AKBC e-Newsletter October 2024

Unfamiliarity. 

The root cause of missed opportunities between the Australia and Korea relationship lies in significantly in our limited understanding of each other's cultures, business practices, and societal norms. Despite being robust trading partners, both nations are missing out on the immense potential that could be unlocked through deeper and more widespread interactions. The essence of doing business in Korea hinges on the foundation of trust and personal connections, a concept central to Korean corporate culture known as '인간관계' (ingangwangye), which emphasises interpersonal relationships. Recognising this, people-to-people connections have been rightly prioritised as one of the three pillars of the Comprehensive Strategic Partnership between our countries.

The lack of extensive people-to-people relationships between Australians and Koreans is a significant barrier. In Korea, business decisions and partnerships are frequently cultivated in social settings, where mutual trust and understanding are developed over time. This approach contrasts with sometimes what can be a more transactional approach in Australian business practices. Australia and Korea must both invest in face-to-face engagements and prolonged exposure to each other’s cultures to bridge this gap. Initiatives like the New Colombo Plan play a pivotal role here, enhancing understanding through student exchanges that build long-term professional and cultural ties.

To this end, the AKBC is committed to facilitating networking opportunities, business delegations, and partnerships. These initiatives go beyond mere formal engagements; they are vital investments in building the long-term relationships necessary for successful business collaborations. To truly benefit from these opportunities, Australian businesses must carve out the required budget to travel to Korea regularly and take a long-term view of these relationships, remaining patient as they develop. The significance of business delegations and conferences thus cannot be overstated, as these provide practical platforms for direct interaction and network building. 

We look forward to deepening our engagement and continuing to foster people-to-people links to pave the way for further success and cooperation between our two nations. 

Sincerely,

Liz Griffin

CEO

Australia-Korea Business Council