decent) standing with both the U.S.

and North Korea, its future relations are not clear.

In conclusion, I think that doing business in South Korea could be a hit or miss. As far as

business culture and values are concerned, I think that South Korea would be a great country to

do business in. Additionally, South Korea’s economic growth over the past few decades is

astonishing, and there is so much more potential for growing businesses—both local and

international.

The downsides, however, include the risk of corruption spreading throughout companies,

as well as the potentially volatile situation between the U.S. and North Korea. It’s uncertain what

will become of South Korea with the heightening tensions between the two nations.

After weighing the pros and cons of doing business in South Korea, I feel that the

benefits outweigh the risks (overall) and that it would be wise to do business in Korea. The

potential of the firm doing business would open many new possibilities and most likely do the

business more good than harm.


Ayesha Jilani

IMS 4320. 501

Professor Tom Henderson

Individual Paper: South Korea


References:

 http://www.jimsjournal.org/21%20Choong%20Y.%20Lee.pdf
 http://www.businesskorea.co.kr/english/news/industry/19695-friendly-business-

environment-south-korea-ranked-fourth-doing-business-2018
 https://www.business-anti-corruption.com/country-profiles/south-korea

You might also like