Business Negotiation tactics in South Korea. Getting What You Want
Good strategy and preparation are the two most important elements of a successful negotiation. Careful study of the subject matter, clear calculations, business etiquette, active listening, empathy and a bit of luck - this is the mix that produces the most successful deals.
In the age of the Internet and online communication, preparation and negotiation have become much easier. Correspondence, phone calls, online meetings. Negotiators are separated by miles, oceans, language barriers and cultural traditions. Successful negotiations are all about listening, business etiquette and controlling emotions.
South Korean business etiquette
Business in South Korea is quite hierarchical, and this should be borne in mind when preparing for negotiations and meetings with Korean business partners. It is important to be aware of the rules of local business protocol. In Korea, a handshake is initiated by an older person and a slight bow is a sign of greeting. In general, Koreans do not shake hands, but a handshake is more appropriate for a foreigner. A firm handshake can be interpreted as rudeness. It is better to take and pass business cards, money and the like with two hands or alternately with one hand, leaning on the elbow of the hand you are using.
Is negotiation manipulation?
A successful negotiation is a win-win situation for all parties. The aim of negotiation is to balance the costs and obtain at least equal value for all parties. As long as you respect the other person's needs and are prepared to offer a fair deal, negotiation is perfectly ethical.
Manipulation or deception can do more harm than good in the negotiation process. Negotiate, make real points, use tested arguments. Don't talk about subjects you don't want to discuss, at least not in the early stages of the negotiation.
Listen more than speak
When preparing for a negotiation, you need to thoroughly research the details of the future deal, understand the market and the industry. Knowing the other party's point of view, interests and objectives is crucial to reaching mutually beneficial agreements. Familiarise yourself with industry standards. The agreement should outline the most likely and predictable outcomes for the parties. You should be clear about what you want to achieve, what you can accept and what you can give up.
Framing method
We interpret information differently depending on how it is presented to us. This is a cognitive bias called the framing effect: it is not the information itself, but how it is framed that influences a person's decisions. You can use this principle as a negotiating tactic. Show your counterpart the opportunities and win-win sides of the deal. But avoid manipulation.
Aspects such as the total deal, savings, guarantees, service, price can be discussed from different angles. Use the framing method, change the form of the discussion, not the terms of the deal or the end result.
Be prepared to compromise
No matter how reasoned your negotiations, you will often have to give something up in order to reach a mutual agreement. This is not always a bad thing. A partner is someone you can trust, even if not 100%. Be prepared to compromise and be open to alternative proposals.
People who come to negotiations with a plan A are often more successful. A complementary plan, Plan B, usually strengthens the negotiating position. Focus on what is really important to you. Calculate in advance what concessions you are prepared to make and what will definitely be unacceptable. Use figures and data that are easy to check.
Be prepared to walk away
The ability to express your thoughts clearly and persuasively, as well as active listening, contributes to mutual understanding. Empathy is important. Try to put yourself in your partner's shoes, understand their interests and point of view. This will build trust and strengthen the relationship.
Many people are afraid to walk away from a negotiation, to break it off. The ability to articulate your position clearly and effectively, and to understand and respond to the other party's concerns and objections, is critical to the success of negotiations. But what do you do if you can't find common ground? Being prepared to walk away gives you an advantage. Sometimes it is better to say "no" than to sign a bad deal.
Communication and empathy
Most social interactions, from expressing a desire to making a direct request, are simple forms of negotiation. Koreans are clever and strong negotiators. But don't expect your Korean counterpart to be similar in outlook and mindset. Effective communication is a key element of successful negotiation. Halla Systems Co. Ltd. negotiates with South Korean suppliers on behalf of its clients, acting as an intermediary. The Halla Systems team participates in the preparation of negotiations, reviews the parties' terms and requirements, selects suppliers, assesses risks, and participates in the detailed logistical planning of the transaction.