SOUTH KOREA Law and Practice Contributed by: Jeena Kim, Kyunghwan Lee, Eunyoung Row and Bochan Kim, Bae, Kim & Lee LLC
Removal of the cap on compensation for internal whistle-blowers To encourage whistle-blowing, the previous cap of KRW3 billion on compensation for internal whistle-blowers has been eliminated. Amendments to the Whistle-Blower Protection Act (Amended on and Effective as of 27 February 2024) An additional 19 acts have been designated as falling under the scope of public interest viola - tion acts, including: • the National Finance Act; • the Industrial Cluster Development and Fac - tory Establishment Act; and • the Act on the Management of Subsidies for Local Governments. 2. Bribery and Corruption Elements 2.1 Bribery The Criminal Code does not explicitly define the term “bribery”, but it does distinguish between receiving and offering bribes. The term has been interpreted broadly to cover any valuable ben - efits received by the recipient, including mon - ey and other types of tangible and intangible advantages, such as gifts and acts of hospitality. Receiving Bribes The act of receiving bribes includes: • receiving bribes in connection with the per - son’s duties; • where the public official or the arbitrator demands or promises a bribe; and • where the bribe is offered, demanded or promised to a related third party/intermediary.
While the timing of the bribe is not important, the “bribery” described above after engaging in corrupt activities is also prohibited. Offering Bribes The act of offering a bribe includes instances where a person makes a statement of intent to offer a bribe, promises to offer a bribe and provides a bribe in the manner just described above. Public Versus Private Public sector bribery does not require proof of an “improper request” as long as the benefit relates to the official’s duties. In private sector cases, an “improper request” is necessary (eg, offering money to secure a bid). Courts have ruled that a bribe received “in connection with a public offi - cial’s duties” includes not only the legal duties of the public official but also the de facto duties of the official as well as the duties of the depart - ment to which the public official belongs. How - ever, benefits unrelated to official duties (eg, gifts exchanged as social courtesy or due to personal relationships) are excluded. Who Qualifies as a Public Official? “Public officials” refers to individuals performing a certain public function delegated by a state or local government. The statutes define a public official as follows. • The State Public Officials Act and Local Pub - lic Officials Act: any person employed by a state or local government. • The Specific Crimes Act: any senior staff employee of a “state-owned” or “state-con - trolled” entity, which is listed in the Enforce - ment Decree of the Specific Crimes Act. • The Act on Administration of Public Entities: any director, officer or employee of a “public corporation” and “quasi-government entity”
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