SOUTH KOREA
Facts and statistics
Capital: Seoul Main Cities: Busan (Puscan) Daegu
(Taegu) Daejon (Taejon) President: Park Geun-hye
Currency: South Korean won Prime minister:
Hwang Kyo-ahn Population: 50.22 million (2013)
Main Cities: Busan (Puscan) Daegu (Taegu)
Daejon (Taejon)
Population: 48.6 million
Size: 99,313 sq km (38,345 sq miles)
Major Religion: Buddhism and Christianity, nearly
half of adults profess no religion
Main Language: Korean
Climate: Temperate with rainfall heavier in summer
than winter.
Life Expectancy: 77 years (men), 84 years
(women)
Flag
South Korea is a country in eastern Asia. South
Korea's flag pictures a red and blue Yin-Yang
symbol, red (yang) on top, blue (yin) on the bottom,
in the center of a white field. ... The kwae trigrams
are from the I Ching; the broken bars symbolize yin
(dark and cold) and the unbroken bars symbolize
yang (bright and hot).
Location and Geography
South Korea, an East Asian nation on the southern
half of the Korean Peninsula, shares one of the
worlds most heavily militarized borders with North
Korea. Its equally known for its green, hilly
countryside dotted with cherry trees and centuries-
old Buddhist temples, plus its coastal fishing
villages, sub-tropical islands and high-tech cities
such as Seoul, the capital.
History
The history of South Korea formally begins with its
establishment on 17 August 1948,
although Syngman Rhee had officially declared
independence two days prior.
In the aftermath of the Japanese occupation of
Korea which ended with Japan's defeat in world
war II in 1945, Korea was divided the 38 parallel
north in accordance with a united
nations arrangement, to be administered by
the soviet union in the north and the united states in
the south. The Soviets and Americans were unable
to agree on the implementation of Joint Trusteeship
over Korea. This led in 1948 to the establishment of
two separate governments, each claiming to be the
legitimate government of all of Korea. Eventually,
following the Korean War, the two separate
governments stabilized into the existing political
entities of North and South Korea.
Government
The executive branch under the president as the
head of state consists of the prime minister, the
State Council, seventeen executive ministries,
seventeen independent agencies, the Board of
Inspection and Audit, and the National Intelligence
Service. The president is elected by popular vote
for a single five-year term. The prime minister is
appointed by the president with the approval of the
National Assembly. The legislature consists of a
single-house National Assembly whose 273
members serve four-year terms. Some degree of
local autonomy was restored for the first time since
1961 by the implementation of local assembly
elections in 1991 and popular elections of the
heads of provincial and municipal governments in
1995. The judiciary has three tiers of courts: the
Supreme Court, the high courts or appellate courts,
and the district courts.
Religion
Korea has been influenced by four major religions:
Buddhism, Confucianism, Christianity, and
Shamanism. Additionally, a very large mosque in
It'aewon-dong holds services for those of the
Islamic faith. Many Koreans follow more than one
religion as many new Christian converts continue to
practice ancestor worship and perform Buddhist
rites.
Education
In Korean culture, education is the key to success
in life. The Korean education system consists of six
years of primary school, three years of middle
school, then three years of high school. Those who
pass the national exam go on to 4-year colleges or
universities. Others go to 2-year junior colleges,
while the rest enter the work force. Until recently,
most middle and high schools were segregated by
sex.
Economy
Statistics
Labour force 25 million (2012 est.)
Agriculture: 6.4%, industry:
Labour force by
24.2%, services: 69.4%
occupation
(2011 est.)
Unemployment 3.1% (Oct. 2015)
Main industries Electronics,
telecommunications,
automobile production,
 chemicals, shipbuilding,
steel
Over the past four decades, Korea's impressive
economic growth was part of what has been
described as the "East Asian miracle." Intensive
growth transformed Korea into the 12th largest
economy and trading partner in the world in 2006. It
was driven by high savings rates and investment
and a strong emphasis on education, which
boosted the number of young people enrolled in a
college or university to one of the highest levels in
the world (82.1% in 2005). During those years,
Korea's industrial structure was drastically
reshaped. Major industries were diversified to
include automobiles, petrochemicals, electronics,
shipbuilding, textiles and steel products. By
applying lessons from centuries of development in
the West, Korea was able to make a similar
transformation from an agricultural to
manufacturing and on to a service-centered
economy in just 50 years of time. Thanks to the
GDP growth driven by brisk export and sizeable
investment in plant and facilities, Korea emerged as
the world's 11th largest economy in terms of GDP,
which reached US$887.4 billion in 2006.
Business Culture
Korea has one of the most homogeneous
populations in the world. Korea has its own culture,
language, dress and cuisine, separate and distinct
from its neighbouring countries. They take pride in
their traditional culture and their modern economic
success and greatly appreciate it when foreigners
show recognition of Korean national achievements.
Foreigners are not expected to follow the otherwise
strict Korean social conventions, but foreigners
would be wise to always show respect to the elder
and higher ranking.
Societal context
The Confucian mind-set is a fundamental part of
Korean culture. People of higher rank or age are
treated with an explicit respect, both socially and in
business matters. Employees of Korean companies
have a strong sense of loyalty towards their
employer and in any situation of conflict they are
expected to seek confirmation or take the side of
the employer regardless of the logic behind the
arguments.
Confucian emphasis on education can be felt
throughout Korean society. Koreans are in general
very well educated and attach much importance to
academic excellence and degrees obtained. The
admission examinations for Korean universities are
important events as the result of the examinations
determine the future of thousands of young
Koreans. Networks established during the high-
school and college years often play a big role in the
following career and throughout life.
Language
The lack of English language skills may still be
considered one of the biggest barriers to doing
business in Korea. The Korean educational system
is continuously emphasizing improvements in the
teaching of oral English. An increasing number of
business people especially at the higher echelons
are able to work proficiently in English.
Korea has its own alphabet, hangul, consisting of
24 written characters (10 vowels and 14
consonants). In Seoul and larger urban areas
Korean road signs and menus are often
supplemented by information in English.
Korea still has a tense relationship with Japan after
a long history of conflict and especially many years
of occupation in the first half of the 20th century.
Dress Code
Koreans are formal in their social interaction and
first impressions matter. It is important to observe a
formal dress code. For business meetings, a suit
and tie is mandatory. Although the dress code in
Korea is strict, once introduced and outside formal
business meetings, Koreans can show a very
relaxed, personal, and humorous side
Business Cards
It is essential to bring business cards when having
a meeting with Koreans. The business cards are
presented to the counterpart after a handshake or
small bows. This presentation of cards is almost of
ceremonial character and it will be observed that
Koreans give and receive business cards with
either both hands or with one hand supporting the
giving/receiving hand about the wrist or a bit
behind. After having received the card, it is closely
examined. The close examination serves a
practical purpose, as you address people (in
Korean language especially) according to their title
and status. All business cards received should be
placed on the table during the meeting, and if more
than one card is being received, they should be
placed on the table in a vertical line so that all cards
are visible. After the meeting, cards received are
placed in the breast pocket.
If one omits to present his business card for a
Korean business man it may be perceived as an
insult. An excuse that one is out of business cards
may be seen as being unserious.
For business people frequently going to Korea it
may be an advantage to have business cards
printed in English on the one side and in Korean on
the other.
Negotiation
Things happen quickly in Korea and preferably
straight away. Koreans are impatient and make
emotional and spontaneous decisions, which is why
foreigners should take care to address Korean
counterparts on these terms. Be aware that a
signed agreement, in case of changes in the
underlying circumstances, from a Korean point of
view, will not always be considered an obligating
agreement but a starting point for further
negotiation. Business deals are concluded based
on mutual confidence and trust more than on the
written word.
In spite of the fact that Koreans want to see fast
results you should not as a negotiation partner be
too aggressive. Through the past thousands of
years Koreans have been strongly influenced by
Buddhism where body language and the ability to
listen are highly valued. Maintaining mutual trust
and confidence in a business relationship is
extremely valuable.
Gifts
South Korea has a reputation of having problems
with corruption and certainly corruption charges are
still regularly put forward against business people
and others in positions of influence. Nevertheless,
gifts are part of the business culture and (from a
Korean point of view) not considered bribery. A
small gift (possibly with a Danish distinctiveness)
can be considered an icebreaker in relation to a
business meeting and is good to bring along as a
response to a Korean gift offered in a formal
context.
Business Etiquette
Relationship building
Everything depends on personal relationships so it
is important to spend time establishing a good
working relationship and building trust with South
Koreans. Sport, families and hobbies are all good
topics of conversation. South Koreans may enquire
about your personal life, in an attempt to establish
your age and status, and to build a relationship with
you. You should answer these questions honestly
and openly, but without being boastful.
You will find being introduced to a company by a
trusted third party, such as the British Embassy,
more effective than going in cold UKTI in South
Korea can help you here. If you make a mistake in
business, always own up to it and demonstrate
what you are doing to put it right.
Communication
Many talented and capable South Koreans are not.
Accommodate your language to your audience.
Speak in clear, basic English. Do not rely solely on
verbal communication but reiterate your messages
in writing.
Cultural differences also influence communication.
Traditional culture favours harmony rather than
confrontation often causing Westerners to
understand silence as acceptance. Negative
questions are understood differently and yes/no
questions are unreliable. Ask questions from
several directions to verify that the message has
been successfully communicated. Your counterpart
is unlikely to request clarification even if
understanding is not complete.
South Korea is a country where things can happen
extremely quickly. Same day response is the norm.
A week without communication is interpreted as
lack of interest and/or termination of a project.
Meetings
You will need to book meetings well in advance and
make sure you arrive punctually, even if your host
does not. Your approach should be formal but
friendly, although avoid making jokes as this could
be interpreted as a lack of respect for your host.
The top-down management style of South Korean
companies means it is important to show respect
for authority. Ideally, the most senior person in the
team should enter the room first and greet the most
senior South Korean representative.
In general, you should introduce older people to
younger people and women to men. Make sure that
you show due respect and use peoples titles
correctly. Leaders should sit opposite one another
around the table.
Remember that the aim of initial meetings is usually
to get to know one another, so dont expect to begin
business negotiations right away.
You will always be offered Tea (which can also be
coffee, juice, water or something else); it is
awkward to refuse so better to accept even if not
consumed. Wait until these rituals have been
completed to commence business discussions.
Allow your counterpart plenty of time to express his
opinion; avoid dominating the conversation but try
to listen and understand what your counterpart is
thinking. This is particularly true if your counterpart
is weak at English.
Handshakes
A slight bow, followed by a handshake, is the
preferred way of greeting somebody in South
Korea. More junior personnel will bow first to their
senior colleagues. You should wait for more senior
personnel to offer their hand first.
South Koreans prefer a softer handshake and,
during the handshake, you may support your right
forearm with your left hand. Some senior South
Koreans consider eye contact as rude, but thats
not the norm. It is advisable to make direct eye
contact when addressing South Korean business
professionals in order to show honesty and interest.
A man greeting a South Korean business woman
should wait for her to initiate a handshake, as some
women prefer to bow instead. Never use your index
finger to point at somebody.
Body language
Body language is an important way of showing
respect towards someone older or a more senior
person in South Korea, as is using their honorific
title when greeting them.
Keeping your legs straight and your upper body in a
slight stoop denotes respect. A slight bow is also
used when expressing an apology (for example, if
you tread on somebodys foot). You should also
bow deeply when saying goodbye and say
Annyeong-hee-gaseyo.
Sneezing and blowing your nose in public is
considered rude (and sometimes funny). If you
have to sneeze, try to make it quiet. If you do
sneeze in front of somebody, make sure you
apologise.
Use both hands when giving or receiving anything
(including business cards), as it is regarded as
polite.
Attire
South Koreans tend to dress appropriately for their
work surroundings, as you would expect in the UK.
Black, blue and brown-coloured suits are
recommended. Tight skirts, low necklines and
sleeveless tops should be avoided, as should
shorts.
Hierarchy
All South Korean relationships are hierarchical. The
individual in the superior position is treated with
respect while the junior is subservient (sometimes
to the point of rudeness by Western values). Age,
position in the company, education, and marital
status all determine ones rank in society.
Your rank can have a major impact on who is
willing to meet you and the nature of the dialogue
(relative position). Titles are hierarchical rather than
functional in South Korean companies. Know your
counterpart and how he fits within his organisation.
Names and titles
When addressing someone in business you should
use their professional (for example professor,
doctor, engineer) and honorific titles.
Korean names are written Surname, and then
Given Name. Often in communication with
Westerners, the order is reversed to accommodate
our culture. Initials and Anglicised names are
sometimes used to facilitate communication with
Westerners. While this is very considerate and
convenient for Westerners, fellow South Koreans
often will not be aware of the Anglicised name so
may not know who is being discussed. Titles are
very important among South Koreans and are used
when addressing individuals. The most common
address in Korean is surname followed by title, for
example Director Lee.
Women in business
Although South Korean attitudes to women in
business are changing slowly, it is still very rare for
women to hold senior positions in South Korea.
Consequently, the opportunity to work with a
foreign company, with more enlightened attitudes
towards equality, tends to be welcomed by many
professional women in the country.
Punctuality
As has already been stated, you should be
punctual for meetings and leave plenty of time for
your journey to avoid arriving late. When engaged
in a business relationship, you should ensure that
delivery times are clear and that you act quickly to
remedy any problems.
Hospitality
Hospitality is an important part of South Korean
business culture. You may be invited out to dinner
in a restaurant or, occasionally, in someones
home. This is considered a great honour. You
should always remove your shoes, and remember
to point them towards the front door.
Drinking
Eating and drinking remain important parts of
relationship building particularly among the over 50
age group and drinking is serious not casual.
While it is not common to drink at lunch, often beer
or wine will be served to accommodate Western
habits.
South Korea has one of the highest rates of alcohol
consumption in the world and men are expected to
partake in the countrys drinking culture. Be careful!
Often, key commercial information is revealed at
the very end of a drinking session so one needs to
be alert enough to catch the message.
If youve had enough to drink, avoid emptying your
glass. If you dont want to drink, excuse yourself on
medical or religious grounds. It is considered polite
to fill other peoples glasses rather than your own.
Dining
Eating is an important component of building
relationships and bonding in Korea. It's rare for a
meeting that ends near mealtime not to result in an
invitation by the host, and it's common for the host
to pay for the meal. Seminars and workshops
always include a meal usually hosted by the
event sponsor.
There are a number of rules you should observe
when dining. For example, you should not hold your
rice or soup bowl in your hand during the meal.
Spoons and chopsticks should not be rested on any
bowl or dish and you should not hold them together
in one hand. When an elderly person gets up, you
should also get up. Younger people should not pick
up their tableware before older people.