Lecture Notes - Answers - Final-Term Test

Fall 2023 Korean Culture
W 9_1
Essential Elements
of Korean Business Etiquette
Bae, Han Suk

Dong-A University 1
Essential Elements of Korean Business Etiquette 1
Collectivism vs. Individualism

• Collectivism is a cultural value that emphasizes the importance of
the group over the individual. In collectivist societies, such as
Korea, people tend to prioritize the needs and goals of the group
(family, community, or company) over their individual desires.
Harmony, cooperation, and group identity are highly valued.
• Individualism, on the other hand, is a cultural value that

emphasizes personal freedom, autonomy, and individual
achievement. In individualist societies, individuals are encouraged
to express their unique identities and pursue their own goals,
often placing personal interests ahead of group interests.
Collectivism Individualism
• Fostering interdependence and • Fostering independence and

group success individual achievement
• Promoting adherence to norms, • Promoting self-expression,

respect for authority/elders, individual thinking, personal
group consensus choice
• Associated with stable, • Associated with egalitarian

hierarchical roles (dependent on relationships and flexibility in
gender, family background, age) roles (e.g., upward mobility)
• Associated with shared property, • Associated with private property,

group ownership individual ownership
Collectivism in Korea
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.
2. Group Harmony: Korean culture values maintaining harmony within groups,

whether it's a family, workplace, or community. People are encouraged to avoid
conflict and work together to achieve common goals. Decisions are often made
collectively to ensure consensus and unity.
3. Seniority and Respect: The "sunbae-hoobae" system exemplifies respect for

seniority. Junior members (hoobae) are expected to show deference and respect to
their senior counterparts (sunbae). This hierarchical structure is deeply ingrained in
Korean workplaces and society.
4. Collective Responsibility: Koreans often feel a sense of collective responsibility for

the actions of their group or organization. When a group succeeds, all members share
in the credit. Conversely, if a group fails, the burden is collectively felt.
Examples
• Never use the term “mine” e.g., “our house”, “our dog” or “our country”.
• 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.
Emotion vs. Reason
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.
• "Emotion-Based" cultures prioritize emotional well-being and

relationships in decision-making. These cultures place a strong emphasis
on interpersonal connections and the preservation of harmony within
social and professional contexts.
1. Korean culture is often perceived as being rooted in emotion rather
than reason due to several historical, social, and cultural factors.
Historical Factors
• Confucian Influence: Confucianism has played a significant role in Korean

culture for centuries. Confucian values emphasize respect for hierarchy, family,
and social harmony. The Confucian concept of "jeong" emphasizes emotional
bonds and loyalty to one's relationships. This historical influence continues to
shape Korean society, emphasizing the importance of emotions in maintaining
social harmony and respecting authority.
• Colonial History: Korea endured a period of colonization by Japan from 1910 to

1945. During this time, Koreans experienced significant hardships and a loss of
autonomy, leading to a collective sense of suffering and resilience. The
emotional impact of this period is deeply ingrained in the national identity and
influences the importance of emotions in understanding shared experiences.
Social Factors
• Hierarchy: Korean society historically adhered to strict social hierarchies,

particularly based on age and social status. This hierarchical structure has
been a key social factor that influences emotional interactions. Younger
individuals are expected to show respect and deference to their elders,
contributing to a strong emotional aspect of social relationships.
• Collectivist Values: Korean society places a strong emphasis on collectivist

values, where the group's welfare is prioritized over individual interests.
These values manifest in various aspects of life, from family decisions to
business interactions. This collectivist orientation emphasizes the importance
of emotional ties and relationships within the group.
Cultural Factors
• Language and Communication: The Korean language is rich in nuance and

context, which allows for the expression of a wide range of emotions. Politeness
levels and honorifics play a role in how emotions are conveyed. The language
itself fosters emotional expression and the preservation of relationships.
• 미안 – 미안해요 – 미안합니다 vs. 죄송합니다

• 고마워 – 고마워요 – 고맙습니다 vs. 감사합니다
• 형, 누나 vs. 선배 - 선배님
• 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
• Gibun, sometimes written as kibun, is the mood or atmosphere of a

person, group or place.
• At the heart of it, gibun determines interpersonal relationships and how

to maintain harmony with others.
• Gibun is a relatively long-lasting emotional state. It’s different from

Gamjeong since it’s not specific or strong, and not easily triggered by
specific events. It’s more like background music that sets the mood of a
café.
W 9_2
Essential Elements
of Korean Business Etiquette
Part 2
Bae, Han Suk

Dong-A University 14
Relationship Building
The Rank-based Society
Honoring Superiors, Gwanghe

Reading Each Other’s
Nunchi
• literally translates as “eye-measure.”
• involves sensing what other people are thinking and feeling.
• 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.
• In Korea, nunchi is a superpower. Some even go as far as to

say it allows you to read minds, though there’s nothing
supernatural about it.
• A well-honed and quick nunchi can help you choose the

right partner in life or business, shine at work, protect you
against those who mean you harm and even reduce
social anxiety.
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.
W 10_1
Korean Business Etiquette
Bae, Han Suk

Social Status &
1. Greetings and Bowing

➢ “firsts impressions last forever”
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.
7. Business Card Exchange:

During a business card exchange, if a junior employee is giving their card to a senior
executive, they would present it with both hands, holding the card carefully and
respectfully. The senior executive, in turn, would receive the card with both hands
and show gratitude.
➢ South Koreans as the land of good etiquette follow a strict protocol when
greeting.
• Don’t wave your hand when you have just met someone in a business
environment.
• South Korean greet by bowing.
• 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.
• Hands straight down on

the sides.
• Don’t let your hands

hang.
• Don’t keep eye contact

when greeting someone.
• When meeting someone close • The standard bow, from
to you, or someone that is your someone new, your friends,
same age. your boss, or an elderly
person.
• It is also acceptable when
running into someone several • You can’t go wrong when
times a day. greeting someone like this.
➢ Another variation for bowing is with both hands clasped in front of your stomach.
• This is called the ‘navel bow’ or ‘belly

button bow’, and you will often see
kindergarten teachers teaching it to their
students in school.
• The navel bow can mostly be seen being

given by employees working in service
industries such as hotel or department
store staff, or flight attendants, as they
greet customers.
➢ When Koreans first meet and the person who’s younger or lower in position
bows, the other side, who’s older or higher in position, offers to shake hands,
or perhaps give a slight nod.
• When shaking hands, the person lower in status must

show respect by bringing his or her left hand to the
right side of their chest or placing it under the right
elbow, while also giving a bow.
• Elders may touch the back of your hand with their left
hand while shaking hands to show amicability.
• If two people are similar age or social status, they may

still casually bow and shake hands, but this is not
mandatory.
“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 &
2. Business Card Rituals

Business Cards Rituals
• Use a business card case, this shows you are organized.
• Never hand out a ripped, torn or dirty business card.
• Make sure to provide a translated version of your business card.
• 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 write on someone else’s card.
• Never place the card in your trousers’ back pocket and sit on it.
W 10_2
Part 2
Bae, Han Suk

Social Status &
3. The Use of First Names

• Korean names are usually three syllables long, formatted as [surname]
[personal name] [personal name], with one syllable for each name.
유재석
YOU Jae Seok
(Jae Seok YOU)
cf. 나얼 cf. 남궁민

NA Eul NAM GUNG Min
• 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.
You MC Na Singer Nam Gung Actor
• More and more Koreans use a Western name as a courtesy to foreign

colleagues/clients. However, you may want to make sure to also know
their Korean name for after the meeting.
• 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 &
4. Honoring Supreiors
Be modest and humble when dealing with Korean business partners
• When building a good and healthy business relationship in Korea,

approaching people with a high degree of modesty, humbleness, and
humility is of paramount importance.
• 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.’
• When you give compliments to Koreans, in many cases, you would

expect them to demur and politely decline your compliments rather than
responding with an outright thank you. This, however, does not mean
they are unhappy or offended. Rather, it is a Korean cultural etiquette.
• You are expected to accept compliments in a way that shows modesty

and minimizes arrogance. It is perfectly fine to show that you are
confident and competent, but make sure to let them know that you
know there is still room for improvement and you are constantly
working to become better.
• Korean bosses just tell you do work more and you do. They are not
used to hearing “no” from their subordinates. There’s the idea that it
is your responsibility to please and serve your boss.
• 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.
✓ Greetings are important in Korea.

✓ Make sure to stop, smile and bow to your boss whenever you get to
work. Whatever you do, don’t walk by them and ignore them.
✓ Greeting them everyday is a great way to show them you recognize
their importance.
• Apologize when a problem arises, whether it’s your fault or not.
✓ Koreans are quick to apologize to those who they perceive to be

above them. This can sometimes mean taking responsibility for things
that are not your fault in order to be respectful.
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 &
5. Gift-giving vs. bribery

1. A gift to several people within an organization, be sure to give a gift of greater
value to the senior person. Or, you can give a gift that the whole team can enjoy.
2. A gift of money should be put in an envelope. Cash is popular for weddings,

holidays [for children], birthdays, funerals, etc.
3. Expect initial resistance to receiving a gift. This reluctance is considered good

manners, so be persistent.
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.
• Anti-bribery law, “Kim Young-ran Law”
• The limits on the value of gifts for government related jobs (30/50/100
rule):
✓ Meals, Food, Drinks, and the like – 30,000 won
✓ Flowers and other types of gifts (not food/drink) – 50,000 won
✓ Gifts for special occasions in the form of Money or 3-level Wreaths

(Weddings/Funerals/1 year birthdays) – 100,000 won
https://bcck.or.kr/bcck/foreign-companies-know-kim-young-ran-law/
W 11_1
Business Meetings and Dinings
Bae, Han Suk

1. Appointments and Meetings

Going about business meetings
• Make appointments for meetings in advance, even a few weeks beforehand if

possible.
• Meetings in South Korea are often scheduled in the mid-morning or mid-

afternoon, without cutting into anyone’s lunchtime.
• 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’d like to reduce the possibility of a misunderstanding during a meeting,

send out written materials on what you will cover beforehand. This can be a
useful action, and Koreans will see you as more organized.
Punctuality and Traffic
• Koreans value punctuality so be on time or a little early. But also understand
that your Korean associate may have a busy schedule and might be somewhat
late.
• 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…
• Korean Business Etiquette is based on Confucianism and Social Hierarchy.
• 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.
• A close relationship is the key to doing business in Korea, while planning

takes a backseat. Since most businesses operate this way, it’s especially
difficult to predict the future, so things are often decided on the fly.
• The Korean economy is dominated by a few companies called “Jaebeol”.
• 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.
• It’s important to bring a small gift to a meeting.
• Two people usually attend a business meeting, a junior and a senior

employee, so plan accordingly.
• If more people are expected to attend a meeting, try to have a similar

number from your side join. Having too few people sends the message that
you’re not serious about the deal or lack resources.
During the meeting…
• You’ll most likely meet people at their company. Go to the receptionist
and tell them who you are, who you’re meeting and what time it’s set
for. They’ll tell you where to go and you simply wait for them to enter.
• Stand up when the people you’re meeting enter the room.
• 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.
• It’s important to build the relationship first before getting anything

done. Take your time.
• Don’t expect to be presented with the information you need. Prepare

specific questions regarding key info.
• 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.
• Koreans tend to answer questions after providing context. The most

important part is at the end.
• 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…
• Goodbyes are short. Thank them for their time.
• If your deal is important to them, you might be invited to a meal. Expect

alcohol to be involved.
• 접대 (Jeopdae, wining and dining) is a very important part of business. This is

sometimes where the deal gets made. A night out with Koreans will involve bar
hopping and possibly 노래방 (Noraebang) or Karaoke.
• 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.
Q. Where’s the best place for a business meeting with Koreans?

An office is the best place to have a meeting. Coffee shops are considered
informal and unprofessional, although this is changing slowly.
Q. What should I do if someone keeps cancelling or changing appointments

in Korea?
Life in Korea can be hectic and unpredictable. Someone cancelling on you at the
last minute doesn’t mean they’re not interested. Things really do come up
suddenly and people have to do what their boss or important client asks of them.
If it happens repeatedly, you need to ask yourself if they’re a reliable business
partner and maybe cut your losses.
2. Office Call and Dressing for Business

• South Korean business dress code is traditionally conservative
✓ 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.
• One approach is to write to the company well in advance, providing as much

details as possible about your project, thereby giving the appropriate in the
company time to discuss your proposal and at least make a preliminary decision
about whether or not they want to pursue it.
• Companies with no interest in your project will generally eliminate themselves

with a written response or by not responding at all.
• 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.
W 11_2

Part 2
Bae, Han Suk

3. Bonding and Building Rapport

1. Trust through Long-term Commitment
• importance of relationship-building and trust formation
• spending time together and striving for shared success are valued.
• building trust by engaging in long-term partnerships and pursuing
mutual growth with its partners.
2. Reciprocity and Mutual Benefit

• "give and take" approach in Korean business culture, where
relationships are built while creating mutual value.
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.
5. Commitment to Ethical Business Practices

• Place a strong emphasis on ethical business practices, strengthening
trust with its partners.
• If you are interested in a long-term relationship, don’t be afraid to
bond through personal conversations and building rapport.
• However, remember not to get too personal with them. Be friendly

but be professional.
• A big part of doing business in Korea involves eating and drinking

together after business hours. Dinner invitations after work are very
common.
• There’s even a high chance that at least one of your business

meetings will take place in a restaurant or a bar.
• Don’t be surprised by this, as eating and drinking together

(especially in a professional setting) is a major part of Korean culture.
4. Business Dining and Drinking

Business Dining, Hoesik
• A great deal of relationship building takes place in bars and restaurants.
• Always accept dinner invitations as this is the Korean’s opportunity to

assess your trustworthiness and whether they wish to conduct business
with you.
• Dinner is the largest meal of the day and normally occurs between 7pm
and 9pm.
• While it is common in other countries to extend dinner invitations to

spouses, this is not the case in Korea; business entertaining tends to be
reserved for the people directly involved.
• It is customary for the host to order the food, which all arrives at the
same time.
• Wait until the host invites you to start.

• Koreans generally prefer to concentrate on their food while eating, and
to talk after the meal is finished over coffee or tea.
• 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
• Because eating and drinking are so important in Korean culture, participating in

drinking with your potential business partner is a great way to help form that
interpersonal working relationship with them. You might even suggest going out
to eat or drink together after your meeting concludes.
• Drinking culture is still a very important part of business. It is part of the

evening after-work business culture. Men are more expected to partake than
women.
• 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.
5. Sensitive Topics
Korean history and landmark
Daily life
Politics
Personal financial situation
Family and personal matters

Food
North Korea issues Hobbies
Education and academic achievement
Language
Future plans
Religion Travel
• Much like a western working place, it’s important to avoid discussing
sensitive topics.
• Some examples include discussing North Korea, issues related to your

Korean associate’s family, or politics in general. This is important in
South Korea since a harmonious work environment is highly valued.
• 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.
W 12_1
Decision Making and Negotiation
Bae, Han Suk

1. The Decision-making system

Different types of decision-making
1. Top-Down Ppocesses
• decisions are made by the leaders or top-level management of an
organization, and the directives flow downward through the hierarchy.
• Lower-level employees typically have limited input in the decision-making
process.
2. Consensus-Based Processes
• seeking agreement from all or a significant majority of team members
before a decision is finalized.
• values collaboration, and decisions are made collectively.
3. Delegated Decision-Making Processes
• distributing decision-making authority to individuals or teams at various
levels within the organization.
• empowers employees to make decisions within their areas of responsibility
China
• decision-making authority typically rests with senior leaders or government
officials, and directives are communicated downward through a hierarchical
structure.
• rooted in traditional Confucian principles that emphasize respect for authority
and a clear chain of command.
Japan
• decisions are often made through extensive consultation and discussion to
ensure that all relevant stakeholders are on board.
• emphasis on group harmony and avoiding conflict
Sweden
• tends to empower employees, allowing them to make decisions within their
areas of expertise.
• is influenced by a culture that values equality, trust in employees' capabilities,
and a collaborative work environment.
❖ globalization and the influence of multinational corporations have led to the

adoption of diverse decision-making practices even within a single country
• South Korea is an interesting example because its decision-making processes
often reflect a combination of cultural influences, including Confucian values
and modern business practices.
• While South Korea traditionally exhibits a hierarchical and top-down decision-

making culture, there's a growing recognition of the need for adaptability and
collaboration, leading to a more nuanced and varied approach.
• 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.
• Communication Styles: Korean communication tends to be indirect, and non-

verbal cues are important.
• Government Influence: In government-related decisions, especially in matters of

national interest, a more top-down approach may be prevalent.
1. Top-Down Decision-Making
• Hierarchy: Traditional Korean corporate culture often features a clear

hierarchical structure where decisions flow from top-level executives to lower-
level employees.
• Respect for Authority: There is a strong emphasis on respecting authority,

and major decisions are typically made by senior executives or leaders.
• Centralized Leadership: In large corporations and government organizations,

decisions may be centralized at the top with limited input from lower levels.
2. Consensus-Based Decision-Making
• Group Harmony: Korean culture, influenced by Confucianism, places value on

group harmony and maintaining a sense of unity.
• Consultative Approach: In certain situations, decisions are made through

extensive consultations and discussions to ensure consensus and minimize
conflict.
• Long-Term Relationships: Building long-term relationships and trust is often

considered essential before major decisions are reached.
3. Delegated Decision-Making
• Modern Business Practices: With the influence of global business practices,
there is a shift toward more delegated decision-making, especially in
dynamic and innovative industries.
• Empowering Employees: Some Korean companies have adopted practices
that empower employees to make decisions within their areas of
responsibility, fostering a sense of ownership.
• Adaptation to Change: Delegated decision-making allows organizations to be
more adaptive and responsive to changing market conditions.
• quick decision-making, essential in a • innovation, creativity, and open

competitive and rapidly changing communication.
tech industry. • fostering a sense of ownership and
• a clear chain of command. accountability.
• decisions that lack practical insights • inconsistencies across the
• impacting morale and innovation organization.
• Effective coordination is required
2. Negotiating Korean-styles
Negotiating Korean-Styles
1. use silence strategically during negotiations

2. clear and direct communication
3. prefer a faster-paced negotiation process
4. engages in small talk and shares meals
5. focusing on achieving tangible outcomes quickly
6. avoiding rushed decision-making
7. an emphasis on individual interests
8. seeking win-win solutions
1. Relationship-Centric 1. Task-Centric
• Korean negotiations often focus on • U.S. negotiations often focus on the
relationship-building and trust. task at hand, emphasizing efficiency
• Building rapport through social and achieving tangible outcomes.
activities and demonstrating • Relationship-building is important
sincerity are important elements. but may not be as central to the
negotiation process.
2. Face and Harmony
• Preservation of face (maintaining 2. Direct Communication
dignity and avoiding embarrassment) • Negotiations in the U.S. typically
is crucial in negotiations. involve direct communication, with
• Indirect communication may be an emphasis on clear and explicit
used to avoid direct confrontation expression of expectations and
and maintain harmony. terms.
3. Long-Term Orientation: 3. Short-Term Goals
• Korean negotiations may have a • Negotiations often have a shorter-
longer-term perspective, with the term focus, with an emphasis on
understanding that relationships achieving immediate objectives
developed today can impact future rather than long-term relationship-
collaborations. building.
• Both Korean and U.S. business cultures value professionalism, integrity, and a
commitment to achieving successful outcomes in negotiations. Recognizing and
appreciating these cultural nuances can enhance cross-cultural understanding
and contribute to more effective business interactions.
• It's essential to approach these comparisons with cultural sensitivity,

understanding that individual variations exist within each culture, and adapting
one's approach to the specific context and individuals involved is key for
successful cross-cultural business interactions.
• Koreans value personal connections and trust in business dealings.
✓ relationship-building before negotiations.
✓ engage in small talk, share meals, and establish rapport
• Negotiations are approached with the goal of preserving harmony.

✓ indirect communication styles used in negotiations and how avoiding direct
confrontation is often preferred.
✓ "face“: maintaining dignity and avoiding embarrassment.
• Koreans appreciate counterparts who are well-informed and have a clear

understanding of the business context.
✓ the importance of thorough preparation and research before negotiations.
✓ well-prepared with data, facts, and a solid understanding of their own and
the other party's positions.
• silence is often used as a negotiation tactic in Korean culture.

✓ be patient during moments of silence, allowing the other party time to
contemplate.
• Koreans appreciate negotiators who demonstrate adaptability and a cooperative

attitude.
✓ negotiations with a win-win mindset, focusing on mutual benefits.
W 12_2
Decision Making and Negotiation 2
Bae, Han Suk

1. Negotiation Do’s and Don’ts

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.
2. Industrialization and Innovation

• prioritized industrialization and technological innovation, particularly
in sectors like electronics, automotive, and technology.
• This focus on cutting-edge industries fosters competition among
companies to lead in innovation and market share.
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
• relatively small domestic market compared to some other major

economies.
• must seek opportunities beyond national borders, contributing to an
outward-looking and competitive mindset.
5. Export-Oriented Economy
• Little natural resources.

• historically relied on exports to drive its economy.
• a constant need for businesses to compete internationally, driving
them to improve efficiency, quality, and innovation.
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
• The South Korean education system is known for its emphasis on

academic achievement and intense competition.
• Students face rigorous examinations, and there is significant
pressure to succeed, leading to a culture of competitiveness from an
early age.
Korean government and companies employ various strategies to regulate
competitive culture in business.
1. Antitrust Laws
• designed to maintain fair and open competition in the

marketplace by preventing activities that could lead to monopolies
or hinder competition
• The Korea Fair Trade Commission (KFTC) is the primary regulatory
body responsible for enforcing antitrust laws.
Cartels and Price Fixing: Agreements among businesses to fix prices

or control the production and distribution of goods and services are
strictly prohibited.
Abuse of Dominant Position: Companies with significant market

power are prevented from abusing their dominance to eliminate
competition unfairly.
2. Industry Collaboration
• the cooperative efforts between businesses within a specific sector

or across different sectors.
• sharing resources, knowledge, and expertise to achieve common
goals that benefit the participating companies and the industry as
a whole.
• e.g.,) knowledge exchange, joint Research and Development (R&D)
initiatives, supply chain integration
3. Corporate Social Responsibility (CSR)

• Encouraging companies to adopt ethical business practices and
corporate social responsibility helps maintain a positive business
environment.
4. Start-up Support
• Initiatives and policies to support start-ups and entrepreneurs
contribute to a diverse and innovative business landscape.
3. Delay and Deception

• In Korean business culture, the concepts of "delay and deception"
may be observed in certain practices that can be challenging for
individuals from other cultural backgrounds to navigate.
• 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.
6. Long-Term Relationship Building:

• Building trust and relationships is a crucial aspect of Korean business culture.
• Decisions may be delayed as parties invest time in relationship-building before
reaching agreements.

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Fall 2023 Korean Culture

Bae, Han Suk

Collectivism vs. Individualism

• Individualism, on the other hand, is a cultural value that

• Fostering interdependence and • Fostering independence and

• Promoting adherence to norms, • Promoting self-expression,

• Associated with stable, • Associated with egalitarian

• Associated with shared property, • Associated with private property,

2. Group Harmony: Korean culture values maintaining harmony within groups,

3. Seniority and Respect: The "sunbae-hoobae" system exemplifies respect for

4. Collective Responsibility: Koreans often feel a sense of collective responsibility for

Emotion vs. Reason

• "Emotion-Based" cultures prioritize emotional well-being and

• Confucian Influence: Confucianism has played a significant role in Korean

• Colonial History: Korea endured a period of colonization by Japan from 1910 to

• Hierarchy: Korean society historically adhered to strict social hierarchies,

• Collectivist Values: Korean society places a strong emphasis on collectivist

• Language and Communication: The Korean language is rich in nuance and

• 미안 – 미안해요 – 미안합니다 vs. 죄송합니다

• Gibun, sometimes written as kibun, is the mood or atmosphere of a

• At the heart of it, gibun determines interpersonal relationships and how

• Gibun is a relatively long-lasting emotional state. It’s different from

Bae, Han Suk

The Rank-based Society

Honoring Superiors, Gwanghe

Reading Each Other’s

• involves sensing what other people are thinking and feeling.

• In Korea, nunchi is a superpower. Some even go as far as to

• A well-honed and quick nunchi can help you choose the

Korean Business Etiquette

Bae, Han Suk

1. Greetings and Bowing

7. Business Card Exchange:

• South Korean greet by bowing.

• Hands straight down on

• Don’t let your hands

• Don’t keep eye contact

• This is called the ‘navel bow’ or ‘belly

• The navel bow can mostly be seen being

• When shaking hands, the person lower in status must

• If two people are similar age or social status, they may

2. Business Card Rituals

• Use a business card case, this shows you are organized.

• Never hand out a ripped, torn or dirty business card.

• Make sure to provide a translated version of your business card.

• Never write on someone else’s card.

Korean Business Etiquette

Bae, Han Suk

3. The Use of First Names

cf. 나얼 cf. 남궁민

You MC Na Singer Nam Gung Actor

• More and more Koreans use a Western name as a courtesy to foreign

• When building a good and healthy business relationship in Korea,

• When you give compliments to Koreans, in many cases, you would

• You are expected to accept compliments in a way that shows modesty

✓ Greetings are important in Korea.

• Apologize when a problem arises, whether it’s your fault or not.

✓ Koreans are quick to apologize to those who they perceive to be

5. Gift-giving vs. bribery

2. A gift of money should be put in an envelope. Cash is popular for weddings,

3. Expect initial resistance to receiving a gift. This reluctance is considered good

• Anti-bribery law, “Kim Young-ran Law”

✓ Meals, Food, Drinks, and the like – 30,000 won