The Korean government pledged to foreign businesses to step up efforts to eradicate corruption and improve the environment for their investment.

At a conference with foreign business leaders on Friday, Anti-Corruption and Civil Rights Commission Chairwoman Kim Young-ran said that the agency’s efforts have led to a number of improvements regarding problems experienced by foreigners and that the commission is pushing for further institutional changes aimed at increasing the transparency of Korean society.

This year the commission is pushing for the enactment of the Act on Prevention of Illegal Solicitation and Conflict of Interest.

If enacted, a public official who demands or receives bribes from private companies will be prosecuted under criminal law, regardless of whether or not the bribe is related to the official’s duties. The act will also enable the authorities to penalize the briber and the public official regardless of whether or not the official received the bribe in return for favors.

“The purpose of the enactment is to prevent public officials from pursuing their personal interests and to eradicate the chronic practices of Korean society, such as undue solicitation and mediation,” Kim said.

“This new law will help eradicate potentials that might cause corruption caused by nepotism and paternalism emphasizing academic or regional ties.”

Regarding the ACRC’s foreign activities, Kim said that the commission has been working with foreign businesses in addressing difficulties experienced in Korea.

“Since its foundation in 2008, the ACRC has policy briefings for CEOs of foreign companies in Korea every year,” Kim said.

“As a result, civil complaints currently can be filed with a foreign registration number, and problems regarding e-commerce have been improved.”

Before the ACRC recommendations, foreigners were able to submit only four kinds of applications as 62.3 percent of related forms required a resident registration number, which is only issued to Korean nationals.

The commission also operates a multilingual call line and complaints website that provides services in a number of languages including Chinese, English, Vietnamese and Bengali.

According to the commission, dealing with anti-corruption-related issues in general has become more efficient since its launch in 2008.

According to the commission, the average number of complaints filed each year between 2008 and 2011 has risen by about 37.3 percent compared to 2007, but the average processing period has fallen from 31.6 days to 22 days over the same period.

The ACRC was established in 2008 by combining the Ombudsman of Korea, Korea Independent Commission against Corruption and the Administrative Appeals Commission.

The ACRC also introduced the Act on the Protection of Public Interest Whistleblowers that was enacted in September last year. With the introduction of the act, protection afforded to those reporting corruption cases has been extended to cover a wider range of issues including health- and safety-related issues, consumer rights and fair competition.

Regarding the ceiling of 30,000 won ($26) on the value of gifts and entertainment public officials are allowed to receive, Kim said that the measure will not be changed.

Under the Code of Conduct for Public Officials, civil servants are not allowed to receive money, gifts or entertainment, including food, of more than 30,000 won in value from parties they meet in professional capacities. However, some in the industry have been calling for the ceiling to be raised, saying that the figure was unrealistic.

“I want to lower it to below 10,000 won. It (the ceiling) means don’t eat nor receive gifts (from those with professional ties). The issue was considered last year and the conclusion was to maintain it at the current level,” Kim said.

She added that U.S. authorities have also been keeping the ceiling on similar regulations for a long time, despite requests for the figure to be increased. According to the ACRC, the U.S. enforces a limit of $20 for each interaction and $50 on annual basis.

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