Improvement will be made on 491 public institutionss’ unfair and unreasonable bylaws which contain a risk of abuse of authorities and discretion

- Three-year plan to inspect bylaws of public institutions vulnerable to corruption -

- Inspection will focus on rules with the risk of abuse of power or discretion in contracts -

February 24, 2020

Anti-Corruption and Civil Rights Commission

The Republic of Korea

Unfair and unreasonable internal rules of 491 public institutions will be inspected for the next three years to prevent corruption-causing factors, such as abuse of office and discretionary authorities, in contracts between a public institution and a private entity.

The Anti-Corruption & Civil Rights Commission (ACRC, Chairperson Pak Un Jong) set up a three-year plan to conduct Corruption Risk Assessment (CRA) on public institutions for bylaws with a high risk of corruption. Under the three-year plan, 491 public institutions will undergo the CRA.

This year, 187 of them will be subject to the CRA: 16 market-type public corporations*, 20 quasi-market-type public corporations**, 49 local government-invested public corporations and public agencies in areas of urban development, tourism, transportation, and etc. and 109 local government-invested public corporations and public agencies in the area of facility management.

The plan was drawn up based on the recognition that public service related organizations’ unfair and unreasonable practices have not been removed despite continuous detection by the Office of the Audit Inspection and the National Assembly.

Under the amendment to the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission in October last year, the ACRC are mandated to analyze and review corruption-causing factors in by-laws of public institutions established under the Act on the Management of Public Institutions and local government-invested public corporations and public agencies established under the Local Public Enterprises Act. Based on the result of the assessment, the ACRC can recommend improvement measures to the head of such organizations.

So, the ACRC set up a standard to examine bylaws of 491 public service related organizations for corruption-causing factors. Under the standard, high-risk organizations that are closely related to citizens’ daily lives will be inspected first. So, this year, public corporations, and local government-invested public cooperations and public agencies will undergo the inspection. In 2021, quasi-governmental institutions and in 2022, public institutions not classified either as public corporations or quasi-governmental institutions will undergo the inspection.

< Number of organizations subject to the 3-year inspection plan >

Inspection will focus on unfairness and irrationality in by-laws, which contain the risk of abuse of authorities or discretionary power in contracts and other works with the private sector.

If necessary, unfair welfare benefit rules, which may allow for excessive monetary aids, and personal affair rules, which may enable the excercise of discretionary powers on employment and promotion, will be also inspected.

In February, problem-identification work will be started based on audit inspection results and the number of disciplinary measures imposed. In March, a seminar will be hold for public institutions to explain the purpose of the inspection and request their cooperation.

In April, meetings with experts will be held; citizens’ opinions will be collected through ACRC’s People’s Idea Box; and opinions of related authorities will be heard on as well. The ACRC will then issue improvement measures to the organizations concerned.

Problems in bylaws, such as irrational and unfair provisions on contract, will be discovered by making comparisons among public organizations with similarities in their work. The provisions found to be irrational and unfair will then be examined whether they fit the CRA’s criterion.

< CRA criteria by areas >

Director General Im Yoon Ju of the Anti-Corruption Bureau of the ACRC requested public interest and cooperation from public institutions in the efforts to improve bylaws of public institutions. He said,”I expect that the inspection will contribute to the establishment of practice of fair contract between public sector and private sector.