Japanese and Korean Culture in a Negotiation

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Japanese and Korean Culture in a Negotiation

• By Peter Buckley

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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

3
Japanese Culture

• Its 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

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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

5
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

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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

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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

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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

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Contracts

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

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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