[THE INVESTOR] The new anticorruption act could cut demand for agricultural and livestock goods by as much as 6.5 trillion won (US$5.72 billion), the Ministry of Agriculture, Food and Rural Affairs said in a report on July 20.

In the report submitted to the Presidential Regulatory Reform Committee, the ministry also suggested that the ceiling on gifts and other related spending should be increased drastically to ward off the possible impact on agricultural and livestock industries. The Presidential Regulatory Reform Committee will review the act on July 22, and the committee has the right to order or suggest changes to be made.

The so-called “Kim Young-ran Act” is aimed at battling corruption by limiting the price of gifts, money and meals that can be exchanged between individuals in specified professions. Professions that will be affected by the act includes journalism, civil service and private school staff. At present, the act, which will go into effect later this year, limits the cost of meals to 30,000 won per person, gifts at 50,000 won, and money given at funerals, weddings and other personal events at 100,000 won.

According to the Agriculture Ministry’s estimates, if the act is enforced as it stands now, the demand for agricultural goods as gifts will drop by up to 2.3 trillion won. The ministry projected that the demand for agricultural and livestock goods from restaurants will be cut by up to 4.2 trillion won.

As such, the ministry suggests that the cost of meals be raised to 50,000 won, and the upper limit on gifts and monetary gifts be doubled.

By Choi He-suk (cheesuk@heraldcorp.com)