Negotiating in South Korea

Done by

TNEU 2016

Content

• Cultural features• Initial Contacts

and Meetings• Communication• Negotiation• Inappropriate

topics

Cultural features

Business relationships exist between

individuals or groups of people and are

based on familiarity and respect

“Saving face”

In Korean culture, ‘saving face’ is very essential.Causing embarrassment or loss of composure, even unintentionally, can seriously harm business negotiations.

HIERARCHYStatus means a lot!

Find out who will participate on the Korean side, and

choose people who match the rank of the

Korean members.

Initial Contacts and Meetings

Formal attire is important when doing business here. Male business

visitors should wear dark suits with neckties on

most occasions.

FORMAL ATTIRE

If possible, schedule meetings at least three to four weeks in advance.

Send your proposals and agree on an agenda ahead of the meeting.

Before the Meetings

Business cards

The exchange of business cards is an essential step when meeting someone for the first time.

Present your business card with two hands, and ensure that the Korean side is facing the recipient.

Introductions

Introduce and greet older people first.

Introductions are accompanied by handshakes and/or slight bows.

Communication

Koreans often acknowledge what they hear by saying ‘yes’ or nodding.

Gestures are usually subtle in South Korea.Avoid touching other people except for

handshakes.

NON- VERBAL COMMUNICATION

Unlike in other Far East countries, eye contact should be quite frequent, although not to the point of staring

Negotiation

You should bring a sufficient number of copies of anything you present, such that each

attendee gets one.

While Koreans view politeness and humility as essential ingredients for a successful relationship, that doesn’t stop them from being patient and persistent in pursuing their objectives.

Attitudes and Styles

Although the primary negotiation style is competitive, South Koreans nevertheless value long-

term relationships and look for win-win solutions.

Attitudes and Styles

May become very emotional, aggressive, or outright adversarial.

Relationships matter a lot and must be

maintained at all times

At one hand... At another hand…

Sharing of Information

Korean negotiators are willing to spend considerable time gathering information and discussing various details

before the bargaining stage of a negotiation can begin. In this phase, they seek to find the other side’s weaknesses.

Korean businesspeople are often shrewd and skillful negotiators who should never be underestimated.

Deceptive techniques:telling lies sending fake non-verbal messagespretending to be disinterested in the whole deal or in single concessionsmisrepresenting an item’s valuemaking false demands and concessions.

Gift giving is common in social

and business settings in South

Korea. If you received one, it is

best to reciprocate with an item of similar

value that is typical of your home country

GIFT GIVING

Inappropriate topics!

Thank you for your attention!