Newly introduced anti-graft law causes confusion among bankers

While some suggest that the employees and executives of commercial banks are subjected to the Improper Solicitation and Graft Act (also known as the Kim Yeong-ran Act named after the person who initiated the act in 2011), confusion is growing as the Anti-Corruption and Civil Rights Commission has not presented any clear answer.

Sources in the financial community in Korea say that the newly introduced law is causing confusion to the employees of commercial banks in charge of public affairs such as exchange of foreign reserves, apartment application, housing loans, receipt of national funds, or credit assurance if the law applies to such tasks.

Subparagraph 2 of Paragraph 1 from Article 11 of the Kim Yeong-ran Act defines juridical bodies or individuals who execute the tasks commission or entrusted by a government office to be affected by the application of the new law. If an employee of a commercial bank performs tasks for the housing loan program commissioned by the Ministry of Land, Infrastructure, and Transport, the person in question might be deemed subjected to the anti-graft law.

“From our internal review, we have reached a judgment that the anti-graft law may be applied to (such cases). As to the specific type of tasks, we are waiting for the announcement of the Anti-Corruption and Civil Rights Commission,” said an official from a local commercial bank.

Even on the second day after the law was enforced, however, the commission held back any clear answer, saying that the matter would differ from case to case. “Each case needs to be reviewed separately to identify the specific law on which the task was commission or entrusted to the banks by the central administrative bodies or public institutions," said an official from the Anti-Corruption and Civil Rights Commission. "The Kim Yeong-ran Act only applies when the person performs tasks commissioned or entrusted by government offices, and it does not always apply.”

박희창 기자ramblas@donga.com · 손효주기자 hjson@donga.com