As a trusted friend constantly
reminds me, “Don,
no one does what you do.”
Share and inform…. aspects of Korea facing business.
This noted…Contracts, legal
agreements and negotiations go hand in hand with business. I was once told that
in Korea the purpose of signing a contract or agreement was essentially to
formalize the partnership. Over time terms would be subject to change and
re-negotiation.
My Korea facing experience has
been that the contract fundamentally solidifies the working relationship. However, to maintain the partnership
contractual obligations the contract will require on-going changes to reflect
business conditions. In contrast terms in legal agreement in the West are seen
as immutable.
Challenges
Major differences in how Korean
and Westerners perceive legal agreements can surface during the negotiation
stage and even after the contract is in place. In particular, requests by
Korean teams for changes to a Western company’s standard agreements
and contracts can cause considerable frustration, especially for their legal
counsel. In the West some “red lining” of a document may take place but legal teams may see
unprecedented levels of questioning the most basic contractual language. Great
patience may be required to walk Korean teams through the Western legal
terminology and clarifications of what cannot be changed within the document to
maintain compliance with international laws.
Finally, it is not uncommon for
terms to be re-visited and questioned by other departments—often with limited or
no international legal or business experience— despite months of work between the Western and Korean
lead teams!
Oh, one more thing
Ensuring success
and sustainability in dealing with Korea-facing business
partnerships will require well-communicated expectations and
cross-cultural understanding. In particular any business plan and strategy
needs to take into account differences in the cultural
realities between the West and Korea. It’s here I can help., and echoing my opening statement. “Don, no one does what
you do.”
Questions? Comments? Want to chat?
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