Global Business Culture – South Korea

Integrity: Virtues for doing business in Korea

Prior to the announcement of his company's new product, Mr. A – who works for the corporate communications team – invited leading Korean media to an interview with the developers. He prepared fine wine as a gift and handed it to a reporter after the interview. However, the reporter was reluctant to accept the gift and said,
"I cannot accept it, but I do appreciate it, thank you." He added that it is illegal to give and accept such gifts in his position.

Exchanging expensive gifts was once a custom in Korea, but it is no longer practiced.

This is because of the September 2016 anti-graft ‘Kim Young Ran law' which strictly regulates gift-giving for government officials including civil servants and teachers. Civil servants and journalists will face criminal penalties if they receive monetary gifts exceeding one million Korean won, especially when these gifts come from outside their business scope. In business settings, individuals will be penalized if they are treated to a meal that exceeds 30,000 Won, receive gifts valued at over 50,000 Won (100,000 Won for agricultural or fishery products) or receive an amount exceeding 50,000 Won as congratulations or condolences for certain observances.

Such regulations are created to establish a culture of fairness and integrity in Korean business and society. Thus, 'integrity' has become an important virtue in doing businesses in Korea.

Business in Korea: DOs and DON'Ts

DOs

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  In business meetings, Koreans usually start their conversation by checking to see if their counterpart has eaten recently. This is no more than a simple opening gesture.

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  Don't be alarmed by personal questions. In Korea, it is common to be asked personal questions even in business settings. Common topics of conversation include family and hobbies.

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  Seniority matters. When entering the room, let the most senior person enter first and be seated. This principle applies to everyday life as Korean culture places an emphasis on age.

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  The decision-making process in Korea is performed collectively by adhering to hierarchy. Have patience even if the process takes a long time before final confirmation is made.

DON'Ts

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  Do not touch or pat someone on the shoulder if it's the first time to meet them (especially if they're older than you). This is perceived as rude.

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  Do not directly stare into the eyes of your counterpart while having a conversation. This is also considered as a hostile gesture in Korea.

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  Going Dutch in the business world is a taboo in Korea. Enjoy or treat them as you entertain with your business partners.

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  When drinking with Korean business partners, avoid emptying your glass if you don't want to drink any more. It is considered polite to always fill other people's glasses!

Hanwha Group in South Korea

Hanwha Group is one of the Top-Ten business enterprises in South Korea. Hanwha ranked No.5 in net income and No.8 in total assets in 2017 among Korean companies. Hanwha does business in multiple sectors including chemicals & materials, aerospace & mechatronics, solar energy, finance, services and leisure for a total of 61 affiliates across the nation.