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'Preventing the Second LH Scandal'... Full Implementation of Conflict of Interest Prevention Act Targeting '2 Million Public Officials'

Jeon Hyun-hee, Chairperson of the Anti-Corruption Commission, "Active Public Reporting Will Be the Foundation for Improving Unfair Practices in the Public Sector"

'Preventing the Second LH Scandal'... Full Implementation of Conflict of Interest Prevention Act Targeting '2 Million Public Officials' 'Integrity Portal' homepage

[Asia Economy Sejong=Reporter Son Seon-hee] Starting from the 19th, the Conflict of Interest Prevention Act, which applies to approximately 2 million public officials nationwide, will be fully enforced. This comes one year after the act was passed by the National Assembly in May last year, following the so-called ‘Korea Land and Housing Corporation (LH) scandal,’ which sparked public outrage due to land speculation using undisclosed information. From now on, if acts of obtaining various private benefits through public positions are detected, criminal penalties of up to 7 years imprisonment can be imposed.


Jeon Hyun-hee, Chairperson of the Anti-Corruption and Civil Rights Commission, introduced these details during a briefing at the Government Seoul Office on the 18th, one day before the enforcement of the Conflict of Interest Prevention Act. She urged for stable initial settlement and active reporting by the public, as this is the first time the newly enacted law is being implemented. Chairperson Jeon said, "Active reporting by the public on violations of the Conflict of Interest Prevention Act by public officials will serve as a foundation for improving unfair practices in the public sector," adding, "For the 2 million public officials, this will be recognized as a stern demand from the public for honest and fair job performance."


The Conflict of Interest Prevention Act has more and more specific ‘behavioral standards’ than the Improper Solicitation and Graft Act (Kim Young-ran Act), which prohibits improper solicitations or acceptance of money and valuables. Its scope of application is also broad. It includes not only public officials and employees of public-related organizations but also all public institutions such as the National Assembly, courts, central administrative agencies, local governments, local councils, educational administrative agencies, and principals and staff of all levels of national and public schools.


If public officials involved in real estate handling institutions and real estate development work, or their spouses and direct ascendants or descendants, own or purchase related real estate, they must report it to their affiliated institution. This includes metropolitan public institutions such as LH, Saemangeum Development Corporation, and Seoul Housing and Communities Corporation (SH). Additionally, if a public official plays golf or travels with retirees from their affiliated institution related to their duties, they must report it to the head of the institution. Furthermore, family members of senior public officials in the institution cannot be hired in principle without going through a competitive process, and official vehicles and various goods or facilities owned or leased by public institutions cannot be used for private purposes.


The Anti-Corruption and Civil Rights Commission emphasized that active reporting by the public is crucial for the swift establishment of the Conflict of Interest Prevention Act. Reports can be made 24 hours a day through the online ‘Integrity Portal’ and corruption report consultation phone lines. If the report leads to direct revenue recovery or cost savings for public institutions, a reward of up to 3 billion KRW may be paid.


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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