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Law firms and `gwanfia`

Posted August. 13, 2015 07:29,   

한국어

Retired bureaucrats make plenty of money not only for themselves but also for their employees because of the practices of incumbent government officials giving favors to retirees. Such retired officials are called "gwanfia," a combination of "gwan (bureaucrats)" and "mafia." Government officials might find virtue in giving favors to their predecessors because such practices would eventually pave the way for their future as well. Such practices may be mutually beneficial for both incumbent and retired officials. The problem is, however, other people will suffer from it.

Korea`s four major law firms have recently been given penalties by the Korean Bar Association due to their failures to report the fact that they hired retired senior government officials in violation of a law requiring law firms to report such hiring immediately and their activities annually to the association. The law was enacted in 2011 in order to prevent retired senior government officials from working as lobbyists by taking advantage of such practices.

It may be meaningful for the bar organization to take its first disciplinary action against the law firms. However, the penalties are not strong enough. The law firms were fined with just 10 million won (8,455 U.S. dollars) to 20 million won (16,910 dollars), far less than a month`s salary for one lawyer. In May 2014, the Legal Ethics and Professional Conduct Council asked the association to take disciplinary actions against 13 law firms that violated the law. It took the lawyers` association 14 months to take the actions. Nine of the law firms received just letter of warning because their violations were "minor." What law firm would be afraid of such weak penalties?

Retired senior judges and prosecutors rake in enormous amounts of money after they become attorneys because of such "gwanfia" practices. Ex-SupermeCourt justices charge tens of millions of won (tens of thousands of dollars) just for putting their name stamps on appeals case documents. Senior prosecutor-turned lawyers receive much more money by providing illegal defense over the phone without submitting formal appointment documents. Even though a tougher ethics law for government officials was made last year, it would be nothing but a toothless law unless such evil practices are not eradicated. Those engaged in the legal profession should abide by law first to set the law right.



jinnyong@donga.com