New Fruits Based on the Old Common Roots

New Fruits Based On Old Oriental Root

--- Strategy for Doing Business Between China & Korea

By Sabrina

Introduction

Nowadays, Korea and China are increasingly recognized to be in an economic community in Asia, with geographically proximity and cultural similarity. The two nations understood the need of mutual collaboration based on their material and resource advantages as well as the competitive edges that each nation has on fundamental technology, application technology, and production in the fast growing e-business and IT industries. Therefore, it is natural for both countries to seek to strengthen national competitiveness of the knowledge-based business in the 21st century.

As everyone knows, China and Korea have a very similar history and culture, which leads both countries to appreciate confucianism, individual pride or face, courtesy& etiquette and “Inhwa” signified as an approach to human harmony. And also, personal relationship is certainly extremely important in both nations.

However, Korea is always well known for its nationalism and stereotype of doing business, which can be a great barrier when trading with other foreign countries, even its old neighbor—China. This article is to provide you-- our Chinese businessmen with some specific strategies in the process of doing business with Koreans from different aspects.

How to Start a Business with a Korean Company

a. Research Korean Market

Korea has rebounded from the Asian Financial Crisis and business demand is increasing. Korea remains one of the largest economy in Asia. There are significant business opportunities especially in hi-technology which should not be missed. So it must be a good opportunity for Chinese companies to cooperate with Korean intelligent brains.

b. Understand Korean Business Laws and Possible Trade Barriers

As everyone knows Korea has an intensive level of protection of national industry. So the strict regulations often make foreign companies unable to exist any longer. But if you can know them before you enter Korean market, that will be much easier later.

c. Make a Good Relationship With Local Government and high organizations of the company

Because Korea is also a very structural and hierarchical country. Thus the organizational arrangement in Korea is highly centralized with authority concentrated in senior levels. Consequently, decision making in Korea will follow a formal procedure in which senior approval is necessary.

d. Negotiate with Your Korean Counterparts

Here some strategies must be taken into consideration carefully:

1. Take advantage of common culture

With one similar oriental root, China has a natural advantage of doing business with Korea. That is a kind of natural kinship just as brothers. So as a Chinese businessman, it is very easy for you to understand many conventions and behaviors of Koreans, also not difficult to find interesting topics to get closer to your Korean counterpart. For example, people of the two countries both worship the greatest philosopher — Confucius whose ideology of human harmony is accepted by both of the two countries. That will be a good start for your business.

2. Show respect towards Korean’s unique ways in business

For both social occasions and business meetings, punctuality is essential. Why the point is considered very significant. Because in China, many employees and employers are used to being late for every meeting. So almost no meeting starts according to the exact time schedule. However, Korean counterparts expect their cooperators to arrive on time as a sign of respect; therefore it is advised to call beforehand if you will be delayed.

But at the same time, if you find however, that top Korean business executives may arrive a few minutes late to appointments. Don’t be angry.