Korea completed 4 phase evaluation of OECD Anti-Bribery Convention

December 20, 2018

Anti-Corruption and Civil Rights Commission

The Republic of Korea

The OECD Working Group on Bribery conducted its Phase 4 evaluation of the Republic of Korea’s implementation of the OECD Convention on Combating Bribery of Foreign Public Officials* at its regular meeting, held at the OECD headquarters in Paris from December 11 to 13. The OECD’s evaluation report and press release are made available on the website of the OECD on December 20.

※ The OECD’s evaluation report and press release are available on the OECD website (www.oecd.org/daf/anti-corruption).

* The OECD Convention on Combating Bribery of Foreign Public Officials, taken into effect in February 1999, bans bribery in international business transactions to promote international trade and investment through fair competition. Parties to the Convention are currently 44 countries: 36 OECD members and 8 non-members (Argentina, Brazil, Colombia, Costa Rica, Peru, Russia, and South Africa). After signing the Convention when it was adopted, the ROK established the Act on Combating Bribery of foreign Public Officials in International Business Transactions (consisting of five articles) in January 1999, and underwent Phase 1 evaluation in 1999, phase 2 in 2004, Phase 3 in 2011, and Phase 4 in 2018.

In its report, the OECD noted positive aspects of the ROK’s anti-bribery framework, notably the recently revised Act on Combating Bribery of Foreign Public Officials in International Business Transactions*, which contains a new provision on punishment for paying bribes to third party beneficiaries, as well as the ROK’s comprehensive legal and institutional framework for whistleblower reporting and protection, and said that this is an example of good practice among the member countries of the Group in this area.

*The Act on Combating Bribery of Foreign Public Officials in International Business Transactions was revised to a bribe given or received by a third party to foreign public officials.

The OECD also commended the ROK for actively cooperating with foreign law enforcement authorities, including by actively making use of crime-related information provided by foreign authorities, and swiftly responding to international cooperation requests by foreign countries.

The OECD pointed out that the ROK’s enforcement of foreign bribery had weakened since its Phase 3 evaluation in 2011, and stressed that the ROK needs to proactively detect and investigate foreign bribery cases by strengthening the capacities of law enforcement agencies.

Besides, the OECD recommended that the ROK improve low level of punishment specified in law and the practice of weak punishment for bribery, and that the ROK’s investigation agencies and judiciary accurately interpret foreign bribery laws, including the Act on Combating Bribery of Foreign Public Officials in International Business Transactions.

The OECD Working Group’s evaluation is seen as the international community’s positive assessment of the ROK government’s efforts towards a clean society. The ROK government will further step up related efforts currently underway, drawing upon the evaluation, and meticulously review the Working Group’s recommendations, continuing to assist Korean companies in doing business activities overseas in a more transparent business environment.