Wednesday, 10 February 2010 04:26 am

Karaoke nights help to smooth business deals in South Korea

Oct 21st, 2009 | By Tasha Black | Category: Featured Article, Front Page Layout, News, Uncategorized

KoreaMAIN1

WHEN Brigit Blair first did business in South Korea she found herself somewhat under-qualified.

It had nothing to do with her business skills. It was her inability to take advantage of a crucial deal-making environment – karaoke nights, which tend to be all-male occasions.

She was undeterred and her cosmetics company, Linden Leaves, still trades there after 15 years.

“For me it was almost an advantage,” says the company CEO and founder. “I wasn’t really expected to conform.”

According to a new Asia New Zealand Foundation report, going along to a karaoke night might be just what a business needs to survive in South Korea,

South Korea: An Opportunity for New Zealand Business, says New Zealand’s sixth largest market has a lot to offer if kiwis can work through some cross-cultural challenges.

The report from Deloitte says personal relationships are crucial for businesses in the country, and one way Kiwis can cross the cultural divide is by joining their Asian counterparts on karaoke nights.

KoreaMAIN2 BlairAsked to comment about the report, Mrs Blair (left) says karaoke invitations wouldn’t usually go to women.

“Thank goodness I’ve escaped that,” says Mrs Blair.

“They would definitely expect you to go along if you were a man and they drink quite heavily.”

Mrs Blair says most businesses in South Korea prefer to deal with men and when she started there were very few women.

But this may be changing. As more women attend university, the business world will be more accepting of them.

Communication is one of the biggest barriers, as even if they do speak English, South Koreans are often too shy to use it.

“The older generation don’t speak English, they only learned to read and write it so they can reply to email,” says Mrs Blair.

“You think they are quite good and then when you meet them they hardly speak at all.”

The reports also says learning to use chopsticks can also go a long way to KoreaMAIN3fostering business relationships in the world’s 13th largest economy – South Korea bought about $1.4b worth of New Zealand exports in 2008.

Other small things can also have a lasting impact, such as writing a person’s name in red ink, which is only done when a person is dead in South Korean custom.

The report also says South Koreans do not like sharing bad news and would rather tell a white lie, delay or distract from the issue.

Mrs Blair says they just aim to please and it can be hard to get the full picture because of language and cultural sensitivities.

Having a South Korean distributor can also be crucial for survival, as they can speak the language and understand market dynamics.

Mrs Blair says perseverance is the key.

“It’s not an easy market. They definitely respect longevity, staying with them when times are difficult.”

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Tasha Black is a Whitireia journalism student
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