Supreme Court Rules 'Agreement Disclosure Ordinance' Enacted by Gyeongnam Provincial Council Ineffective

Gyeongnam Province Wins Lawsuit Confirming Invalidity of Repassed Ordinance

Gyeongsangnam-do announced on the 19th that it won the lawsuit filed against the Provincial Council on May 16, 2022, regarding the "Ordinance on the Conclusion and Management of Business Agreements in Gyeongsangnam-do."

According to Gyeongnam Province, the ordinance was proposed in December 2021 by Song Sun-ho, the 11th Gyeongnam Provincial Council member from the Democratic Party of Korea, to enhance administrative accountability, transparency, and effectiveness.

The ordinance stipulates the Provincial Council's right to request documents and the obligation to report concerning business agreements concluded and managed by Gyeongnam Province.

Gyeongnam Provincial Government Office.
Photo by Lee Seryeong

Article 5, Paragraph 3 of the ordinance states, "If the governor includes confidentiality clauses in business agreements, it must be explicitly stated that such clauses are exempted when a Provincial Council member requests documents."

The province viewed this provision as excessively restricting the authority of the local government head and raising issues of violating higher-level laws, and thus in January 2022, inquired about this matter with the Ministry of Government Legislation.

In March of the same year, the Ministry of Government Legislation responded, "Local governments may establish necessary matters for performing autonomous duties within the scope that does not violate higher-level laws."

Despite the Ministry’s opinion, the Provincial Council partially amended the ordinance and passed it at the 3rd plenary session of the 392nd extraordinary meeting. After Gyeongnam Province requested reconsideration, the ordinance was re-approved at the 1st plenary session of the 394th extraordinary meeting and promulgated.

Gyeongnam Province filed a lawsuit to confirm the invalidity of the re-approval and requested a suspension of execution. After the Supreme Court granted the suspension request, the province finally won the case on the 13th, one year and two months later.

The Supreme Court ruling stated, "The re-approval by the Gyeongsangnam-do Provincial Council on April 27, 2022, regarding the ordinance has no effect."

"While the Information Disclosure Act, the Private Investment Act, and the Local Public Officials Act regulate information that public institutions may withhold and the confidentiality obligations of public officials, the ordinance demands disclosure without exception even for management, business, and job-related secrets, thus the ordinance’s effect is entirely denied."

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