Anti-Graft Law Marks 10th Anniversary With Higher Chuseok Gift Limits, Tougher Penalties

As South Korea's anti-graft law marks its 10th anniversary next month, the ceiling on gifts of agricultural, livestock and fishery products — and processed goods made from them — will temporarily rise from 150,000 won ($109) to 300,000 won under the Improper Solicitation and Graft Act.

The Anti-Corruption and Civil Rights Commission said Monday the temporary increase applies throughout September, covering gifts sent by courier or other delivery services based on the dispatch date.

Under the law, gifts given to public officials in connection with their duties — for the purpose of facilitating work or for social and ceremonial occasions — are generally capped at 50,000 won. However, agricultural, livestock and fishery products and their processed counterparts will be temporarily allowed up to 300,000 won, up from the standard 150,000 won limit.

The agricultural and livestock category covers not only farm produce, livestock and seafood but also forest products. Processed goods qualify when agricultural, livestock or fishery ingredients account for more than 50 percent of the raw materials used.

Gifts are prohibited entirely — regardless of value — when the recipient is a public official with a direct conflict of interest, such as a permit or license applicant, a company participating in a bid, or anyone subject to a personnel review, performance evaluation or audit by that official.

Holiday gifts to non-officials such as friends and relatives carry no monetary limit. Gifts to public officials unrelated to their duties may reach 1 million won, and gifts to a public official's relatives — defined as blood relatives within eight degrees of kinship, relatives by marriage within four degrees, or a spouse — face no cap at all.

The Improper Solicitation and Graft Act took effect in September 2016 and now enters its 10th year. The commission said the law "has guaranteed fair performance of duties by public officials, secured public trust in public institutions, and established an institutional safeguard against the culture of solicitation and entertainment rooted in personal connections and favoritism — long cited as a major source of corruption in Korean society."

To mark the anniversary, the commission will submit an amendment bill to the National Assembly next month that would extend the law's reach into the private sector by prohibiting public officials from making improper solicitations to private-sector parties, thereby protecting fair activity in that sector.

Specifically, public officials would be barred from making improper solicitations — directly or through a third party — to non-officials across 10 categories of duties, including personnel matters and sponsorship requests. Exceptions would be added to ensure the measure does not impede officials' routine work, such as handling civil petitions, legislation, budgets and general administrative tasks, or normal communication with the private sector. Violations would carry a fine of up to 30 million won, matching the penalty currently imposed on public officials who make improper solicitations on behalf of a third party under the existing law.

The amendment would also raise criminal penalties under the act from a maximum of two years in prison and a 20 million won fine to three years in prison and a 30 million won fine. In addition, the bill would create a new provision to directly punish the spouses of public officials who accept prohibited gifts or money in connection with those officials' duties — a gap in the current law that leaves spouses without explicit criminal liability.