The Improper Solicitation and Graft Act (commonly referred to as the “Kim Young-Ran Act”, referred to hereinafter as the “Anti-Graft Act” or the “Act”) took effect on September 28, 2016, after much heated debate during the course of its legislation. The Act applies to a wider scope of people, including not only public officials but also executives, employees of state owned enterprises and private media companies, teachers and employees at private schools, private persons performing public duties as well as the spouses of the aforementioned persons.
Before the Anti-Graft Act, bribery of public officials and private commercial bribery was primarily governed by the Criminal Act. Since the Criminal Act did not recognize criminal corporate liability, individuals were punishable for acts of bribery while corporations were not. Also, in practice, many Korean subsidiaries of foreign orporations had a tendency to implement a relatively loose version of the global anti-corruption policies of their parent companies, as a reflection of local business culture.
- Key Provisions
- Criminal Corporate Liability
- Necessary Corporate Policies and Programs – Need up-to-date & tailored compliance programs
