A Guide to
South Korean Business Etiquette
From electronics to manufacturing, South Korea is one of East Asia's top economic powerhouses and does business with companies around the globe. It's crucial that foreign business travelers understand the great importance of proper business etiquette in South Korea. Navigating these customs with respect and sensitivity can pave the way for fruitful partnerships and lasting relationships.
Things to avoid when doing business in South Korea
Finding success in South Korean business culture
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Punctuality
As in many Asian cultures, punctuality is seen as a sign of professionalism and respect in South Korea. Arriving at business meetings on-time or even early goes a long way toward making a positive impression. Being even a few minutes late could be interpreted as a lack of commitment or interest in the business at hand.
Avoid being late to meetings by planning ahead and trying to arrive 10 to 15 minutes early.
Hierarchy
Korean society places a strong emphasis on hierarchy and respect for authority. This is reflected in the business world, where seniority and rank are highly regarded.
When greeting a group of Koreans, greet the highest-ranking person first, followed by the eldest person in the room. The person of the highest rank usually enters a room first, so it's easy to identify them. It's also respectful to stand when a senior person enters the room and follow their lead during discussions and decisions.
As hierarchy is highly important in Korean society, men and women should be greeted in order of importance, which may mean women are further down the chain of command. In terms of gender equality in the workplace, South Korea has one of the highest gender pay gaps among OECD countries. Men make up the majority of the professional workforce at 73.7% compared to women’s 55% labor participation rate.
However, as women in South Korea have struggled to break into top-ranked positions at established companies, many have leaned into entrepreneurship and founded their own companies. Foreign businesswomen should maintain a refined, professional air, but may still encounter pushback in the male-dominated Korean workplace.
Greetings
Greetings play a pivotal role in South Korean business interactions. A firm handshake coupled with a slight bow is a respectful way to greet colleagues and South Korean business partners. The depth of the bow signifies the level of respect. For casual acquaintances, a slight nod is appropriate, while for superiors, a deeper bow is more respectful.
When addressing someone, use their title or position followed by their surname. Stick to formality and use appropriate titles until your South Korean business counterparts indicate it's ok to use first names and interact on a more informal basis.
Even though many business dealings will take place in English, it's still a good idea to learn from beginner Korean business phrases and words out of respect for your hosts:
- Hello – Annyeong haseyo
- Goodbye – Annyeonghi gyeseyo (when the other person is staying and you're leaving); annyeonghi gaseyo (when you're staying and the other person is leaving)
- Yes – ne or ye
- No – Aniyo
- Thank you – Gamsahamnida
- My name is... – Je ileum-eun...
- Nice to meet you – Bangapseubnida
- How are you? – Eotteohge jinaeseyo
Business cards
Exchanging business cards is a formal ritual in South Korean business culture, with its own proper procedure.
- Present your card with both hands and offer it using the right hand or with both hands extended.
- Upon receiving a business card, take a moment to study it and show interest.
- Never immediately put it away; instead, place it on the table in front of you during the meeting. This act conveys respect for the person and their position.
Having business cards that also provide Korean translations would also go above and beyond in terms of consideration.
Business attire
In keeping with the formal nature of the South Korean business world, the dress code is similarly very polished and professional. For meetings and business interactions, conservative and modest attire is expected for both men and women. Men typically wear dark suits, ties, and polished shoes, while women opt for similarly formal attire with modest hemlines and necklines.
Flashy colors or casual clothing can be perceived as disrespectful, so it's best to stick to the business formal dress code for all business dealings.
Gift-giving
Gift-giving is a common practice in South Korean business culture and signifies respect and gratitude.
- High-quality and thoughtful gifts from your home country are best.
- Avoid overly expensive or 'showy' gifts, as they could be seen as inconsiderate if the recipient can't reciprocate in kind.
- Wrap the gift in red or yellow paper, as those are 'loyal' colors.
- Present the gift with both hands.
- Avoiding giving gifts in sets of four, as the number is associated with death.
Business meetings etiquette
Everything from punctuality to adhering to hierarchy comes together at business meetings, which usually follow the same formula.
Preparation, arrival, and greetings
- Be punctual and arrive well in advance of your appointment or meeting.
- Exchange greetings with everyone following greeting etiquette rules.
- Exchange business cards after the greeting rituals.
Seating
- Seating is often arranged based on hierarchy. The most senior person usually sits at the head of the table, with others seated in descending order of rank.
- Wait to be directed to your seat, and do not sit until the most senior person does so.
Opening remarks
The most senior person typically opens the meeting with introductory remarks, expressing gratitude for the opportunity to meet and outlining the purpose of the meeting.
Presentation and discussion
- The most senior person will usually direct the meeting, yielding to the appropriate parties at the appropriate time.
- Take notes during the meeting to show that you're being attentive and are very engaged in the proceedings.
Negotiations
- Decisions are often made based on consensus and the input of senior members, so be patient and don't rush the discussion. Avoid being confrontational or pushing for immediate decisions, as this can be seen as disrespectful.
- While expressing opinions, avoid direct confrontation or contradiction. Use softer, diplomatic language, like 'Perhaps we could consider...' or 'One possible perspective is....'
- Pay attention to nonverbal cues, as they convey meaning in South Korean communication. A nod or a thoughtful pause can carry as much weight as spoken words.
Conclusion and follow-up
- Express gratitude for the opportunity to meet and discuss. Offer a formal bow and handshake while saying goodbye.
- Depart the meeting room in reverse order of hierarchy, following the lead of the most senior person.
- After the meeting, it's customary to send a formal thank-you email or letter expressing gratitude for the meeting and reiterating key points or action items.
Dining etiquette
As building business and personal relationships is a key part of business culture in South Korea, one of the best ways to strengthen the bond is through informal, after-work social gatherings. These can be business dinners or, as is often the case, going out drinking with colleagues.
For business dinners, follow proper South Korean dining protocols, like waiting for the most senior person or the eldest person to start eating first and not sticking chopsticks upright in bowls of rice. It's polite to offer to cover your share of the meal, but it's also customary for the host to pay the bill.
Going out for drinks is another great way to build relationships and solidify partnerships, which also comes with its own protocols:
- Never decline the first drink of the evening.
- Hierarchy also applies to dining out and drinking culture, with CEOs and higher-ups drinking first, followed by managers, followed by supervisors, etc.
- Always pour or receive a drink with both hands.
- Avoid pouring your own drink; it's best for someone else to do it.
- When out drinking with elders or higher-ranking individuals, turn away and cover your mouth when drinking.
- When clinking glasses with high-ranking individuals, keep your glass slightly lower than theirs.
- Soju (South Korea's national alcohol) is usually poured in a shot, and it's customary to finish it in one shot as opposed to sipping.
- Confirm with a person before refilling their glass.
Things to avoid when doing business in South Korea
- Disregarding hierarchy and seniority: South Korean culture places significant emphasis on hierarchy and seniority. Avoid addressing individuals of higher rank or age by their first name unless explicitly invited to do so. Always use appropriate titles and honorifics to show respect.
- Being too emotional and confrontational: South Korean business culture tends to be reserved and composed. Avoid excessive displays of emotion, as this can make your counterparts uncomfortable.
- Ignoring formalities and rituals: Don't skip over or rush rituals, like greeting others and exchanging business cards. These processes are central to business culture here, and ignoring or disregarding them is disrespectful and rude.
- Filling the silence: Silence is often used for reflection in Korean conversations. Don't feel compelled to fill every pause with words. Also, pay attention to nonverbal cues, as they can convey as much meaning as spoken words.
Finding success in South Korean business culture
Mastering South Korean business etiquette is an essential skill for anyone seeking success in this thriving global economy. By understanding and respecting the nuances of punctuality, hierarchy, greetings, business cards, dress code, gift-giving, and dining customs, you'll demonstrate cultural sensitivity and create a solid foundation for meaningful and productive business relationships.
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