IX. BUSINESS TRAVEL Business customs It is imperative that any American doing business in Korea realize that Seoul is not Los Angeles. Every year Korea becomes more and more modern, but it is important to recognize that modern does not equal Western. Koreans will not expect you to be an expert on the nuances of their culture, but they will appreciate a show of interest in matters that are important to them. For Koreans, relationships are all important; "cold calls" don't work -- introductions are crucial! Koreans want to do business with people with whom they have formed a personal connection. The exchange of business cards is very important and a means by which Koreans learn about the name, position and status of the other person. Always have your (preferably bilingual) business card at the ready and treat the exchange and your counterpart's card with some respect. (It is custom to receive and present items with both hands). Negotiating style is particularly important. Korean businessmen can prove subtle and effective negotiators and commitment to a rigid negotiating tact early on may work to the American's disadvantage. Your offer may include the best price, technology and profit potential but still get turned downed because the Korean customer doesn't like your style. An important point must be kept in mind concerning the nature of reaching agreement with a Korean firm. Westerners attach great importance to a written contract which specifies each detail of the business relationship. Koreans, on the other hand, value a contract as a loosely structured consensus statement that broadly defines what has been negotiated, but leaves sufficient room to permit flexibility and adjustment. The Korean Government has attempted to address this dual perception by formulating "model" contracts for licensing technology and other arrangements. Both parties must be assured the obligations spelled out in a negotiated contract are fully understood. Most Koreans have three names. These names usually follow the Chinese pattern of a surname followed by two given names. In addressing Koreans, foreigners should stick to the use of surnames (Mr. Kim; Miss Lee), using formal titles if possible (Dr. Yoo; Chairman Song). Travel Advisory Travelers with questions or concerns about traveling to Korea should check with the Department of State, Korea Desk, Room 5313, 2201 C Street, N.W., Washington, D.C. 20520, Tel: 202/647-7717, Fax: 202/647- 7350 Although Korea has not yet made its mark as a tourist destination, Seoul has long been a well established business center. As an Asian business center, Seoul has the selection of deluxe hotels one would expect. These hotels cater to the needs of busy professionals with business centers offering secretarial services, translation and interpretation, courier service, printing and photocopying, telecommunications and equipment rental. It is relatively easy to get to Korea from the U.S. Flying time ranges from 10-14 hours, depending on point of departure and season. Kimpo International Airport, located 10 miles southwest of downtown Seoul, is the primary gateway to South Korea. For information on Kimpo operations, English speakers can telephone 660-2471/2 (foreign airline terminal) or 660-2481/2 (Korean-owned airlines' international terminal). Korean speakers can dial 660-2200 or 660-2114. Visas Visas are not required for American visitors in transit through Korea, or for tourists who do not remain in Korea for more than 15 days and hold confirmed outbound tickets. However, since there are no extensions and a substantial penalty at departure for those who exceed 15 days, it is a good idea to get a visa from a Korean embassy or consulate prior to coming to Korea, if you think your stay might approach two weeks. On a business visa visitors may stay for up to 90 days. A business visa requires a letter from an American company stating the purpose of travel and photograph; no written invitation from a Korean firm is required. Travelers wishing to exit and return to Korea within the period specified by their visas need simply obtain a re-entry permit when departing. A long-term resident visa (beyond 90 days) is more difficult to obtain than the business visa. Application must be made to the Ministry of Justice from outside Korea. It requires considerable documentation, including a letter of invitation from a Korean company [why?] and contractual evidence of legal employment. Starting July 1, 1994, however, the Justice Ministry will extend the long-term stay for foreigners from three years to four years. They have also simplified the visa renewal process, eliminating the 15-day, out-of-the-country wait period. Renewals will be available at overseas Korean diplomatic missions by filing applications here before leaving. Also starting July 1, 1994, 43 automatic passport-reading machines will be installed at Kimpo International Airport. This will help ease the entry and exit procedures for foreigners, with only random checks to be conducted. For help with all matters pertaining to visas during your stay in Korea, contact the nearest of the nation's 25 immigration offices under the Korean Ministry of Justice, Tel: 720-2817/2820 or 776-8984. The ministry has recently announced improvements in services for non-Korean speaking foreigners, including a new recorded information service (dial 655-2103/6 and push #3 for information in English on alien registration). If you are in the U.S., contact the nearest Korean embassy or consulate general listed on page ??. Upon arrival in Korea an immigration card and customs declaration (given to you on the plane) should be completed before reaching the first floor arrival processing area. No vaccination certificate is required for entrance under Korean quarantine regulations. In clearing customs, gifts with a value of up to $375 (which can include up to two bottles of liquor, 2 ounces of perfume and 400 cigarettes) may be brought in duty-free by non-residents. Currency in excess of $5,000 must be declared. For international departure from Kimpo there are two terminals: terminal 1 for 16 foreign carriers; and terminal 2 for the two Korean airlines and 7 foreign ones. At check-in a passenger service charge of Won 7,200 ($9.30) must be paid. Also, be aware that the Cultural Preservation Properties Law prohibits the export of "significant" Korean cultural properties. Non-residents must declare in writing to Korean Customs all foreign currency with a value in excess of $10,000 that they carry into or acquire in Korea. This rule is enforced. When buying won in Korea be sure to keep the receipt(s) because re-exchange is allowed up to the amount specified; without receipts only $500 worth of won can be re-converted to dollars. A maximum of $5,000 (about won 4,400,000) can be exported. Americans living in Korea for over six months can convert up to $5,000 into won at one time. For shorter stays the maximum is $500 at a time. Visitors are allowed to bring in duty-free gifts with a value of up to $100. For travelers within this limit no written declaration is required. Additional gifts and other items which will remain in the U.S. are dutied at a rate of 10% up to $1,000, and at variable rates thereafter. Returning U.S. residents can bring in articles totalling $400 in value duty-free when the articles are for personal use. After the $400 exemption, the next $1,000 worth of personal or gift items are dutied at a flat rate of 10%. Beyond $1,400, various duty rates apply according to item. Both residents and non-residents are limited to one carton of cigarettes, 100 cigars and one liter of alcoholic beverage or perfume for duty-free import. The duty-free limit is $50 for bona fide gifts mailed to the U.S. All mail shipments must contain a written declaration. Foreign-made personal articles are dutiable each time they are brought into the U.S., unless one can prove prior possession. Articles bought in "duty free" shops in foreign countries are subject to U.S. customs duty. Articles purchased in U.S. "duty free" shops are also subject to U.S. duties if they are brought back into the U.S. Visiting Americans should be aware of possible trademark and copyright violations when purchasing in Korea makes such as Reebok, LA Gear, Gucci, Polo, Rolex and Members Only, and most computer software and games. Due to the high potential for counterfeiting, items bearing the above-named trademarks (and several others) cannot be legally mailed into the U.S. By attempting to take counterfeit goods through U.S. Customs, one runs the risk of having them confiscated. Possession of significant amounts of counterfeit goods can lead to criminal prosecution. If you have any questions, contact the U.S. Customs office in the Embassy in Seoul at 397-4644. Holidays 1995 January 1 & 2 : New Year Holidays January 30, 31 & February 1 : Lunar New Year Days March 1 : Independence Movement Day April 5 : Arbor Day May 5 : Children's Day May 7 : Buddha's Birthday June 6 : Memorial Day July 17 : Constitution Day August 15 : Independence Day September 8, 9 & 10 : Korean Thanksgiving Days October 3 : National Foundation Day December 25 : Christmas Day Business infrastructure (e.g. transportation, language, communications, housing, health, food) When visiting Korea on business it's best to reserve your room in advance. This is doubly true for the last weeks in April and much of October. Further, it is a good idea to confirm your hotel reservation and any special requests by fax. Call the Korea National Tourism Corporation at 82-2-757-0086 and ask for an English assistant for help finding a hotel outside of Seoul. Tipping is not customary, but a 10% service fee is charged at most hotels, as is a 10% Value Added Tax. Many of the hotels offer attractive corporate discounts, but they are usually not available if you book through a travel agent. Finally, participants in official programs (such as trade shows, "matchmakers" and other official trade missions), sponsored by the FCS or other entities of the U.S. government can often be accorded the "Embassy rate" at certain hotels. By faxing the Seoul Tourist Association on 82-2-757-9756 one can request a comprehensive listing of Seoul hotels, inns and hostels. The public transportation system is very well organized. With timely subways and city buses that service the whole city, the only real problem is the traffic. The seemingly endless rush-hour traffic can be a major hinderance, so early preparation, as well as lots of patience, is required. Thanks to the new non-stop limousine bus service commissioned by the government and operated by Korean Air, travel to the major hotels is quite easy. The fare is won 3,500 ($4.50), one-way and won 2,000 for ages between 6-12. As an added convenience the buses are equipped with pay phones and tourist information. Seoul boasts a world-class trade resource known as the Korea World Trade Center (KWTC). Included at this site are the Trade Tower, the Korea Exhibition Center (KOEX), the City Air Terminal, a convention center and the Seoul Intercontinental Hotel. Most private office are open from 8:30 a.m. to 6:00 p.m. weekdays and from 9:00 a.m. to 1:00 p.m. on Saturdays. Korean Government offices keep similar hours, except for a 5:00 p.m. closing from November through February. Banking hours are from 9:30 a.m. to 4:30 p.m. weekdays and 9:30 a.m. to 1:30 p.m. Saturdays. The U.S. Embassy is open from 8:30 a.m. to 5:00 p.m. weekdays and closed on Saturdays and Sundays.