Businesses thrown into confusion over anti-corruption law
By Kim Tae-gyu
For businesspeople, it is crucial to build good relationships with the media and government. That is especially the case in Korea where the two can exert great influence across industries.
The Kim Young-ran Act, which gained the go-ahead from the Constitutional Court, confuses businesspeople who struggle to grapple with the anti-graft bill’s strict and sometimes confusing clauses.
“The dilemma is that I still should meet bureaucrats and journalists to carry out business here and it is almost impossible to comply with the Kim Young-ran Act while seeing important stakeholders,” said an executive who works for a financial firm.
“Hopefully, the bill will be revised properly before its launch so that I will be able to abide by it. If not, I will put my safety first by having just lunch for the time being. I don’t want to be caught breaching the law so as to become the first scapegoat.”
The anti-corruption law will go into effect Sept. 28 to regulate not only public servants but private school teachers, journalists and their spouses — around 4 million people.
Those subject to the bill should not be served a meal costing more than 30,000 won ($26) or take gifts over 50,000 won. Congratulatory or condolence money should be less than 100,000 won.
“Media trips will be impossible and so will golf invitations because such events have been financially sponsored by us. We will be very cautious in having dinner while lunch would be fine,” said a spokesman for a domestic automaker.
“It remains to be seen whether or not test-driving will be prohibited by the new act. The issue is currently under legal review and we will make a decision in line with legal advice.”
When carmakers come up with new models, they tend to ask journalists to test-drive them to gain media coverage.
Many companies are looking at how the Samsung Group will deal with the unprecedentedly broad regulation.
However, Samsung also doesn’t seem to have a magic wand.
“We have no choice but to keep the law. If the act remains intact before the implementation date, we will give meals that cost less than 30,000 won and gifts less than 50,000 won, while we won’t schedule golf games,” said a Samsung official.
Some companies are resorting to expediency by adjusting their schedules.
“We originally planned a familiarization tour with journalists for late September. But the Kim Young-ran Act prompted us to move up the event to August,” said a spokeswoman at a local manufacturer.
“I heard that my colleagues are poised to have their 2016 year-end parties with public officials this September before the act’s implementation.”