There’s a typo in the first paragraph, The second to last paragraph should probably end with “household brands.”

The Korean Viewpoint

It is important to know how foreigners and foreign products are regarded when dealing with anyone.  This chapter will introduce how those feelings are in Korea.

Feelings Toward Foreign Dependency

Koreans have a long history of having their independence taken from them.  Therefore they are very careful when committing to being dependant on outside influences, even though they are a high-exporting country.

Lingering Dependency

Only forty years ago, Korea was a very poor nation and was accepting donations for survival.  They have come up from the dust very fast to become one of the larger economies in the world but still feel like they are the little-guy who needs preferential treatment.  Sometimes negotiations can take a long time because Koreans will fight hard to get some benefits from the deal, because they are so “poor.”

Growing Nationalism

As part of becoming more powerful and wealthy, there has also been a rising national pride level.  This leads to many Koreans resenting foreign influence on Korea, whether bad or good.  Although Koreans protest and vent frequently, it is rarely directed at foreign individuals inside the country.  Just make sure to acknowledge this fact and deal with it.

Consumer Brand Preference

Foreign products are regarded as high quality, so many local-only products use Westernized product names in order to look and sound more fancy (although the government discourages this).

One interesting language tidbit is that there isn’t really a word for ‘brand’ in Korean, they just use the English word.  Korean companies have generally used their name on all of their products (like Hyundai meaning cars, oil tankers, credit cards, etc.) which is a slightly different way of advertising than branding which highlights individual market lines.

Officials, Elite Perspective Vs. That of the Working-Level Bureaucrats

In Korea, high-level government officials are very open-minded and willing to compromise and negotiate with foreign companies.  The main problems that foreign companies face are when they start to deal with the local authorities, who usually don’t have the same goals as those above them.  Oftentimes that can mean more time and money spent to get a permit or other business-license than how long it was projected to take.

Businesspeople Attitudes

There are two general attitudes taken by local businessmen.  One is grudgingly accepting the fact that one must coexist with a foreign company in order to succeed.  The second is to block them out of the local market entirely.

Employee Feelings

Foreign firms have a couple of issues with Korean employees.  Due to the ease of closing overseas operations, Koreans see foreign companies as having less job security.  There is also the possible frustrations of working under people who don’t understand your customs and Korean business practices.

Of course there are benefits also.  Many Koreans look at who has become the top managers and a common feature is that they worked for a foreign company at one time or the other, giving them insight into the world and English.  Work conditions are also generally more pleasant.

Mixed Feelings

The country is somewhat polerized over how they regard foreign influence, but a majority seem to be in favor of creating freer trade.

Go to the next chapter, Negotiating Business or select a chapter.  That ends part II, the next chapter starts part III: Getting Along With The Koreans.

Expatriate Executives

Spend time one-on-one with your workers to get to know them and their opinions, it could make the difference between being successful and failing.  As hard as it may be at first, spend the extra effort to befriend those from the Korean culture.  Whether you like it or not you will be part of a community that sees being happy together and suffering together as a priority.  If you would like to go home early regularly but those around you can’t, suck it up and get some more work done or help others.  The more you participate in local customs the more you will be able to integrate into their society.

If you are a manager, make sure to take some time out of your busy day to assess your employees both professionally and personally by saying hi and asking how they are.  If you see someone struggling then offer a helping hand, it could help you develop employee loyalty.

Like any culture, be careful what you say and imply.  Someone could mistake something you say to be a promise.  Feelings could be hurt and good talent lost.

Many Koreans will also never question their superiors.  This makes it very important to be specific when delegating tasks.  If you want specific data to be used in a certain way make sure the other person knows what that is.  Remember all those jokes about getting what one asks for?  You just might.

Top 15 Suggestions by Experienced Expatriate Executives

1. Be open minded when going to a Country.
2. Don’t compare Korea with other countries.
3. Koreans are unique – they are not Japanese or Chinese – so you can’t use a blanket strategy.
4. Be ready to compromise.
5. Things take time, don’t be brash.
6. Show how change can benefit people, but be willing to compromise.
7. Don’t go thinking your going to educate using clever Western ways, you’ll get nowhere.
8. Spend some time learning about Korean history and culture.
9. Learn about Confucianism – it’s a deep part of the society and essential to know.
10. Socialize and have fun, show you’re human.
11. Know what you sign and always ask for explanations.
12. Learn what is going on in your organization, only then can you make change.
13. Don’t be a softy, establish rules and stand firmly by them – but be sensitive to the culture.
14. It’s only a dependable organization when you have your employees’ loyalty.
15. Have a vision that shows everyone prospering, not just one that makes things cheaper.

Working in a Multinational Company in Korea

When you arrive in Korea, learn who has the power to make decisions, regardless of their title, and befriend them.  The advice given in this section generally just reiterates what was already said.

Working in Korean Companies

Oftentimes, change in Korean companies is met with good initial impressions but remains stagnant.  Foreign ideas can sometimes be viewed as a threat.  Be ready to encounter situations where someone will take advice and not act on it.  If you want to work in a Korean company make sure to get a job description and find out where you will be in the  organization and what responsibilities you will have, it can help sooth friction that can develop after arrival.  Don’t be suprised by the linkage between age and job title, Koreans believe that age should be rewarded by its own merit and thus you don’t see very many young people, despite their qualifications, go to the top.

Some Common Frustrations

• Sometimes you will be excluded from business activities.  The language barrier and “foreign insight” can sometimes be a determent from inviting you to partake in some activities.
• Some managers don’t know what to do with those sent to them from the international human relations department.
• Whether intentionally or not, many foreign managers are given a different story before arrival about what their duties will be and how they will be a part of the company.
• As a manager you will have to make a lot of donations (seemingly daily) to employees for weddings, funerals, births, etc.  This is just a part of success and should be seen as an opportunity to spread it around.

Rather than worrying about not being worth one’s salary for the first couple of months (very common), spend your time trying to be a part of the team.  This is more important than trying to give some ground breaking recommendations which can seem arrogant.

In-maek, basically your personal network, is very useful.  Even if it’s hard for you as a foreigner to get this early on you can develop relationships with those who’s in-maek is developed and start to become a part of it.

Korean Returnees (Gyopo)

“Gyopo”s are basically second generation Koreans.  Many go back to Korea to pursue a career and in doing can provide some great external ideas.  A double-edged sword is that they are treated as 100% Korean.  While this allows them to be a part of the culture easily, they are often harshly judged to be less educated based on the fact that their Korean is not perfect and they don’t know many terms since they just learned Korean in their homes.

I have personally known many gyopos who come from all different backgrounds, many knowing nothing about Korea or keeping up to touch with Korean.  Most of them encounter a period where they feel like they are looked down upon.  The sad news is that you will be judged by the fact that you are ethnically Korean while other non-Korean foreigners will be given more leniency.

Handling Employee Fraud

Like other places, fraud is usually dealt with at an individual level.  Rather than risk being viewed as allowing or causing the problem, many people try to hide fraud from the authorities that should be informed.  While it works many times, it can be a time-ticking bomb just waiting to explode.  In order to fight this you must have a policy that is known by all to be fair and will be handled carefully and confidentially.

Employees need to sign and be aware of a code of conduct which is also followed by management which is followed correctly.  Be careful, many activities are done under the pretense of it being a part of the Korean culture.  When you accept everything as fine because you don’t know it, that can become a problem.

Many Koreans have been known to try to do nice things for those under them or friendly to them, like giving loans which wouldn’t normally be given.  This happened a lot after the Korean war which resulted in a lot of small loans given to individuals rather than larger companies.

Make sure that you reiterate a zero tolerance policy on fraud and provide preventative training.  Keep all these things in mind when finding new employees.  It is much easier to try to prevent fraud by screening incoming employees.

These things usually happen by established employees who have knowledge and motivation that can combine to lead to temptations.  Red flags can be a change in living style.

Go to the next chapter, Korean Impressions of Foreign Business or select a chapter.