2020 Budget Proposal of ACRC Finalized…

“Leaky National Funds to be Reined Back”

- The budget bill of 90.1B won, an increase of approximately 2.6B won (3.0%) year-on-year, passed at the National Assembly -

- Education and promotion of the Act on the Prevention of False Claims of Public Funds and the Recovery of Illicit Profits slated to take effect on Jan. 1 next year, or report handling related thereto to be reinforced, and rewards and protection for corruption and public interest whistleblowers to be expanded -

December 17, 2019

Anti-Corruption and Civil Rights Commission

The Republic of Korea

The 2020 budget of the Anti-Corruption and Civil Rights Commission (ACRC, Chairperson Pak Un Jong) was finalized at 90.1 billion won at the plenary session of the National Assembly on December 10, 2019. It is an increase by approximately 2.6 billion won (3.0%) vis-à-vis the 2019 budget, and the budget will be used to beef up the education and promotion of the Act on the Prevention of False Claims of Public Funds and the Recovery of Illicit Profits (hereinafter referred to as the “Act”), which will be effective from January 1 next year, and to enhance processing of reports on violation of the Act and expand rewards and protection for people blowing the whistle on corruption and public interest infringement.

The Chairperson of the ACRC Pack Un Jong on December 17 announced the finalized budget for the fiscal year 2020 along with major projects to be carried out next year in the briefing room of the ACRC at the Government Complex, Sejong.

Starting from January 1, 2020 when the Act comes into force, anyone who derives illicit profits by making fraudulent or excessive claims for, or using public funds* estimated at about 229 trillion won** for any other unspecified purpose, such illicit profits will be recovered entirely and additional monetary sanctions up to five times will be imposed.

* Subsidies, compensations and contributions, etc. provided by the state and local government, etc., including subsidies for research & technological development, grants provided to support SMEs, and welfare facility subsidies.

** Including the national subsidies of 77.8 trillion won to which the Subsidy Management Act applies on the preferential basis

The ACRC has secured approximately 270 million won in the budget to spend on expediting the process of receiving and handling reports on false or fraudulent claims for national funds so that people can no longer perceive the government money as ‘free easy money.’ The ACRC will also strengthen the education of citizens and public servants about the Act and the promotion thereof in order to help them have more accurate understanding thereof.

The ‘relief funds’ will be also expanded to support those who have suffered physical or psychological damage or incurred costs for medical treatment or moving, etc. on the grounds of his/her reporting, etc. so that he/she can restore to the original state as quickly as possible. Furthermore, an additional budget has been secured as well to provide people anonymously reporting infringement on public interest through his/her attorney with financial assistance in paying the fees for counseling or proxy reporting.

On top of this, the payment of rewards or prize money to reporters contributing to a reduction in costs or increase in revenues of public agencies will go up by 5.5 billion won or so (7.5%) to encourage more people to take an active interest in reporting public subsidy frauds.

Meanwhile, the 19th International Anti-Corruption Conference (IACC), the world’s largest public-private joint international anti-corruption conference, will be held in June, 2020 in Seoul. More than two thousands anti-corruption experts and civil society organizations, etc. from about 140 countries are expected to attend the Conference.

During this Conference, the ACRC will share major outcomes it has achieved in the course of carrying out anti-corruption reforms and strengthen international cooperation for more effective anti-corruption policy implementation.

Moreover, the ACRC will push ahead with several key projects for addressing civil complaints and protecting civil rights in a bid to realize an inclusive nation that cares for the people.

In the past, citizens experienced inconvenience in resolving their complaints with respect to multiple ministries and institutions belonging thereto, such as having to visit in person a number of relevant ministries and institutions. However, as the ‘Joint Government Complaints Center’ opened in last October, they can now be counseled on their complaints through ‘one-stop service’ at the Center without between-ministry partitions.

The ACRC has also expanded its budget necessary for more professional and comprehensive complaints counseling for the people in the upcoming year and will facilitate mobile complaints counseling using mobile applications, such as People’s Talk 110 (KakaoTalk Plus Friend), whereby anyone can be counseled 365 days a year around the clock on their complaints or harms they suffered due to abuse of power.

In addition, the budget to support the expansion of operation of the ‘Local Ombudsman’* currently established in 40 regions across the country has increased as well so that local residents can more easily and conveniently file civil petitions with their nearby Local Ombudsman and be given a remedy of their violated rights in their respective regions.

* A Local Ombudsman may be set up and operated by each local government in order to process civil petitions for grievances and improve administrative systems, etc. with respect to local governments and institutions belonging thereto.

Deputy Minister for Planning and Coordination of the ACRC Park Gye Ok said, “We will do our utmost to successfully implement key projects for the anti-corruption reform and improvement in civil rights by operating the next year’s budget to full capacity.”