FBLA and South Korea...it is common to see American hotel chains, such as Best Western and FBLA...
Transcript of FBLA and South Korea...it is common to see American hotel chains, such as Best Western and FBLA...
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FBLA and South Korea Nikolas Lazar
FBLA Business Achievement Awards
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Table of Contents
3 General Information 6 Economic Information 8 Culture and Customs 10 Travel Information 12 FBLA in South Korea 14 Appendix
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PART I. General Information
South Korea is a developed nation of about 50 million residents. Despite its relatively
large population, the 28th largest in the world, the
country is comparable in size to Indiana. The
country is surrounded by water on the east, west
and south, and shares a border with the
Democratic People’s Republic of Korea (North
Korea) to the north. Because of its geographical
location, South Korea is susceptible to typhoons
and minor earthquakes. To the north, DPR Korea is a significant security threat due to their
hostile relations with South Korea and much of the western world. Despite this, South Korea is
widely deemed to be safe, and the capital, Seoul, is just 35 miles away from the border.
South Korea is has one of the oldest populations in the world with the median age being
about 41 years of age, and this, coupled with a relatively extremely low population growth rate,
has been the cause of some concern within the country. South Korea boasts a strong youth and
education system, with a low youth unemployment rate and top five scores in each category the
OECD’s rankings for mathematics, science and reading. Korean and English are the primary
languages in South Korea, with the former being taught in homes and the latter learned in school.
The country is primarily Christian with a sizeable Buddhist minority.
Korea is a very urban country, with the nearly half of its inhabitants living near the Seoul
area. The country is also known for being highly educated, with the one of the highest rated
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education systems in the world. Its education systems has also been criticized for overly
determining a student’s future. Getting into one of the three Korean “SKY” universities, the
equivalent of the Ivy League in the United States, essentially guarantees a solid socioeconomic
status. This rigidity has created both internal concern and external criticism.
The South Korean government is similar to the United States government in structure. A
republic, the government is composed of legislative, judicial and executive branches. There is
local autonomy, however there is no local autonomy in the judicial branch.The head of state is
the President, who is currently Park Geunhye. Ms. Geunhye has the power to declare war, hold
referendums, veto bills and serves as the commanderinchief. Her party, the conservative
Saenuri Party, lost 24 seats in the 2016 election cycle and became the minority party to the
centreleft Minjoo Party. South Korea’s National Assembly, the legislative branch, is a
multiparty system, however it is dominated by the Minjoo and Saenuri. The People’s Party, a
centre group, and the Justice Party, a left wing group, also are represented. The United States
boasts strong diplomatic relations with South Korea, and the two nations see each other as an
ally economically and militarily.
South Korea has been the site of outstanding economic growth. The CIA World Factbook
notes that “In the 1960s, GDP per capita was
comparable with levels in the poorer countries
of Africa and Asia. In 2004, South Korea
joined the trilliondollar club of world
economies”. South Korea’s trade with the
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world has boomed (see appendix) and is a major exporter of electronics and other mechanical
items to China, the United States and Japan. Because of their geographical location, South Korea
is a major importer of oil and coal products. The currency of South Korea is the Won, and one
USD is equivalent to about 1145.04 Won.
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PART II. Economic Information
South Korea is deemed to be one of the most complex economy by the
Observatory for Economic Complexity and has the 14th largest GDP in the world. The country is
primarily industrial and service based, with no true agricultural industry. They do produce some
level of rice and vegetables, however it is not a significant amount on the global level. The bulk
of South Korea’s economic success has stemmed from their ability to be a successful exporter.
That said, they are also a major importer due to their geographical location which makes the
production of some necessities, mainly fuel, impossible.
The country is the 6th greatest exporter
and 9th greatest importer in the world. South
Korea produces a trade surplus of about 77 billion
USD. It has successfully held a trade surplus
since 1997. South Korea is a major exporter of integrated circuits, cars and LCDs. The majority
of the country’s imports are focused on fuel, with 20% of all imports being crude petroleum, and
7% being petroleum gas. South Korea’s exports are primarily to China (25%), the United States
(11%) and Japan (6%), and the three nations are also the largest exporters to South Korea, along
with fuel producing nations Saudi Arabia and Qatar.
South Korea has a relatively free economy, however the economy is dominated by
‘chaebol’ conglomerates. Chaebols are conglomerates that are run by family dynasties and tend
to spread across a wide range of industries and sectors. These chaebols have been criticized for
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hindering the growth of smaller companies, which often cannot compete against these large
firms. According to the Heritage Foundation, a conservative think tank, South Korea still
struggles with corruption issues within its economy, particularly within the chaebols. These
chaebols, along with labor unions, are seen as the major players in the economy, and have major
influence on the South Korean government.
South Korea is widely seen as a strong country in which to do business, and was ranked
4th in the World Bank’s 2016 “Doing Business” rankings. This ranking makes it the second
strongest in the Asian region behind Singapore (ranked first overall). The country has made great
strides in the areas of ease of starting a business and has been praised for its strong business legal
system. The latter is important because a strong legal system significantly reduces the risk for
investors as they can be confident that they will receive fair treatment and be able to avoid illegal
dealings by their peers.
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Part III. Culture and Customs
South Korea is a very nationalist society, this stemming from an enormous amount of
homogeneity within the nation. The country has an extremely low migration and foreigner rate,
thus producing a strong identity. There is a strong sense of social hierarchy in daily life and
business. Older members of the community, along with those in elite positions, stand at the top
of the hierarchy. When conducting business, wait for the eldest person in the group to offer their
hand first in handshakes, and expect them to be the leader of the group. South Korean culture
extends outside of the office, particularly in the realms of food and conversation. Being picky or
declining to eat a dish is seen as extremely rude in South Korean society, and should be avoided
at all costs. In conversation, South Koreans are known for their strong sense of pride in their
country, and thus any criticisms or critiques of the country should be avoided, even if initially
made by a South Korean. Unlike in many western nations, discussions about personal things,
even with acquaintances, is common.
The business culture in South Korea is very important, and proper etiquette is highly
valued. Relationships are extremely important, and business relationships tend to be between
people rather than companies. When meeting a Korean for the first time, it is best to be
introduced by a third person rather than introducing yourself. During a meeting, expect to open
with small talk. The host will be the one to initiate the business portion of the meeting. Once the
meeting has begun, expect to jump around between topics rather than focusing on one. As a
guest of a Korean firm or client, it is important to follow this flow. While English is the language
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of business in South Korea, there is an importance difference in the usage of the word ‘yes’.
While in America we would deem this to be “I agree”, in South Korea it usually means “I
understand”. This is important to remember, especially when negotiating a deal.
In business and society, titles and positions are very important, so when meeting a client
or business person, be sure to make your status and authority clear from the beginning. When
distributing a business card, use both hands rather than one hand. When accepting a business
card, do not put it away, but rather read it and put it in front of you. Putting the card in your
pocket or wallet can been seen as rude in Korean business culture.
South Korean food is often overshadowed in America by its fellow Asian peers, Japan
and China, however it boasts its own unique and flavorful cuisine. Korean food is centered
around rice, meat and vegetables, and a soup of meat and vegetable and rice on the side is a
common main course in South Korea. Kimchi, a fermented, seasoned cabbage served with rice
or noodles is an extremely popular side dish in South Korea. For dessert, traditional Korean rice
cakes are common, and sweets tend to derive from honey or fruits.
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Part IV. Travel Information
My visit to South Korea will be in mid November as this time period is generally the
beginning of the Korean school year. Thus, we'll have more success in starting new chapters.
Due to the distance between South Korea and the United States, flying is the only feasible mode
of transportation. A passport is required, however a visa is not. The crime rate in South Korea is
low, and there are no significant security threats in the country. Seoul has one of the busiest
public transportation systems in the world, but is also known internationally for being one of the
best in the world. Despite having the second highest ridership in the world behind New York
City, the system is known for its cleanliness and efficiency. WiFi is abundant throughout the
city, even within the subway system, making communication easy. South Korea has a plethora of
restaurants and lodging due to its major urban cities and increased tourism. Because of the latter,
it is common to see American hotel chains, such as Best Western and FBLA partner Hyatt in
South Korea.
Part IV, Section A. Itinerary
I will depart Monday, November 14th and return on Thursday, November 17th. Due to
the time change and the distance between South Korea and the United States, I will arrive in
South Korea on Tuesday, the 15th. The flight details can be viewed in the appendix. Upon arrival
in Seoul, I will go to my hotel to prepare for my FBLA presentation. There, I will ensure that all
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of the materials are in order and rehearse the presentation. I will be staying Best Western Premier
Guro Hotel at a rate of $107.02 per night.The hotel offers a shuttle to and from the hotel,
reducing the overall cost of the trip. The following day will be the day of the presentation. There,
I will give a general presentation and then take questions from the audience. I may also host a
Q&A with members and advisers from the United States via a video call. My trip ends on the
following day, when I return home to the United States. The budget for the trip is below, a pie
chart can be found in the appendix.
Item Cost
Airfare $1,114.91
Hotel $214.04
Dining $100
Transportation $10 (tip for airport shuttle)
Total $1447.95
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Part IV. FBLA in South Korea
South Korea is an extremely exciting opportunity for FBLA. Due to the high quality of
South Korean education, strong English language skills and close relations with the United
States, South Korea is a prime candidate for international expansion. South Korean students
would be able to achieve at the high level FBLA provides, and their English language skills
would be extremely beneficial to the organization in both competitive events (no need for
translation, Korean speaking judges) and networking. FBLA can provide a benefit to South
Korean society by creating more opportunities for business related education. Education is taken
very seriously in South Korea, and FBLA can add a new dynamic to this already strong system.
In addition, 82% of South Korean students will attend university. In the United States, this
number is just 65%. This provides a superb opportunity for PBL to expand with FBLA into
South Korea.
As the world is increasingly connected, FBLA’s online presence has the opportunity to
boost our international recruitment efforts, particularly within South Korea. About 92% of South
Koreans use the internet, one of the highest rates in the world. This percentage rises when
referring to high school students, FBLA’s target market. Because of South Koreans’ strong
English language skills, a complete translation of FBLA’s social media accounts or website is
not required. Instead, FBLA can create a FBLA Korea site, similar to FBLA’s state websites.
This can contain Korea specific information in both Korean and English. Similar tactics can be
used on social media platforms.
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A unique opportunity for Korean students and teachers is create a sibling chapter
program. Because the English is taught in Korean schools and is a primary language of the
country, FBLA members will have the unique opportunity to communicate with fellow members
from across the world. Chapters in the United States can have a sister chapter in South Korea,
helping the South Korean chapters get off the ground, and also fostering culture sharing between
the two chapters. The two chapters can record videos, create a pen pal program or talk in real
time through a video conferencing service such as Google Hangouts or Skype. This will help the
South Korean chapters get off the ground with the help of an established chapter in the United
States while giving members in the United States the unique opportunity to learn more about the
global world.
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Appendix
A, 10 Recruitment Ideas:
1. Identify Korean immigrant members of FBLA and have them reach out to friends and
classmates in Korea
2. Expand the ‘Good Neighbor’ program to South Korea
3. Create a Korean language version of the FBLA brochure and recruitment video
4. Partner with a town/city to include all schools in said area
5. A sibling chapter program as previously mentioned to help chapters get off the ground
6. Hold ‘Introduction to FBLA’ nights at local schools as we begin to emerge in South
Korea
7. Partner with local companies to promote FBLA within schools
8. Expand FBLA national membership initiatives such as Membership Mania and Connect
Ten to South Korea
9. Create a membership initiative designed specifically for South Korea
10. Create a South Korea FBLA online presence where interested high schoolers can learn
more about FBLA
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B. South Korean Trade All Images from OEC
South Korean Exports
South Korean Imports
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South Korean Export Destinations
South Korean Import Places of Origin
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C. Flight Information and Budget
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D. Powerpoint Outline
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E. Brochure
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F. Bibliography
"Doing Business in Korea, Rep. World Bank Group." Doing Business in Korea, Rep.2016.
World Bank Group, n.d. Web. 24 Apr. 2016.
"East & Southeast Asia :: Korea, South." Central Intelligence Agency. Central Intelligence
Agency, 10 Mar. 2016. Web. 19 Apr. 2016.
"Korea Data Country Statistical Profile." Korea. OECD, n.d. Web. 26 Apr. 2016.
"South Korea." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption.
Heritage Foundation, n.d. Web. 28 Apr. 2016.
South Korea Flag. Digital image. Wikimedia. N.p., n.d. Web.
"South Korea." The Observatory of Economic Complexity. MIT, n.d. Web. 24 Apr. 2016.
South Korea Real GDP. Digital image. Wikimedia, n.d. Web.
"U.S. Relations With South Korea." U.S. Department of State. U.S. Department of State, 05 Feb.
2015. Web. 29 Apr. 2016.
"WorldAtlas Guide to South Korean Etiquette." WorldAtlas. N.p., n.d. Web. 26 Apr. 2016.