Global Business Cultural Analysis: South Korea

Global Business Cultural Analysis: South Korea Words: 4462

These events id not leave South Korea in a position to compete or participate with a growing global economy. However, within recent years, South Korea rose from the ashes to become a leader in communication technology and the automotive industry. A changing global economy has induced the Koreans to transform their government and utilized the strengths of their culture to become a fordable player in the global market (Lee, 2003). This paper will discover how South Korea is positioned as a trading partner with the United States, South Koreans economic growth prospective, China’s impact South Koreans economic growth, the economic ties between North

Korea and South Korea, the role tourism plays on its economy, the major elements and dimensions of culture in this region (Communications, Religion, Ethics, Values and attitudes, Manners, Customs, Social Structures and Organizations, and Education), how these elements and dimensions are integrated by locals conducting business in this nation, how do both of the previous items compare with US culture and business, and the implications for US business that wish to conduct business in that region. South Korea 4 Major elements and dimensions of culture in South Korea South Koreans religion can be considered a poly-religious society or perhaps know as a melting pot of religion due to the increase in foreigners.

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Confucianism, Christianity, Buddhism and Shamanism are Just a few of the main religions and Islam is one that is growing fast over the last 50 years. Confucianism saturates South Koreans daily life and evolved or was introduced from the Chinese. However, it is probably better defined as a way of life than a religion. Confucianism was a system created by Gung If-Thug about 500 BC. Gung If-Thug taught the system during a time when China was disrupted by fighting. He developed five concepts to follow. Fairness and morality, father and son shall have an appropriate understanding between themselves, husband and wife shall maintain separate roles, the elder shall have priority, and friends shall give precedence to faith and conviction.

Confucianism has an impact on Korean society by influencing social status and contacts where Koreans standing is decided by age, gender, education , family history, affluence, Job, and governmental philosophy. Koreans prosperity is determined by their contacts. Korean prominence is determined by age, gender, education, family background, affluence, Job, and overpayment philosophy . Social contacts determine success. Heredity and history are important factors on how people are treated in an ordered society (Choosing, 2012). Buddhism has existed for thousands of years and is considered by many not to be a religion but a means to develop spiritual awareness of one’s true self. “Buddhism famously denies the existence of the self.

This is usually understood to mean that Buddhism denies the existence of a substantial self-existing over and above the flow of conscious experience” (Fink, 2012). It does not worship a God of creation. Globalization has introduced Buddhism o the world to become a multinational religion (Sitars, 2010). South Koreans ethic and value system has been influenced by the diverse cultural make up since the Korean War, and the things that influence the Korean people are different on how decisions are made in other nations. Globalization draws attention to the need for understanding business ethics and values of the culture a business or corporation is working with.

Recent scandals have brought into focus the need for business ethics. The US firm, Enron, filed bankruptcy due to business ethics being ignored and Deadwood had the same fate for South Korea. Corporations have adopted codes of ethics to repair their image to the world. “Among four people-centered core values, human-centered management/human resource development and knowledge sharing were the values preferred by the managerial group. Managers placed more importance on accountability values, among which obedience to the law was significantly emphasized by the managers. With respect to the social responsibility values, the managerial group scored higher for the value of disclosure with no significant difference.

As to the leadership values, social responsibility, faithful tax meant, and transparency of information” (Unsung 2009 1 1(2), 235-252). Weightlessness is an important tool to help keep businesses in line and is a concept the Asian countries have adopted. However, not much has been reported on its progress in those countries. Confucian Ethics and Individualism-collectivism can have an influence on effective weightlessness. “Confucian ethics had significant but mixed effects on weightlessness Intentions. The affection between father and son had a negative effect on internal and external South Korea 6 weightlessness intentions, while the distinction between the roles of husband and fife had a positive effect on those intentions.

The effects of collectivism were also different depending on the specific types of collectivism. Horizontal collectivism had a positive effect on both types of weightlessness intentions, whereas vertical collectivism did not show any significant effects on weightlessness intentions. These results indicate that cultural traits such as Confucian ethics and collectivism may affect an individual’s weightlessness intentions”( Park, 2005 58(4), 387-403). Ethics and values in the public relations field also play a significant role a business when dealing on an international level. The situational environment its complicated, and opinions are competing most of time. An issue of ethical relativism exists for each situation.

Public Relations Society of America’s (Para’s) new Code of Ethics still contains this complex problem of ethical relativism. The APRS Code of Ethics 2000 provides free flow of information as “Protecting and advancing the free flow of accurate and truthful information is essential to serving the public interest and contributing to informed decision making in a democratic society. ” At the same time APRS code recommends (1) to avoid “real, potential, or perceived conflicts of interest” n order to build “the trust of clients, employers, and the publics,” and (2) to protect confidential and private information of clients. (Youngstown, 2003,42(3), 209-223).

The food industry is another area of public concern and interest in values and ethical behavior of those involved in importing meat . The Korea U. S. Free Trade Agreement the public protested due to concerns that safety guidelines for handling beef were not followed and resulted in mistrust of the public officials (Kim,2009). South Korea 7 Attitudes of the South Koreans are influenced by the dynamic diverse cultural, and liberation. South Korean college students seem to be in favor of globalization. However, the South Korean females were more cautious concerning globalization (Supplies, 2008). This information gives good insight into future or potential globalizes consumers.

Exactly how a country or nation conducts its manners presents a very challenging concern when different cultures interact. Body language, standing too close, smiling, a hand shake, bowing, taking your shoes off before entering an area or house, and tone of the voice, are Just some of the ways people interact and can insult someone without knowing what they did to insult or anger an individual or group. For that reason, it is important to learn everything you can about the culture before you do business with them. South Korea customs have evolved and changed over the years but they still have strong family bonds, practice Confucianism, have elaborate weddings, special rice dishes, eat with chop sticks, and traditional Tea Swoon Do martial arts.

Social Structure in South Korea changed over the past 50 years on several fronts. The family structure is altered due to the family size changing. The value of a child is important to the Korean family. The reason to have children is psychological, and the reason not to have children is due to economics. “A person was not considered complete, or as an adult, until he or she had a child. Not being able to have a child, especially a boy, was considered a personal and family tragedy. It meant that a person’s future was in Jeopardy since their children would not succeed them and the family line might come to an end. It was inconceivable that a person would choose not to have children.

However, with modernization, young Korean mothers are choosing South Korea 8 o have far fewer children (on the average one child) than their parents (four children) and their grandparents (six children; Korea Statistics Bureau, 2003). Cultural transformations over recent decades have led to the improvement of contraceptive methods and medical technology’ (School,2005 54(3), 338-354). Industrialization led to an increase in the urban residents and changed the family structure creating an increase in nuclear family structures and decrease in the extended family. Industrialization is also affecting the family in another negative concern involving a stress in marriage and increase in divorce.

However, a decrease in prearranged marriages and more woman in the workforce. Also, individuals are seeking more self-satisfaction. A plus side can be seen in the changing society concerning younger people is wealthier with pensions for the future retirement, have an increase in traveling (Shin, 2003). The connection between daughters-in-law and mothers-in-law in South Koreans upper-middle-class families that live in an urban area is changing as the common residence disappears and an increase in the nuclear family. However, they remain their society. The industrialization has made it economically possible for a larger umber of nuclear families soon after the son is married (Kim, 1996). Despite an increasing trend of nationalization of the family, the family has not been replaced by a dyadic conjugal bond and has not lost its basis as the primary social organization in keeping ties among members of the virtual stem family. In contrast to many western societies (Ritter 1975), egalitarian ideology has not completely undermined the authority of parents, and mothers still act as agents of their sons and socialize them to be committed to perpetuating the family and maintaining family status. (Kim,1996, 69(4), 179-192). Mother and son relations continue in a traditional manner outside the nuclear family. Mothers South Korea 9 from an upper-middle-class continue to intercede in their sons life well in to the sons marriage.

The dedication the mother has to her son’s achievement does not guarantee the son will want to care for his parents once they get up in age. The daughter-in-law will support her husband and Join her mother-in-law in keeping the family ties by communicating by phone, visits, physical labor, and gifts. The state enjoys the nuclear family because welfare programs are few with this relationship. However, the relationship between mother-in-law and daughter-in-law is not without problems. As the mother-in -law gets older she no longer has the influence of her ideologies and put pressure on the daughter-in-law when she tries to impose her authority. The daughter-in-law can be crafty about utilizing her higher education and experience to destabilize her mother-in-law.

This will lead to the deterioration of unity and result in the two sides avoiding each other to deal with their disagreements. ( Kim,1996). How are these elements and dimensions integrated by locals conducting business in South Korea ? The Korean and US Free Trade Agreement (KORU FAT) provides a significant ongoing opportunity to benefit both nations. In 2008 the ratification of The Korea-United States Free Trade Agreement (KORU FAT) paved the way for the Korean National Assembly and the United States Free Trade Agreement to implement FAT in 2012. However, during those 4 years, both sides lost valuable remunerations that could have been accumulated.

Even though opportunities were lost during those 4 years, the economic and political impact is substantial for both sides. December 2010, President Barack Obama and President Lee Among-bake negotiated a South Korea 10 supplemental agreement to hurdle the main political problems concerning the agreement because they both knew the huge benefit that both sides would obtain for their future. KORU FAT is a huge arrangement that created a strong alliance between the US and South Korea (Shoot, 2011). Also, the largest gain would come from the production gains produced by the increased competition between the United States manufacturers and local Korean fabricators.

Another important area of gain for Korea will be from increased opportunities from the reduction in non-tariff South Korea Economic Growth Perspective South Koreans financial development, over the past 30 years, has been excellent. Financial development for economic growth is a significant program issue. Economic growth can be accomplished through a couple of routs. The first is well-developed financial intermediaries can encourage the public to increase saving and then to accumulate social capital. The second route is that, as financial mediators develop, more savings are allotted to organizations more efficiently, and thus, financial development improves productivity and growth. (Song, 2010). South Koreans per capita GNP, was only $100 in 1963. However, it surpassed $14,000 in 2004.

In 2006 South Korea was the United States’ seventh-largest trading partner and 1 lath-largest economy in the world. Park Chunk Hew’s administration introduced across-the-board economic policy changes in the sass stressing exports and light industries. This lead to prompt debt financed industrial development. In addition, He, reformed their currency, strengthened their institutions for finance, and financial institutions, and presented an South Korea 1 1 economic development plan that was more workable for future growth. Manufacturing became an area they expanded on during the sass along with endorsing chemical, electronics and the automotive industry. As a result the manufacturing industry grew at a rapid pace into the sass (Economy, 2006).

China’s Impact on South Koreans Economic Growth China’s emergence has affected the Korean economy and is now the major market for Korean exports and a major supplier of its inexpensive imports. Also, it has become a serious contender to Korea in the world markets for manufacturing exports. In 1987, due to a formal diplomatic relationship, the economic dealings between South Korea and China have expanded and trade has developed in diversity, size and capital movements. These increases, in both trade and investment, evolved between 1989 and 2004 and are signs of growing economic interdependence. Also, the East Asian economies have seen an increase in the restructuring of production and an increase in their intra-regional trade.

Some numbers that reflect the increase are South Koreans goods exported to China increased from IIS$I . Ban to US$49. Ban and China’s goods exported to South Korea increased from IIS$mom to $US. Ban. South Koreans investment in China ,by the end of 2004, totaled US$8. Banned-Gung,2006). The Pharmaceutical industry also has contributed to the impact on South Koreans growth. Three countries are tied to this industry and include Taiwan, China and South Korea. As a result of this advancing market, South Korea, China and Taiwan have developed their own pharmaceutical industries. South Korea has changed their state policy to promote and help South Korea 12 small science organizations. They all created aggressive policies.

However, their domestic institutional arrangements have inhibited their states ability to where all three countries have demonstrated a different course for growth of their pharmaceutical businesses (Wan Wang, 2012). Economic Ties Between North Relations between North and South Korea took almost 20 years before official communications occurred in 1971 through the Red Cross and in 1985 through family reunification programs. In 1991 both governments desired to have reunification and in 1992 created the Declaration of Denationalization. North and South Korea have progressed on several lucrative collaborative projects. In 1998 tourism was facilitated with boat tours, overland tours developed in 2003.

An important key to the economic relationship with North and South Korea is developing the infrastructure for the East ND west coast railroad and to reconnect roads across the DMZ to improve transportation. In 1988 North and South Korea allowed Two-way trade and by 2004 legalized transactions came to $697 million. However, this total contained a large quantity of non-trade supplies in the form of aid. Commercial transactions amounted to approximately half of the trade (ECONOMY. 2006). North Koreans established environment is very weak, and could affect cross-border exchange. In the sass a large portion of trade involved processing on commission. This arrangement involved South Korea shipping materials or components to North Korea to create the finished reduce.

The product would then be shipped back to South Korea to be marketed. To demonstrate the process , South Korea would ship , as an example, plastic and buckles to be constructed into watch bands then shipped back to South South Korea 13 Korea or a third party for the market. The Seasons Industrial Complex (KICK) is another mode of cross-border exchange. The complex is close to the border on the north side and is close to Seoul. Organizations in this region participate in dispensation and assembly of the components (Haggard, 2012). Recently covered in the New York Times s an article concerning an agenda for a more aggressive relationship between North and South Korea. North Korea said that the agenda would also include discussions on increasing civilian exchanges and other cooperative projects between the two Koreans. It also wanted to discuss a possible Joint celebration of the anniversary of the 2000 inter-Korean summit meeting agreement” (Sang-Hung ,C How do both of the previous items compare with US culture and business. The Korean and US Free Trade Agreement (KORU FAT) gives an opportunity to blend US culture and business concepts . Communications in South Koreans utilizes a overspent agency that parallels the US Federal Communications Commission. However, it is not a separate organization but operates under the South Korean Blue House and President.

South Korea enjoys laws that protect freedom of speech. South Korea has made changes over the years to adapt and take advantage of the tremendous communication technologies that exist today and how they can benefit their country. The cable industry is one example. South Koreans cable industry, under the old order, transmitted Just terrestrial signals but under the new order lifted any prohibitions for full multinational video. This opened the door for a larger market and set up two cable operatives and a DB’S supplier for service. Also, because of deregulation providers simply registered and as a result, their market grew with more suppliers. (Schuster,2007).

South Korea has become a leader in Information and Communication Technology (CIT) particularly in the areas of high-speed South Korea 14 strength in CIT are a result of evolving global economy, policies created by governments to facilitate progress and the South Korean government’s initiative to improve and invest in human and technological infrastructures. In addition, as a result of the aforementioned, competitive tactics evolved to increase efficiency and a personal norm of belongingness (Lee, 2003). The internet also serves the Korean Politicians. It has become an important communication management tool for their campaigns. The direct connection to their constituents allows them to maintain good relations and influence their support during an election campaign (Chine-long,2012). The Korean education system is growing at a rapid pace as the globalization efforts continue in other aspects of South Korean expansion plans.

The higher learning institutes face a problem with employing foreign instructors, particularly English speaking teachers when it comes to cheating and other forms of academic misconduct. “A significant negative relationship between a foreign instructor-led class and academic misconduct of almost any type. Conversely, a class taught in English appears to create an environment that leads to more academic infractions such as cheating, plagiarism and, for the most part, seeking outside help, all else equal. Gender is not an important determinant. Junior and senior students are more likely than freshmen and sophomores to engage in illicit academic behavior.

Students who have gone abroad seem to show less of a tendency to engage in academic misconduct, especially when it comes to plagiarism, compared to those without a similar study-abroad experience. Being a foreign student also does not come out as a strong predictor of unethical academic behavior” (Leadsman,2011 25-35) . If a higher educational school is concerned about cheating then they need to provide a smaller class size. If a smaller class size cannot be accomplished then South Korea 15 techniques need to be employed in the classroom to deter cheating and focus strictly n in class work and no take-home projects that could encourage cheating. South Korea also deals with other challenges in their society of how to provide an equitable education for their people.

One of the well-established realistic factors in finances of a Korean family is that large families get small educational funds and display poor achievement in their education. This leads to the concept that small families and little population growth translates to economic gain (Changing,2011). Private tutoring in South Korea creates a dilemma for the government and school system. “Expansion f public education in developing countries usually results in fiscal problems within the school system, including lower teacher salaries, poor facilities, and a lower quality of education. Many families look to private tutoring to help make up the difference in quality.

There is some concern that private tutoring can also result in problems” (Swooning, 201058(2), 259-296). With economic growth and development in South Korea the educational opportunities provide better career opportunities but, contributed to industry changes and the demise of the silk industry due to wage increase of unskilled labor and imports from China. Many of the growing pains Korea has and is going through compare a great deal to many aspects of US culture and business development. An interesting problem that exists in South Korea and has been compared to the US is Attention Deficit Hyperactivity Disorder (ADD). Three to the behavior of children in the classroom.

Reliable diagnoses have been a problem South Korea 16 because parents and teachers usually are the individuals to diagnose the problem. It needs to be pointed out that every culture’s children are affected by ADD to some degree. Thailand reflects a lower number due to the culture expecting them to speak softly in public. The East Asians culture is influenced by Confucianism which dictates harmony and appreciates education. Also, devotion to their country and respect for their parents and elders. It is assumed that these elements of culture results in a lower number of East Asian students diagnosed with ADD than US students in the classroom.

The economic climate of the society and parental guidance also plays a role in contributing to the numbers of ADD students. The lower income families are distracted by their financial situation. Organizational factors also are believed to contribute to the expression of ADD such as classroom structure, student duties, and styles that control behavior. Genetics is another factor considered as it relates to chemicals in the brain. The term ADD became familiar to the South Koreans in 1987 and in 2004 ADD awareness programs were developed for the South Korean public. In 2005 the campaign continued by a special academy for South Korean Child and Adolescent Psychiatry.

In South Korea students with ADD exhibit hostile behavior, low self-worth, have difficulty with self-control both at home and in school, eave a tendency to show aggressive behaviors, to suffer from low self-worth, are combative with other classmates, become loners at public functions, and have learning disorders. The concerns about the effect of ADD differs in the US and South Korea. The US concerns are more about behavior than academic achievement whereas South Koreans are more concerned about their children’s academic progress. One other significant difference in the two nations is the US parents have more confidence in medication because it helps to control behavior and the South Korean parents are not as receptive to medication South Korean 7 because it does not help their children academically.

Also, an important factor in treatment outcomes is parents in the US rely on doctors and the South Korean parents consider the mother as the main caregiver. In addition, the Koreans culture of traditional Confucianism ( in spite of western cultural influence) directs their view that obedience is a priority, harmony in the family is important and the parents feel strongly that they can raise their children as they dictate and have total power over their children. Children are raised with the knowledge that they must do as their parents dictate. In South Korea the public still has a poor understanding of ADD and psychiatric treatment. The South Korean teachers are not well trained in detecting ADD and distinguishing it from other behavioral issues.

However, the teacher does try to accommodate an ADD student by providing one-on one tutorial for assignments and after school help with school work. (Moon, 2011). What are the implications for US business that wish to conduct business in South Korea Organizations in South Korea developed and evolved as the country grew over the past 40 or 50 years. South Koreans modernization and globalization opened the government. Environment, conservation and wildlife, human rights, social advocacy, and many more organizations play an important role in growth and development of South Korea Environment. One such important organization is the High Performance Work Organization (WHOOP).

Three important issues for WHOOP are “(1) the adoption of WHOOP is highly dependent upon top management and union/employee representatives; (2) union status plays a critical role in enabling the two case South Korea 18 firms to adopt two different production modes; and (3) alignment among organizational design and work processes, ERE systems and HARM systems leads 10 gig organizational performance. (Kim, 2005, 16(7)). However, without the complete participation of chief stake holders, workplace innovation will not work as it is intended. It takes change in the Korean management style from a paternalistic and authoritarian and to not see WHOOP as a threat to managers (Kim, 2005).

The Role Tourism Plays In Their Economy It was not until after the setback of the Korean War the government decided to enter the tourism market on a domestic and international level. In 1962 the genesis for South Korea tourism was created and came under the new Economy Development Plan. This resulted in the Korean National Tourism Organization (ONTO) for the purpose of keeping an eye on the tourism and regulates the internal and external tourism operation. South Korean tourism continued to grow and very profitable through the late sass. Once the ONTO was established the South Korean government made it clear that tourist was to be given a warm welcome. The influx of foreign currency was also part of the tourism bonus.

The determination to rebuild their country led to growing forms creating industries, including tourism (Young-Kook, 2006). In 1993 it was estimated economic benefit of foreign tourism totaled $4700 lion from expenditures and international air fares (Choosing-Kick’s). However, with any industry, success can dwindle away if management misses important aspects of day to day operations. In 2006 the Korean service industry obtained losses of $10. 6 billion from January to July. This loss is a South Korea 19 serious setback to the Korean economy. It was discovered that bad quality of service from the staff is a major problem and can only be turned around if employees develop service quality levels by acting ethically on their own (Kim, 2008).