Chan Mool Eu Do We Ahrye Ka Itda
There is up and down in a cup of cold water
When I first heard this Korean proverb, I was very puzzled. What on earth could it possibly mean? Is it like “the glass is half full or half empty”? No. Is it to do with good times and bad times? No. A complete puzzle. Then I began to think about proverbs in general. What are they? They are, of course, expressions of some truth accepted by most members of a particular culture, in this case Korean. We have to accept that any culture makes very good sense to itself; it is our job to work out how and why. Curiosity is the key.
So how can we begin to summarise the key messages in how to do business with Korean companies? Let’s divide the job into three parts, each based around a Korean proverb.

Pal-eun-an-euro gup neun da
Arms bend inwards

The geography and history of Korea tell us how hard life has been for this peninsula. Because of their position in the region, they have been invaded by their much larger neighbours again and again over the centuries. Add to that the fact that the mountain range at the north of the peninsula effectively cuts them off from the mainland and we can understand how they have developed particularly defensive attitudes to foreigners. Whilst these attitudes develop in many other countries, in Korea the feeling is especially strong; to the extent that behaviour differs sharply depending on whether they are dealing with an accepted business partner or just a stranger (even more so a foreign stranger). In sociological terms, this is to do with in-group/out-group discrimination. If you are one of “us”, the treatment will be very different, and much warmer, than if you are one of “them”. In the end, this leads to a system of relational ethics: “I will behave completely differently depending on who I am interacting with“. This is in stark contrast to the absolute system of ethics which we in Europe generally subscribe to and which are perhaps best summarised in the Ten Commandments. Koreans look after their own – it is only natural to do so. After all, as the proverb says “Arms bend inwards”. They don’t bend outwards!

So what does this mean for us?

• It takes time and effort to become one of “us”.Don’t expect to rely on the strong logic of your business offer to win over Korean customers

• Koreans generally would never dream of doing business with a stranger; they will need some time to become comfortable with you. Don’t expect to walk out with a contract from the first sales visit. Spend time and money on building relationships.

• This also means that contracts have a very different status from in Europe. If you have a good relationship, why worry about what is written down on a piece of paper? Surely, everything is re-negotiable between friends!

• Be extra-sensitive to Korean feelings about their position in the world both economically and technologically. Having been ruthlessly exploited by foreign invaders over the centuries, they will show extreme sensitivity to any sense of being patronised or treated as less developed.

This occurred recently when management consultants from the West were drafted in at the instigation of the IMF and their own government to “upgrade” business structures in the chaebol (conglomerates). Within a couple of years, when the Korean economy demonstrated a tremendous recovery from the Asian financial crisis, the Westerners were soon shown the door. Arms bend inwards.

strong>Mo nan dol yi jung mat-neun da
Sharp stones get hammered flat.

If a country suffers, as Korea does, from low natural resources and high population density (for statistics see http://www.cia.gov/cia/publications/factbook/geos/ks.html ) it is normally the case that such a combination produces a collective, group-oriented culture. In the Korean case, this means that there are strong bonds between people based on blood line, regional origin and educational background – clearly something that Europeans cannot connect with. A person’s identity is fundamentally linked to the groups of which he/she is a member and most behaviour reflects this. An individual cannot survive outside the group. In Korean companies, then, until very recently, individual initiative was not encouraged and indeed it offered only the downside risk of failure. Anyone standing out above the crowd was seen as selfish and arrogant. The group would ensure that the person was put back in his place. As the proverb say, “sharp stones get hammered flat”.

This aspect of culture is changing fast in 21^st century Korea. Young people are being asked to show much more initiative and, somewhat unhappily in some cases, older people are accepting the change in relative status and power. One big question therefore is : how old is the person you are dealing with? Almost certainly, if the person is over 35, he (sic) will be operating according to collective principles.There should be “inhwa” (harmony) between colleagues, reflected in “kibun” (good mood, good atmosphere) in the office.

So what does this mean to us?

• Speaking the truth plainly can be hurtful and damaging to a relationship, especially when spoken in front of others.If it is absolutely necessary to make a point that is likely to cause loss of face or embarrassment, it is best to do it 1-1 and away from the formal meeting-room.

• Present an orderly face to your Korean clients. Formal meetings in Korea are exactly that – formal! This means it is not a free-for-all in which any participant can feel free to say what s/he likes at any time. Although Europeans enjoy and are good at arguing and debating, the temptation to score intellectual logic points should be avoided.

• If your Korean partners become unreasonable or extremely demanding, you can be hard on the issue, but should be soft on the people. You must maintain self-control even in extreme circumstances.

Chan Mool Eu Do We Ahrye Ka Itda

There is up and down in a cup of cold water

Korea is a Confucian culture. That means they have followed the principles of Confucius in organizing themselves at national, local and especially family level throughout the country for hundreds of years.The principles are based on the notion that the best guarantee for stability is to model society (and organizations like companies) on the family. The family of course is based on unequal status: everybody knows their place and is content with that. There is a clear hierarchy in the family, which is itself strongly patriarchal. In modern business situations, this means that Korean companies are invariably more “vertical” than European ones. The largest companies (chaebol) like Samsung, Hyundai and LG are still family-owned and family-run. At middle and junior levels in these companies, there is extreme sensitivity to the established hierarchies and care is taken not to cause loss of face. Young Korean staff-members are specifically taught exactly how to recognize senior people and how to behave in their presence. Any tensions, or contradictions during the working day are often dealt with in drinking and singing sessions after the working day, where there is some escape from hierarchical power. But in everyday working life, there is no escape. It applies to everything. Even with a cup of cold water, it is only right that the oldest man should take the first sip. As the proverb says, “There is up and down in a cup of cold water”.

So what does this mean to us?

• Match your hierarchy with theirs. They will want to know who is the boss of whom and they will expect this to be reflected in correct behaviour from the junior (less senior).This doesn’t mean that European juniors should show unnatural deference to their bosses. Be yourself, but be aware and sensitive to such hierarchical issues.

• Don’t argue with the Korean boss in front of his juniors.

• Don’t ask the very senior managers detailed technical questions. They probably don’t know the answer and could be embarrassed. That’s why the junior guys are also in the meeting!

• Use 1-1 meetings as much as possible (since no-one can lose face 1-1).

• Never refuse invitations to socialize: it’s often the place where real business takes place, free from hierarchical and formal considerations. It’s also the unmissable opportunity to get to know your partners at a personal level.

• Invite visiting Koreans out when in Europe.

Finally, the subject of communication. Interpreters are fine, if you use them properly. However, it’s hard to develop personal relationships through one.This probably means that you will have to speak Offshore English.

Offshore English is the real language of international business used in most dealings throughout the world. It is used between non-native speakers of English and is generally very effective. It does not have the sophistication of native English, and there are some defects in the language (grammatical mistakes, false friends, etc) but it is simple and clear. You may well find that Koreans, whose average ability in English is considerably lower than most Europeans, often find it is easier talking to Germans than British or Americans.

Some rules for achieving the clarity that both sides need:

• Speak at a steady pace. Ask yourself if you are a fast talker; if so, slow down (but not too much).

• Keep it short and simple: KISS

• Check understanding regularly. Summarise regularly and in detail at the end.

• Ask open questions to make sure the conversation is not one-sided.

• Use clear written agendas for meetings and make it clear when you are changing the subject.

But most of all,

Be prepared to go further than just being polite.Business in Korea is personal.