SPOTLIGHT ON SOUTH KOREA : Executive Travel : Think Cordial Contacts, Flexible Contracts

When Bill Wolf, communications director for Hyundai Motor America, took his first business trip to South Korea, he expected to encounter some Third World characteristics.

“I had read a couple of books, but until I got there I thought I might be dealing with a country somewhat like Mexico,” he said. “I didn’t expect the Korean economy to be as robust as it is.”

“We joked that the national bird of Korea is the construction crane,” he said.

Indeed, Hyundai’s own industrial complexes in Ulsan in the southern part of the peninsular nation are some of the largest in the world.

The rapid expansion of railways and roads has made getting around South Korea fairly easy, and the longstanding presence of the U.S military means many of the road signs, especially on major highways and in Seoul, are in English as well as Korean. Many English words are understood by Koreans.

“From the beginning, I found it not very difficult to travel in Korea,” said Greg Warner, chief operating officer of Kia Motors of America in Irvine and the only American serving on a Korean board of directors. Warner has made dozens of trips to Korea since 1985.

However, there are some tricks to doing business in Korea that travelers should know, he said.

One of the most crucial is to be careful in getting your message across.

“It’s very important for an American visitor to have his brain running two minutes ahead of where he is speaking, so he can begin framing his discussion in simple-to-understand terms,” Warner said. “You have to expect that the translator may not be a perfect English speaker.

“Use a limited vocabulary of very simple words, and don’t use double negatives, which will confuse the translator,” he said.

Another thing to keep in mind is that your first meeting with a Korean businessman will typically be a get-acquainted session, Warner said, not unlike a first meeting in Japan.

The greater the rapport at the beginning the more successful the relationship will be, said Mariana Hwang, trade consultant at the Korea Trade Center in Los Angeles.

Koreans tend to prefer flexible contracts or even informal agreements that leave room for changing circumstances, which makes a trusting relationship with a Korean business partner vital. Try to personalize your relationship over time by chatting about families, hobbies and philosophies.

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A formal introduction will help you get off to a good start, Hwang said. Make sure you carry business cards clearly stating your position in your company.

For the most part, however, business is conducted as it is in the West, said Kwang Ho Kang, assistant director of Korea National Tourism Corp. in Los Angeles. You may shake hands; your Korean counterpart will probably bow slightly. It is also common to conduct business over lunch, dinner or golf.

Korean food may seem strange at first, Wolf said. For example, kimchee, a fermented cabbage dish that is prepared in dozens of ways, is particularly unpalatable to many Americans because of its strong odor.

“If you can get past that, it tastes good,” he said. And if you tire of Korean food, Seoul has a wide variety of other cuisines, including French, Chinese and American.

Always try to accept offers of entertainment and reciprocate when possible, Hwang said. Small gifts are also appreciated.

The business day is similar to that in the United States. Typical office hours are 9 a.m. to 5 p.m. in the winter, until 6 p.m. in the summer. Banks are open from 10 a.m. to 4:30 p.m., except Saturday, when they close at 1:30.

Doing business in Korea requires preparation and patience, Warner said. Many Korean business decisions are made collectively and often require more time than Americans are used to, said Hwang. In negotiating, it’s important to be diplomatic and not get hung up on details.

Also, remember that giving sincere compliments and avoiding putting your Korean partner in a position where he might “lose face” will help ensure a mutually beneficial relationship.

There is no reason to worry about sensitivity toward North Korea, Hwang said, and both “Korea” and “South Korea” are acceptable ways to refer to the country in conversation.

Getting Around

Seoul has a good subway system and the nationwide rail system is also well-developed. “I would recommend public transportation,” Warner said. “Americans would feel comfortable on the subway system. Seoul and other major cities can be difficult to negotiate by car or bus during peak hours when traffic becomes gridlocked.”

If you are driving, allow plenty of time, said Wolf: “Seoul is quite spread out and is very hilly.” (Koreans drive on the right side of the road.)

Cab rides are relatively cheap in South Korea, said Kang. The basic cross-town fare is about $1.50. Subway fares run about 50 cents for a round trip across the city. Tipping is not expected. White taxis are cheaper than deluxe taxis, which are black with gold stripes.

Getting There

There are two international airports in South Korea: Kimpo, about 11 miles from Seoul, and Kimhae in Pusan in the south.

A number of carriers, including Korean Air, United, American, Delta and Northwest, serve Seoul from Los Angeles. The flight takes approximately 14 hours.

You must have a visa to stay more than 15 days. South Korea does not grant extensions, so if you think your stay might go over 15 days, it’s a good idea to get a visa in advance, Hwang said. Although you don’t need a written invitation from a Korean company to obtain a business visa--which is good for 90 days--you do need a letter from your employer and a photograph.

Hotels

Rooms are relatively expensive in Seoul, Kang said. A deluxe room in a business-class hotel runs between $150 and $200 a night. Most of the major chains have hotels in Korea. Make sure you make a reservation at least a month in advance for spring and fall trips, since hotels can fill quickly, Kang said. It is not customary to tip, but a porter or door attendant will not be offended if you do so.

Business Services

Korea’s largest corporations, such as Samsung, Hyundai, Daewoo and Lucy-Goldstar, have extensive in-house technological and communications abilities. Smaller companies often rely on “OfficeTels,” which are commercial complexes that house trading companies, lawyers, translation and secretarial services.

Money and Shopping

The currency is the won. You can exchange money at airports, banks or hotels. Credit cards and traveler’s checks are widely accepted in Seoul and other major cities. It is usually easiest to cash a traveler’s check at your hotel or at a bank.

Korean tailors are a favorite attraction for many business people. “You can be measured on Friday and be wearing the suit Saturday night,” Wolf said.

Be careful shopping, however. Clothing with counterfeit designer labels may be confiscated by U.S. customs. And while bargaining is expected in the markets (not department stores), it still pays to be courteous, Hwang said.

Although many aspects of Korea will feel familiar to American business travelers, it still helps to be prepared.

“It is important for an American visitor to Korea to try to know a little about it before he goes,” Warner said. “That is seen as a positive indicator of interest.”

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