Setting up a business or a startup in another country can turn out to be a confusing experience or an affair dotted with doubts, for the majority of entrepreneurs. However, this is reduced with the knowledge they gain at their own expense and through years of experience in overseas trade, as well as business with foreign customers.
However, after globalization, accessibility to worldwide markets has become as easy as can be, for entrepreneurs. With connectivity among nations becoming increasingly barrier-free, even small enterprises can draw maximum benefits from the enormous potential of customers abroad.
South Korea is a big market for foreign products and services. Being highly developed and economically sophisticated, the country offers a huge customer base that has a good spending capacity and an exquisite choice of products from around the globe. Also, Koreans can be wonderful partners in any commercial transaction.
However, to make it big in any business venture in Korea you must know the market, the society and primary rules of industrial liaisons there. This business sense comes over a period of time. It is extremely important to do thorough market research before setting up a business.
Going ahead with the flavor of the article, let us learn about the top five pointers to a successful business in Korea. Though not a complete list, the following serve as great baseline information to guide your dreams to succeed in setting up a business in Korea.
Formality and distinct power structure run through the core of Korean society. Therefore, while trading in Korea, it is crucial that you are conscious of the grade and/or designation of the individual you are trading with, so as to refer to them appropriately.
It is not considered polite to formally address someone by their first name. As most of the Koreans have similar surnames (Kim, Lee, Park, etc.), you will often end up referring to them by their full names, if they are more in number.
Initially, this may seem strange, though a lot nicer than annoying them. However, if they insist, you may address them by their first names. Body language also has a part to play here. This means no embraces, no pat on the back or other inappropriate physical interaction apart from formal handshakes and plenty of bowing while meeting and parting.
Being formal and maintaining an image are major factors in the Korean business culture. Proper dress-code, suitable visiting cards and referring to your Korean partners appropriately are all vital for good ethical standards and building strong ties. You can lose business in Korea over improper decorum.
Personal ties matter a lot to Koreans. Such liaisons do not happen over the phone or in a few meetings. A lot of time goes into building such relationships well.
In Korea, there is a fine line between personal and professional lives. Koreans spend long hours working in the office or mixing socially with their colleagues at dinner and drinks. Late nights are often used to build interpersonal links. Official dinners are usually highly formal, but also a means to develop liaisons. It is important that your interest is evident not just in the talks.
Bright prospects often rise as an outcome of delegation get-togethers that also help in sustaining goodwill. Business tours also help a lot, if intended to direct all efforts into making the travel; productive, engaging, enjoyable and a learning experience. Being a good host plays a major role that is most surely reciprocated Korea.
Extended business trips always help when geared towards building contacts and hosting productive meetings. Actually speaking, networking is an essential key to successful foreign business and global enterprise development.
The major
portion of challenging tasks in global sales is connected with the identification
of the best channels and partners. The best way to do this is by putting in a
lot of efforts and time to brainstorm and design a strategy that is backed by
professionals who specialize in helping entrepreneurs and companies set up
businesses in Korea.
Koreans have an open-door policy towards foreign investment and exert themselves to boost corporate interests in the country’s wide range of industries. Here again, interpersonal skills can make a lucrative kill. Therefore, travels to Korea, typically for market research, go a long way in consolidating long-lasting business relationships.
At the end of this article, it can be concluded that for any business person or broader overview thought leader, venturing outside of the home country is inevitable in the present-day interlinked business community.
There is a plethora of opportunities of learning, development, expansion and breakthrough — for any determined entrepreneur or even for that matter, student. This plays an immensely important role in strengthening Korea’s future.
It goes without saying that for foreigners considering to set up a business in Korea, smart thinking would lead to hiring a corporate service provider to help them and their business be at their best there.