Zero-tolerance anti-graft law to be introduced in Korea from September

A controversial anti-corruption law that can entirely change the Korean business culture and socializing ways has been officially announced to take effect on Sept. 28. Under the law called Improper Solicitation and Graft Act, public servants, journalists, and teachers will be fined if they are treated with a meal costing more than 30,000 won ($26). Gift cannot cost more than 50,000 won and cash token from guests to weddings and funerals cannot exceed 100,000 won. The guidelines announced by the Anti-Corruption and Civil Rights Commission was slightly relaxed from original design in the bill popularly dubbed as the Kim Young-ran law after the former head of the anti-corruption commission who first proposed it.

Farmers have strongly protested to the 50,000-won cap on gifts as a package of local beef, fisheries, or farming produces often go beyond the price tag. Retail and restaurant businesses have complained about potential dent in their business, already hurt by economic slowdown. President Park Geun-hye in a meeting with chief editors of media organizations expressed concerns that the law could further dampen domestic demand.

The bill is currently under review by the Constitutional Court as journalists and other civilian groups have challenged it for infringing on civilian rights by including press and teachers in private schools in the scope. The court is expected to deliver its interpretation over legality before the law takes effect in September.

Under the new act, people under the broader definition of public service would face a jail term if they or their spouses receive 1 million won in cash or equivalent or more than 3 million won a year regardless of relevance to the work or favors attached.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]