Business Card Etiquette in Korea

At first glance, Korea appears to be "just like any other nation."  Its capital city, Seoul, is a modern, thriving metropolis with all of the latest technology the world has to offer.  All over Korea, you'll find first-class telecommunications, the requisite five-star hotels, Western restaurants, modern transport systems (including very efficient subway networks in Seoul and Busan), innovative architecture, and so forth. Nonetheless, it is still very Korean and it is imperative that any American doing business in Korea realizes that Seoul is not Los Angeles (even though the latter, in fact, has a sizeable Korean community).  Every year Korea becomes more and more modern, but it is important to recognize that modern does not equal Western.  Koreans will not expect you to be an expert on the nuances of their culture, but they will appreciate a show of interest in matters that are important to them.  Koreans generally appreciate a foreigner's effort in expressing a thank you (gam-sa-ham-ni-da) or a hello (an-yong-ha-say-yo) in the Korean language.

General Tips on Business Cards Etiquette in Korea

* Producing a dual-sided Korean business card (in hangul) is a strong sign that you are sensitive to Korean culture.

* Be sure to keep plenty of business cards around, such as in your briefcase, in your car or in your schedule book. Not having a business card on-hand during an important meeting is like going into battle without a “weapon”. But if you make sure to have left spare “weapons” all around in various places, you’ll always be ready for a meeting.

* It is best to stand up when exchanging translated Korean business cards.
* The exchange of Korean business cards is very important and a means by which Koreans learn about the name, position and status of the other person.
* Businesspersons should always have their bilingual business cards at the ready and should treat the exchange of Korean translated business cards with respect. (It is a sign of respect to receive and present items with both hands, followed in business etiquette by passing and receiving a card with the right hand. One should never give a card, or anything else for that matter, with the left hand, as it shows disrespect.)
* Exchange Korean business cards one-by-one, individual-to-individual, and use both hands where practical.
* NEVER distribute (or toss) your Korean business card in a manner similar to dealing playing cards.
* NEVER place a stack of your Korean business cards on the table and offer others to take a card from the stack.

* If the other person is your elder or someone of high rank, it is polite to offer your business card first. Hand your business card to the other person and then receive the business card of the other person in return. It would be discourteous to give your card with one hand at the same time that you receive the other person’s card with your other hand.
* On receiving a person's business card, accept it with both hands and then study carefully what is written on it. Very often Korean business cards will have Korean on one side and English on the reverse, so carefully examine each side where applicable.
* Do read and acknowledge the full name and title of the other person.

* When receiving a business card, be sure to at least comment briefly about the logo or design of the card. This shows that you have looked carefully at the other person’s business card.

* Don’t just put a business card into your wallet immediately after receiving it. Instead, keep it on the table until the end of your meeting. This is regarded as an expression of respect to the other person. If you are in a formal situation, it is proper to place the Korean business card face up on the table in front of you and refer to it when necessary.
* In Korea, the surname is given first followed by a one or two syllable given name.
* First names are rarely used except among very close friends. Even when meeting a large group of people, it is considered polite to take a moment to read each individual's name on their Korean business card upon exchange.
* DO NOT shove the card into your back trouser pocket.
* DO NOT write comments on another person's Korean business card, in their presence. You may write on your own name card to add information (e.g., email, home phone number, etc.).
* If it is in a less formal setting, you may put the Korean business card away after looking at it, but put it somewhere suitable. Just dropping it into a pocket may be seen as rude.

* A business card wallet should be used only for carrying around your own business cards. This means that you should properly organize and put away the cards you have received from others each day.

* Place a business card which you have just received in the front of your wallet. Putting other cards (perhaps even your own!) in the back tells your counterpart, “I’ll be able to find your name later if I need it.”

General Tips on Business Etiquette in Korea

First Meetings

1. When meeting a Korean business person for the first time, it is best to be introduced by a third party, rather than introducing yourself.
2. Shaking hands is now common even among Koreans. A bow may or may not precede the handshake.
3. The senior-most individuals are always introduced first, followed by younger and lower ranked participants.
   

Business Meetings

1. It is important to make an appointment a few weeks in advance of a business meeting. Most business meetings are scheduled mid-morning (10 AM to 12 PM) or mid-afternoon (between 2 and 4 PM).
2. Punctuality is important as it is a sign of respect. If you realize that you may be a little late, it is best to call ahead to say so. That said, don’t be surprised if top Korean executives arrive a few minutes late for appointments due to their extremely busy and pressured schedule.
3. It is also not unusual for Korean executives to cancel appointments with little or no notice. The cancellation may be due to an unexpected and unavoidable situation. However, if it’s happened before, it may be a signal that they don’t really want to do business or need to delay the process for some reason, and you were expected to have realized that.
4. Gift-giving is a common practice when doing business in Korea. The gifts given at the first meeting are intended to acquire favors and to build relationships. Wait until your host has presented his gift and use both hands to accept it. The gifts exchanged should be of similar value, with that of greatest value going to the most senior person.
5. To enhance communication and reduce the possibility of misunderstanding due to language, you may find it helpful to send written materials - brochures, marketing materials, proposals, etc. - in writing to your Korean counterpart some time prior to the meeting.
6. Questions of a personal nature may be asked, particularly concerning age, marital status, education, etc. These questions are not thought to be impolite, but rather to help the Koreans to recognize the appropriate social level and speech forms (degree of formality) that they should use when speaking.
7. Since a consensus is important, there will usually be rather lengthy discussions before decisions are made. As a result, business negotiations will usually take much longer when compared to Western business cultures, so patience will be necessary.

Contracts are seen as a starting point rather than as the final goals of a business agreement and as the parameter within which the working relationship will be conducted. Koreans prefer that contracts be flexible so that adjustments can be made as the project/work evolves. Even those who are aware of the legal implications regarding the signing of contract, often still view it as less important than the interpersonal relationship between the two companies and find it difficult to understand why, despite the excellent relationship you’ve been having, you are not willing to overlook or change elements of the contract as you go along. It is important that you be aware of how your Korean colleague/partner views the documents in order to avoid misunderstandings while ensuring that he/she is equally aware of your position.

Business Attire

Dress is expected to be conservative, with men wearing dark-colored suits and white shirts; wearing a blue shirt to be trendy would not be impressive. Woman should dress conservatively as well and avoid wearing bright colors. They should not sport attire more suitable for Fashion Week in New York. Except for a watch and a wedding ring, jewelry should be left at home; that is especially true for men. A suit jacket should not be removed unless the most senior South Korean business executive removes his suit jacket.

Names

Most Koreans have three names.  These names usually follow the Chinese pattern of a surname followed by two given names.  In a Korean household, all brothers and sisters have the same last name and a common given name; the only distinguishing mark is the remaining given name.  In addressing Koreans, foreigners should observe the use of surnames (e.g., Mr. Kim; Ms. Lee), using formal titles if possible (e.g. Dr. Yoo; Director Song). The most common last names are Kim, Lee, and Park.  In the use of formal titles as appropriate, one should always be familiar with the complete name, including the two given names, for identification purposes, as there may be several Mr. Park's or Dr. Lee's in the same company and even the same work space.

1. When addressing a Korean, use his/her title along with her/his family name unless you’ve been invited to do otherwise. If there is no title, use Mr/Mrs/Miss with the family name.
2. More and more Koreans use a Western (usually English) name as a courtesy to foreign colleagues/clients. However, you may want to make sure to also know their Korean name since, for example, Harry Kim may not be known as such among his Korean colleagues and trying to find a Mr. Kim is a Korean corporation is like looking for the proverbial needle in the haystack. It can help if you know his exact title and department.

General Etiquette

1. Modesty and humility are important in Korean culture and therefore it is best to avoid over-selling yourself or your company’ previous business achievements. When interviewing Koreans, you may want to keep this characteristic in mind? the interviewee will either understate her/his abilities and achievements in the belief that you will be aware of them and that anything else would be rude or, in an attempt to live up to perceived Western expectation, he/she may exaggerate what would not be stressed normally in a Korean context.
2. In order to show respect, some Koreans still do not make eye-contact for any length of time when in the presence of an authority figure. However, this is changing and you should make direct eye-contact when addressing business professionals and clients, as doing so is expected and is interpreted as an indication of your honesty and interest.
3. The decision- making process in Korea is done collectively and up through the hierarchy and therefore does take more time than you may be used to. Try to be patient, and even if you’re not feeling patient, try not to show it.
4. Avoid criticizing someone in public, even if you have seen a Korean colleague do so. Criticism, especially of colleagues or Korean subordinates, should be conducted in private so as to reduce or prevent loss of face.
5. You may also want to avoid opposing someone in public as this, too, can mean a loss of face. Try thinking of alternative ways of going about expressing your opinion or concerns.

 

Business Relationships

1. Once you have established contact with a Korean business partner or client, it is important to nurture that relationship.
2. Gift-giving is a common practice when doing business in Korea. The gifts given at the first meeting are intended to acquire favors and to build relationships. Wait until your host has presented his gift and use both hands to accept it. The gifts exchanged should be of similar value, with that of greatest value going to the most senior person.
3. It is also common to give gifts to your Korean business partners to mark major holidays such as Chuseok (Korean Thanksgiving) and Lunar New Year. Christmas is another time when it is common to give gifts to clients and partner companies.
4. If you are not based in Korea, do make a point of visiting the client/partner on every business trip here.
5. Koreans worry that foreign businesses are only here to make a quick profit and run and therefore it is important to demonstrate that you have a long-term commitment to the market and to the relationship.
6. Koreans business people devote a great deal of time, energy and money in getting to know the people with whom they are dealing in order to build long-term relationships. You willingness to participate is often interpreted as a measure of your sincerity and commitment.
7. People who went to the same school be it kindergarten, middle-school or university, share a special relationship. The one who graduated first is the ‘senior’ (sonbae), while the one who enrolled later is referred to as ‘my junior’ (hoobae). There will always be a kind of mutual ‘I owe you’ relationship between sonbae and hoobae regardless of whether they attended school at the same time or many years apart.
8. When doing business, Americans should be sensitive to Korea's historical relationship with Japan, which made a virtual colony of the Korean peninsula.  Because of the Japanese colonial period, Koreans have an emotionally intense reaction at times to things Japanese, though there is an admiration for Japanese business acumen.  A businessperson should show great respect towards Korean society.  Any comparative mention of Japan versus Korea, where Japan has the upper edge may harm a business deal.
9. Korea still observes Confucian ethics based on strong ties to a group.  Whereas an American may think in individual terms, (i.e., what is in my best interest?), a Korean frequently thinks in group terms, (i.e., what is in the best interests of the group and how can I help to maintain harmony within the group?)  For this reason, the majority of Koreans are intensely patriotic, calling Korea by the term, "oo-ri-na-ra", ("our" country).  In order to close a deal when negotiating, the benefits for the group, whether for the company or country, should be emphasized.

Sources and Additional Information:

http://www.buyusa.gov/korea/en/doingbusinessinkorea.html

http://www.asianbusinesscards.com/korean-business-card-culture-tips-korea.html

http://www.asianlanguagedtp.com/article_joongang-daily.php

http://www.korea4expats.com/article-business-practices-etiquette.html

http://www.ehow.com/about_6373036_south-korea-business-etiquette.html