Japanese and Korean Culture in a Negotiation

By Peter Buckley

Culture in General

• An underlying framework

• A definition of acceptable behavior

• A barrier to cross-cultural understanding

• A subtle, yet pervasive force– Transmitted from generation to generation– Shaping attitudes, behavior and perception

Japanese Culture

• It’s All About RESPECT!– Importance of active and attentive listening– Importance of meeting protocols– Ceremonial nature of business dealings

• Business card etiquette

• Important to have copies of any documents on hand

Japanese Culture, cont.

• Little cultural overlap with USA

• Importance of Japanese media– largest free market publications in the world– press club rilvaries

• Language barrier– Write documents from scratch in Japanese– Avoid cultural losses in translation

Japanese Business Style

• Characterized by Groupthink– Japanese travel in groups and make decisions in

them as well– Low on individualism– High power distance between main decision

makers and their subordinates– Slow decision makers

Japanese tendencies

• Reluctance to invest in small companies

• Jaded and cynical view of Western businessmen– originates from years of being ignored– important to show RESPECT

Korean Business Culture

• RELATIONSHIPS are the key!– Built in Korea through blood, school ties and

geography– Family businesses remains

• Reluctance to allow Western control or involvement

• Similar to Japanese jaded and cynical view

• Patriarchal, one-man rule

• Centralized decision making

Korean Business Style

• American perception: Koreans are illogical– Profit is not always the motive for decisions

• Importance of market share, growth and technology

• Influence of amenities and bribery on the negotiator

• Koreans will pay 10 - 15% higher price to deal with an established relationship

Contracts

• Japan and Korean business contracts– viewed as living documents– evolve and develop as conditions change– usually done with a handshake over written

agreement

General Roundup

• Japanese Negotiations– develop mutual

RESPECT

– pay attention to ceremony

– know the Japanese culture and language

– know the Japanese psyche

• Korean negotiations– establish a strong

relationship

– pay attention to the family nature of business

– know the Korean culture and language

– know the Korean psyche