It is very difficult for American companies who do not understand the Business Protocol, language and customs of Korea to do business in Korea. Fortunately many Koreans can read and write English efficiently enough to communicate with the English-speaking world.
However, verbal communication can be challenging to them. Also the Korean business style is different that U.S. style.
One time I had an American business partner and I went to Korea to conclude a
business negotiation and deal for half-a-million dollars. I didn’t receive a
contract from them during the negotiations. I only received a verbal agreement.
I came back with the business deal but without a written contract. My business
partner was worried and upset that I didn’t bring a contract with me.
I reassured him that I have the business. But he said, without a contract we don’t have any business. Two days later the contract came by mail and my partner was happy to see it.
This is the way many Koreans do business. There is logic and instinct during the negotiations on both sides and the signed contract comes later.
Understanding Business Protocol is Important
Understand Business Protocol and your negotiations will run smoothly and faster.
There is the story of the American businessman, Mr. Smith. He was having difficulty communicating with Koreans in English. He didn’t understand why Korean people were upset with him. He was trying to sell his product like you would in the United States. He sold everywhere except Korea.
He jumped right into talking about his product and tried to logically explain it, but he had a language barrier. Koreans expect you to understand cultural customs when you work with them just as we do in the United States.
Business Protocol and NEGOTIATING tips to help you communicate with the Korean business people.
Communication is a key to success when working with Korean business people. Here are seven steps to help you understand the negotiating process:
1. Begin with small talk. Don’t jump right into giving all the technical information of the product.
2. It’s okay to ask their age and how the family is doing.
3. Politeness, low-key mannerisms are important.
4. Bring someone with you who speaks Korean well to help you during negotiations in order to avoid misunderstandings and mistakes.
5. Learn how to deal effectively with the cultural differences.
6. Koreans are very sensitive to criticism. Find positive ways to communicate with them—even when there is a problem.
7. Give credit to Koreans whenever it is appropriate.
8. Koreans are emotional and passionate about everything. They may be loud and shout at times and that is the time to make a deal.
Korean Business Protocol
Carly Fiorina, the former CEO of Hewlett Packard, is a great example of accepting Korean Culture. She understood Korean business protocol.
A few years ago Hewlett Packard and IBM were very close to competing in Korea
in sales. Carly Fiorina was an Italian-American lady who knew Korean culture
very well as it is similar to the Italian culture. She was very open minded and
an energetic woman.
She came to Korea to have a business meeting and after the business meeting she
went to a Geisha bar and she drank Soju and Sake with the business people.
Everyone had a good time.
This story went out to all the morning newspapers the next day. And the Korean people loved her for her acceptance of the Korean cultures. I heard the sales of HP exceeded IBM in Korea.
There are 3 things you can learn from this story.
1. Have fun and enjoy and accept the Korean culture. It is the key to succeeding in Korea.
2. Drinking Korean drinks means accepting their culture. They love it. It is
easy to get along with each other. Business happens at the dining table in
Korea.
3. It’s okay to not speak Korean, but having a good time together is important.
Korean people are sensitive as to how other people accept them. But remember to
bring along a Korean colleague who can interpret for you during the actual
business negotiations.
Be a global person.
By seeing how people live in societies all over the world you become a global person, one who can comfortably work and play anywhere.
Remember...You Are a Super Hero!
Jinsoo
jinsoo@jinsooterry.com
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