Confucianism permeates the Korean life. It influences both the personal lives and business world in a high extent. Confucianism is an ancient Chinese way of thought that has spread through much of East Asia, and it is often described as a religion, which is not completely right. It is indeed a way of life. Kung Fu-Tzu, known in Western countries as Confucius, lived in China around 500 BC. He was a teacher who offered his students a system of order during a period when China was disrupted by warfare (Kim, 2009; Smyth, Wang and Hwee, 2000). He had five moral disciplines to govern the five human relationships: (1) Justice and righteousness should mark the relations between sovereign and subject; (2) There should be proper rapport between father and son; (3) Separation of function between husband and wife; (4) The younger should give precedence to the elder; and (5) Faith and trust should reign over relationships between friends (Kim, 2009; Smyth, Wang and Hwee, 2000). In short, the five disciplines indicate the five relationships of ruler and subject, parents and children, husband and wife, brothers and sisters, and friend and friend. Confucianism stresses duty, loyalty, honor, filial piety, respect for age and seniority, and sincerity (Cho and Yoon, 2001; Von Gilnow, Huo and Lowe, 1999). In general, Confucianism influences South Korean society very much in many different ways, such as the status, social contacts, relationships with others, etc. For example, Korean status is determined by age, gender, education, family background, wealth, occupation, and political ideology. Social contacts determine success. Genealogy and backgrounds are important and determine how people are treated in the hierarchical society (Chaney and Martin, 2011).
South Koreans tend to be very friendly, and their culture has a strong emphasis on group ties. An individual is expected to consider the benefits and interests for the whole group/community which he/she belongs to. The Korean society, as a collectivist society like many other Asian countries, requires people living in a harmonious “family”. Consistent with the concept of Kibun, people are not supposed to embarrass others or cause others losing face in public. People are expected to avoid disturbing others’ Kibun by considering the “family” as a whole. In other words, South Koreans are generally more group-oriented and collectivist. This is also shown in the comparison Geert Hofstede Cultural Dimensions chart of United States and South Korea. As shown in the chart above in this paper, the Individualism (IDV) of South Korea, with the score of 18, is much lower than that of United States, with the score of 91. According to Geert Hofstede Cultural Dimensions, Individualism (IDV) on the one side versus its opposite, collectivism, that is the degree to which individuals are integrated into groups.
On the individualist side, it was found societies in which the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family. On the collectivist side, it was also found societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty. The word “collectivism” in this sense has no political meaning: it refers to the group, not to the state. Again, the issue addressed by this dimension is an extremely fundamental one, regarding all societies in the world (Sama and Papamarcos, 2000; Yang, 2006). The score of 18 indicates that South Korea is a very collectivist society. This is manifest in a close long-term commitment to the member “group”, be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations.
The society fosters strong relationships where everyone takes responsibility for fellow members of their group (Aiken, 1995; Sama and Papamarcos, 2000; Yang, 2006). The impact of this culture to South Korean business manifests especially in decision making and negotiations. Usually, it takes longer for South Koreans to make a final decision, because all of the members need to consider others’ opinions and values. The decision is based on the careful consideration of the interests of the whole team, and at the same time, maintaining the stable Kibun environment. Therefore, when negotiating with South Koreans, Americans or other Westerners should be aware of this culture, and be patient during the negotiation process, or be prepared that the negotiation process may take more than one meetings to complete the deals. They should also appreciate the collectivism, and think in terms of the good of the whole team, to successfully negotiate business with Koreans.
In South Korea, the personal relationships are essential for doing business, and usually established before the beginning of the business process. In order to be successful, it is vital to establish good personal relationships based on mutual trust and benefit. Korean business culture is firmly grounded in respectful rapport (Southerton, 2008). In order to establish the personal relationships, it is very helpful to be introduced by a mutual friend or acquaintance at the appropriate level. Once the foreign company is successfully introduced to the Korean one, it is important to send the relevant documents, such as proposals, company brochures, etc. to get the contacts. After establishing the personal relationship, it is suggested for the foreign company to maintain the relationship by continuously contacting the Korean company. Therefore, time should be allocated for this process, particularly during the first meeting, which is frequently used to simply establish rapport and build trust. Once good, solid relations have been recognized in South Korea, continuous reinforcement and maintenance is vital (Chen, 2004; Kim and Briscoe, 1997). Foreign companies should be patient doing business with Korean ones, and take the business as a long-term one instead of one-time deal. The better and stronger the personal relationship with the Korean company, the more successful the partnership would be. To more understand the personal relationships in South Korea, foreigners and foreign companies should be aware that it is a collectivist society. People are not comfortable doing business by individuals. In other words, Koreans are not willing to do business with a stranger without friends’ introduction and support. By introducing and establishing the personal relationships, South Koreans would be more willing to consider the foreign company as a part of the group, and thus, they would collaborate for the interests and benefits of the whole group.
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