Assembly Subpanel Approves Bill on Preventing Public Officials‘ Conflict of Interest

Apr 15, 2021, 09:24 am

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Committee Chairman Seong Il-jong (right) and DP lawmaker Kim Byung-wook are talking ahead of a meeting of the National Policy Committee at the National Assembly on April 14, 2021./ Photographed by Lee Byung-hwa

AsiaToday reporter Jo Jae-hak

A bill aimed at preventing conflicts of interest involving public officials, which has been stalled for nearly nine years, has passed the first hurdle at the standing committee of the National Assembly on Wednesday, raising hope for its passage at the parliamentary provisional session later this month. The passage of the bill, which has been first proposed in 2013, gained momentum after land speculation allegations involving employees at the Korea Land and Housing Corporation or LH sparked public anger. Observers say the bill has changed the method of approach to corruption of public officials as it focuses on preventing corruption unlike other anti-corruption bills that focus on punishment.

The National Assembly’s National Policy Committee held a bill review subcommittee on Wednesday and approved the bill on prevention of conflict of interest. The key point of the bill is regulating public officials from taking personal interests with job-related information. Specifically, it includes prohibition of gains on property using confidential information gained from work, avoidance if involved with private stakeholders while working, obligation to report financial transactions with job-related persons, and restrictions on hiring family members in public institutions.

The ruling Democratic Party (DP) and the main opposition People Power Party (PPP) passed the bill that has more intense measures than the National Rights Committee’s draft bill. First of all, the scope of high-ranking public officials has been expanded to local council members and executives of public institutions. However, teachers and journalists have been excluded from the bill. The scope of public institutions has been also expanded to government-affiliated organizations.

Public officials will be subject to the Prevention of Conflict of Interest Act for three years retirement. Third parties who gained profits from acquiring information will be also subject to regulation.

As the public interest in real estate speculation has increased, regulations related to real estate have been strengthened. Employees of public institutions whose principal duty is related to land and real estate must report the possession or purchase of related land and real estate within 14 days.

The family of a high-ranking public officials or public officials in charge of hiring will not be allowed to be hired by relevant public institution, affiliated agency or subsidiary. Families of a public official cannot enter into a private contract with relevant public institution or its affiliated office.

However, the new law will not be applied retroactively. “It is aimed at preventing the pursuit of private interests of public officials using their position. And it is not appropriate to apply it retroactively,” said DP lawmaker Kim Byung-wook.

The Conflict of Interest Prevention Act will target around 1.87 million public officials. It will include all public officials as well as employees of 1,227 public service-related organizations and 340 designated public institutions. If family is included, the number could reach at least 5 million.

#The Conflict of Interest Prevention Act #DP #National Assembly