Korea is the only (officially) still-divided country in the world. Both Koreas are armed, dangerous and technically at war. This chapter focuses principally on South Korea (often referred to as the Republic of Korea, or ROK), but in terms of deeply rooted culture, all Koreans are the same. Differences in the political structure between the communist North and capitalist South have, since 1945, obliged North and South Koreans to lead very different lives, but the Korean core beliefs of kibun, hahn, Confucianism, tenacity and obsession with survival dominate thinking on both sides of the border and distinguish Koreans strongly from their Chinese and Japanese neighbors.
Korea will eventually be reunified, and when that happens the combined population of more than 75 million will put it on a par with Vietnam and increase its clout in East Asia. South Korea’s influence is already remarkable. On a limited land area less than half the size of the United Kingdom, South Koreans have built the fourth largest economy in Asia, based on low-cost, high-quality export production. Its GDP of nearly US$1400 billion dwarfs those of the three other Asian Tigers—Taiwan (US$525 billion), Hong Kong (US$309 billion) and Singapore (US$297 billion). South Korea is the eighth largest trading economy in the world and actually grew at an average rate of more than 15 percent between 1960 and 1995!
The South Korean miracle is beginning to show signs of both maturity and age and is changing the focus of its economy from low-cost, low-technology production to high-tech, high-value-added, capital-intensive products. The strength of ROK’s large conglomerates (chaebols) and the industriousness of its businesspeople and workers suggest that it will successfully make the transition to a new economy appropriate to current twenty-first century conditions.
On account of its proximity to China, Korea has been, and still is, strongly influenced by the teaching of Confucius. (A description of the basic tenets of Confucianism is given in Chapter 65.) Hahn is something different and more peculiarly Korean. This is the word used to describe the pent-up energies and frustrations that developed in the Korean psyche under conditions of extreme hardship and oppression. We must remember that Japan occupied Korea from 1895 to 1945, and the Korean War of 1950–1953 caused unimaginable suffering throughout the peninsula. Hahn, which stems not only from foreign occupation but also from social immobility, sexual discrimination, family vendettas and abject poverty, has translated into extreme nationalism, a release of energy and in the end to Korean prosperity.
Kibun, roughly translated as “face” or “reputation,” is a more sensitive issue in Korea than perhaps anywhere else in the world. For a Korean, kibun is an intuitive sensitivity to social balance and correct behavior. Koreans are able to deal even with people they dislike under a veneer of courtesy. Foreign people dealing with them can easily be fooled into thinking that Koreans are easy-going and good-natured.
The Korean chaebol is the rough equivalent of the keiretsu or former zaibatsu in Japan. It is a conglomerate of a dozen or more companies owned by or closely linked to a prominent family. Personal and family connections are extremely important in Korea, where clans are seen as bastions against the outside world. The very size of the chaebol in modern Korea has necessitated the employment of a large class of well-educated professional managers. Even they, however, generally have close personal ties with the owning family.
Foreigners working with Koreans do well if they can cultivate good relationships within Korean power structures. This is difficult to do, and third-party introductions are both advisable and necessary.
| Confucian ethic | protection of kibun (inner feelings) |
| vertical society | respect for elders |
| observance of protocol | competitive spirit |
| toughness | obsession with survival |
| creativity | adaptability |
| tendency toward violence | suspicion of neighbors (China, Japan) |
| tenacity | dislike of foreigners in general (hahn) |
| nationalism | willingness to suffer hardship for the good of the country |
Leadership is Confucian in essence, but the importance, influence and power of certain families are more in evidence than in Japan and China. Power, once acquired, is not easily conceded, and the history of violence between the authorities and the people is top down in Korea, as opposed to frequently being bottom up in Japan.
Family name, wealth and the power of the chaebols decide status.
Korea is a crowded country, and space, especially in the big cities, is at a premium. Koreans are used to working close to each other, but require clearly defined personal space in formal situations. They are non-tactile. Koreans are very hard working (they try to outperform the Japanese) and rarely waste time. They are relatively punctual and have an American-like attitude of packing as much action as they can into a given time period.
Koreans are energetic conversationalists, very intense when serious, believe they can handle Westerners better than other Asians can and often try their hand at humor. They have a very elastic concept of truth and it is advisable to double-check anything that is promised. They are often looking for quick profits and one should be careful about granting exclusivity. It is better to judge their statements against past performance rather than future forecasts.
Koreans are courteous listeners in true Asian style, but they often give the impression that they know in advance what you are going to tell them. They often give lively feedback and may ask original questions. Giving them face is important both during and after a presentation.
It can be more difficult to create a lasting agreement with quick-moving Koreans than with the highly structured Japanese or bureaucratic Chinese officials. Historically, their collective experience is that compromise leads to defeat, second place spells disaster. This makes them extremely competitive and continually on the lookout for further advantage. This is annoying to the Westerner who is trying to negotiate a win–win situation.
Negative aspects of doing business with Koreans include the following:
Positive aspects of dealing with Koreans include the following:
Protocol is extremely important. If you fail to give a Korean the respect due to his rank, status or age, he will withdraw and avoid you in the future. If you fail to observe the basic rules of social exchange and proper respect in Korea, you become an “unperson” and Koreans will henceforth have no concern for your welfare, even while continuing to be polite. They can actually be violent to unpersons.
Touching another person is an affront. Businessmen now shake hands to show that they are modernized but will often bow at the same time. They sometimes become more affectionate after a few drinks but will usually apologize for being drunk (the same evening and again the next day).
Punctuality is reasonable but less important than in China or Japan. When in their office or in contemplation, Koreans build imaginary walls round themselves, then disappear for a time. You can break through this wall by coughing discreetly at a distance of 3 to 5 meters (10 to 16 feet).
Koreans do not introduce others formally but say to a stranger, “I am seeing you for the first time.” The elder then suggests an introduction, whereupon both parties mumble names unclearly and exchange cards. Koreans avoid calling each other by name, preferring titles.
Table manners include serving the guest, slurping soup, smacking lips and belching heartily to show appreciation of the meal.
Koreans consider themselves very different from the Chinese and Japanese, and due respect must be paid to their long history, artistic riches and national uniqueness. They believe that they can handle Westerners better than other Asians. Your reaction should be to express willingness to go along with their ideas, sharing humor with them whenever possible, but maintaining a firm, pragmatic stance at all times.
Pay great attention to protecting their kibun—loss of face in Korea is more serious than anything else. Do not overemphasize your Japanese connections and do not refer to the Korean language as an offshoot of Japanese.
| MOTIVATION | |
| KEY | Praise Korean achievement |
| Cross-century mood |
• As usual, they are thinking about beating the Japanese.
• Korean survival is always their first concern. In this respect reunification is on their mind.
• There is no lessening of their ambition or energy in the first decade of the twenty-first century.
• There is a tendency to follow in Japanese footsteps in exploiting cheap labor and resources in Southeast Asia.
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| Motivating Factors
• When negotiating with Koreans, show toughness allied with respect. Never appear gullible.
• Although they often appear idealistic and somewhat touchy, they usually end up being very pragmatic. Work toward practical solutions in a cool manner.
• Remember that they have an obsession with survival. They have had a hard history in the course of which they usually came off second best in conflicts. Always let them see that you want a win–win situation and allow them room for profit and advancement.
• They are suspicious of all foreigners and their motives. Work hard at demonstrating and building up trust.
• They have a vertical society; be careful how you move within the hierarchy.
• Encourage their creativity—they are proud of it. Don’t be afraid to introduce new and innovative ideas. They are more amenable to quick change than are the Japanese or Chinese.
• They like thoughtful gifts. No Japanese products, please.
• Try to match their work ethic, punctuality and tenacity.
• Remember that Koreans wield several varieties of truth. Take everything with a pinch of salt and avoid taking offense when you discern that facts do not correspond exactly to appearances.
• Admire their risk taking and use it to your advantage. Show your willingness to share risks and problems.
• It is important to socialize and drink with them in the evening. A certain degree of inebriation on both sides is permissible and expected.
• Ignoring or showing a lack of respect for Confucian values.
• Being put off by sudden Korean volte-faces. They may occur frequently.
• Dwelling on past misdemeanors.
• Expectations of smooth or problem-free business with them. Make allowances.
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