The Improper Solicitation and Graft Act (colloquially, Kim Young-ran Act) is a 2016 anti-corruption law in South Korea. The bill is associated with Kim Young-ran, former head of the
Anticorruption and Civil Rights Commission, who proposed it in August 2012, and is often referred to as the Kim Young-ran Act (or Law, or Bill). The bill has also been translated as Anti-Corruption and Bribery Prohibition Act, though "Improper Solicitation and Graft Act" is the official name.
The law was passed in 2015 and started being enforced on September 28, 2016.
Background
The law has been described in ''
Financial Times
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Ni ...
'' as "aimed at widespread corruption" in the country.
''
The Korea Times
''The Korea Times'' is the oldest of three English-language newspapers published daily in South Korea. It is a sister paper of the '' Hankook Ilbo'', a major Korean language daily; both are owned by Dongwha Enterprise, a wood-based manufacture ...
'' noted in 2014 that Korea was "still lagging behind its peers" in the
OECD
The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...
in terms of transparency. In
Transparency International
Transparency International e.V. (TI) is a German registered association founded in 1993 by former employees of the World Bank. Based in Berlin, its nonprofit and non-governmental purpose is to take action to combat global corruption with civil ...
's 2014
Corruption Perceptions Index, which annually ranks countries "by their perceived levels of corruption, as determined by expert assessments and opinion surveys,"
South Korea
South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korean Peninsula and sharing a land border with North Korea. Its western border is formed by the Yellow Sea, while its eas ...
was ranked 43rd (higher rankings indicate higher levels of perceived corruption). This was the third-best performance among East Asian countries, behind Japan (15th) and Taiwan (35th).
The Kim Young-ran Act was not the first anti-corruption measure enacted in South Korea. The Criminal Act "already prohibited domestic public officials from receiving, demanding or promising to accept a bribe in connection with their duties, and also prohibited individuals from giving or offering to give a bribe," and the 1998 Act on Combating Bribery of Foreign Public Officials in International Business Transactions "regulates bribery related to foreign officials."
[Catherine E. Palmer, Daiske Yoshida & Junyeon Park]
Expansive Korean Anti-Corruption Law Comes into Force
Latham & Watkins LLP, ''Lexology'' (September 8, 2016).
Legislative history and legal challenges
The law was passed by the
South Korean parliament in March 2015. The bill received bipartisan support in parliament.
The law was formally promulgated by President
Park Geun-hye
Park Geun-hye (; ; often in English ; born 2 February 1952) is a South Korean politician who served as the 11th president of South Korea from 2013 to 2017, until she was impeached and convicted on related corruption charges.
Park was the fi ...
as Act No. 13278 on March 26, 2015.
In July 2016, the
Constitutional Court of Korea
The Constitutional Court of Korea () is highest constitutional court in judicial branch of South Korea, seated in Jongno, Seoul. Established under Chapter 6 of the Constitution of South Korea, the Court has ultimate jurisdiction over judic ...
upheld the law, rejecting a challenge brought by the
Korean Bar Association
The Korean Bar Association (KBA) is an organization established in 1952. It has criticized country policies if it feels wrong and contributed to the establishment of fundamental democratic order and the accomplishment of social justice through fo ...
, the Journalists Association of Korea, and others, who argued that the law's provisions were
unconstitutional
Constitutionality is said to be the condition of acting in accordance with an applicable constitution; "Webster On Line" the status of a law, a procedure, or an act's accordance with the laws or set forth in the applicable constitution. When l ...
.
The challengers argued the law defines public officials too broadly by including private-school employees and journalists.
The court also addressed the criticisms which suggested it would negatively affect the economy, saying "Some argued that the law will discourage economic growth, but we have seen proof in advanced countries that a country advances when corruption decreases. Based on this situation, the law does not excessively violate basic rights."
The law took effect on September 28, 2016.
Provisions of the Act
The law makes it illegal for public officials (including journalists, private school teachers and their spouses) to accept gifts of more than 50,000 won (about 45 USD) or 100,000 won (about 90 USD) at closed events such as weddings and funerals; it also limits dinner expenditures to 30,000 won (about 27 USD) per person.
In addition, the law also prohibits fifteen categories of "improper solicitations to public officials"; such solicitations are prohibited even if not accompanied by a 'payment, offer, or promise to pay or provide, money or a thing of value."
The legislation also includes "seven categories of requests to which the Act does not apply."
These exceptions have been criticized as vague.
Impact
The law clashed with Korean traditions,
such as that the most senior person at a social gathering should pay the entire bill.
Another controversy surrounds traditional
gift basket
A gift basket or fruit basket is typically a gift delivered to the recipient at their home or workplace. A variety of gift baskets exist: some contain fruit; while others might contain dry or canned foods such as tea, crackers and jam; or the ...
s during holidays such as
Chuseok
''Chuseok'' (; , literally "autumn evening"), also known as ''Hangawi'' (Hangul: ; ; from archaic Korean for "the great middle (of autumn)"), is a major mid-autumn harvest festival and a three-day holiday in South Korea celebrated on the 15th ...
, which usually are priced at 70–80,000 won. Both of those customs are made illegal by the law.
Some Korean lobby groups like
Federation of Korean Industries () have opposed the law, arguing that it could cause economic losses for Korean economy, negatively affecting spending in some industry sectors, like in the restaurants business.
Since the law came into force, many Korean officials reported that they are cancelling dinners and splitting bills at cheaper cafeterias, which have seen increased number of customers.
On the other hand, higher-end restaurants, flower shops, golf courses, and chauffeur services at business and government districts reported a decline in business.
Some officials also reported that they can return home earlier, spending more time with their families, as the number of work-related gatherings, often lasting until late hours, have been sharply curtailed.
A survey conducted by Gallup Korea in early October 2016 showed that the law is supported by 71% of Koreans.
See also
*
Anti-Corruption and Civil Rights Commission
The Korean Anti-Corruption and Civil Rights Commission (ACRC) was launched on February 29, 2008 by merging three related government entities: the Ombudsman of Korea, the Korea Independent Commission Against Corruption and the Administrative Appea ...
References
{{Reflist, 30em, refs=http://www.thekoreanlawblog.com/2017/01/improper-solicitation-and-graft-act-Korea.html
2016 in South Korea
2016 in law
Anti-corruption measures
Corruption in South Korea