HI, I am Rocco. Today I am here to explain one of the problems that discovered in the Accounting case. After having the research through internet and some printed document. I have identified a problem which is most of the Korean believe the authority so much. So in this case, the company strongly believes the government policies and doesn’t refuse the policies. The first reason is that base on the past experience; the government indeed could lead the company or even the whole country to success in economic aspect.
One of the examples is that the government successfully led the country get out of darkness of financial tsunami in 1997. The government lowered the target of economic growth and made a structural reform in financial sector. After these policies are carried, the economic growth rate in 1999 and 2000 are 11% and 9 % respectively. And for the unemployment rate, it decreased from 6. 8% to 4. 1% from 1999 to 2001. Moreover, due to the structural reformation of the financial sector, the credit rating of South Korea got A grade again. The total erect investment is 56. Billion US dollars during 1998 and 2002, which is 1. 3 times more than that from 1962 to 1997. The drastic increase in foreign investment was another positive signal of successful reformation. This shows that the government can actually implement some policies to recover the economy. That’s the reason why some managers or companies trust government so much. Another reason is that the culture of Confucianism is said to have been compatible with industrialization because it valued stability, hard work, and loyalty and respect awards authority figures.
Traditional Korean shows respect to the authority. So even the authority made a wrong decision, Korean seldom point out their mistake. Korean also hate being shamed by others. Even if they really want to point out some mistake of the authority, they will not talk to the managers of authority in front of a group of staff. Unlike some companies in open-minded country, they can talk to the manager directly. Moreover, the image of Korean is very important to them.
In their daily life, hey like having luxuries to show they are rich. The traditional values of Korea make the Korean obeying the orders and caring about the images. That’s one of the reasons why managers will follow the government rules. The living style and culture of Korea are unique and we are difficult to change it because it existed for hundreds of years. If we want to work in Korea in the future, we can only adapt their culture and avoid violating the rules in other countries. Korean business culture By Winooski