8). To help gain a better understanding of how these cultural differences can affect business negotiations and transnational operations, a comparison of South Korea's national culture with that of the United States is provided in Figure 1 below.

Figure 1. Comparison of U.S. And South Korean Cultural Dimensions

PDI:

Power Distance Index

IDV:

Individualism

MAS:

Masculinity

UAI:

Uncertainty Avoidance Index

LTO:

Long-Term Orientation

Source: Hofstede, 2010

As can be readily discerned from Figure 1 above, South Korea and the U.S. have several night-and-day differences in their cultural dimensions, particularly individualism and long-term orientation. Cultures such as South Korea's that have high levels of long-term orientation are characterized by patience, perseverance, respect for elders and ancestors, as well as a sense of obedience and duty toward the larger good (Newman & Nollen, 1999). The long-term orientation cultural dimension consists of the values of persistence, ordering of relationships by status and observing order, frugality and a sense of shame (Jackson, 2004). The short-term aspects of this cultural dimension include values such as personal steadiness and stability, protecting individual "face," demonstrating respect for tradition, and the reciprocity of gifts, favors and greetings (Jackson, 2004). Based on these cross-cultural differences, Lee (2005) offers a set of important recommendations and guidance for Western managers seeking to establish business contacts in South Korea today, the most salient of which are provided below:

1. Expect negotiation to take time.

2. Be familiar with Korean counterparts and the items under negotiation.

3. Have at least the same number of individuals in as the Koreans in the negotiation team.

4. Have flexible deadlines.

5. Be prepared for a lot of singing and drinking to build relationship. Entertaining is an integral part of doing business in Korea and alcohol acts as a 'social lubricant' in Korean society in general and it is essential for business dealings.

6. Understand that contract is not really a contract, be flexible.

7. Saying 'no' directly results in 'loss of face' and destroys human relationships. Thus, know the difference between when a Korean says 'yes' and means...

It is common for Koreans to avoid saying 'no' directly to avoid loss of face for the other and for them.
8. Do not criticize anything in Korea.

9. Try to give semblance of loyalty to your business partners or company. Loyalty is one of the most cherished traits for Koreans.

10. Have a third party introduce you to business clients or associates, which is the formal approach to introduction and conducting business in Korea.

11. Show proper respect to and restraint towards Korean managers and bosses. Address them by their titles and positions and never by their first name (Lee, 2005, p. 12).

Conclusion

The research showed that South Korea has overcome the devastation of the Korean War that ended in 1953 to emerge as one of the strongest economies in the world today. The research also showed that the South Korean people achieved this spectacular rate of growth through perseverance, hard work and a set of cultural values that place high value on education, respect for authority and loyalty. These same cultural values, though, can be the source of missteps and outright failures during business negotiations if these values are not understood and respected by foreigners. Finally, the research showed that by following some straightforward and common-sense guidance from experts in the field concerning business practices and cultural values, it is possible to forge strong and lasting relationships with Korean business contacts.

References

Austin, J. (2007). Understanding Korea: John Austin urges the need to take account of Korean business culture. New Zealand International Review, 32(1), 7-8.

Hofstede, G. (2010). Geert Hofstede's Cultural Dimensions. Retrieved from http://www.geert-

hofstede.com/hofstede_dimensions.php?culture1=95&culture2=82#compare.

Jackson, T. (2004). Management and change: A cross-cultural perspective. New York:

Routledge.

Lee, J.C. (2005). Guidelines for effective negotiations with Korean managers: a conceptual analysis. International Journal of Management, 22(1), 11-12.

Newman, K.L. & Nollen, S.D. (1999). Culture and congruence: The fit between management practices and national culture. Journal of International Business Studies, 27(4), 753-754.

Villegas, B.M. (2006, September 1). Understanding our Korean friends. Manila Bulletin, 37.