The Public Officials Conflict of Interest Prevention Act Approved by the Cabinet Meeting... Resubmitted to the 21st National Assembly

Imprisonment up to 7 Years for Gaining Financial Benefits Using Confidential Work Information
Fine up to 20 Million KRW for Failure to Report Private Interests of Work-Related Persons

Eunjung Park, Chairperson of the Anti-Corruption and Civil Rights Commission. / Photo by Honam Moon munonam@

[Asia Economy Reporter Moon Chaeseok] The "Conflict of Interest Prevention Act for Public Officials" (Conflict of Interest Prevention Act), aimed at preventing public officials from pursuing unfair personal gains and ensuring fairness in their duties, will be resubmitted to the 21st National Assembly.

The Anti-Corruption and Civil Rights Commission announced that the Conflict of Interest Prevention Act bill, which was not processed by the 20th National Assembly, was approved at the Cabinet meeting on the 23rd and will soon be submitted to the National Assembly.

Discussions on the bill are expected to intensify once the standing committees of the National Assembly are finalized.

Previously, the Anti-Corruption and Civil Rights Commission had been promoting the enactment of the Conflict of Interest Prevention Act since last year.

However, the government bill submitted to the National Assembly in January was discarded due to the expiration of the National Assembly session, and last month it was selected as an "immediate re-promotion bill" and re-announced for legislation.

The government has been steadily following the legislative procedures in line with the opening of the new National Assembly.

The bill includes eight behavioral standards for public officials.

First, public officials involved in permits and approvals, investigations and inspections, prosecutions and trials, audits, etc., must report to their head of institution within five days if they recognize a private interest with a person related to their duties and apply to avoid the task.

To block unfair transactions between public officials and persons related to their duties, they are also obligated to report to their head of institution when trading money, securities, real estate, etc., with persons related to their duties.

If a public official fails to report private interests or transactions with persons related to their duties, a fine of up to 20 million KRW will be imposed.

The bill stipulates that stricter conflict of interest prevention regulations apply to high-ranking public officials and those responsible for corruption-prone tasks such as personnel and contracts compared to other public officials.

High-ranking public officials such as vice minister-level officials, members of the National Assembly, and heads of local governments must submit their private sector activity records for the past three years to their head of institution before appointment or the start of their term.

The head of institution may disclose this information within the scope not prohibited by other laws. If a high-ranking public official fails to submit their activity records, a fine of up to 10 million KRW will be imposed.

Public institutions are generally restricted from hiring family members of their high-ranking officials or those responsible for recruitment tasks, except when competitive procedures such as open or career competitive recruitment exams are conducted.

It is also prohibited for high-ranking officials or contract task officers themselves, their spouses, or lineal ascendants/descendants living together to enter into private contracts.

High-ranking officials who instruct, induce, or tacitly allow prohibited family hiring or private contracts will be fined up to 30 million KRW.

The bill also prohibits public officials from privately using public institution goods, vehicles, land, facilities, etc.

External activities such as providing private advice to persons related to their duties and receiving compensation, or using confidential information learned during duty performance for private gain or allowing third parties to use it, are also prohibited.

If a public official obtains financial benefits by using confidential information related to their duties, the entire amount will be confiscated or recovered, and they will be sentenced to up to seven years in prison or fined up to 70 million KRW.

Even if the benefit is not realized, a sentence of up to three years in prison or a fine of up to 30 million KRW will be imposed.

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