Disclosure of Executive Lists in Local Public Institutions for Hiring Corruption... Invalid Admissions to Be Canceled

Amendment to the Enforcement Decrees of the Local Public Enterprises Act and the Local Investment and Contribution Act Approved at the Cabinet Meeting

[Asia Economy Reporter Jo In-kyung] From now on, executives of local public institutions who have been convicted of employment corruption will have their names and affiliations disclosed. Those involved in employment corruption or who were unfairly hired will also face personnel disadvantages such as cancellation of their employment.

The Ministry of the Interior and Safety announced on the 26th that the revision of the Enforcement Decree of the "Local Public Enterprises Act" and the "Act on the Operation of Local Government Investment and Subsidized Institutions (hereinafter referred to as the Local Investment and Subsidy Act)" aimed at eradicating employment corruption in local public institutions was approved at the Cabinet meeting and will be enforced from the 4th of next month.

The revision first specifies the misconduct of executives of local public institutions, which local government heads must request investigation or audit for, as ▲illegal acceptance of money or valuables related to their duties ▲embezzlement, breach of trust, misappropriation ▲sexual violence crimes and prostitution ▲serious illegal acts such as personnel and recruitment corruption, tax evasion, and accounting fraud.

In particular, if an executive is convicted of employment corruption and the sentence is finalized, and is subject to aggravated punishment under the "Act on the Aggravated Punishment, etc. of Specific Crimes," the local government committee will review and resolve to disclose the executive’s personal information (name, age, occupation, and address) and facts of misconduct in the official gazette, the local public institution management information disclosure system, and the local government’s website for one year.

Not only those who passed or were hired through employment corruption but also those who participated or cooperated in the misconduct and subsequently received promotions, transfers, reassignments, or secondments may be subject to cancellation requests by the local government head.

The revision also requires local governments to have specialized institutions with proper qualifications review the feasibility when establishing investment or subsidized institutions to enhance expertise and objectivity. It restricts full-time executives and employees from concurrently holding commercial, industrial, financial, or other profit-oriented jobs outside their duties to ensure fair and neutral work performance.

All investment and subsidized institutions will be subject to integrated disclosure. Investment institutions with total assets of 50 billion KRW or more as of the end of the previous fiscal year, and subsidized institutions with assets of 10 billion KRW or more or revenue of 1 billion KRW or more in their financial statements, must undergo audits by external accounting auditors.

Additionally, for projects promoted by local public enterprises that have already undergone investigation or review under other laws or are related to disaster prevention and recovery support, separate feasibility reviews will be exempted to eliminate redundant procedures. As a result, it is expected that the schedule for promoting new investment projects can be advanced by about 6 to 12 months.

This content was produced with the assistance of AI translation services.