Samsung – Culture

MRV Sridhar
SOUTH KOREA

• South Korea officially the Republic of Korea is a sovereign country located in the
southern part of the Korean Peninsula

• Total area of 99,392 km2 (38,375 sq mi) and has a population of 51.47 million

• The capital and largest city is Seoul, with a population of 9.8 million

• South Korea is a member of the United Nations, WTO

• Current President of South Korea is Moon Jae-in

• Korea developed it’s unique culture and tradition even though with long history of
relationship with Japan and China.

• Korean business culture is very different from western culture and different to it’s
own Asian neighbors
Korean Culture

Key six part’s of Korean culture and it’s impact on business practices

• Kibun : Kibun as one of the most important key aspect of the Korean culture, which
influences the way to do business in South Korea. It basically means a mood or feeling of
balance and good behavior
• Inhwa : Another key principle of South Korean business culture is Inhwa, which is defined
as harmony. As a collectivist society, consensus is an important element in promoting and
maintaining harmony in South Korea
• Power distance and Hierarchy : South Korea is a country with high power distance and
hierarchy. Usually, the eldest person in the gathering initiates activities, such as entering a
room, greeting and eating. The person of lower status bows to the one higher.
• Confucianism : It permeates the Korean life. It influences both the personal lives and
business world in a high extent. Confucianism influences South Korean society very much in
many different ways, such as the status, social contacts, relationships with others, etc.
• Personal relationship in doing business : In South Korea, the personal relationships are
essential for doing business, and usually established before the beginning of the business
process.
• Business Etiquette : South Korean unique business etiquette mainly exhibits in six aspects,
which are introduction, greeting, business cards, business meeting, K-Type management
style, and gift giving.
Samsung and Key cultural impact’s on it’s business

• Founded in 1938, the Samsung Group is the largest corporate entity in South Korea, with
$210.9 billion in revenue in 2017 and 315,000 employees worldwide.

• Best known for its flagship, Samsung Electronics (SEC)—producer of semiconductors, cell
phones, TVs, and LCD panels—the group’s highly diversified businesses span a wide range of
industries, including financial services, information technology services, machinery,
shipbuilding, and chemicals.

Key changes

Samsung an organization focused on continuous process improvement, when focused on

Innovation to capture world market, moved from it’s Confucian tradition of reverence for
elders, Samsung introduced merit pay and promotion, putting some young people in positions
of authority over their elders.

To compete outside its home markets, Samsung injected some highly incompatible business
practices into its business model. Beginning in 1997, for instance, the company slowly
introduced into its seniority-based pay structure a merit-based compensation system.

Samsung’s continuous improvement culture where the entire rank and file participated is
different from it’s Korean culture and business practices adapted by other major companies.