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Global Business Cultural Analysis: South Korean

Name of Student

Date

University Affiliations
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Abstract

This research paper is written to provide readers with a platform to comprehend the

global business cultural analysis for South Korea. The analysis will be divided into three primary

elements and subtopics to provide assistive information about the topic. The four main elements

outlined in this study entails the significant elements and dimensions of cultures in the nation

South Korea, how these elements and dimensions integrated by locals conducting business in the

nation South Korea, how both of the above items compare with the United States culture and

business, and what are the implications for the United States businesses that wish to conduct

business in the nation South Korea.

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Introduction

According to several findings by economists, South Korea has gradually become an

attractive nation concerning business activities. While many people still hold Japan as the most

prominent and dominant nation amongst nations in this region, South Korea is consistently

becoming prominent and gaining popularity as a nation with goals and objectives to develop an

economically sound financial infrastructure to outdo the brand and threats emanating from Japan.

Regrettably, the strategies and measures laid down by South Korea have often met an obstacle

from threats and challenges emanating from their neighboring countries. According to

Kawaguchi-Suzuki et al. (2019), in 1997, South Korea passed through a severe financial

depression.

Nonetheless, South Korea was bailout through different measures and government

policies and began to rise with vast nonregular part-time employees. With the existence of past

and present financial plights of the nation South Korea, this research will outline several critical

points such as communication concerning the nation, primary religions, ethics, and values that

South Koreans cherish daily and their business sociocultural. Also, the study will examine the

critical personal relationship and compare different elements of South Korea and the United

States. This study will focus on critical topics concerning culture and business culture in South

Korea.
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What are the principal elements and dimensions of culture in this region?

Communication

While many citizens in the Republic of South Korea mainly speak the native language,

there has been a significant increase in English people over the past years. The establishment of

the South Korean wave has been deemed the force behind the increase in the number of people

speaking English since it is a prominence of South Korean polar culture. Many people categorize

the South Korean wave as a node of communicative business activities that will enable the

globalization process less complex (Pun et al., 2018).

Language

Even though the native language spoken in South Korea is Korean, globalization has

facilitated the need to use the country's English language to be economically prosperous. Jeon

(2017) noted in his writings, “ South Korean government has recognized the need for more

teacher. They taught English and launched Teach and Learn in Korea (Talk) program to recruit

native speakers of English, including overseas ethnic Koreans, to come to South Korea as

temporary immigrant workers to teach English to rural elementary students to set them up for

success in the future" (Heo et al. 2018). the language development and improvement policies in

the Republic of South Korea have been escalated to enable more Korean citizens to learn the

English language. This will improve their country's productivity and internationally since many

business associates respect and utilize the English language in most of their transactions (Purnell,

& Fenkl, 2019).

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Etiquette

Developing good etiquette is vital for business development in a country, which is the

same for South Korea. According to Kawaguchi-Suzuki et al. (2019), etiquette is defined as the

actions performed by an individual based on long-standing notions in a manner that a nation

should act. For example, a nation should implement the use of words such as excuse me,

accepting, or politely with genuine reason decline an invitation for the both domestic and

international event. For example, the South Korean government has established a conducive

working environment. When an individual meets new people in their region, they are introduced

by a familiar person with the visitors, and then everyone will shake hands. It is essential to

realize that a good handshake entails being aggressive and shaking hands as hard as accustomed.

Finally, an individual is accustomed to using the other hand to grab another individual's forearm

as a sign of respect to the other person (Purnell, & Fenkl, 2019).

The critical emphasis on this behavioral practice is to ensure the citizens are polite and

read what offends other people of a given country. This will help prevent embarrassing

incidences which affect hospitality. A case study is when Bill Gates paid a visit to South Korea.

During this business trip, Gates met the Republic of South Korean President, Park Geun-Hye,

and delivered a one-handed handshake while keeping the other hand in his pocket. This situation

offended Park Geun-Hye and the people of South Korea. Therefore, when traveling to a different

country, it is essential to review customs, etiquettes, and cultures to prevent accidentally

offending other business associates with different business cultures and customs.
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Religion

Numerous religious activities and customs have impacts on the nation. The nation has

three main religions known as Christianity, Confucianism, and Buddhism. This research paper

discusses all three religions to provide relevance to South Korea and how each influences the

nation.

Christianity

Most citizens in South Korea who are Christians fall under two categories as Protestant

and Catholicism. The citizens following the Catholicism religion are more tolerant of South

Korean cultures and customs (Choi, 2020). On the other hand, protestant has been fighting to

change the South Korean culture for decades now. The Protestants believe that despite the

cultures and standard guidelines of a country, once an individual accepts Lord Jesus as their

savior, some activities should not occur. Nonetheless, some Catholics in South Korea have

developed understanding and do not take issues involving their members in ancestral sacrifices

and lifestyle.

Buddhism

Although Catholics in South Korea demonstrates some signs of tolerance in their belief

and practices, Buddhism is more than the Catholics (MCBRIDE II, 2019). They ensure the

implementation of Mahayana Buddhism by following four theological doctrines. They believe in

universalism, believe that everyone will be enlightened and become wise, everyone will become

a Buddha, Compassion and liberated. They believe that a buddha will attain liberation through a

rick cosmography where people will be godlike and help other followers. They are relaxed and
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have the feeling that their religion is grooming individuals to be godlike and often live their life

as perfectly as possible (Seomun et al., 2018).

Confucianism

According to Ha (2018), few individuals in South Korea practices Confucianism

ideology. Also, many South Koreans have shown interest in the recent days of joining the

Confucianism religion. Contrary to other religions such as Christianity and Buddhism with

specific rules and guidelines, and the house of worship constructed, Confucianism is more of an

individual practice that is practiced chiefly at a subconscious level, making it have few followers.

According to Kirk et al. (2020), Korean still believe in the Five Cardinal Relationships

while they do not refer to them as such. These Confucianism practices and cultures are linked to

the spark in the economic development in South Korea. Despite not being considered their core

religion, Confucianism plays a significant role in South Korean culture and how people practice

life. It provides a foundation and guidelines on how older adults and families are respected and

treated in South Korea. Therefore, the imposition of Confucianism in South Korea has permeated

many Kenyans' consciousness, thus making them lead a moral life and law-abiding life.

Ethics and Values

Ethics and values are an essential part of people's life in South Korea. This moral life is

attributed to reliance on religion, and the critical role Confucianism plays on the citizens, which

lays guidelines on how to treat older adults and family in the country (Han, 2019).

Traditionalism
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"Generally, across most cultures, family and relatives play a significant role in the

provision of welfare, particularly as older people have often sought assistance from their family

members first rather than relying on the government or professional welfare services" (Yun et al.

20201). Tradition is critical to citizens with most practices and cultures related to ideas from the

past and how people could raise families. People are dependent on the traditional system to help

them when making critical decisions. Nonetheless, with the implementation of numerous

government reforms since 1999, about 2 million citizens now use welfare instead of reliance on

traditional family systems.

Cultural Tendencies

Implementation and biding to Filial Piety, which acts as the reference for parental

guidance, is the virtue and fundamental human rights based on Confucianism. Despite the

implementation of welfare through the National Basic Livelihood Security System, several

citizens are still following the Filial Piety. They refuse to shame their parents acting unethically

by subjecting their parents to poverty. Typically, South Koreans are very proud people, and for

this reason, they work hard to ensure they have a cohesive family without problems. However,

this sometimes tends to be difficult for every family in the Republic of Korea (Yun et al., 2021).

Corporate Ethics

Several pieces of research link the corrupt nature of the government and business

enterprise as the primary reason for the government depression in 1997, as Chang (2020)

outlines in his findings that related ethical issues in the financial section have been attributed to

the advancing occurrence of political and bureaucratic scandals, money laundering, unethical

practices in the banking sectors, irregularities with corporate sectors, investor wrongdoings,
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accounting fraudulent activities, and other financial sectors irregularities that emanate from

distrust greed, and unethical approaches. A corrupt government leads to public distrust of its

ability to lay down rules and guidelines to protect the country. This triggers cheating and stealing

in the corporate sections to manipulate the system. While past researchers only link ethical

practices to a specific community bound to culture, this is today losing meaning since many

countries implement cultural practices and heritage, making the lines challenging to distinguish.

The leaders have been running the country astray by trying to impress everyone.

Globalization has created cultures to come, which has escalated the need for countries to

strategize and strengthen their country's policies to protect it against unethical practices that often

take advantage of their nation through corrupt deeds. Mitigating corruption and unethical

practices in a country requires leaders to realize and enforce international accounting standards.

People need to embrace ethical decisions and grounds based on every country such that

regardless of the nation, leaders can be held accountable for their practices using the same

standards. This will prevent unethical leaders from leaving their nations to take advantage of a

country without proper ethical standards. Today, people create vague financial contracts that

allow them to take advantage of other countries' self-interest gain (Han, 2019).

Corruption

The financial contracts in South Korea present many opportunities and loopholes that

allow individuals to practices corruption since they can decide on what the contract relates to and

figure out how to cheat the system for self-interest gain. According to You (2014), the most

corrupt activities that orchestrated the financial depression of the country in 1997 were based

upon the model of dividend-collecting. In his findings, Han (2019) notes that “democratization

improved the loopholes through which corporates could utilize their finances to influence the
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political stability with chaebol being the main dividend distributor when democratic competition

and electoral process prevented leaders from gaining advantage through the state.”

During this period, the four main Chaebols were known as Life is Good (L.G.), Hyundai,

Sunkyung, and Samsung. These associates utilized their financial muscles to ensure their goals

and objectives were realized by corrupting the political system. Today, South Korea is still

experiencing corruption just like other countries since political leaders in South Korea prioritize

success. This pushes the leaders to cross the lines between ethical and unethical practices to

realizes their set target (You, 2014).

Social Structures

This defines how a society is organized to entail institutions, social groups, status, and

roles of a particular group of people. This organization and structure may depend on family,

religion, and politics of the financial muscles.

Patriarchal

South Korea believes in the patriarchal social organization since men and male heritage

are the family organizations' heads. The development of Christianity in South Korea has eroded

some cultural practices and idealism. However, Confucianism practices and beliefs are still

dominant, so gender inequality is a problem. Confucianism allows men to dominate equally

charismatic roles to keep the family together. Nonetheless, the dominancy of protestant who are

charismatic people have ensured that men are superior to women. Men in South Korea do not

hold women as equal. However, people who embrace Islamic cultures and practices in South

Korea consider women equal to men (Cho & Jang, 2021).

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Cultural practices across the nation must uphold gender equality, which has gained

momentum in most countries worldwide. However, men in South Korea still hold a higher role

than women counterparts. Stereotyping and discriminations are still significant factors in the

nation in most of the corporate sectors. People view women as weak and cannot be a leader.

Despite many women being religious compared to men, most South Korean churches still

observe patriarchal structures and organizations by articulating women's subordination in the

church and family structures (Cho & Jang, 2021).

Business Customs

The Republic of South Korea has numerous business customs that, when followed

correctly, ensure smooth business operations. The business custom commands fellow business

partners to respects and develop a client or business relationship. Despite people having so much

to remember, showing respect and implementing South Korea's business customs will enable an

individual to understand how other people feel about a particular situation. Furthermore, it will

trigger people to do more, not offend other business partners, and quickly develop another

potential business environment (Horak & Yang, 2018).

Working Hours

According to the Labor Standard Act enacted in 1953, South Korean set 48 hours per

week. However, the recent development has reduced the working hours to 40 hours per work. A

recent report by the International Labor organization outlined that about 60 percent of South

Koreans are still imposed to 48 hours working period in the country. This increased number of

working hours is attributed to the poverty index and the custom values that ensure that people

have to provide for their families. People have to work extra hours to accumulate enough amount
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to budget for their basic needs. Another reason for extra working hours is related to work ethic

and South Koreans wanting to submit the best product (Park et al., 2019).

The findings by Lee (2017) show that numerous issues emanate due to so many working

hours. He argues in his findings that many working hours can lead to chronic health-related

diseases, psychological issues, and stress, especially in males. Despite having high-level

production, accumulated fatigue and stress can overwrite the benefits. However, advancing

education can lead to stress and fatigue management due to many hours of work.

Dres's Codes

Dressing code is fundamental in South Korea. The cultural practices and customs require

men to wear dark suits with white shirts and a tie as the official business dressing code. On the

other hand, women are subjected to wear smart business suits. Women are only allowed to put on

trousers in an informal social environment. During the warm summer periods, people are

advised to wear light-weights suits, whereas fabric suits are preferred during the winter season. It

is advisable to wear outfits with conservative colors during the business meeting to improve

credibility and relationship with business partners. However, after some time, an individual can

start wearing bright color shirts and ties with a conservative suit to make it look professional and

hospitable at all times (Park & Thanommongkol, 2020).

Hierarchy

The business customs in South Korea subjects the organizations to observe strictly the

hierarchical relationship concerning major business decisions from top to bottom, also known as

vertical communication. The implementation procedures and strategies are first executed at the

top, with only senior leaders making vital decisions and then delegated down the chain. The
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success of this development is related to the respect that older leaders receive from juniors. The

country's cultural practices subject any junior individual to punishment for looking down or

disrespecting their elders in society or workplaces. According to South Korean culture, the age

catches wisdom and experiences that deserve more respect from the young generation (Park et

al., 2019). When a senior leader gives workplaces ideas, it is the juniors' responsibility to ensure

the ideas and strategies are implemented without questioning or arguing. Junior workers should

do their job and allow those that hold higher offices to make critical decisions.

Working Conditions

In 1991, South Korea joined the International Labor Organization. However, a study by

Park et al. (2019) shows that the country is yet to ratify the International Labor Organization's

convections on Workers' Rights. The constitution of the nation provides for the right of freedom

for all workers, excluding public-sector employees. According to a survey by Korea

Occupational Agency and Health Agency, the nations working conditions are improving even

though many obstacles encounters by workers. Most employees are still subjected to higher

working hours compared to other nations. The data shows the working intensity was lower than

other countries, lower rate of workplace violence, and low worker satisfaction rate. Furthermore,

the average workers are subjected to about four accident-related days off, with men taking about

four days per year. The high number of accidents related to the workstations are attached to

lower standard equipment and more job duties (Wong et al., 2019).
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How are these elements and dimensions integrated by locals conducting business in the

nation?

Personal connections

Within South Korea, individuals must endeavor to build and sustain good personal

connections before engaging in any business venture. The following aspects sum up the direction

upon which a business will move: first and foremost is the ability to communicate and develop

viable relationships by explaining each party's requirement, cooperation and directing undivided

efforts towards a mutual goal. Because of this initial connection, every involved party needs to

be convinced that they are getting a good deal and are not short-changed by what they get in

return. Consequently, trust will be built out of the highest level of satisfaction that comes down

from each party's willingness to value honesty in dealing with the other and maintaining

integrity.

A prerogative of business firms guarantees an atmosphere of satisfaction by their

personnel in terms of the jobs they are handling and understand the company's key objectives

and goals. In such a case, it serves to create a pool of goodwill because these staff can

intentionally share with the larger Korean Community about the business. Additionally, it builds

on the motivation of the personnel to build effective teamwork among themselves.

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When other strategic considerations like good interactive communication are coupled

with such an environment, businesses can build appropriate relationships, which improves the

possibilities of striking long-term relationships.

Appointments

Scheduling appointments with those you wish to meet is a silent yet strong message that

you respect the people. This can be done entirely in advance to prepare them, probably about 3-4

weeks in advance. This will allow them to create time for the meeting. Impromptu visits and

unscheduled appointments give a message of disregard to other people's schedules. Similarly,

after making appointments, honoring it is a show of maturity and reliability. In case the case is

urgent and you are unable to create a scheduled appointment, the other party must be made

aware of this situation as soon as possible. A polite call can be placed when you are probably

stuck in a jam or held and might arrive a few minutes late. Being late or total absconding, the

appointment tells the other party that the meeting might not have been a priority to you.

Reaching an appointment in time shows commitment.

Hierarchy

Many business firms in South Korea exhibit durable forms of hierarchy in terms of

personal connections and loyalties. This kind of formal hierarchy is based on eldership within the

organization and job status. The informal type is formed by the personal relationships that the

workers build between themselves within their working areas. In some cases, the informal

hierarchy is always vital because some jobs are awarded, or some contracts extended along with

the trusted ones.

Meeting Etiquette
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One must get to know the rules and protocol required during a meeting. This goes a long

way to make individuals stand out among the rest. Being able to comprehend the value of

bowing and offering a handshake: the former must be initiated by the person of low status,

directing it to a higher status. In contrast, the latter is initiated by the senior. While carrying out a

bow, one is required to say "man-na-suh pan-GOP-sumnida," a South Korean version of the

phrase "pleased to meet you" (Göransson, 2017).

Kibun

When meeting South Koreans, the first instance ought to be on point, and this is because

they get moved by the first impression they get while meeting new people. Moreover, it is

advisable to uphold the Kibun of the Koreans, and such behavior paints a picture of an individual

who respects a harmonious and peaceful relationship with the South Koreans. This comfortable

atmosphere is a prerequisite for productive business (Møller-Hansen & Bjørnsen, 2020). 

"Kibun is a that is used to describe the fundamental aspects of Korean facets of life, including

their mood, state of mind, and pride. To maintain a sense of Kibun for a Korean, an individual is

expected to indicate a higher level of respect to each individual, more so when it comes to the

business relationship." (Mochklas & Didin, 2017).

According to the South Koreans, it is generally conceived that the Kibun is a feeling that

spontaneously erupts out of an individual due to a situation and involves their pride too.

Therefore, disrupting this kind of thought makes it quite difficult for businesses to operate

effectively in these environments. Ideally, these locals would feel that they have been not only

disrespected but also outrightly embarrassed. Businesses that wish to begin on fairgrounds for

operations must try to tread carefully over specific areas. They would rather do the things that
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they suspect might embarrass the surroundings in private to avoid any cases of humiliating them

publicly. Firms that understand this would take root and thrive among the Koreans.

Also, it is right to understand and quickly comprehend Korean customers' state of mind

by simply assessing how they behave non-verbally. This practice would allow the business

representative to visualize the situation and realize how the individual might have been affected.

Therefore, it is important to always pay close attention to an individual's behavior before making

comments that could prick their Kibun.

How do both the above items compare with U.S. culture and business?

South Korea versus United States Culture.

There are clear-cut differences between business culture in the United States and South

Korea, none the less, this does not mean non-existent similarities. In the United States, there

exist a convergence of diverse cultures brought by the great multitude that immigrants from

every nation still maintain certain aspects of their culture. While these cultures might seem quite

impossible to affect the entire nation, but for individual groups, the impact and becomes

plausible to answer these questions for the United States. (Møller-Hansen & Bjørnsen, 2020). 

Generally, in the United States, there is no official language. However, the recognized

language is spoken by most of the inhabitants and also used in conducting business in English.

The United States of America is a nation that was founded upon the tenet of religious

freedom. Christianity, Judaism, and Muslim are the most popular, but almost every religion is

practiced in the United States. Because of the country's existing diversity, it is a land of free

people because people from all walks of life become citizens of the United States. With a
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population of 315 million individuals, the United States is the 3rd largest country but ideally the

country that experiences the most cultural diversity in the world (Lincoln, 2010).

The United States comprises various kinds of workers: The temporal basis workforce

only works for a specific amount of time as required by the management to complete a given

task. They can sometimes be hired if management decides to. Some referred to ads Part-Time

workers-who are partly involved in operations-work for at most 40 hours weekly and finally the

Full-time staff, the consistent day-to-day employees within the enterprise. This category gets

higher wages and is entitled to other benefits extended by the company to these individuals (Ahn

et al., 2019).

Apart from the on-job activities that American do during the times when they are not

working, which include involving in physical outdoor and indoor sports like football, baseball,

and basketball; hiking and camping, watching sports on the television; religious activities;

having outdoor family time or with friends together (Lincoln, 2010).

There also exist differences between individuals' ethics and values; these variances are

also connected with a person's belief and/or the region of the country of residence. Some regions

are the highlight of family-based values in line with Biblical-based virtues. Yet, others have less

godly inclinations and are rather directed towards more individual choices of having and fun.

However, several specific values apply to most Americans, including individualism marked by

little sheds of independence, especially towards individual expression and materialism- where

everyone strives to live a life with minimal worries (Park et al., 2017).

Business culture in The United States

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As opposed to countries like South Korea, where individual relationships have a part to

play in business, the U.S. thrives on a different aggressive approach. Conversations are important

for every member to give his/her opinion over the issue at hand to meet a required objective.

Such a process has become an inseparable part of the American business environment. Through

such arguments and disagreements, they have become efficient in arriving at efficient goals

within the least time possible. This proves that in the United States, businesses do not look at

differing opinions. In fact, through such disagreements and arguments, strong working relations

ensue (Stewart et al., 2017).

The dress code in the United States applicable in professional businesses differs from

those from other countries, specifically in South Korea. In Korea and most countries worldwide,

the set dresss code generally used in business environments is professional suits and ties.

However, in the United States, there are variances in the dress code. Depending on the workplace

and the specific company, business people's wardrobe will range from a nice suit and tie look to

slacks and a decent shirt or sometimes a t-shirt.

As a result of the importance of time, "time is money," several top managers of

companies opt to have their meetings and other events be timely executed and end as scheduled.

Therefore, members are expected to arrive for meetings 5-10 minutes before, but not so earlier

because you will paint a picture of one who lacks something better to do (Stewart et al., 2017).

In the recent past, businesses' ethical aspects have become invaluable in the United

States, thus causing several related issues. It has also given rise to myriad new laws instituted by

the Federal Government to find avenues to reduce the occurrences of these ethical dilemmas.

South Korean Business Culture

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In South Korea, the business culture is quite different than that of the United States.

Decisions in companies are strictly top-down, made by the companies' senior leaders. The

opinions of the lower-level employees carry limited weight and are rebuked when they attempt to

share their opinions. However, in Korea, three key issues are purely relevant: respect,

communication, and trust. The three will help keep the individuals' Kibun, which would allow

companies to continue operations (Jo & Kim, 2017).

What are the implications for U.S. businesses that wish to conduct business in that region?

Relationships

Analysis of facts from prior three questions

Several deviations are worth key issues where business operations and meetings are

carried out in the United States and South Korea, and other related countries in the rest of the

world. The baseline is that neither country is right or wrong. However, it can be understood that

business in the United States is carried out in a rather relaxed environment, unlike the difficult

and stricter South Korea. A good understanding of the South Korean culture will be very

significant for any American businessperson who wishes to effectively conduct business in South

Korea.

Communication

Communication is much difference between the two nations, as previously indicated in

the description of Kibun. The Korean clients mustn't be upset by business individuals. This can

situation creates a very difficult communication because, at any point, the atmosphere must be

free from confrontative overtones, unlike in the U.S. where such confrontation might be

advantageous. Despite the reality that Americans understand the importance of conflict, in South
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Korea, they are better of desisting from such behaviors. Higher ranking employees must also be

respected to conduct successful business relationships (Jo & Kim, 2017).

Personal Relationship

In South Korea, there must be an establishment of appropriate personal relationships

before engaging in business relationships (Jeong et al., 2018). By comparing the U.S.

environment, the directions of doing business and understanding Korean's are changing as they

begin to become a nation more like the United States with greater stress on better ways to

conduct business.

Respect

This is another important requirement for a business relationship that depends on several

factors like communication and existing personal relationships. All Koreans try to respect others,

which is evidenced in how they handle the subject of Kibun. Although it is difficult to always

protect the Kibun, they try to keep it on most occasions. Respect is seen as very paramount in

forming business relationships (Jo & Kim, 2017).

Trust

To build on the existing personal relationship through communication and respect, the

most important concept must be upheld in any relationship, including a business relationship.

This is the issue of trust. Trust is the assured reliance on someone or something's character,

ability, strength, or truth. This concept is vital, especially in business relationships where clients

expect to get value for their money.

Labor and Employment Laws

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In America, the Fair Labor Standards Act (FLSA) is responsible for listing the expected

basic minimum wage rate and overtime pay. This ensures that employers pay their workers fair

wages and salaries as managed by the United States Department of Labor. In South Korea, the

same is managed by the Trade Union Law and the Labor Dispute Adjustment Act. However, the

interventions of these laws are insufficient. Even though South Korea has made strides to treat its

employees better, there is still a lot of work to improve.

Negotiations and Decision Making

Another parameter of doing business in the two countries that is equally variant is how

business Negotiations and decision-making are done. Several minutes of conflict and arguments

are used In the United States when it comes to either negotiation or making decisions, while in

South Korea, this is not the case. The situation becomes more daunting because negotiating for

business issues and arriving at decisions without upsetting other involved parties (Yoo & Lee,

2018). Moreover, in South Korea, Decision making only happens vertically downwards from

senior management to lower-level employees. (who are not permitted to make company-wide

decisions). Although these two countries differ on the modes of decision making and

negotiations, both can be successful by utilizing their concepts (Jo & Kim, 2017).

SWOT Analysis

Strength

According to the study, South Korea has developed extreme economic freedom making it

register 71.2. With proper strategies, this development made the country at the the top 31st free

economy in 2014. Moreover, Lee et al. (2021) found that the country has improved economically
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by 1.2 points higher than the last fiscal year based on financial freedom. Today, the country is

ranked 5th out of 42 countries in the Asia-Pacific continent.

Weakness

The country has continued to record bankruptcy which is facilitated easily. Secondly, the

labor market has remained dynamic with some lingering regulatory rigidities. The formation of

powerful trade unions in South Korea has increased the country's cost of business operations.

The poverty index in the country makes it very difficult for the poor to purchase any expensive

commodities. It is therefore expensive to develop new business or to compete with the prominent

brands in the market.

Opportunity

The positive and humanistic cultural practices and good communications skills in South

Korea have positively impacted the countries' travel and tourism industry. This an opportunity

for economic development since more visitors will be coming to the country. Also, the trending

South Korean music industry has created the opportunity for people to start international

businesses.

Threats

The country is known for its political crisis. The constant political crisis causes a threat to

the nation's economic development. Also, the country faces nuclear threats due to tension with

North Korea. People often shy from investing in South Korea due to threats of nuclear war.

Lastly, there is an economic fear in South Korea. The country has continued to experience

political crises and hindrances to economic development, creating an economic threat for the

North (Korea Lee et al., 2021).

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FDI Analysis

According to Jung and Kim (2020), FDI flows in South Korea reduced from 13 percent in fiscal

2019, attaining $105 billion due to the economic crisis with Japan and the accomplishment of a

tax break for foreign investors in the fiscal year 2018. However, during 2010, FDI stock

improved from $135 billion to $238.5 billion. (Jung & Kim, 2020). The country has registered

the Brexit transition caused a decrease in funding and grants from major investors such as China,

Japan, and E.U. E.U. drop in funding. In contrast, the United States and China reduced their

funding due to the trade crisis. According to Jung and Kim (2020), FDI flows reduced by 42

percent worldwide in fiscal 2020 compared to 2019 but improved in East Asia by 12 percent. For

this period, the FDI for South Korea was 42 percent due to a reduction in cross-border mergers

and Acquisitions and a 37 percent reduction in announced greenfield investment projects. The

country's FDI improvement is due to foreign investment and the nation's implementation of new

information and communication strategies.

Conclusion

According to the descriptions explained in this paper, South Korea is presented as a

country filled with heritage and pride concepts. Although there have been cases of striving to be

the country that shows tremendous respect, this has lately been challenged as the Koreans

attempt to streamline their business operations to meet world standards.

How communication is done and the type of communication is underscored as a very

important factor to South Korea and without which it becomes difficult to strike effective

personal relationships. Before the inception of any business venture, Personal relationships are

necessary. This is to facilitate trust between businesses and the outside world, including the
 25

clients and employees. Equally important to the Koreans is Religion because it plays a larger role

in forming their personality.

The study investigated the two cultures by comparing the people's culture in the United

States and those in South Korea by outlining the outstanding similarities and differences. Finally,

there is a look at the implications of businesses in the United States having to adhere to when

they wish to conduct their business in South Korea.

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