KOREAN BUSINESS CULTURE

Jennifer Fletcher, Intercultural Trainer and Consultant

Culture │ Our invisible teacher

cultures share
Culture teaches us how to
the same problems;
think, feel, believe and value...
All groups develop a common it’s their solutions
system which tells us: which differ…
What to pay attention to;
What we ignore; Margaret Mead
What’s right; What’s wrong;
What’s good; What’s bad
 Only 10% of an iceberg shows
above water.

Explicit culture:
Perceive with 5
senses

Implicit culture:
Unobservable,
rooted in values,
history and
geography

3-1
Influencers of work behaviour
Individual / Personality

Functional
Culture

National
Culture

Corporate
Culture

Global Culture
Categorizing culture

Human relationships
Individualism / collectivism
Hierarchy, status, rank / flat, equal
Concepts of trust
Task / relationship
Situational / rule-based
Concept of time
Risk avoidant / comfortable
Fate / control
Process / results
Communication
High-context / low-context
Harmony, indirect / Confrontational, direct
Formal, ritualistic / informal, efficient
Cultural stereotypes vs. tendencies

Stereotypes Tendencies
The Closed Circle The Open Circle
Rough guide

Confucian values

Harmony

Concept of ‘face’

‘Nunchi’
Key
Group orientation
concepts,
Business model is characterized by the chaebol; giant, family-
run corporations with enormous power
values and
Business is governed by who knows whom and how
approaches influential they are

Importance of hierarchy

Good business relationships are nurtured and long-term

Any negotiations should end in a win-win situation so that
nobody loses face
Group orientation: A basic difference
Individualists primarily define themselves by their own actions (“I’m an
engineer” or “I’m a pianist”), while collectivists define themselves by
their group or family membership (“I’m part of the Lee family” or “I’m
a Samsung employee”).

Individualists Collectivists

• Rewarded for “thinking • Rewarded for working

outside the box” harmoniously with others
• “Doing their own thing” • Minimize attention to
• Looking out for his/her own contributions
themselves to group effort
• Strong group loyalty
 Individualism-Collectivism Around the World
(Individualistic) Germany Turkey Thailand
USA
South Africa Uruguay Salvador
Australia
Finland Greece South Korea
Great Britain
Canada Austria Philippines Taiwan
Netherlands Israel Mexico Peru
New Zealand Spain East Africa Costa Rica
Italy India Yugoslavia Pakistan
Belgium Japan Portugal Indonesia
Denmark Argentina Malaysia Colombia
Sweden Iran Hong Kong Venezuela
France Jamaica Chile Panama
Ireland
Brazil West Africa Ecuador
Norway
Arab countries Singapore Guatemala
Switzerland (Collectivistic)
from Hofstede, 1991
3-18
Hierarchy
Hierarchy in
Strict delineated hierarchy

Those at the bottom are rarely
South
empowered to make decisions
Korean
Strong bonds within a Korean team
companies
Rank and status
Determined by several factors,
depending on what group you are
focusing on:
Age
Family position
Job title
Work sector
 Power Distance Around the World
(High Distance)France South Korea Australia
Malaysia
Hong Kong Iran Costa Rica
Guatemala
Colombia Taiwan Germany
Panama
Philippines Salvador Spain Great Britain
Mexico Turkey Pakistan Switzerland
Venezuela Belgium Japan Finland
Arab countries East Africa Italy Norway
Ecuador Peru Argentina Sweden
Indonesia Thailand South Africa Ireland
India Chile Jamaica New Zealand
West Africa Portugal USA Denmark
Yugoslavia
Uruguay Canada Israel
Singapore
Greece Netherlands Austria
Brazil (Low Distance)
from Hofstede, 1991
3-19
Communication

Koreans value humility in their communications with others.

The use of "yes" often indicates "I understand" rather than "I
agree".

Self deprecation will often result in gaining the respect of
Making the right others.
connection
Pauses and silences are more common during meetings
and gatherings.

Interruptions are infrequent during meetings.

The context, including non verbal communication, seating
arrangements, etiquette and formalities carry more
importance and meaning.
Communication styles
High context Low context

Meaning is dependent
Meaning is non-
on situation, variable,
individuals, context independent of

Can be indirect context and situation

Non-verbals high
Can be very direct

Verbals may be
Verbal meaning high
invalid
Non-verbals
secondary
 High context and low context
wall

LC HC

facts
words Non-verbals: facial
expressions, Appearance
gestures Position
tone Rank
venue
Age
Gender
timing Education
Group alliances
history

Not getting through,

Focused on words, not scanning environment,
person or environment, focused on person,
Missing the message not getting cues
Best practices
Practice makes perfect!
감사 합니다
Merci
Thank you