JUNE 2014 BCBusiness 25 istoCk
a s i a
Doing Business in South Korea
Canada is poised to benefit from a newly minted free
trade agreement with the Asian star
by Jacob Parry
b
usiness ties
between Canada
and South
Korea have
been boosted
in recent years by that
country's billion-dollar
investments in Cana-
dian infrastructure,
commercial interests in
B.C. natural gas and a
sizeable export market
for Canadian lumber.
For an enterprise with
the smarts to overcome
the language and cul-
ture barriers, there are
ample opportunities in
the Korean market.
Partner Up
"The most effective and
efficient way is through a
joint venture with a local
company that is in your
industry, that is in the
business you are in, with
similar goals in the Ko-
rean market," says John
Kim, partner at Faskin
Martineau DuMoulin
LLP, and president of the
Canada Korea Business
Association.
"Sometimes the rela-
tionship considerations
may override the short-
term business consider-
ations, because the logic
is that the relationship
is more important to
the long-term business
goals," says Kim.
And it's important to
get the relationship right
the first time. Korea's
legal system is lengthy,
cumbersome and
expensive and courts
have been known to bar
foreigners from leaving
the country during a
dispute.
Culture Rules
South Korea is a
homogenous society
where history and tradi-
tion weigh heavily on
contemporary society,
says Mike Weisbart, a
journalist who lives and
works in Seoul and is a
board member of the
Canadian Chamber of
Commerce in Korea.
Age, rank and hierarchy
play an important role
in Korean business, and
certain behaviours com-
mon in the West won't
fly there. Never be late;
20 minutes early is the
norm, says Weisbart.
And don't even think
about cold-calling.
Trade Talks
Last March the federal
government signed a
free trade agreement
with South Korea that
is more extensive in the
tariffs removed, sectors
opened to investment
and labour mobility and
intellectual property
than
NAFTA. "No one
knows the benefits
of the agreement at
this stage," says Kim,
although he believes
it will at least increase
mutual awareness
between Korean and
Canadian businesses.
"We know that there is a
market there, but that's
different from having
processes in place to
open up business."
•
soUrCE: World bank
LITTLE BIT OF SEOUL
Modern and traditional
meet in downtown Seoul.
exports as perCentage of gDp
value of hi-teCh exports
57% 30%
Us$24 billioN
CANADA
SOUTH KOREA
Us$122 billioN
p22-27-Intel_june.indd 25 2014-05-01 1:18 PM
