Further, ownership of the chaebol is relatively closely held. While the chaebol are large and powerful, they have come to accept legal contracts as binding under both South Korean and international law. But companies smaller than the chaebol are still suspect when it comes to upholding contracts. The Korean legal system will uphold contracts to varying degrees based on factors such as political influence of the foreign joint venture partner and the clout of the law firm. Waplinger, from Sabroe Refrigeration, has dealt with the chaebol and advises it is best to have a pre-defined game plan when dealing with South Korean businesspeople.
Korean executives expect high discounts.
They will make you go through different levels before giving final approval on a sale. Overall, Korean companies ask for a 30 percent discount, but expect 10 percent to 15 percent. Northwest companies knowing this can adjust their price accordingly. Within the legal framework, there are several issues that Washington companies should know about. First, tariff rates are often arbitrary.