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Title: A Literature Review On The Negotiation Styles Of The Peoples From Various
Nationalities.

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This review is made to create a literature comparison and study of three (3) different
nationalities when dealing and conducting a negotiation. In this instant two countries of Asian
origins ie Korea and Japanese are chosen. Korea is known as one of the four Asian economic
tigers of the newly industrialised countries apart from Singapore, Taiwan and Hong Kong
( Wikipedia.org).

Japan on the other hand is the Asian member of the OECD and the G7 economic group
that is involved in global economic policy . Also Asia has been selected as it is the most
populous continent (Nations Online 2008) and with one of the oldest civilisation known to
Man dating back to 5000 years ( Answer Bag ,Hindusim.za)

The third country is China which has been named as the first contender to take over the US as
the world’s economic power house and military might after the break over the Russian
Soviet. China is make up

These 3 countries are seen to be economically advanced and have reached a world living
standards due to great improvements in technology that enhanced economic growth that
result in higher living standards .

These styles and ways have stood the test of time and have been in practice for generations
and seem to duplicate itself over time. It is also thought to be very much influenced of the
certain philosophy such as the Confucian teachings for the Koreans ( By Jihun Sohn,Robert
Gebhardt,Daisuke Kambe -‘Negotiating in South Korea) ( and to a certain extend the SunTzu
art of negotiation and to a environment, culture and way of life .

The review will generally touch on issues that seem to be the makeup or criteria used in a
negotiation which consist among other things. However it may not be applicable to all
nationalities and will be highlighted individually.

i. Conversational.

ii. Facial expression.

iii. Eye contact.

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iv. Physical or personal zoning.

v. Gift giving.

vi. ‘Two-mode’ behaviour ie during negotiation and off negotiation behaviour.

vii. Seat positioning.

viii. Meeting and greeting

ix. Time keeping and punctuality

x. Crowd or numbers attending.

Negotiation is defined:

- as in general ’Bargaining (give and take) process between two or more parties (each
with its own aims, needs, and viewpoints) seeking to discover a common ground and
reach an agreement to settle a matter of mutual concern or resolve a conflict.
(Business Dictionery.com)

- the process of discussing something with someone in order to reach an agreement

with them, or the discussions themselves.
( Cambridge Advanced Learner's Dictionary, Revised 2009)

Korean negotiation methods.

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South Korea is the world’s 11th largest economy and 13th largest trading country in terms of
GNP .It is one of the fastest export oriented economies on the globe. In the last 40 years ,
Korea on average yearly basis the export growth is 22.45% per annum and Korea trade is the
third largest after Japan and China for Asia with Hong Kong trailing at number 4 recently.1

Consumers around the world are aware of giant conglomerates names like Daewoo, LG,
Samsung, Hyundai and like Kia which is the main sponsor of annual Australian Open tennis
championship originated from Korea. Some of these companies are names that mass produce
the world’s supply of chips or even build ships with yards in the main ports in the US
notably Long Beach in California, Electronic items use in household are taken for granted
and little is known that they come from Korea. These products have carved a niche market in
Europe , Asia and North America. There appears to limited information pertaining to the
Korean culture and specifically the Korean business practice and ethics. This is because
geographically Korean is more or less sandwiched between the bigger landmass of China and
the bigger island of Japan. So Korean has been overshadowed by the bigger population of
these two countries and casts lesser visibility on Korean. It is not uncommon to treat or
mistook a Korean like Chinese or Japanese or even chose the latter two over Korea. Outsiders
has missed the opportunity to know that Korean has been built over 5000 years into a nation
into what she is today .Unfortunately the lack of understanding of the Korean in general and
business in particular have result in difficulty to deal with the Korean companies. The one
which is much misconstrued but pivotal to doing business with Korean is to fathom the
process of negotiation with a Korean. This uniqueness in the Korean process of negotiation is
the culmination of events and experiences that has evolved over thousands of years.

Korean are seen as clever if not cunning and forceful negotiators. They do not set any limits
on their conquest to maximise their benefits in a deal. This is part of the general feeling that
Koreans have little to offer and the other negotiating party have more to offer and so it is
their birth right to ask for more out of the relationship.2

Another central concern is the language barrier. Communicating in English is one of the
greatest blocks to an exact understanding to what being said at the negotiating table. So it is
highly imperative for a foreigner to bring along an interpreter .This serves as a double edged
sword - for the foreigner to inform the Korean counterpart what he has to say . Secondly to
note if the interpreter working on behalf of the Korean is doing a good job of telling his
master what’s been conveyed. On the non verbal side the foreigner’s interpreter would be to
recognise any non verbal cues or facial expression or gestures unique to the Korean so as to
advise his employer what has been ‘signalled’ or communicated or even flashed to the
Korean negotiation team.

Korean does not at any instant make a decision at the negotiating table as the pecking order
dictates that everything has to come from senior management. Empowerment as what the
Western management style is propagating is the least heard at the table. This is an unfailing

1
Korean Trade and Investment Promotion Agency 2003
2
Asian Business Codeword, De Mente, 2001
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adapted attitude brought about by the authoritarian nature of the Korean upbringing and at
workplace where filial piety and respect for elders and seniors is second to God. As a rule a
western company representatives are being given the liberty and latitude as well as power to
make a decision so that a negotiating could come to a close within the stipulated time period
given on the onset of a negotiation. This can prove to be frustrating to a westerner as a
Korean negotiator would normally seek the approval of higher ups as a negotiation
progresses. If a senior is not present in a meeting do expect an intermittent calls been made in
order to obtain the views or decision. This also means that the senior management takes a
more active role in a negotiation than a typical Western company though he/she may not be
in the room. While a good number of Western companies provide their negotiator
representative a broad spectrum of guideline with more freedom to work and be creative , a
Korean chaebol or conglomerate is more likely to be closely supervised. The Korean
independence is much more subdued and appears inflexible during a negotiation. In many
instances creativity involves elements of risk and as for the Korean negotiator especially that
involves chaebol, risk is something they intend to stay away and avoid at all costs.

A participant to a negotiation with a Korean company needs to be discreet on revealing the

schedule one has while visiting the Korean counterpart. This revelation could soon prove to
be calamitous to the entire deal the foreigner is making or could leave with so many
concessions that he has to make . This is seen as a strategy by the Korean of not agreeing to
the terms being discussed until the last moment the foreigner has to catch a plane home or
hop to another country for a another leg of the visit . In order not to go back empty handed or
pressure to close a deal , the foreigner has to give in or provide more concessions to the
Korean.

An outsider needs to know the Korean party coming to a meeting beforehand as numbers
mean better crowd and more ‘visual show of strength’. This may be liken to the show of
military might in the form of massive flotilla and an air craft carrier to boot at the fringes of
the waters bordering neighbouring countries So a Korean company will provide the extra
faces to wear down the foreigner during a meeting by returning unlimited salvos from all
fronts to get their perceived targets (Asian Business Codeword, De Mente, 2001) This is the
setback as the foreigner usually meets the Korean in the hotel he stays and knows the name
and general information of the Korean side. Also under the most optimum situation, a
negotiation with the Korean is always long and arduous as communication being the initial
barrier to understanding what the other is saying even through the services of an interpreter.
To make the situation more difficult though unintentionally , the presence of the greater
number of attendees on the Korean side which is always the case as a strategic move to have
more members present than the foreigner, every detail needs to be explained and understood
by every member of the Korean camp. Inevitably this energy zapping and would as a
consequence would wear the foreigner down. If the patience is not a forte built into the
foreigner the deal can move two ways. Either the foreigner throws the deal and makes the
exit or grudgingly accepts the deal with forced generosity rather than endure the long nerve
wreaking hours.
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Korean draws part of their philosophy from the Confucian teachings of not wanting to
response with a definite answer or making a clear response but stalling the answer to a
proposition. So they will let a negotiation drags on without giving a clue if they agreeable or
otherwise. At most a typical answer would be ‘will think about it’, A seasoned foreign
negotiator would meet one of the key members of the Korean team unofficially and ascertain
what is actually taking place. However under any circumstances it is advised that a foreigner
to never severe a relationship with the Korean when a deal is off or not moving towards the
intended result. This would only mean putting an unnecessary hurdle to the next visit to
Korean soils though with different party. Koreans are known to share and compare notes of
those in similar industry pertaining to a common foreign negotiator.

Nonetheless, another issue of great concern is the questioning of decisions made by the
higher ups or superiors, Korean companies have a more stricter unwritten rules governing this
act. Albeit no one will question decisions made by the senior or they will see a short career in
the company. In this instance it is essential that a western negotiator understand and accepts
the fact that those Koreans at the meeting table inform everyone his scope and limits tat
allows him to discuss matter and to continually consults his seniors during the progress of
the negotiation. So a meeting is concluded when all levels of management are fully satisfied
with the result. In a word a western needs great patience during a negotiation and practice
greater flexibility. However if the senior is present in a meeting, then this would only helps to
speed up the meeting and possibly meet the westerner’s timing expectations’.

Another aspect worth taking note is the fact that when a contract is on the way of final inking
or even duly signed by participating parties, a Korean may want to make changes or asked for
further concessions. To a non Korean or American, a contract is a contract and would abide
by it to the letter. To a Korean there may be a need to make amendments or adjustment
during the lull period after the contract has been agreed upon. This may not bode well with
the westerner. Conceptually to a Korean during the course of the negotiation, a Korean is
more engulfed in getting the spirit of the contract to amicable solution on the table or making
everyone basked into the ‘sense of agreement’. This is not as to undermine the contract but it
is seen as the needs and wants of the Korean changes over time and this needs to be
addressed or reflected immediately. In this instance Koreans do not want to pushed to a
cornered and banged with legalities over a recently signed contract but they value more on
the ‘partnership’ with the negotiating parties to realise that the Korean needs change over
time or even during the course of the negotiation. Consequently the Korean sees the
negotiating party as person who is interested to make the deal happen than ‘imposing
conditions or who would be able to tag along with their needs. Albeit the Korean put values
on spirit of togetherness that could stretch the relationship on a long term one rather adhering
strictly to the words written in the paragraph or relationship that based solely on the contract
per se. (Lee,Jonathan C ‘Guidelines for Effective Negotiations with Korean Managers). A
foreign negotiator should plan well in advance what concessions they are willing to make.
This would also mean that not to dish out the entire concessions in order to avoid the heavy
discussion or direct confrontation .However to provide concessions in small doses as the
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Korean expect a negotiator to bargain unrelentlessly as giving in too early in the early stages
is a sign of weakness to the Korean.

Koreans do not come to agreement until they are comfortable with the other party .This the
reason why negotiations begin with a series of smaller and informal meetings and exchanges
to put the relationship on a necessary personal level. As a matter of good strategy, a non
formal out in town prior to a negotiation could prove to provide an ice breaker and worth
more than several days cooped up in the board room of hard bargaining.(Asian Business
Codeword, De Mente, 2001)

A Korean wears two ‘faces’ for each for so called a social and professional encounter. A
Korean may be jovial and seen to put his guards down during the long hours of eating and
pouring drinks till the cow comes home, to a non Korean or westerner this could be seen as
having created an ally for the non Korean. This is can be misleading as the same Korean can
drive home a tough deal the morning after with the same company he was with the previous
night . Also one has to throw caution to the wind not to release any remarks during the ’let
loose the collar’ evening for the chances that this can be used during the negotiation by a
Korean to the unwary non Korean participants. The remarks may even be an innocent or
mentioned in a jest so as liven up the evening or possibly after having a bit too much of
merriment with the local brew (Lee, Jonathan C ‘Guidelines for Effective Negotiations with
Korean Managers)

The conclusions that can be drawn from the Korean negotiation styles are :

i. Get to a good background of the Korean organisation one is about to meet .

ii. Koreans need a negotiator to be part of an amicable solution rather than being handed
down the terms and conditions to comply to every conceivable syllable.

iii. Get help and views from the Korean team indiscreetly when one there is an impasse.

iv. Act curtly but not too congenial during a night out with the Korean guest. Be tactful.

v. Be flexible with time. Provide nicotine drag time for Korean smokers.

vi. Build patience and restraint callous remarks or manners when being stonewalled.

vii. Appreciate the pecking order within the group of Koreans negotiators present or in
absentia.

2) Japanese Negotiation Styles

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The Japanese share a certain similarities with their distant cousins Koreans and as like
any other oriental Asian i.e. the sense of getting personal is central prior to a negotiation.
In comparison to the westerner who are much into getting the job done and contract
sealed where facts and figures are the fodder during a negotiation and mutual benefits are
frequently highlighted. In other words westerners especially the Americans are not
‘racially or culturally homogenous’ (Michele LeBaron, 2003).

In a negotiation Japanese negotiators are describe as having shown ‘emotionless facial

expression’ or poker face. The Japanese would remain practically silent and does not
provide any form of response during the course of the negotiation. Apart from some
gestures of ‘hmm’or ‘uhh’which do not provide an encouraging scenario for the speaker.
Some even go to the extent of closing their eyes as if falling asleep or into deep
thoughts.However do not misled by this behavious as thesameperson will beableto
bounce back from this animated slumber and make a summary of what is to be the
conclusion that cab be drawn from the talks so far. So a Japanese with his closed is said to
be in deep thoughts ‘visualising’ every spoken words from those engaged in the meeting