Relationships
Trump Profits
Relationships
are important everywhere but in Korea, they can drive business decisions even
at the expense of profitability. A
closer look at Korean history and culture helps us to put this into
perspective.
Relationships
and personal connections in Korea can be divided into four major categories: family,
education, region and politics. There are others such as military unit, workplace
and group activities but the four main types are most important.
So,
why are relationships disproportionately important in Korea? We would like to focus
on two main reasons: traditional farming culture and the modern competitive environment.
Rice
is the main crop in Korea and mutual support was a key element of rice farming.
Korea has a harsh climate for farming and there is only one rice harvest per
year (unlike many southeast Asian countries that enjoy multiple harvests). Given
the massive effort required in a short period of time for planting and
harvesting, group effort was required. Floods, typhoons and other natural
disasters also required farmers to work together to save their individual
plots. Man-made challenges also demanded
cooperation, marauding bandits and the occasional corrupt official were better
confronted by working together. Small groups were formed and participating in the
group was essential to access help when it was needed. These types of group endeavors
and the related values are embedded in the Korean psyche.
The
importance of relationships was further reinforced in the modern, post-Korean
war era. Exploited during 35 years of
Japanese colonial rule and then devastated by the internecine Korean war that
twice swept across the length of the peninsula, by the late 1950s, the economy
was in tatters. Excess population
swelled by refugees from the north lived on scarce land without any
mechanization, natural resources or functioning infrastructure. Life was a highly competitive struggle for
survival. Korea's only resource was
'human capital'.
Korea
became the 'factory of Asia' converting (imported) raw materials into
(exported) finished goods. Jobs meant
the difference between eating and starvation.
Education became an obsession as the means for economic advancement. Access to jobs and education determined an
individual's potential. With
industrialization came migration to the cities (concentrated in Seoul, the
capital) lead to competition for limited housing. Allocation of jobs, admission to schools,
access to housing were all highly competitive.
Standing alone was overwhelming.
The tradition of relying on groups was reinforced in the industrial
Korea.
As
one benefited from membership to a group, contributing to the group became
equally important. The West is often
defined as a 'transaction' culture where giving and receiving favors was 'quid
pro quo'. Korea is defined as a
'relationship' culture, advancement was achieved by contributing to and being
supported by a group. Thus, promoting
the success of the group was the key more than the outcome of a specific
transaction.
A
corollary of group orientation is indirect communication which evolved out of
group dynamics. Many people are aware of
the concept of ‘face’ or chemyun (체면), a key to maintaining good relationships within
the group. Harmony is important for cohesion
of a group so it became important to avoid hurting other peoples' feelings and to
preserve their chemyun. To this
end, people tended to avoid direct communication in favor of indirect
expressions, nuances and suggestions. While it may help to preserve harmony, it
can have a negative impact on business as it can lead to vague and ambiguous
communication. This increases the need for understanding indirect and
non-verbal communication. This is called nunchi (눈치), the art of guessing
your counterpart's intentions. This culture emerged because it could be less
confronting to be more truthful in nonverbal communications than verbal
communication.
Many
Western business people misinterpret indirect, non-confrontational
communication as agreement sometimes leading to disastrous outcomes. Likewise, the transaction-based approach to
business at the expense of nurturing relationships can lead to lost
opportunities. Learning how to deal with group values and strengthening personal
relationships in Korea will smooth the way to better business. Let IRC guide your way; avoid the pitfalls
and capitalize on the opportunities to achieve your ambitious targets in Korea.
