In spite of all the opposition, concerns and disputes, the Improper Solicitation and Graft Act -- commonly dubbed the Kim Young-ran law -- will finally take effect starting from September 28.

Guidebooks have been issued by various public and private agencies, including the supervisory Anti-Corruption and Civil Rights Commission. However, its extensive range of regulation and murky details is still causing confusion among the general public.

Below are some of the key questions and answers.
 
Q. How and why was this law legislated?

A. It was in June 2011 that the original draft was motioned by then-ACRC chairperson and former Supreme Court justice Kim Young-ran, from whom the byname of the bill was initiated. The concept of the bill had started off from the recognition that the conventional bribery clauses in the Criminal Law were insufficient to curb the rampant customs of providing valuables or services to public officials in exchange of other benefits. It also reflected the widening public rage over a series of high-profile corruption cases in 2010-2011, in which ranking prosecutors turned out to have received expensive gifts or cash from legal brokers. But due to disputes over the scope of the application, the bill had been stalled for years. It was the tragic sinking of the Sewol ferry in April 2014 that drew attention to the lax public administration system and consequently rekindled the talks on the antisolicitation bill.

Q. Who are subjected to the bill?

A. Government officials as defined by the Government Officials Act and the Local Officials Act, along with executive and staff members of public service-related organizations, educational institutions, and media companies are subjected to the law. The spouses of the corresponding officials are also subject to the regulation. As of February this year, the aggregated pool involved some 4 million people and 39,965 organizations. Despite the protest that the bill violates the principle of excessive prohibition by including media employees and teachers, the Constitutional Court ruled in favor of it, clearing the way for its effectuation.

Q. What are the sanctions?

A. Those who have received valuables worth 1 million won ($911) or less are to be handed down a fine of maximum five times the received amount. When the amount of the valuable exceeds 1 million won, both the giver and the receiver are to face a maximum jail term of three years or a maximum fine of 30 million won. The former case requires a business connection between the two counterparts, while the latter does not. In case of illicit solicitation, the corresponding sanctions are either a maximum jail term of two years or a fine of 20 million won. Under dual liability, even the employer of the violators may face an equal level of financial penalty. Also, the law’s enforcement ordinance places a ceiling of 30,000 won, 50,000 won and 100,000 won for meal, gift, and condolence or congratulatory cash gifts, respectively.

Q. How does one report cases of violation?

A. Anyone can file a report. Reports may be submitted to one’s affiliated organization, investigation agencies, the Board of Audit and Inspection, and the ACRC. Related proof is required so as to prevent false reports. Monetary reward is to be paid out to those who have handed in reports that are related to public interests.

Q. Does the subject pool include foreign teachers, non-teaching director of educational foundations, newspaper printing staff? Are lawmakers bound by the same level of restrictions as any other officials?

A. Yes, the sanction clauses are to be applied regardless of nationality, position, or rank. The same is for lawmakers, though there is an exceptional clause that exempts elected officials when it comes to listening civil complaints within the range of socially accepted rules.

Q. What if a teacher, after receiving a present worth 500,000 won from a parent, donates it to an orphanage?

A. He or she would still face sanctions. Also, the intention of the law is to punish the illicit transition of valuables, regardless of its use or disposal afterwards.

Q. What if a media chief editor, senior government official and conglomerate executive member, who are all alumni and longtime friends, met for dinner and the conglomerate executive picked up the tab?

A. The regulation is to be applied just the same, as long as there is a job function connection between the participants. But if, for example, the government official belonged to the Health Ministry and the conglomerate member to a semiconductor company, leaving little possibility for mutual business transactions, the occasion may be excluded from the subject of the law’s application.

Q. What if a public official received, from someone with a job relation, 50,000 won in congratulatory money and a wreath worth 70,000 won, each amount within the given amount ceiling?

A. The official would still face sanctions as in such cases, the amount of the wreath is to be added up with that of the cash, totaling at 120,000 won. Also, when the giver has offered 100,000 won as personal condolence money and another 100,000 won in his company’s name, the two categories are to be summed up. But legal circles have been calling for more flexibility concerning congratulations and condolences. When it comes to actual goods, however, the rule is to be applied strictly. For example, if an official was offered a meal worth 100,000 won from a company director and received a gift worth 500,000 won from its chairman, the subject amount would be 600,000 won due to the correlation between the two activities. Also, in this case, the corresponding company will be facing a fine for lack of supervisory duty.

For further details or individual case studies, one may contact the ACRC or the Korea Chamber of Commerce and Industry. The KCCI said earlier this month that it kicked off a special task force, consisting of lawyers from six representative law firms, to provide consultations concerning the antisolicitation law and ask for the authoritative interpretation of the ACRC when necessary. The service will be available until January next year.

By Bae Hyun-jung (tellme@heraldcorp.com)