Background in Korea
Korean pay systems were largely seniority-based until the 1997 financial crisis, when performance-linked annual salaries spread quickly. For incumbents, the annual "negotiation" is often a meeting where the company announces a raise. The real leverage comes when changing jobs, at the offer stage.
Negotiation theory
In 1974, Tversky and Kahneman showed experimentally that an initial number anchors later judgments. That finding supports opening with a well-grounded figure. In Getting to Yes (1981), Fisher and Ury of the Harvard Negotiation Project described principled negotiation, which focuses on interests rather than positions, and introduced the BATNA, your best alternative to a negotiated agreement. A competing offer is the strongest BATNA.
In practice
Research market ranges through salary platforms, industry disclosures, and contacts, then propose a justified range. Compare total compensation, not just base pay. In Korea, check whether an inclusive-wage clause applies and whether severance pay is separate. Raising pay before the final offer or bluffing about offers erodes trust.
FAQ
- Should I name a number first?
- If you've done your research, opening with a justified range can anchor the talks in your favor.
- Can severance be folded into salary in Korea?
- Courts have generally held such arrangements invalid.
Sources reviewed: 2026-10-26
References
- Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. Science, 185(4157), 1124–1131.
- Fisher, R., & Ury, W. (1981). Getting to Yes. Houghton Mifflin.
- Babcock, L., & Laschever, S. (2003). Women Don't Ask. Princeton University Press.