President Moon repeatedly called his China trip a monumental undertaking to mend soured
ties... especially on economic cooperation.
Many experts point out however....instantly visible progress is unlikely as Beijing is
more about slow, steadfast and steady.
Won Jung-hwan explains the core difference in building business relations.
we should first expect small steps taken in that direction.
Following a year-long standoff over the deployment of THAAD on the Korean peninsula, Seoul and
Beijing are rapidly getting their relations back on track.
Highlighted by President Moon jae-in's state visit to China this week, efforts to normalize
ties are seen on all fronts, raising expectations that economic exchanges between the two sides
will get a much needed boost.
However, many Korean companies stress that doing business in China takes not only time,
but also understanding of the country's unique concept of trust.
NMC cosmetics first entered the Chinese market 5 years ago.
The company has managed to gain popularity among Chinese customers, and it has expanded
to several cities across China.
However, it wasn't an easy road, according to its CEO, as the way of doing business in
China is a learning experience of its own.
(KOREAN)
"It takes time to build mutual trust.
In my experience, you need to interact with Chinese business partners for at least 5 years
to gain their trust.
I realized that the concept of relationships in China is very different from ours."
Chinese society has many unique traditions, and building sound networks and relationships
is key in the business sector.
(STANDUP)
"It pays to put in the effort building and nurturing strong business networks in China
as…
'Guanxi', or 'relationships', has a big impact on business in the country."
Guanxi is a concept that describes connection, networking, and the basic dynamics in relationships.
Although Korea also regards human relationships as an important factor when doing businesses,
China's concept of relationships or guanxi is slightly different than Korea's,… and
many Korean business people fail to embrace the full meaning of guanxi
(KOREAN)
"Nothing is decided on the table.
The Chinese way of doing business is not spontaneous nor rushed.
In order to make a decision, they look at the history of that deal, including the people
were involved in the deal from the beginning.
That's why it is very unlikely that a decision is made right away when doing business with
a Chinese partner.
This is why we need to know their system first"
In Korea, seminars and classes have opened for people wishing to learn and understand
the concept and its application in business practices.
Incheon University is one example, where an academy of Chinese studies opened in 2015.
(KOREAN)
"Ahead of the Korea-China summit, and with normalization of economic ties in progress,
business with China will soon surge again.
As such, we opened these classes because we thought many people will be interested in
learning about practical ways to do business in China."
The program is held every year , and the business-centered curriculum involves Chinese culture and humanities.
(KOREAN)
"The concept of guanxi is simply put, the golden rule when doing business China.
And it will continue to be so as the concept is deeply rooted in Chinese society."
Ahead of his state visit to China, President Moon Jae-in said during an exclusive interview
for China Central Television that trust is the main objective of his third bilateral
summit with his Chinese counterpart Xi Jinping.
(KOREAN)
" . . " "Mutual trust between the two nations has
been damaged over the past years.
I believe mutual trust is of great significance to the development of bilateral relations.
It will be crucial if my visit to China this time will help restore mutual trust and deepen
the friendship between the people in the two countries."
Although establishing trust can take longer than expected, hopes are high that Korea and
China can soon cement mutual trust, especially in the business front.
A prime example would be the planned FTA talks between Seoul and Beijing, seen as a stepping
stone in strengthening economic guanxi between the two countries.
Won Jung-hwan, Arirang News.