The Book of Real-World Negotiations

18Crossing Cultures and Crossing Wires

Based on an interview with Chang In Shin

We have already seen how a merger and acquisition negotiation can be quite difficult with a lot of pitfalls and challenges. Why stop there? Let's add another dimension to the equation, namely cultural constructs that are often hidden and silently guide negotiators’ behaviors and approaches.

When negotiators consider culture, they often contemplate behaviors and customs, but as the reader will come to understand, that is just what can best be termed superficial culture. The more challenging aspects of culture from a negotiation point of view lie beneath the surface and are profoundly embedded in ways of acting, thinking, and believing. So, let's delve deeply to that level to understand what happened in this scenario.

Background and the Negotiation Challenge

This was a negotiation that took place in Pankyo, South Korea, regarding a merger and acquisition negotiation between a Korean biotechnology company and a German biotechnology company. Pankyo is an emerging digital city comparable to Silicon Valley in the United States. The South Korean government has been promoting Pankyo globally to attract foreign investors. Most of the high-tech ventures in South Korea are concentrated in the district called, aptly, Pankyo Techno Valley.

This particular negotiation occurred in a face-to-face capacity at the CEO's office of the Korean company, named Kyammi. The German company involved in the negotiation is ...