Asian Individualists

In some ways, Koreans are similar to people from individualist cultures.  They are sometimes referred to as the "Irish of the East" because their style tends to be more boisterous, emotional, and confrontational than other Asian ethnic groups.  Occasional student riots and labor unrest in South Korea are vivid reminders of this national characteristic.  In a business context, Koreans are often tough, emotional negotiators.  They tend to be more direct in their communications than other Asians.  For example, while other Asians might say "Yes" rather than "No," because they wish to avoid giving offense, Koreans will say "Yes, but . . . ."

Just as Koreans tend to be more emotional and direct than other Asians, they also tend to be more individualistic.  They take more risks.  They are often more entrepreneurial.  They are more time-conscious and sensitive to deadlines and schedules.  They also value more highly various personal factors such as titles and executive perks.

[Tip  —  Recognition:  Be sure to address Koreans by their proper titles, and favor them with individual recognition where it seems appropriate, for example when a Korean is personally responsible for a sale or other business success.]

Koreans, believed to have migrated originally from central Asia to the Korean Peninsula, have much to be emotional about.  For centuries, Korea was "the meat in the sandwich."  With China to the west, Japan to the east, and the Russian Empire to the north, it was occupied or invaded by one or the other of its neighbors for much of its history.  Japan actually annexed Korea outright in 1910.  Following World War II, the Soviet Union and the United States occupied the peninsula, dividing it at the 38th parallel of latitude into North Korea (the People's Republic of Korea) and South Korea (the Republic of Korea).  In 1950, perceived Soviet ambitions in the region led to the invasion of South Korea by North Korea, and to the three year Korean War (1950-1953).

[Tip  —  National Sensitivities:  Today, Japanese and Americans need to be especially sensitive to Koreans' feelings toward them, the Japanese because of atrocities committed during World War II, the Americans because of the long U.S. military and diplomatic presence in South Korea.]

Perhaps it is this history of siege that has forged a distinctive national character.  Koreans remain ethnically homogeneous, preserving a comparatively  unique society.  They tend to be suspicious of foreigners and highly nationalistic.   For example, in their patriotic and single-minded quest for economic prowess, South Koreans often shun imported products and conserve or invest the bulk of their discretionary income.

Koreans are distinctive from other Asians in many ways.  Their language is very different.  In the fifteenth century, King Sejong of Korea invented a national written script, called hangul.  The beauty of hangul is that it is relatively simple and does not require a person to memorize countless Chinese ideograms, as was the case prior to its adoption.  In grateful appreciation, Korea is the only country that has a national holiday celebrating its script:  Korean Alphabet Day, or Hangul Day.

In addition, many Asian cultural distinctions are even more prominent in the Korean mind than for other Asians.  Hierarchy, status, age, and respect for elders are especially important.  Shame, or "loss of face," can be a heavy emotional burden.  Hard work, education and group commitment are viewed as vital to society's interests.  South Koreans work long and hard, industrial workers averaging at least 44 hours on the job per week, the highest average in the world.  Children go to school six days a week, 220 days a year, compared with children in the United States who go five days a week, 180 days a year.  Vacations for South Koreans of all ages are few and short.

South Korea is highly male oriented.  Women are accorded high respect in their roles of mothers and wives, and exert considerable influence over families' buying decisions, but they are seldom found in the upper echelons of business or government.

[Tip  —  Marketing:  If your communications to Koreans relate to markets for goods and services to be used in the home, mention the appeal to Korean women.]

South Korea came into its own after the Korean War.  While the 1950's were marked by political upheaval, the 1960's and 1970's saw growing stability and economic improvement.  Then, in the 1980's, South Korea's economy boomed, with growth rates in 1986, 1987, and 1988 exceeding 12 percent.  However, the Asian financial crisis of 1997-99 brought an abrupt end to double-digit growth, and recent growth has been in the four percent range.

The country's economic success can be credited to two principal factors:  the hard work and dedication of its people, and the close collaboration of business and government.  During the 1960's, President Park Chung Hee laid the foundation of a business/government partnership by setting up large, government-owned corporations to develop key segments of the economy.  These corporations, called chaebols, received the full financial and planning support of the government, and they thrived.  They were gradually turned over to private, family-led ownership, but their close relationships with the government continued.

The severe economic impact on South Korea of the Asian financial crisis, however, was blamed in large part on the chaebols, which had carried excessive debt and were diversified into many unprofitable businesses.  As a result, the government has since required the chaebols to focus on their core businesses and has imposed stringent accounting and antitrust regulations on them.  Nonetheless, large chaebols like Samsung, Hyundai, LG Group and SK Group continue to dominate business in South Korea.

The international communications systems and abilities of the chaebols are excellent.  Those of smaller enterprises are also quite good.  Such enterprises are often found in or near "OfficeTels," commercial complexes where trading companies, lawyers, translation and secretarial firms, and other businesses live and work.

[Tip  —  Local Assistance:  If you anticipate communicating with a number of smaller South Korean enterprises, consider establishing a relationship with a trading company in an "OfficeTel" where there is easy access to secretarial and translation services.]

South Korea's economy is largely export-driven, with manufactured goods constituting a large percentage of its exports.  Its electronics industry has had the highest rates of growth in recent years.  However, the country has limited natural resources and must import many commodities for manufacturing.  It is also energy-dependent, with only a small percentage of its energy needs domestically produced.

Like many developing countries, South Korea has a history of trade protection.  This is slowly being liberalized, responding to pressure from other nations to lower barriers.  On the political side, with an eye to economic implications, the government has taken a number of steps to improve relations with China, Japan, and North Korea.  The reunification of the Korean Peninsula is a primary political objective.

Additional resources:

CIA World Factbook: South Korea