Executive Summary

Trading had been happening for thousand of years now, since the civilization and revolution of humans life. Whilst trading had been improve and progressing well, human learn to master certain technique to make the business more successful. In the present days, there are more and more aspects a business person should know due to the changing of the business process as well which business nowadays become more complex and complicated. A business person should understand about the basic of ensuring a business is successful, these basic which is essential in the first few steps such as marketing, planning, and finance and so on. Although there are more to mention, but culture is another important aspect that one business person should not fail to research and understand more on this aspect. A culture which is touching on how people behave, how people talk, how people judge one particular thing which might be appropriate to one but an offense to another, dress code and other business etiquette and protocol. Verbal and non verbal communication is one of the most crucial components for this aspect is the key in ensuring a successful deal. Small compartments such as dress code, meeting and greeting are also important for host nation might felt insulted if visitor had done what is an offense in the host country but not for the visitors company, and therefore transaction might not progressing. In this report, which is focusing on South Korea, will be discussing on the nations culture and how South Korean behave, talk and judge things happening around them. South Korea is one of the most successful and developed country in Asia. The nations main income is mostly generated from heavy industries such as armaments, giant machinery and automotive production. Enrich with such huge industry, there are many foreign investors and businessman wanted to penetrate the market and makes a fortune. The key before any elements of the business strategy starts, one must understand South Koreans culture for South Korean value human relation very much. Hence, understanding and respecting another countrys cultural value is essential in making one business transaction successful.

1.0 Introduction
A countrys identity can be identified through its people and culture values. Many might not notice, but culture itself plays an important role in business context. Business transaction can happen locally which it is done within the border of the country, but it could also happen across the border whereby more opportunities and chances are wide open for expansion of the business. Although geographical background or statistic on the countrys growth are important for trading but the culture value of that particular nation are also very essential.

In this report, South Korea was the desired choice of country due to its massive development throughout all the years and had emerged as one of the most successful Asian country. As still one of the Asian country, South Korea runs its business within the lines of normal Asian cultures and customs. South Korea main national incomes are mostly from heavy industry such as automotive industry in the recent year. Production such as ships, automotive and also armaments for domestic use and also export purposes are indeed attractive for international investors to invest in South Korea. With all these international trade occurring in South Korea, the importance of culture values should be taken into consideration of a businessman, further in this report, how businesses are conducted in South Korea will be discuss, what are its essential cultural values, the aspects of doing business and the near future prospects of South Korea.

2.0 History of South Korea

South Korea started as early as 2333 BC with the founding of Gojoseon which means the ancient Korean Kingdom by Dangun. After many years Gojoseon was conquered by the mighty Han Dynasty of China in the year of 108 BC and followed by the so called Proto-Three Kingdom in Korean history. After through all these and also a period annexed by the Japanese, Korea is finally divided into North Korea and South Korea after Soviet Union and US forces liberation and occupation at the end of the World War Two. In 1950, South Korea was invaded by the North Korea which finally ended up with Armistice Agreement and the most heavily fortified border in the world between these two. Today, South Korea is a presidential republic with sixteen administrative divisions. South Korea is also a well developed country with a high living standard. Its economy is export driven with the massive production such as machinery, ships, automotive, petrochemicals and so on.

3.0 Culture and Business 3.1 Culture

According to Ferraro (2010), an organisation could prove its demise if its staffs are not conscious and responsive to a new cultural situation or adapt to the changes of the old. Culture may bring different perception to different individual but it surely does portrays different individuality and in forming different group while therefore emerge as one unique identity. In any segments in doing business, may it be under marketing, management, financing, planning or even the top level directors, culture is an issue which is very important for a businessperson to professionally deal with it to achieve success. According to Gould (1998), a country is at risk of cultural differences if it is not open to learning and adapting to another cohesively.

Similar to the concept of one particular organisation, a country depends on its civilians to construct the nations reputation and status. As the growth of a country fluctuates, international business which link between countries can be affected as well. Therefore, company have to be totally sensitive about the changing of the economy in general which is globally while maintaining its business abroad. In the present, more and more franchises business is growing taking example such as, Kentucky Fried Chicken, Starbucks, and McDonald and so on, it is indeed important for a company to

understand and make enough research on the culture of nation which they are interested in. Failure in doing such act might cause heavy damages to the company if the company are targeting getting high revenue in starting its business abroad. Rather than just the marketing strategies planned out, understanding the culture also an essential part to ensure the company to excel in the long run. Concluding this paragraph by saying that, plan which includes the understanding of a nations culture is very important to ensure success in the long run.

4.0 South Korea and its Culture

A culture of one particular nation reflects the nations image ad personality. In this report, whereby South Korea is the topic of discussion had been known for its excellence in successfully trampled through many economy crises and manage to emerge as one of the most well known nation in heavy industries. Hence, it is important to know South Korean culture before starting a business there to ensure the success.

4.1 Verbal Communication

Korean is the official language of both the South Korea and North Korea; they are speaking one ethnic family speaking the same one language, which creates the strong identity for Korean. This crucial identity also came about as all Korean speaks and write the same language. For modern Korean, they have different dialects which differ throughout the areas across South Korea, but they have no problem understanding each other when coming to communication. International trader are most advised to have translator when dealing business in South Korea but simple English could be used but to avoid missing important points, translator is crucial in making a successful deal in South Korea. As one the Asian country, as similar to much Asian, lowered voice is appreciated when dealing with higher status person whom the conversation is directing to.

4.2 Non Verbal Communication

In South Korea, it is indeed differ from the Western countries such as United States. Bowing as a greeting is a form of respect to your conversation companion and usually only the senior will offer handshake after the bowing. As similar to many other Asian countries, South Korea are a no-touch oriented nation, visitors should avoid hugging, kissing and any other physical contact. Men usually bows and shake hand and the women usually will just nod slightly but due to Western influences through especially the media, both genders tend to shake hand in the present. South Korean also had another form of gesture which is called the face-saving whereby, it is not advised to show ones emotions or expression when attending meetings, this is also another form of respect. South Korean also like to start a business with someone that they like and had something in common to share, exchanging of name cards usually occur, but visitors will usually advised to place the card in front of them instead of keeping it as also a form of respect. Therefore, it is vital to understand their non-verbal communication methods as they support the verbal words which prove that non-verbal is far more important than verbal in cross-culture.

5.0 Doing Business in South Korea 5.1 Business Etiquette and Protocol
In order to successfully signed deals with South Korean company, ones must firstly understand their etiquette and protocol in detail.

5.2 Relationship and Communication

South Korean usually deal with someone that they trust so it is best if the meetings are introduced by a third party and in that meeting, the presence of the third party is also most appreciated. They treat legal documents that presented as the memorandum of understanding and usually relationship is build through informal social gathering through small amount of food and drinks. As known for their directness in communication, South Korean will never hold back if they had any form of doubt in between conversation but direct insult or criticising is definitely not advised.

5.3 Business Meetings

Appointments should be made three to four weeks in advance as South Korean had to be extremely effective in their business progress and arriving on time on the meeting is also crucial for South Korean will take that person as not respecting the deal if he or she arrived late for the meeting. For the first meeting, South Korean judge it as a meeting to get to know each other before any formal deal are being discussed in detail unlike Westerners with the straight to the point culture. For the legal document as mentioned earlier on, it is also advised to let it be written in both Korean and English. As for dressing code during meetings, men are advised to wear dark coloured, conservative suit with white shirt and women are advised to wear conservatively with subdued coloured attire and men are also advised not to wear any jewellery except for a watch and wedding ring.

6.0 Conclusion
Culture reflects one nations image and also personality. South Korea being one of the most successful Asian country had its own unique culture which some had similarity with its neighbouring country such as China and Japan but they had their own unique etiquette. As understanding one nations culture is crucial in making one particular deal or business successful, and by not only understanding it, but also in the term of respecting it. Therefore, its is crucial for company which is interested in dealing with South Korean in long term to understand South Korea etiquette through its verbal and also non verbal communication. Taking example, the westerners might value more of individualism and social welfare, but South Korean prioritises their family more. As coming to understanding the rest, like business meeting etiquette, dress code, ways of greeting is totally important for it might affect the result of the business deal directly. For what might seem appropriate for one could be an offence for another. Hence, as a famous proverb ever mention, once you are in Rome, act like a Roman, it is indeed extremely crucial to understand and respect all these and more others South Korean culture and etiquette to ensure the success of foreign company in the one of the most developed country in Asia, the South Korea.

References:
DuBois, J. (2004). Cultures of the World Korea. New York: Marshall Cavendish Corporation Ferraro, G.P., 2010, The Cultural Dimension of International Business, 6th ed., Pearson. Kwintessential, South Korea http://www.kwintessential.co.uk/resources/globaletiquette/south-korea.html, last viewed on 20th March 2011. Wikipedia, South Korea http://en.wikipedia.org/wiki/South_Korea, last viewed on 20th March 2011.