How Business Is Done in Brothels in South Korea

Instead of conference rooms with a hushed atmosphere, South Korean businessmen conduct meetings under the neon glare of Karaoke clubs and bars. Singing and carousing take the place of quiet, mediated discussion. In the morning, businessman are still able to make their meetings, if looking at little worse for wear. They stamp their night out onto a business expense sheet and carry on with their day. In most cultures, writing off a night in a Karaoke bar, or if the evening continues, a brothel, would be impossible. In South Korea, it’s not unusual for a business gathering to end in a night with a prostitute.

Why is it acceptable to end a business meeting in a brothel? In the West, it would end with someone getting fired. It traces back to a difference in business culture. In South Korea, along with other Asian neighbors, workers are expected to devote their lives to their company. Long hours show their dedication to where they work. There isn’t a great deal of socializing during business hours. Drinking after with your coworkers is a way for people in the company to get to know each other. There is also the attitude that what happens when you are out drinking, stays there. Almost any form of outrageous behavior is acceptable because your coworkers won’t hold it against you. This acceptance extends to after-hours in a brothel.

Business being conducted in a brothel or a hostess club is not out of the ordinary. People let down their guard when they are drinking and having a good time. In Asian culture, it’s the best way to judge a person’s real character. When South Korean businessmen decide to enter a place of prostitution, a “brotherhood of the brothel” forms. The tab for after hours entertainment is put on corporate credit cards. In 2013, it was estimated that $1 Billion U.S. dollars was spent on less legal forms of entertainment. This number is large, especially when the National Tax Service reports that $8.7 Billion dollars are spent each year on entertainment expenses. The business dinner takes on a whole new meaning in South Korea.

Brothels, along with hostess and karaoke bars welcome the businessmen into their establishment. Pimps and prostitutes know they can earn plenty of money off them. They are a majority of their client base. Hostess bars are a favorite of South  Korean businessmen. In these establishments, girls are paid to flirt and drink with the men. The prettiest of the girls are paraded in front of these men to entice them to spend more. They encourage them to buy the most expensive alcohol with promises of off-premise entertainment. There are bars and establishments of all types for men seeking female companionship and each one could be written off as a company expense. After all, a pretty girl and alcohol can soften the heart of the businessman making a deal. However, it’s becoming a bit more difficult to conduct business in a brothel for a number of reasons.

First, the tax offices are taking a closer look at businesses expenses. It’s becoming more difficult to write off nights of carousing on the corporate card. The National Tax Service has become more aware of what these business meetings involve. They are not amused at having karaoke bars and hostess clubs written off as expense. This is making businessmen more careful about where they spend their money. They can be audited and penalized for illegal business expenses. That has put a small dent into the prostitution business. Businessmen are more cautious about where they spend their money. Still, the threat of the National Tax Service hasn’t deterred men from carrying on in hostess clubs. Neither has outrage from feminist groups and international organizations.

South Korea is trying to put a stop to prostitution. An outright ban was placed on prostitution in 2004. It’s been illegal for decades. Despite the illegality, nearly 1.2 million are in the sex trade. The sex trade is getting attention from human trafficking and protection groups around the world. South Korea has been flagged as at-risk country for human trafficking. There is international pressure for them to stop the sex trade. Additionally, women around South Korea are uniting in groups to put a stop to prostitution. Women are treated as lesser in all facets of society. This has also caused problems for South Korea economically with their request to join the Trans-Pacific Partnership being overshadowed by these human rights allegations.

They blame prostitution on the lack of opportunities for women and traditional sexist attitudes. Women are often passed over for promotions and paid less for equal work in South Korea. It’s often difficult for them to cover basic cost of living. Furthermore, men still view women as sex objects. This point of view makes them believe it’s okay for women to be prostitutes. There believe there is nothing wrong with hiring women for sex. After all, they believe, it’s a woman’s place to service men. This attitude is why it’s acceptable to them to conduct business in a brothel.

There is no denying that the business culture in South Korea is extremely male-oriented. You rarely hear of a group of business women conducting meetings in a brothel. The fact that it’s socially acceptable to do so is a reflection of a misogynistic society. Men have no problems taking a client out to a hostess bar to negotiate a contract. Hours spent at a bar or “massage” parlor are just another company expense to them. They see it as a form of stress relief where they can also conduct business deals. They excuse this behavior among themselves and hide any shameful incidents that might happen. If something gets too out of hand, they can blame it on the alcohol. The culture of conducting business in brothels is strong across South Korea. Men will continue to carouse after hours in the name of business. There are no signs of the after hours entertainment slowing down. Businessmen still find their way into brothels despite the threats from the taxes and government. Businesses will continue to rack up expenses for a “good time”.