Doing business in China and Korea

When doing business in other countries, it is critical to learn as much as possible about the region’s culture, negotiation styles and potential markets. In Asia, a firm’s mastery of these elements is essential to success. If your business targets the Pacific, be sure to read these tips dealing with executives in China and Korea.

In an earlier article, we covered negotiation issues in Asia. Courtesy, respect for elders and avoiding controversy and confrontation are all important facets. However, there are particular characteristics in each country in the region that should be taken into account.

Doing Business in China

In China, an atmosphere of confidence between the decision-makers in a given business deal is very important. Also, there is no set time-limit on how long this rapport will take to build. Therefore it is necessary to see the market in action, especially before starting business. Most entrepreneurs seek advice from young Chinese people who are thoroughly familiar with Western thought, and who have studied abroad. These experts usually prepare a much more in-depth analysis than Western negotiators, often analyzing every conceivable alternative.

The concept of friendship (guanxi) is essential to doing business in China. Guanxi is a mutual respect in order to ensure the existence of a long-term relationship. Negotiations are always done in groups. Therefore, one should always show up with a negotiating team (of at least two), and never alone. The senior executive, preferably the oldest member, should lead the negotiation effort. 

The firm should hire an experienced, professional interpreter. Use short sentences, avoid jargon and colloquial expressions, and pause often, in order to ensure the quality of communication. Presentations should be based on technical arguments, facts and figures.

Doing business in Korea

The Korean case is similar. As in the rest of the region’s nations, business cards are a must. They should be exchanged immediately after the presentation or after meeting the other team’s representatives. Always use the right hand (or both) to present a business card. It is considered uncouth to use the left hand or to pocket the other person’s business card immediately after reading. It is also customary to leave the card in front of oneself, on the table.

Koreans appreciate and practice punctuality, arriving at appointments in advance in many cases. If you expect to be late, it is advisable to telephone ahead.