Anti-graft law confuses company PR staff

By Choi Sung-jin

Corporate PR teams are busier than ever these days, having dinners on weekdays and playing golf on weekends with people they have to entertain.

“Not a day passes by without appointments,” said a deputy manager working in the PR department of a chaebol affiliate. “We have to meet as many bureaucrats and journalists as possible before the day.”

That day is September 28, when the Act on Prohibiting Illicit Solicitation and Bribe Acceptance -- or the “Kim Young-ran law,” named after the former head of the national anticorruption body who drafted it -- goes into effect. The law calls for, among other things, limiting the ceiling of meals to 30,000 won ($27) a person, gifts to 50,000 won and cash gifts for funerals and marriages to 100,000 won.

“The situation might be similar for PR people at all major companies,” he said. “We are going so frantic these days that our annual budget will likely be depleted before the end of September.”

People working at concert organizing agencies are receiving legal advice on how to give free tickets to culture writers “legally.” According to the Kim Young-ran law, invitation tickets are categorized as “bribes” if their selling price exceeds 50,000 won.

The most expensive seats at concerts by famous foreign musicians and orchestras range from 300,000 won to 400,000 won. “It is impossible anyway to pack the hall of classical music with a paid audience,” said an organizer. “We want to dress the house but the new law will unlikely allow it.”

A government ministry spokesman is facing the same dilemma. The ministry is smaller than others, attracting relatively less attention from journalists, and so the spokesman has asked reporters to write feature articles to publicize the ministry’s policies. But from now on, such requests will be regarded as illicit solicitations.

“So far, I have depended on personal connections to publish policy stories or write special articles,” he said. “In the process, I have bought meals to express appreciation. It’s really embarrassing now that I can’t do that much longer.”

An executive at a major consumer electronics maker is racking his brain over how to bring journalists to CES in Las Vegas and other international exhibitions. In the past, he has had to invite some reporters according to media outlets’ influence. According to the Kim Young-ran law, the company has to offer equal opportunities to all media outlets.

“Nearly 500 media outlets are covering our company,” the executive said. “If we take all the reporters to international events, we will need two or three chartered planes. The only way will be to pick some through a lottery.”

Others are more actively adjusting to the changes. An executive of another chaebol subsidiary has decided to replace golf with hiking. But staff under him are having trouble because they have to climb mountains almost every weekend, and make preliminary surveys to develop courses that suit their boss. “If you don’t have money or can’t use it, you should make do with your body,” one staffer said.

People who have long specialized in PR at large companies are concerned the new law will reduce the importance of their jobs, which leads to the downsizing of their departments. “The financial guys have long tried to trim the PR part as part of their cost-cut campaign,” an executive in charge of PR at a large business group said. “The Kim Young-ran law will give them a good excuse.”

Other long-time PR people are more complacent. “If the new law reduces drinking parties and other entertaining events, it will raise entry barriers to the PR department,” a veteran PR woman said. “Only those with strong human networking through long service will be able to survive.”

Yet others are waiting for September 28. A PR staffer at a midsized company said he has had to have dinners with journalists at least four times a week, and received a warning from a doctor last year to quit drinking, citing liver problems.

“Under the new law, I hope we will be able to have light dinners and go home,” he said, adding that he is making a list of restaurants that can offer decent meals at reasonable prices. “If meals become lighter, conversations could become deeper. Instead of bar-hopping, we could visit cafes for second rounds,” he said.