[Revolving Door Personnel② - Gwanpia Solution] Private Experts Can't Enter... Law Firm Advisors Becoming 'Public Office Stepping Stones'

Restriction on Public Officials Joining Companies for 3 Years After Retirement
Need to Expand Regulations and Improve System to Prevent Conflicts of Interest

Prime Minister nominee Han Duck-soo is answering questions from the press after leaving the 20th Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul, on the afternoon of the 14th. Photo by Transition Committee Press Corps

[Asia Economy Reporter Park Jun-yi] Every time there is a regime change, it becomes increasingly difficult to appoint private sector experts, and the practice of reappointing individuals who have previously held public office continues. Although the Public Officials Ethics Act restricts this to prevent conflicts of interest involving retired public officials, criticism arises that it instead blocks private experts from entering public service.

Leaving Public Office Leads to Career Breaks and Difficulty Maintaining Livelihoods in the Private Sector

According to the current Public Officials Ethics Act, public officials are restricted from taking employment in companies for three years after retirement to prevent undue influence or interference with fair job performance. Therefore, even if offered a public office position, those who need to build a career in the private sector or maintain their livelihood are likely to decline.

In fact, there are many cases where offers for ministerial or other public office positions are declined. During the formation of the next government, former Financial Services Commission Chairman Lim Jong-ryong was seriously considered as a candidate for Deputy Prime Minister for Economic Affairs but reportedly declined the nomination himself. According to political circles, after stepping down from public office in 2017, Lim began working as an advisor at the law firm Yulchon from 2020, when his employment restrictions were lifted. A senior government official said, "After serving as a minister for one or two years, being bound by a three-year employment restriction, who would prefer that?"

During the Moon Jae-in administration, 27 people declined ministerial positions, the highest number among past governments. At the time, Hong Young-pyo, a member of the Democratic Party of Korea, exclaimed at a hearing-related forum, "Nowadays, when you ask someone to be a minister, everyone runs away." Regarding this phenomenon, a political insider explained, "More people refuse public office offers than before," adding, "Excellent people in the private sector refuse to come and work despite high salaries."

Law Firm Advisors and Outside Directors as ‘Stepping Stones’ to Public Office

However, holding advisory titles at law firms or outside director positions at large corporations often does not classify one as an employee, thus not subject to employment restrictions. Because of this, so-called ‘revolving door personnel’ frequently leave public office, take advisory or outside director roles, and then return to public office, raising concerns.

In the case of Prime Minister nominee Han Duck-soo, controversy arose over his serving as an advisor at Kim & Chang, the domestic legal representative of Lone Star, for eight months starting in December 2002 after serving as Chief Economic Secretary to the President. Democratic Party lawmaker Park Yong-jin criticized on CBS Radio, "Being a high-ranking official, then working at a law firm, and returning as Prime Minister is like being a referee in a game, then a player, and then returning as a referee in overtime." Furthermore, it was confirmed that he received approximately 1.8 billion KRW in advisory fees over four years from 2017 to this year, intensifying the controversy.

The same applies to outside directors of large corporations. Among the 19 initial cabinet nominees of the Yoon Seok-youl administration, seven (36.8%) were former outside directors of large companies. Han Duck-soo also served as an outside director at S-Oil from last year to early this year, reportedly receiving about 82 million KRW in compensation. Lee Chang-yang, nominee for Minister of Trade, Industry and Energy, served as an outside director at TCK, SK Hynix, and LG Display from 2009 until last year, receiving a total of 785 million KRW in compensation. After being appointed as secretary of the Economic 2nd Division of the Presidential Transition Committee, he was reappointed as an outside director at LG Display but expressed his intention to resign. Park Bo-gyun, nominee for Minister of Culture, Sports and Tourism, was appointed as an outside director at Shinsegae International in March last year but recently resigned.

Although such experience is not legally problematic, there are concerns about conflicts of interest. This is not only about preferential treatment for retired officials influencing specific companies but also about the potential misuse of these roles as stepping stones to re-enter public office at any time.

Expanding Private Sector Entry and Blocking ‘Gwanpia’

Experts agree that it is important to broaden the pathways for private experts to enter public office. Professor Kim Sang-gyeom of Dongguk University’s Department of Law said, "There are many cases where politicians or public officials violate the principle of separation of powers," and added, "The scope of regulations to prevent conflicts of interest should be expanded and sanctions strengthened." Lee Kwang-jae, Secretary General of the Korea Manifesto Practice Headquarters, also explained, "Along with legal and institutional improvements, each political party in the National Assembly needs to establish corresponding internal rules or policies."

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