March 1995 No. 1

Corporate Policy

Strengthen cooperation with the local community by participating in community activities such as volunteer work, sponsorship, investment in education, and cultural programs. Always keep in mind that you are a member of the local community. Overseas investors should recognize themselves as a local entity and participate in various government and community programs designed to solve economic and social problems such as poverty and to offer help in time of disasters.

2. Build a Good Corporate Image

Once a company earns a bad reputation in the host country, it will not only have a negative impact on other Korean companies operating or planning to invest in the same country but it may also undermine the overall image of your home country, Korea, and its people. Make continued efforts to upgrade your corporate image and publicize your companyˇˇ contribution to the local community.

3. Maintain Cooperative and Complementary Relations with Local Industries

Be aware that your prosperity is closely linked to the economic development of the host country. Therefore, pursue a long-term success and co-prosperity strategy with the community rather than concentrating solely on short-term profits. In working towards this end, keep cooperative and complementary relations with local industries through the transfer of technology and procurement of local supplies.

4. Understand and Respect the Local Culture

Don't disregard the local culture just because the country is underdeveloped. You cannot expect the economic exchange with the host country to grow without understanding them. To be a good player in the global market characterized by cultural pluralism, try hard to understand and respect the culture and customs of the host country.

5. Maintain Good Labor-Management Relations

Work hard to maintain good relations with local workers. Adjust employment and personnel management policies to the local culture. Hire local people for managerial positions and pay attention to the welfare of employees, thereby giving the workers opportunities to develop careers and to feel a sense of achievement. An ill-informed labor-management relationship can give rise to labor disputes. Therefore, before sending employees overseas, prepare them for the local labor condition and culture.

6. Promote Industrial Safety

Local workers are valuable assets. Therefore, pay particular attention to their safety. Safety on the shop floor directly leads to productivity gains, and industrial accidents may damage your corporate image. Therefore, make continued efforts to keep the workplace safe.

7. Protect the Local Environment

Environmental protection is a challenge facing the entire world. Be particularly careful not to cause environmental problems in the host country. Positively contribute to environmental protection by utilizing experiences from Korea. Be sure to comply with the environmental standards and regulations of the host country.

8. Contribute to Technological and Human Resources Development of the Host Country

A home-grown technological base is a prerequisite to sustained economic development. Contribute to the economic development of the host country by helping local industries develop technology and human resources.

9. Protect Korean Expatriates and Their Property

Pay special attention to the safety of Korean workers and their families and to the protection of their property. For this purpose, adopt safety measures both at the head office in Korea and at the local subsidiary, and train overseas workers for any possible safety hazards. When problems arise, make sure to get the cooperation of both the Korean and host country governments.

KOREA FOREIGN TRADE ASSOCIATION NEWSLETER

Published monthly by the Korea Trade Information Center, The Korea Foreign Trade Association. 159-1 Samsung-dong, Kangnam-gu, Seoul, Korea Tel: 82-2-551-5251, Fax: 82-2-551-5249

159-1 Samsong-dong Kangnam-gu Seoul, Korea
zip code 158-729, phone 82-2-551-0114, fax 82-2-551-5161