SEOUL. Oct. 24 (Korea Bizwire) — Seven out of 10 South Korean companies said the Kim Young-ran anti-graft law that took effect last year has helped them cut costs and improve transparency, a business lobby said Tuesday.
In a recent survey of 300 domestic companies, 74 percent of the respondents said the business environments have improved in terms of effectiveness and cost reduction since the anti-graft law went into force on Sept. 28, 2016, the Korea Chamber of Commerce and Industry (KCCI) said in a statement.
In a separate survey of 300 businesses, 70 percent of restaurants, flower shops, and wholesale and retail agricultural and fisheries stores said their sales have been negatively affected by the law in the past year, it said.
Under the “Kim Young-ran law” named after a former Supreme Court justice who proposed the act, people like government officials and journalists whose occupations call for higher ethical standards are barred from being treated to meals worth more than 30,000 won (US$27). Such people also cannot receive gifts worth more than 50,000 won or accept more than 100,000 won in cash as a customary token of celebration or mourning from others.
Failure to report improper solicitation or acceptance of favors worth more than 1 million won could lead to an offender being sentenced to less than three years in prison or a fine of 30 million won.