Ministry of Justice to Oversee Public Interest Corporations... Establishes Citizen Public Interest Committee under Minister

The Entire Amendment to the Act on the Establishment and Operation of Public Interest Corporations Passed at the Cabinet Meeting

Government Gwacheon Complex, Ministry of Justice. / Photo by Choi Seok-jin

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The Ministry of Justice will establish a Citizen Public Interest Committee under the Minister to manage and supervise public interest corporations.

On the 27th, the Ministry of Justice announced that the full revision bill of the "Act on the Establishment and Operation of Public Interest Corporations" (Public Interest Corporation Act), which includes the establishment of the 'Citizen Public Interest Committee,' a comprehensive organization for public interest corporations?one of the 100 national tasks of the Moon Jae-in administration?has passed the Cabinet meeting.

Article 2 (Scope of Application) of the current Public Interest Corporation Act defines public interest corporations as foundations or incorporated associations established for the purpose of contributing to the general social interest through projects related to scholarships, research funding, academic activities, or charity.

The Ministry of Justice stated that among approximately 20,000 nonprofit corporations nationwide, about 4,000 are public interest corporations. However, since there is no nationwide support and management system for public interest corporations and the competent authorities are scattered across various ministries and local governments, systematic nationwide support and management are difficult.

The Ministry of Justice announced that it will strengthen support for these public interest corporations and establish the Citizen Public Interest Committee to maintain at least the minimum transparency that can guarantee public trust.

The name of public interest corporations will also be changed to Citizen Public Interest Corporations. The revision bill added a definition clause for Citizen Public Interest Corporations in Article 2, Clause 1.

According to this, a Citizen Public Interest Corporation is "a corporation established as an incorporated association or foundation under the Civil Act for the purpose of carrying out public interest projects and recognized as a Citizen Public Interest Corporation by the Citizen Public Interest Committee under this Act."

The Ministry of Justice explained that the name was changed to emphasize the role of contributing to civil society and to distinguish it from public interest corporations under tax law.

While existing public interest corporations aimed at "academic and charitable projects," Citizen Public Interest Corporations also include purposes such as human rights promotion, enhancement of the rights of socially vulnerable groups, environmental conservation, crime prevention, peacebuilding, and international mutual understanding.

The Citizen Public Interest Committee, which oversees support and management of public interest corporations, will be established under the Minister of Justice. However, to ensure autonomous operation, the committee will include a majority of civilian members.

The chairperson of the Citizen Public Interest Committee will be appointed by the President upon the recommendation of the Minister of Justice. Committee members will include one standing member recommended by the chairperson and appointed by the Minister of Justice, two general service officials belonging to the Senior Executive Service designated by the President, and seven civilian members recommended by the National Assembly and appointed or commissioned by the President. The terms of the chairperson, standing member, and civilian members are three years, with one possible renewal.

The Citizen Public Interest Committee will also serve a supervisory role over public interest corporations. It will revoke recognition of illegal public interest corporations, and if corporate executives commit illegal acts such as bribery, accounting fraud, or embezzlement, it will request criminal prosecution or issue corrective orders and dismissal orders.

The Ministry of Justice stated, "We will promptly submit this revision bill to the National Assembly and make every effort to ensure its passage."

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