Business fundamentals and applications

Korean History: The Climate and Culture of Foreign Business

The challenge of any cultural history undertaken to determine the foreign business fitness of a location is to make sure that there is due respect afforded the society with regard to issues that might not be seen as directly affecting the bottom line. So much of the time in the business world we are collectively focused on the ideas that surround the continued development of the global world economy, without regard for the existence of prior national issues. An easily made mistake for a researcher addressing issues of Korea from the United States would be to distill Korean history into a form that only include the interests of this country after the Korean-American War.

This account will attempt to address those issues by addressing the culture through its earliest history to its present state through modern demographics, religion, education, housing, leisure activities, climate, politics, language, currency and the recent developments associated with the division between North and South Korea. Both the very serious and the socially intriguing will be discussed in a brief overview of the cultural climate of South Korea. Though this is in no way a long enough work to encompass the entire rich history of Korea it is meant to be a starting point for the beginning of a more complete independent exploration. The kind of exploration that would be suggested to any person thinking of expanding their business into South Korea or simply immigrating there to answer the need of an already active and very prosperous foreign business market.

Of coarse, some of this information can be gleaned from long exhaustive research in history books and political commentaries but with the advent of the Internet information, especially about Asian culture has become much more available to the non-academic. If a researcher chooses his/her sites wisely by addressing the sources and organizations that enable this research so much can be easily accessed by simply logging on to the Internet and performing searches for the parameters of Korean Culture you wish to address, be they issues of education, language, or housing. Another intriguing way to receive real life information about cultural issues would be to find first person accounts of life in Korea by signing up for email list serves on the topic and also finding legitimate sources for first hand communication with Koreans and expatriates already in South Korea. This is a great starting point for any information about South Korea that might not directly relate to the business aspects of a planned transition.

Korean history is rich in culture and fable, a history as independently rich as any nation. The foundations of culture and government are traced through a series of dynasties, monarchical families. Each dynasty is associated with a time of change. The focus of each individual dynasty might run the gambit of all cultural and political development, some dynasties were known for their great contributions to literature, art and science while others were associated with more political focuses. The stories and the rich imagery of Korean Cultural History are often rejected by rationalists and often discredited as fable yet the need for understanding is evident regardless of the impetus. Korean Cultural history is ancient and rich and just as any ancient history the difficulty of proof or disproof through archeology or any other means is present. Yet, regardless of the secular identity or focus of today's world economy the validity of culture requires not only knowledge but also respect of a strong cultural character.

The real and spiritual connection that the Korean people feel to their long and rich history is a source of great pride. According to the Korean History Project:

The rational, logical mind quickly dismisses such legends as meaningless mythology, an indication of Korean totem worship. Much of what Westerners find so irrational and inconsistent with legends such as this represents the whole foundation of the Korean culture and it is the key to understanding their history. The ancient people of Choson did not question the significance of the legend's underlying truth that a deity had desired to become human of his own volition. Unlike Westerners, Koreans never considered the earth as a place of exile for the gods, or a place where sinners were sent to do penance. They believed their land and their nation comprised a wonderful dream, a dream so good that even the deities and animals wanted to live there. Koreans felt gratified to have chosen so beautiful a place for their home. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm)

One of the oldest and most fundamental stories of the origin of Korea is associated with the foundation of the first Korean Dynasty. The intervention of a god whose son coveted a place on earth where he could live in peace as a human founded the Choson state, literally translated as "Land of Morning Calm." Choson was said to be founded in 2333 BC. The prince came down from heaven and made his home near a sandalwood tree. Hearing of this occurrence two previous inhabitants of earth a Bear and Tiger when to the godly prince and asked him to make them human as well. He gave them a challenge. The Tiger failed the challenge and the Bear met the challenge and was transformed into a beautiful woman, who then became the wife of the prince. From this union springs the first king of the Choson Dynasty, Tan-gun, the Sandalwood King. From this legend springs the source of the legacy of the tiger as well, in the last year of Tan'gun's reign he bestowed a gift on the old tiger who had failed his earlier test and he became human but only for short periods of time. In this role he would know what it was to be human both the good and the bad and he would become the guardian and historian of the Korean people as they became their own separate sovereign. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm)

He is the Tiger of Shinshi, the Warden of Three Thousand Li, Defender of Choson, and Guardian of the Golden Thread. He is the strength and cunning the Korean people have used to defend their homeland. He protects and keeps alive the long and ancient history of Korea and his teachings pass this legacy to each new generation. He is the comforter who brings peace to the spirits of Korea's ancestors and who safeguards and protects the Golden Thread, that which ties and binds the Korean people together throughout time, a thread that must never be broken. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm)

Though to an outsider these stories may sound nothing greater than quaint and colorful real history of the Korean people is rooted in the stories of its first dynasty and in the ideals of its early ancestry.

Despite incomplete evidence to support it, many archaeologists and historians accept the Tan'gun legend's founding date of 2333 BC as correct. Even ancient Chinese records written twenty or thirty centuries before Christ, mention the name of Choson. Whether legend or fact, somewhere, sometime, the power and personality of a man called Tan'gun made a deep and lasting impression on the Korean people. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm)

Though there are several other dynastic legends that can be addressed through the early Korean History the Tan'gun legend and the history of the Choson Dynasty are a wonderful expression of the essence of the ancient history of Korea. During the Choson Dynasty much of the culture was developed as the formal Buddhist codes, mores and etiquette was replaced by the Confucian ideals. The focus on Confucian beliefs was extended to state policy and academic institutions.

Through the history of Korea there can be found a near constant conflict between the ideals of Confucianism and the reality of landed economic interests, this can be seen even in modern times.

Confucian dogma promoted career advancement according to a fairly administered examination system that demonstrated a candidate's ability in the art of governance. It also promoted the ideals of simplicity and frugality and condemned materialism. This inherent contradiction between Confucian doctrine and the power and privilege of the aristocracy existed regardless of who held power in government. Government agencies, staffed largely with younger, less privileged men deeply committed to Confucian ideology, constantly challenged the old guard's enjoyment of high station. The views of the highly reform-minded literati had an idealistic and moral thrust that differed from that of the scholar-bureaucrats in Seoul. They freely used the tools of character assassination and malicious, unfounded allegations against anyone they felt was their enemy. The most trivial point of Confucian doctrine, even a minor breach of social etiquette, could become the pretext for an attack from the literati. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm)

In the time of the fourth ruler of the Choson Dynasty, King Sejong (1418-50) the ideals of science and literature were developed as the class wide Korean alphabet, Han-gul a highly scientific yet simple and effective writing system came into use among the whole of Korean society and had an equalizing effect on class structure. These changes and others mark a "golden age" in Korean history focusing on the ideals of a more progressive government, economy and science and arts. Ascension of Sejong to the throne in 1418 led to a series of technological and cultural changes that would see Korea through to the most recent past with an ideal as a historical model and a standard for scientific and social progress.

The Confucian expression "agriculture is the basis of government" was a practical fact of life in Choson and King Sejong and his scholars at the chiphyonjon paid particular attention to agricultural research. The government took an active role in improving the lot of Choson's farmers by investing in the development of new and better agricultural technology. It sponsored research that led to the development of new seed strains better adapted to Korea's climate. Acknowledging the differences between Korean and Chinese soils and climate, scholars compiled a manual in 1430 on agricultural techniques called, Straight Talk on Farming, a custom-designed manual that addressed the specific needs of Choson agriculture. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm)

Though far from finished the ancient history of Korea has recently become very well documented and the reality of the history of a challenged nation through the encroachment of European imperialist Portugal and later other nations and through the flagging power and alliances of other Asian island nations Korea and its people have withstood much.

Another Aspect of Korean History worth mentioning is their historical isolationism. Through history they have shown no interest in becoming a colonial power. They have determined to stay within their own means and borders and have sometimes been seen as benevolent eternally bound to their beautiful and beloved land.

Once known as the "Eastern Land of Courtesy," Korea seldom cultivated overseas interests, never invaded its neighbors, nor sought development outside given boundaries. The Korean's excessive adulation of their homeland and their aversion to coveting the territories of others eventually invited foreign invasion, subjugation, and a long period of colonial suffering. Koreans have preserved the Tan'gun legend and its psychological foundation through the centuries as a source of spiritual comfort in times of crisis. Koreans feel a solemn duty to pass on such beliefs and the pride of a people with a long history and ancient culture to succeeding generations. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm)

Korea's sense of isolationism left it a fertile ground for the 19th century colonial movement. Korea used many means to insulate itself from the encroachment of western thought on its culture, business and economy. Korea maintained its ancient tie with China, who was busy fighting its own battle against westernization.

Japan had learned to master the new tools of power by the second half of the nineteenth century and gradually assumed a new role in relations with its neighbors, that of an aggressive Eastern state. Until its eventual downfall in 1945, Japan acted toward East Asia in much the same way Western powers had acted toward Japan and other East Asian nations. The reawakening and growth of an active Japanese interest in the Asian continent coincided with the rise of Western expansionism in East Asia. (Korean History Project 2000)

After countless years of resistance Korea became one of the first regional acquisitions of modern Imperialist Japan through Japan's cunning ability to wade through the diplomacy of a more global world focus.

Both Britain and the United States allied with Japan believing that the imperialism of the east needed to be balanced in much the same ways they believed this of western style imperialism.

In 1910 after a centuries long repetitive invasions and power shifts modern Japan officially annexed Korea. Japanese occupation of Korea, lasting between 1910 and 1945 Japan increased the stability of Koreas infrastructure through the development of massive transportation projects and other foundational development that would enable the modernization of Korea.

Yet the Japanese imperial regime was ruthless in its attempt to eradicate Korean culture. "The Japanese ruled with an iron fist and attempted to root out all elements of Korean culture from society. People were forced to adopt Japanese names, convert to the Shinto (native Japanese) religion, and were forbidden to use Korean language in schools and business." (Life in Korea (http://www.lifeinkorea.com/information/history2.cfm)

After nearly 20 years of social control at the hands of the Japanese government there was a Korean uprising in 1919, the failure of which lead to worse conditions that before bordering on a Korean genocide. "The Independence Movement on March 1, 1919, was brutally repressed, resulting in the killing of thousands, the maiming and imprisoning of tens of thousands, and destroying of hundreds of churches, temples, schools, and private homes." (Life in Korea (http://www.lifeinkorea.com/information/history2.cfm) As imperial Japan came under increasing pressure through the coming years the threat to Korean culture was unflagging and possibly the worst occurrences to date occurred during World War II when Japan's great need for resources drained the Korean country of even its people. Many of the forced laborers were never repatriated to Korea. (Life in Korea (http://www.lifeinkorea.com/information/history2.cfm)

The Japanese surrender in World War II led to the present state of governmental divide in Korea. Though the Koreans had fought long and hard for their independence the state that developed was hardly the one they had hoped for. When the surrender occurred on August 15, 1945 the nation was divided in to its present North Korea or the Democratic Peoples Republic of Korea (DPRK), to be managed and occupied by the communist USSR and South Korea or the Republic of Korea to be managed and occupied by the United States.

The 38th parallel was established for the sake of convenience by the two powers, the U.S. And Russia, to facilitate the removal of the Japanese occupying the Korean peninsula. However, it has become an eternal dividing line. Communist North Korea made clear their intentions by refusing to hold general elections commanded by UN resolution. The U.S. withdrawal from South Korea in 1948 prompted a Northern attempt at reunification begun by a bloody invasion of South Korea. "On June 25, 1950, the North Korean Army invaded the South, starting the Korean War. UN forces helped the South while Communist Chinese volunteers sided with the North, resulting in a three-year war which left millions dead on both sides." (Life in Korea (http://www.lifeinkorea.com/information/history2.cfm) The final outcome of The Korean War is still debated today as North Korea continues to threaten South Korea with another communist reunification attempt and most recently North Korea has begun to threaten the world with the announcement of attempts to develop a nuclear weapons system. (American City Business Journals Inc. February 11, 2003)

If there is any one theme that rules the thoughts and mind of all Koreans in both the North and the South it is an independent and unified sovereign nation of Korea. Both parties with the help of the respective advocates have made attempts, and considerable progress has of coarse been made. Yet the tide seems forever changing. In one moment terms of accord seem to be within sight and hope springs anew as when the communism lost power in the Soviet Union and Eastern Europe and the Berlin Wall fell and reunification of Germany was realized. Yet, in the next as is the case today's very recent fearful and real the threat by the DPRK of nuclear armament.

Through the years of threats from North Korea and some assistance from increased foreign trade and national pride South Korea has defied the odds and prospered to such a degree that they have developed a seemingly endless exponential growth. Since the end of the Korean War in 1953, the Republic of Korea has achieved astounding economic growth, a phenomenon sometimes referred to as the "Miracle of the Han-gang River." The areas of strongest development continue to be shipbuilding, semiconductors and consumer electronics, although the Korean automobile industry is rapidly gaining a foothold in overseas markets. (Library of Congress Country Studies 1990, (http://memory.loc.gov/cgi-bin/query/r-frd/cstdy:@field (DOCID+kr0007)

Annual trade in 1988 more than U.S.$100 billion; first time world's tenth largest trading nation. Major trading partners United States and Japan. Main exports textiles, clothing, electronic and electrical equipment, footwear, machinery, steel, ships, automobiles and automotive parts, rubber tires and tubes, plywood, and fishery products. Main imports machinery, electronics and electronic equipment, petroleum and petroleum products, steel, grains, transport equipment, raw materials, chemicals, machinery, timber and pulp, raw cotton, and cereals. Balance of payments affected by oil imports and raw materials needs; surplus of U.S.$4.6 billion in 1989, but deficit of U.S.$1.9 billion, 1990. (Library of Congress Country Studies 1990, (http://memory.loc.gov/cgi-bin/query/r-frd/cstdy:@field (DOCID+kr0007)

Korea is aiming to enter the twenty-first century with a restructured industrial model that will allow her to compete successfully in the free world markets.

For example South Korean Gross National Income, which include the income of foreigners as well as Koreans has seemingly unceasing exponential growth, though recently proven touchable by the downtrend of global economic forecasting due to increased of security threats from the North (American City Business Journals Inc. February, 6 2003, February 9, 2003, February 11, 2003)

For the first time since the North Korean nuclear crisis began last October, something has happened that means direct financial harm to South Korea as a result of this matter." (American City Business Journals Inc. February 11, 2003) As you can see there have been some more concrete movements in business to warn consumers and businesses of a possible down turn. "Moody's Investors Service has downgraded South Korea's ratings outlook from positive to negative, citing "heightened security concerns stemming from North Korea's nuclear weapons program." (American City Business Journals Inc. February 11, 2003) Yet it must be remembered that the results of these new down turned business forecasts are preliminary and for the sake of the stability and continued prosperity of the existing foreign business in South Korea it is important to keep in perspective both safety and resiliency as one looks to South Korea as a possible business destination.

Though history, politics, economy and business interests are definitely a big part of the needed information for a planned transition into the business culture of South Korea, individual people must also have some understanding of statistics, demographics and more importantly personal issues like communication, housing and custom. The estimated population of South Korea in 2000 was 47,470,969, on a landmass just slightly larger than India's. (World Wide Media Relations, From the 2000 CIA World Fact Book, 2000)

As I have said before the state accepted religion is Confucianism, which assists the culture in maintaining a strong sense of family and cultural identity, yet the South Korean Constitution also guarantees religious freedom. There are over 300 registered religions, including Christianity, which has had a strong influence over recent years with the increase in east-west relation. (Korean History Project 2000 (http://www.koreanhistoryproject.org/Ket/KETIndex.htm) Founded on July 17, 1948, the Korean constitution, Founded on July 17, 1948 guarantees individual rights and stipulates three independent administrative bodies (The Government, the National Assembly, and the Judicial System). Establishing a democratic representative government with a capital city located in Seoul, six other metropolitan cities, nine provinces with seventy-two cities and 91 counties. (Library of Congress Country Studies 1990, (http://memory.loc.gov/cgi-bin/query/r-frd/cstdy:@field (DOCID+kr0007)

National Assembly

The unicameral system is composed of three major parties: The ruling parties, National Congress for New Politics 104 Assembly seats United Liberal Democrats 52 Assembly seats Major opposition party Grand National Party has 137 seats (as of Oct. 1998).

Judicial System

Three courts make up the judiciary: *the Supreme Court, *the High Court, and *the District Court. Up to three appeals may be made. There is also a Constitutional Court.. (Korean Infogate 2000 (http://www.koreainfogate.com/aboutkorea/aboutkorea.asp?title=Government&src=d)

In Korean culture just as in western culture, education is seen as a key to future success

Maybe even more important than in western civilization, the school one graduates from can determine whether one will have success or failure throughout their career. Many Korean parents, value the education of their children above all other considerations and they might make tremendous sacrifices to have their children get the best education they possibly can.

The Korean education system consists of six years of primary school, three years of middle school, then three years of high school. Those who pass the national exam go on to a 4-year college or university. Others go to a 2-year junior college, while the rest enter the workforce. Until recently, most middle and high schools were segregated by sex. However, because of complaints about differences in the quality of education received by boys over girls' schools and socialization problems later in life, most school have gone co-ed. (Korean Infogate 2000 (http://www.koreainfogate.com/aboutkorea/aboutkorea.asp?title=Society&title2=Education&src=f_3)

Housing is always a main concern under any circumstances, if a business transfer allows the possibility of transitional housing or if they offer housing location assistance take supreme advantage of it. Though traditional housing has gone by the way side and the more modern high rise apartment living has become the standard at least in an urban setting there may still be issues associated with both coast and level of accommodation to be addressed regardless of your destination. There are regional differences in plumbing sewer services and of coarse size that many westerners find very disturbing when they relocate sight unseen. (Korean Infogate 2000 (http://www.koreainfogate.com/aboutkorea/aboutkorea.asp?title=Society&title2=Housing&src=f_8)The best advice that could be given would be to obtain the assistance of a regional expert real estate agent who can send you lots of pictures and diagrams of prospective houses or apartments. (Korean Real Estate Agent 2003 (www.korean-realty.com)