What are the legal requirements to register government-relations activities and disclose lobbying expenditures in Korea?
Lawyer Answers
mohammad mehdi ghanbari
Hello and best regards.
Based on the current legal framework in South Korea, here is the advice you can provide regarding government-relations activities.
Executive Summary: No Formal Lobbying Registry
Unlike the United States or other jurisdictions with a dedicated \"Lobbying Disclosure Act,\" South Korea does not have a formal lobbying registration system for government-relations professionals. You are not required to file quarterly reports or register as a \"lobbyist\" with a central government body. However, this lack of a registry means the activity is heavily regulated by strict anti-corruption and legal practice laws.
1. Registration Steps
There is no requirement to register your government-relations activities with the Korean government. However, because \"lobbying\" is not legally recognized as a distinct profession, your activities must strictly avoid crossing into \"influence peddling\" or the \"unauthorized practice of law.\"
2. Third-Party Consultant Restrictions (Critical Risk)
You must be extremely careful when hiring third-party consultants. Under the Attorney-at-Law Act, it is illegal for non-lawyers to handle legal affairs or mediate interactions with government agencies for a fee.
Risk: If a non-lawyer consultant is paid to influence legislation or administrative dispositions, they (and potentially you) could face criminal charges for violating the Attorney-at-Law Act.
Recommendation: Many companies use large law firms or specialized consulting firms that strictly frame their work as \"advisory\" rather than direct \"lobbying\" to remain compliant.
3. Record Keeping & The \"Kim Young-ran Act\"
While you don't file lobbying reports, you must maintain rigorous internal records to comply with the Improper Solicitation and Graft Act (commonly known as the Kim Young-ran Act).
What to Track: You must meticulously record all expenditures related to meals, gifts, and congratulations/condolence payments provided to public officials, journalists, and teachers.
Spending Limits:
Meals: Up to 30,000 KRW (approx. $23 USD) per person.
Gifts: Up to 50,000 KRW (approx. $38 USD).
Cash (Weddings/Funerals): Up to 50,000 KRW.
Record Maintenance: Keep receipts and detailed logs of who met whom, the purpose of the meeting, and the exact amount spent. If an audit occurs, these records are your primary defense.
4. Reporting Timelines & Penalties
Since there is no routine reporting, \"reporting\" only happens when a violation occurs or an improper request is made.
Reporting: Public officials are legally required to report any \"improper solicitation\" they receive from you to their agency head or the Anti-Corruption and Civil Rights Commission.
Penalties for Non-Compliance:
Improper Solicitation: Fines up to 30 million KRW (approx. $22,500 USD) or imprisonment for up to 3 years.
Bribery: Penalties are severe, including long-term imprisonment and heavy fines.
Attorney-at-Law Act Violation: Up to 7 years in prison or fines up to 50 million KRW.
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