The the huge amount of globalization these days, it is essential that anyone doing business abroad be well versed in both their own country’s legal policies and the foreign country’s policies and unwritten rules.  This can help you dodge problems and jump through hoops.

Background

Social Environment

In  the past, many businessmen in Korea have used their positions to further their personal agendas.  After the IMF crisis of 1998 these irregularities have largely been taken care of.

Personal Relationships

Most business transactions in Korea happen between people who have personal ties.  You need to be able to deal ethically but at the same time deal with local idiosyncrasies.

Competition

Since Korea is such a small country, competition is extremely fierce and sometimes leads to a philosophy of one must win at any cost.

When in Rome…

Local Expertise

Rather than relying on your own expertise in your own country, you must use local methods to be successful.  Much of the time that means having loyal Koreans that help you build relationships and make contracts.

Like it was brought up before, you should be cautious when dealing with some people who are considered expert “foreign handlers.”  They commonly use flattery like telling you that you understand their culture better than others in order to get what they want.  It doesn’t always mean they are buttering you up, but stay on the look out.

Third Parties

Sometimes the best way to make sure that you stay ethical and get things done is to hire local third parties to handle the situation.  But make sure that you trust the party who you choose, remember that they will act in your behalf.

Lofty Causes

Sometimes non-monetary methods are used to sweeten the deal.  This can involve offering educational incentives, travel expenses all paid for, etc.  Rather than giving certain individuals deals this usually involves the entire company.  This is a better alternative to trying to give individuals incentives, which can approach the line between ethical and not.

Personal Ties

Time and money invested in simply building personal relationships is very well taken and is essential if you want to develop a long term relationship if trust.

Public Relations

In Korea, a company’s public image can make or break them.  They must appear to be a company that helps the local community and basically makes Korea a better place.  If your company gets a name publicly for being unethical, you can kiss your future goodbye.

Overall Insight

Never stop developing your knowledge and expertise in doing business in Korea.  It’s a never ending process which can be very fruitful and joyful.

Go to the next chapter, Managing and Being Managed by Koreans or select a chapter.