Business Etiquette in South Korea – From Table Manners to Conversation

Doing Business in Seoul

Doing business in Seoul is an interesting experience. Business is life in Seoul, literally structured under a dynastic business structure that runs one of the largest, most modern metropolitan areas in the world. While many of the traditional formalities of Asian culture prevail, the city itself is an amazingly high-tech and newly developed following the Korean War. It leads in internet connectivity and digital technology. It is a hotbed of new startups, innovation hubs, and yet controlled by business titans like Samsung, which are called chaebols. Despite a liberal marketplace and cultural phenomena like K-Pop, people identify heavily with work, prioritizing it above social and extra-curricular life. So there is not much of a line between business and personal life. South Korean values play deeply in their work. Most business is structured around personal, sustained relationships. Showing that you are of good character and reflecting Korean values is fundamental to business success and business etiquette.

Dressing conservatively and showing good character are essential. Humility, hard work, and respect are essential in business and personal relationships.

What is a Chaebol? 

Understanding the business climate is important to navigating the South Korean business landscape. One of the first things that may confuse Westerners is the distinct structure of South Korea’s economic, geographic, political, and business landscape. At that center of city of Seoul and all of South Korea are the chaebols. But, what is a chaebol and why is it important? 

Following the Korean War, a number of family-owned businesses were charged with rebuilding the South Korean economy—and quite literally building up the megapolis of Seoul National Capital Area. The industrial and economic foundations that traditionally supported Korea had collapsed. Identified by the government as business leaders, government policies and programs helped support several family-owned companies in rebuilding the war-stricken country. As a result, these companies rose into global powers and grew into large conglomerates, called Chaebols. [Chaebol means chae (wealth) and bol (clan).] 

While these companies were integral in pulling post-war Korea from poverty, they also installed a top-down, hierarchical system. Family ownership and subsidiary organizations define chaebols. More than corporate goliaths, these dynastic companies own a great portion of the Korean economy and exercise cultural and political influence. Much of their corporate structure is determined patriarchally. Thus, key positions are not only earned, but given out in a structured nepotism.

The four major chaebols are LG, Samsung, Hyundai, SK Group—dubbed the “Big Four” by the South Korean press and international agencies. You will see their influence around Seoul. While there are many chaebols influencing the South Korean economy, knowing the major players is helpful in doing business.

A clean, new megalopolis. Seoul is a unique city built by family-owned conglomerates. It has an extensive subway, but the enormity of the city means leaving plenty of time and planning to get around.

Traveling in Seoul, South Korea

Seoul is a clean, business-oriented megacity spanning 234 square miles. It boasts one of the largest metropolitan areas in the world and is the 5^th most populated. To put it into perspective, Seoul has twice the population density as New York. There are over 10 million people in the main city of Seoul, but over 25.5 million in the larger metropolitan area. That means over half of the country’s entire population is in Seoul. 

Crowds are inescapable. There is a lot of crowding, shoving, and pushing through people. Personal space, much like in the rest of Asia, is not a cultural concept. Do not take crowding personally. 

The subway system is clean, safe, and effective. However, signs are in Korean and as a huge, bustling city it can be easy to get lost. Have a map marked ahead of time. Always keep a business card of the hotel where you are staying. Cabs are commonplace, but don’t speak English. 

Getting to and from the airport to Seoul is a simple, but long car ride. Book shuttles ahead of time whenever possible.

Understanding the Asian Concept of Face, or Kibun

A core to value in Asian society is Kibun, which is about how you show yourself to the world. The concept of kibun is about preserving the dignity of yourself and others. Harmonious personal and business relationships are important to kibun. 

Kibun is a key value in most Asian societies that can be misevaluated as prideful or even disingenuous from a Western point of view. This is a critical error in doing business in South Korea. It can lead to business miscommunication, leaving both parties frustrated.

In keeping face, Koreans will often avoid acrimony or confrontation. Korean etiquette means avoiding saying a direct “no” and will instead agree to try, help, or consider a matter that will likely not go forward. This is an attempt not to embarrass—or lose face—for either the person requesting and the person responding to a proposition. 

Because kibun is so important, rank is very important in South Korean society. Your first meetings will likely be about trying to understand who you are. People will be interested in discovering your marital, business, educational, and age. These social criterions determine who you can meet within business and towards what end. 

Business Etiquette in South Korea

Demonstrate Korean Values

Business relationships are personal relationships in Seoul. Who you are is part of the ultimate bottom line. South Korean traits to demonstrate in business—and everywhere in Asia—are:

• Respect for authority and elders
• Hard working and eager to learn
• Virtuousness and modesty
• Punctuality (it’s seen as a sign of respect)

Still there are a lot of benefits of doing business in Seoul, including lasting contacts. (Oh, and incredible food!) 

The Benefits of Doing Business in South Korea

• Increasingly liberal marketplace
• Widespread English language in business
• Thriving economy
• Safe for travelers
• Personal relationships that are both formal and friendly

Hierarchical Business Etiquette

Business is hierarchical, which can mean a lot of movement up and down the chain of command. Pad your time to allow for the extra business layers. Things often come down to executive decision, even when the meetings that lead to that are very positive. 

Be prepared to be social and polite. You never know who will be at a meeting. Often, the group will be larger than you were anticipating. Decisions, or even getting the right meeting, may take longer than anticipated. And, you’ll never get a business decision in the first meeting. 

Titles carry special importance in South Korea, rather than being a reflection of what someone does. These are largely honorific. Be sure to note and use the proper title and surname of each person involved. As we will explain, it is customary to exchange business cards, study them, and leave them face up on the table. That can be a helpful way to remember the position of each person at a meeting.

Business Card Rituals in Seoul

Business cards are very important in South Korea and there is an important ritual to them. 

An exchange will happen at the beginning of meetings. Business cards are given and received with both hands, placing the writing so that it is face-up and readable to the recipient. Hold the card between your thumb and top knuckle or index finger in both upper corners. When taking a business card, take a moment to appreciate the card, studying the name and title. Compliments are well-received but overdoing them will seem insincere. 

• Do not write on business cards in front of the giver.
• Do not fold or pocket business cards.
• Keep plenty of cards (preferably translated into Korean on one side).
• Treat cards with utter respect.
• Keep business cards face-up on the table or putting them delicately into a business card holder.

A business card holder is one of your most important business accessories while doing business in South Korea. 

Present and receive business cards with reverence, using both hands.

Greetings and Bowing

Slightly bowing is a normal salutation. Keep your hands straight at your side or folded in front of your stomach with your legs together. Your head should stay bowed, not looking upward. 

In company, keep your legs straight. Having a slight slouch is a polite way of showing respect. 

You should bow whenever saying hello or goodbye. Bowing is also a way of showing an apology, even for minor inconveniences or mistakes. 

Bow when saying hello, goodbye, or making apologies for even minor discourtesies.

Greetings and Handshakes

The more senior person instigates handshakes. Wait until a hand is extended by people of higher title or age to shake hands. Unlike in Western countries, a strong handshake coarse and rude. Use a softer handshake. Some South Koreans will support their forearm with their other hand.

Greetings and Addressing People

Always address people honorifically. If guessing on how to address someone, use their title followed by their surname. Surnames come first in South Korea and China. 

For Example, the President of China is Named Xi Jinping. His last name is Xi. His first name is Jinping. You would address him as President Xi.

Navigating Meetings in South Korea

Preparing for business meetings, dress in traditional conservative business attire. Keep to muted colors. When speaking with counterparts, follow proper business etiquette: 

• Get titles correct and treat people of a superior title with proper deference and respect.
• Meet people with open eye contact.
• Show honesty and integrity at all times.

Helping others with humility is of high value. Avoid boasting, one-upmanship, and showmanship. Unlike some business cultures, being obviously competitive is distasteful. 

• Introductions by third parties are more effective than cold introductions in South Korea. Maintain and develop relationships over time. 
• Do not focus on business during a first meeting. The first meeting is for getting to know one another and build trust. 

Book all meetings in advance and arrive on time, well put together, and stocked with business cards. 

Seating is important. Follow cues. If hosting, do not accidentally insult anyone. Leaders should sit opposite one another. Introduce people to one another, prioritizing older people and then women. 

Business Relationships and Meetings

Expect to be social. Business and pleasure are mixed in South Korea. This is not a bottom-line business culture. You will have to invest the time in developing business relationships. Personal relationships are central to Korean business. Koreans will build a relationship with you through sports, entertainment, and gaining information about your family and social life. 

Leave space for dinner invitations should your meeting end near mealtime. The invitation by the host will be considered part of business.

The good side is that doing business in South Korea can feel very welcoming. You will never leave hungry or thirsty. 

Acknowledge titles and pay close attention to a person's presentation.

The Business Etiquette of Language and Body Language in Asia

Much of South Korea has a basic English comprehension, but this is not an English-speaking country. Keep the following communication tips in play: 

• Speak basic English and be careful not to lose or humiliate your audience with lofty language. 
• Use visual aids as often as possible. 
• Sneezing, blowing one’s nose, and bodily functions are considered extremely rude. Try and be quiet if you must sneeze. Apologize immediately. It is best to remove yourself from company. 

Because of the aversion to conflict and kibun, yes or no questions are answered indirectly. Ask questions from a variety of angles to suss out the response. 

Promptness of response is revealing. Communications will often be answered the same day. Not being answered is a “polite” way of showing disinterest. Try and answer correspondence expediently. Don’t go a week without responding.

Conversational Rules:

• Wait to speak. Allow time to pass for the complete response of your company. 
• Do not interrupt or compete for talking time. 
• Avoid vulgarity, jokes, and slang
• Never point with your fingers

Business Dining Etiquette in South Korea

Because socializing is central to business in South Korea, you will likely share meals. Food is a very important part of Korean culture. Know what to expect and be prepared.

Shoes will be removed, so be prepared to have presentable, clean feet. Think about socks when you pack. 

Don’t refuse tea or beverages, which will always be offered. It is disrespectful to refuse, though you are not obligated to consume your beverage. 

Feel out if there is room for business discussion. Only talk business once social graces have been completed. Do not jump into business discussions. The best approach is to wait until your host brings it up. 

Splitting costs is considered rude. Most commonly, the host will pay. The check will be on the table, sometimes concealed. However, the check is taken up to a counter at the front for payment.

Food is an important part of personal and business relationships.

A List of Table Manners in South Korea

• Obey good table manners at all times. 
• Expect to remove shoes at restaurants.
• The most honored person is not seated at the head of the middle. Instead, they are seated in the center of the table.
• Pick up your utensils only after your seniors in title and age.
• The most senior person will be the first to eat and set the pace for the meal.
• If someone senior to you rises, you should also rise while they leave the table.
• Avoid putting your elbows on the table.
• Never use your fingers. 
• Do not hold your soup or rice in your hand during dinner. 
• Do not leave chopsticks sticking out of your rice or laid across your bowl.
• Do not pierce food with your chopsticks.
• Do not point with chopsticks.
• Do not hold both chopsticks in one hand.
• Do not set tableware or chopsticks down on plates or bowls.
• Take what is in front of you rather than picking through the dish.
• Drink your soup before other dishes.
• Eat whatever someone is kind enough to put on your plate and accept drinks poured for you.
• Finish all food in your spoon.
• Servers will leave you to eat in peace, which means you should call them over or press a call button on the table for service.
• You may share a table with another group, but you can carry on a conversation among your group as usual. 
• Pay for your meal at the counter. The bill will be left at the table. 
• Tipping is appreciated but not widely practiced.

Drinking Culture in South Korean Business

Drinking culture is still a very important part of business. It is part of the evening after-work business culture. Men are more expected to partake than women. 

To slow down drinking, do not allow your glass to empty.

Pour others’ drinks rather than your own. If the person next to you has a half-full drink, you are obliged to refill it. If you refill your own, you cause that person next to you to lose face. Sometimes, a glass will be filled and the carafe passed to the person on the right. Only then should you fill your own glass. 

If you would like more to drink, fill your neighbor’s drink a little even if they are more than half-full. 

Turn your face away to drink when drinking with someone senior to you.

Stay alert enough to pick up on business should it come up and avoid making a spectacle of oneself. 

Gift Giving and Being a Guest

Gift giving is very common. Gifts are often given as tokens of the country. Accept gifts like you would a business card, with both hands. Expect the refusal of a gift several times before it is accepted.

If invited to someone’s home, bring a small gift, like wine or flowers, for the host. Gifts should be given and received with both hands, just like business cards. 

Note: Gifts are not opened in front of the giver.