Updates 2008-2009

Updates for 2008-2009

[Update]1% Movement
TI-Korea
http://ti.or.kr/xe/212731
2010.08.10 13:38:42
[1% Movement]
TI Korea’s 1% Movement represents a vision to have one percent of Korea’s citizens publicly commit to work toward a transparent and corruption-free society. Its slogan is “Take Pride, Be Transparent”.
As of December 2009, participants of the 1% movement numbered 3 thousands, and the fundraising effort raised 28,530,000 KRW.
The fund will be used to support TI Korea’s youth initiatives.

2009.12.30
Transparency International Korea

[Notice] 1st TI Korea Anti-Corruption Grant Results
TI-Korea
http://ti.or.kr/xe/212729
2010.08.10 13:37:28

[Notice] 1st TI Korea Anti-Corruption Grant Results

Below are the winners of the 1st TI Korea Youth Anti-Corruption Grant:
● TI Korea Gwangju-South Jeolla Local Headquarters (Gwangju Area Youth Anti-Corruption Awareness Raising): 2,000,000 KRW
● Guri K-PACT Council (“For a Cleaner and More Transparent District” Youth Transparency Academy): 3,000,000 KRW
● TI Korea Busan Local Headquarters (“For the Creation of a Transparent Society” Youth Program): 3,000,000 KRW
● Hannam YMCA (Ringing the Golden Bell for a Transparent Society): 2,000,000 KRW

2009.12.18
Transparency International Korea

[Column]March of 1% towards Constructing Transparent Society April 9, 2009
박경철
http://ti.or.kr/xe/103223
2009.04.10 15:11:07
Jaemin Daily Newspaper Column April 9, 2009

March of 1% towards Constructing Transparent Society
Kang, Sung-koo

Recently, our society has been chaotic due to scandals of Mr. Park, Yon-cha, and Ms. Ja-yon, Jang yet we have just heard our former President, Mu-hyun Roh confessed he received money while in office. Our people are no longer surprised. The list of Mr. Park Yon-cha showed the chronic relationship between politics and business and the list of Ms. Ja-yon, Jang exhibited reality of demoralized and devalued upper class. These issues make us wonder what era we all are living in. Due to these scandals, the so called ‘participatory government’ lost its ethical legitimacy which was the basis of the last regime. The corruption problems have been repeated like a vicious cycle.

The impact of these scandals would be greater on the opposition parties, this does not mean the ruling party is free from corruption problems. President Lee’s government barely has anti-corruption policies and the merely existing law and institutions have also been enfeebled. The current government recognizes transparency as an interfering factor for greater economic development. The former Blue House officer was arrested for receiving bribery and an incumbent Blue House officer is suspected of committing corruption activities and receiving prostitution. This shows us that our concern is based on actual facts. This is an inevitable consequence that we are facing with. Is the government of Lee certain that it will not repeat tragedies after four years?

It might seem like this is a concern solely for the core government officers but our concern continues. How can our people trust the top 1 percent of the nation who apparently does not have accountability and ethical ground but rights? How can we solve the current economic crisis without trust? Can the leadership which lacks of moral status and trust lead to gather energy of its people? This is the first concern that I had when I saw the corruption in the upper part of our nation. This concern is embodied as we see the corruption in the upper class spreading throughout the lower part of our nation without conscience. A lower-level public officer embezzled millions of dollars from the disabled fund. The corruption problems such as an embezzlement of business trip fee and forgery of document for working hours are continuously emerging. This so called ‘lower level’ corruption is growing.

Corrupted politicians, corporation owners with money-laundering and tax evasion, judges and prosecutors with double standard, public officers with embezzlement, socially renowned people with forged educational background, social leader groups with no moral standard, and students cheating without guiltiness present us that our society suffers from corruption and illegal activities. Regardless of these serious problems, our society does not prioritize fighting corruption as a main concern. The distribution of resources is weak as well.

Logically, we need two counter-measures to solve these problems. Firstly, the government needs to provide comprehensive anti-corruption policies, and the President presents his strong commitment to fight corruption. Secondly, we need to have an independent anti-corruption institution and strengthen the status and authority of the institution. Considering the current policy direction, these two measures seem to be impossible to be actualized. We certainly need more than these two measures. The current problems did not arise because our country is in lack of adequate legal and institutional system. On top of the legal and regulatory system, we also need a mechanism which can effectively operate the system.

The effectiveness of the system will be derived from the participation of the civil society. This is why we need to change our ways of thinking. We should not rely on the top 1 percent of our society who lacks of accountability but claims rights. If one percent of our nation who is committed to resist corruption emerges, our homes, working places, corporations, institutions, culture, and society will be changed. Korea can become a transparent society. If people do not change their ways of thinking and behavior, the vicious cycle of corruption will continue to exist. A dream of an advanced, developed nation would not come true if construction of moral ground is not accompanied by. It might take longer, but this is the only path we should follow. If we, ourselves, do not recognize corruption as a ‘wrong-doing,’ people will just try to avoid consequences, but will not be shamed of their actions (Words of Confucius)
[Report] TI Korea’s Water Integrity Workshop
Amber
http://ti.or.kr/xe/103221
2009.07.01 13:54:31

From Feb 5-6, 2009 Transparency International held a Workshop on Water Integrity
at Seoul Women’s Plaza. This workshop was attended by participants from various sectors including public institution, civil society groups, academes and TI Korea staffs.

This Workshop aimed at analyzing the current Korean water sector and it also was to
create strong coalition among these participants for promoting greater integrity. The Workshop was sponsored by Water Integrity Network, a leading international NGO in promoting
anti-corruption movement (for more information on WIN, please visit www.waterintegritynetwork.net).

The workshop consisted of six sessions and they are as the following:
Session 1: Introduce what role does this workshop takes in analyzing issues in the Korean
water sector
Session 2: Presents the corruption problems involving public and private corporations,
and the lack of transparency
Session 3: Exhibits how to build concrete governance in water sector (agenda, means, and possible outcomes)
Session 4: Introduces the case study of integrity pact in the medical sector
Session 5 and 6: Summarizes what was discussed in the previous sessions and drew out possible stakeholders for the next workshop (Integrity Pact in Korean Water Sector).

The participants of the Workshop agreed to the fact that integrity in the water sector
is extremely important since water is indispensable natural resource and it influences
lives of many. Therefore, having Integrity Pact in the water sector is urgently needed
to strengthen and protect the water sector from corruption issues.

For more information, please read the full workshop report attached here.

[Information] One Percent Movement Ceremony
Amber
http://ti.or.kr/xe/103220
2009.07.01 11:38:56

Transparency International Korea is holding a kick off ceremony for its establishment of
“One Percent Movement Steering Committee.”

“One Percent Movement” is a promise to provide corruption-free environment for our young
people and as the first step, we organized the Steering Committee.

We are inviting you to join us for this meaningful event.

Date: July 8, 2009 (Wed) at 7 p.m
Place: Lecture Hall, 2nd Fl.
Jeongdong Francisco Educational Center

For more information, please contact us at
(02) 717-6210 or www.ti.or.kr

[Notice] TI’s OCED Convention Progress Report was introduced in the Korea Times
Amber
http://ti.or.kr/xe/103219
2009.07.01 11:05:49

http://www.koreatimes.co.kr/www/news/nation/2009/06/117_47535.htmlJune 26, 2009

An article on Transparency International’ OCED Anti-Bribery Convention Progress Report was
written by Ms. Kim Rahn, a staff reporter at the Korea Times . Ms. Rahn in her article explains how the Progress Report was assessed and what advices TI has made for Korea.

The full article can be viewed at
http://www.koreatimes.co.kr/www/news/nation/2009/06/117_47535.html
[Statement] TI-Korea is Against Pardoning of Corrupted criminals
장진희
http://ti.or.kr/xe/103217
2008.08.18 14:45:33
TI-Korea is Against Pardoning of Corrupted criminals

Seoul 15 August, 2008 ? The Korean President’s special amnesty undermines the rule of law. We, Transparency International Korea are against pardoning of corrupted corporate criminals

1. Recently, Korea’s representatives of 5 economic associations submitted an appeal to President Lee Myung-bak on pardoning of 100 corrupted corporate criminals on Grant Amnesty Day, marking of August 15th’s Independence day. Even without admitting their crime or making promises to never to do it again, 5 economic associations has asked for pardoning of these corrupted corporate officials. Surprisingly, President Lee has accepted their offer and on 13th of August, he has granted amnesty on 34 thousand criminals. In this Grant Amnesty, President Lee pardoned corrupted corporate officials with the purpose of revitalizing economy and about 330 thousand public officials whom were under disciplinary punishment.

2. However, this kind of action by President Lee will incite more embezzlement, tax evasion and spread unlawful collusion between politics and business. This Grant Amnesty by President Lee has given chaos to law and order. Pardoning of punishments that were given less than 3 months, overrides the judicature’s decisions which will be something that has never been done in the history of Korea. How can a ruling party violate a basic law and still talk about abiding the law?

This kind of infirm punishment on corrupted corporate will also create incongruity and Korea will lose credibility internationally. The slogan, “Reviving Economy” of President Lee is just another excuse for granting higher authorities more power. With the loss of international credibility, none of the countries will form an alliance with corrupt businessman and untrustworthy government.

This Grant Amnesty of August 15th cannot expect harmony from the citizens. It is indulgence for corruption and it is a declaration of corruption in Korea. This is internationally embarrassing and also a set back on anti-corruption policies that have been at work for past eras.

3. President Lee’s slogan “Business Friendly” is putting Korea’s integrity on different track. It is being lenient on corporate laws and putting economic offense in unbelievably low priority. In addition to this, pardoning of corporate criminals is making President Lee’s slogan “Business Friendly” as not just pro-corporate, but pro-corrupted corporate. What is urgent is not pardoning of corporate criminals, it is revitalizing economy to enrich the lives of people, producing jobs to reduce unemployment, promoting equal constitutional rights in order to spread law-abiding spirits and increasing the integrity of Korea in order to boost foreign investment. However, this Grant Amnesty on corporate criminals would not be able to contribute to any of these solutions.

4. It is a common knowledge that one country’s level of corruption is in close relationship with economic growth and national per capita income. Transparency International’s Corruption Perception Index shows that out of 10, Korea has got only 5.1 in 2007, which is 43rd internationally. With the new government in place, Korea’s future of transparency is looking very gloomy. The new government should realize that only thing they can gain from pardoning these businessmen is the dishonor of being called corrupted government. President Lee tends to exemplify the cases of the United States’ economy. Then why does not he mention about the United States’ strict law on corporate corruption? In order for President Lee to consolidate his ruling power, he should reflect on his actions on covering up corruption and institute orderly laws for convictions on corruption.

President Lee’s government should look back on their past actions. If they continue to violently enforce their wrong policies like this, there is going to be more resistance. The warning for them is that a government without confidence from the people will not be able to achieve its goal. Therefore, President Lee’s government should reconsider this and act accordingly in order to stabilize the situation in Korea.

Transparency International Korea is working for clean society free from corruption.

[Report] Global Corruption Report 2008
Amber
http://ti.or.kr/xe/103216
2008.09.12 13:17:55

<Press Release> Corruption in Water Sector is the main factor causing water scarcity which threatens lives of billions. It is found the collusion between private corporations and water resources is serious

Transparency International released its global report on investigation and current status of corruption in water industry.
– Global Corruption Report 2008 (GCR 2008) focused on corruption in water industry
“Water industry related corruption aggravates water scarcity which threatens billion lives.”
– Corruption in water resources which can never be substituted leads to water scarcity, environmental degradation, famine, and destruction of lives of low- income families.
– corruption in water industry is in the following format; bribery in processing of water supply, hiding industrial water waste, fabricating management and distribution policies of water resources and corruption in carrying out irrigation projects, and procurement contracts.
– mostly affected are those who cannot afford such bribery
– If corruption in water industry is neglected, it will threaten grounds of international community in encountering climate change.

Three recommendations including transparency, participation, and reinforcement of supervision have been announced
-It needs to adopt transparency and participation as a principle of governance in water industry
-It needs to reinforce supervision of law enforcement in environment, water, sanitation, agriculture and energy
-It needs to guarantee fair competition and responsible performance in water industry

Transparency International Korea suggested to reinforce accountability of the public officials in water management.
-the government must nullify the Water Industry Support Act and privatization of tap water services which would increase corruption
-the government must establish governance in water related sectors through implementing K-PACT.

June 25, 2008

Transparency International having its Secretariat in Berlin, Germany released its Global Corruption Report: Corruption in the Water Sector (GCR 2008) on June 25. GCR 2008 greatly focuses on corruption in the water sector.

TI through its GCR 2008 intensely covers the range of corruption, and its destructive influences, and points out that such corruption threatens global push in fighting against climate change, and famine. TI argues it is the time to carry out anti-corruption effort in the water sector by implementing transparency and participation as a principle of governance, and by reinforcing supervision of law enforcement.

Hugutette Labelle, Chairperson of Transparency International, states that ““Corruption’s impact on water is a fundamental governance problem, yet it is not sufficiently addressed in the many global policy initiatives for environmental sustainability, development, and food and energy security. This must change,” He continues stating “Climate change requires the world to come up with what is likely to be the most far-reaching and complex global governance framework ever devised. Without addressing the corruption risks, especially as they relate to water, such plans stand on shaky ground”,

GCR 2008 reported that the corruption in the water sector is highly concentrated in drinking water and sanitation. More than one billion people are suffering from water scarcity, and more than two billion people are exposed to inadequately sanitized water. Additionally, corruption in the water sector takes place almost everywhere from planning water supply policies, budgeting construction to managing, and operating protected water. People of Jakarta, Manila, and Nairobi pay more for tap water than that of those living in New York and London, and this exhibits that the families at the lowest social strata are the biggest victims of such corruption.

It also reported evidence of corruption in the developed countries including Atlanta, Milan, and Sweden where bribery and collusion to influence contract and bid are found. In Chicago, embezzlement of political fund to spending targets is shown, and a multinational corporation in South Africa was found to be corrupted in bidding for ‘8 million dollars worth’ water resources construction project.

Transparency International announced three recommendations as a countermeasure; first is to establish transparency and participation as principles of governance. Transparent budgeting, opened policy-making decision, auditing and opening governing contract, transparency and participation of citizens will increase integrity of governance. The second is to increase supervision of law enforcement. TI asks the governments to increase a function of supervision through the establishment of law enforcement supervising institution, and roles of the government and the public sector need to be strengthened in order to do so. Lastly, TI recommends the government and the public sector to guarantee fair competition and accountability in the water sector industry.

Transparency International Korea who reported the GCR 2008 released its position on eradicating corruption in the Korean water sector. TI Korea found it fortunate that there is no case of corruption in tap water supply, and it greatly emphasized the importance of managing water at the national level since water cannot be substituted, and it is a public and indispensable commodity. It urges for efforts in increasing accountability and transparency at least in the public sector of water supply. TI Korea also warned the danger of privatizing tap water industry.

TI Korea found few points from the GCR 2008 that needed to be looked at closely. The GCR 2009 clearly demonstrates that countries where water resources are managed by the private corporation rather than by the national public sector encounter profoundly serious corruption. According to TI Korea, corruption caused by collusion between public officials and private water suppliers, Cartel, and water mafia is palpable in developing countries. Various bribery, and collusion found in municipal water management and supply procurement causes increase in water price. TI Korea warns that the currently drafted privatization of tap water and inducement of private investment would be serving as a new cause of corruption.

TI Korea also argues that one of the redundant cases in the GCR 2008 is corruption involving bribery to hide industrial water waste by the private corporations and the collusion to get permission for construction in protected water areas. These cases have similarities in the water sector corruption found in Korea, and therefore, close attention and efforts are needed to watch the private corporation corruption in coming years.

Transparency International Korea urged in its statement that the government and the public sector must adopt transparency and participation of the civil society as principles of governance in order to overcome water corruption. TI Korea believes that the P-PACT which is considered as a role example in the international community takes a complementary role to such governance. TI hopes to see the establishment of good governance through implementation of K-PACT in the public corporation and each municipal organization.
Lastly, TI re-emphasized the necessity of reinforcement of public sector accountability in water-related sectors which can never be substituted. It warns the government to repeal the proposed Water Industry Support Act which was deferred due to the public opinion (the proposed enactment was originally scheduled in June) and to abolish privatization of tap water which is drafted under the fabricated name of grater development and inducement of private investment.

< TI Korea’s Statement>
Accountability of the Public Sector is needed to be reinforced in order to diminish corruption in the water sector management which threatens lives of humankind.
“We strongly disagree with the privatization of tap water industry, and the Water Industry Support Act which will lead to an increase in corruption”

Transparency International Korea’s position on the Release of Global Corruption Report 2008.
According to Transparency International’s Global Corruption Report 2008 which covers the water sector corruption, corruption threatens international community’s effort in fighting against famine, and climate change. It urges that it is time to perform anti-corruption in the water sector through the establishment of governance based on transparency and participation, and reinforcement of supervision system.

Through this report, we acknowledged that more than one billion people are faced with water scarcity, and two billion people are exposed to inadequate water sanitation. The low-income families of the developing countries are the biggest victims of the water sector corruption. People of Manila, and Jakarta are paying more for water than that of people living in London and New York. The pain of water sector corruption in Manila and Jakarta is as serious as corruption in other sectors, and this demonstrates that the water sector corruption is a factor which threatens global efforts to fight against climate change.

Transparency International Korea argues that Korea is also not free from the water related corruption. Private corporations have given the officials bribery to hide their industrial waste discharge, and to get license for construction in protected water areas. This problem of illicit relationship has been existed for many years. Thus, it requires the government, and the municipal governments to cooperate more in order to diminish corruption in water sector where corruption becomes an environmental problem.

Transparency International closely pays attention to profound and epidemic corruption in water supply system which can be found in countries with privatized water sectors. The corruption caused by the relationship between officials and private water supply corporations, the corruption caused during the process of procurement auction, and the increased water price through collusion are the reality of corruption which cannot be overlooked at.
Repeal the Water Industry Support Act, and Terminate Privatization of Tap Water Industry.

We warn the government that its various plans for the privatization of tap water industry and the inducement of private investment will create new means to corruption.
With the enactment of the Anti-Corruption Act in 2001, South Korea has shown a bit of success in controlling corruption in public sectors, however, there are no relevant laws in private sectors for restricting corruption.
Under this circumstance, it would be impossible to control corruption if the tap water is privatized. Such privatization would ultimately threaten lives of Koreans. Additionally, if the Water Industry Support Act is enacted (the proposed enactment was originally scheduled in June), this will pull foreign investment from multinational corporations, and the control of corruption on these foreign companies would be not viable.

Therefore, Transparency International Korea asserts the following; firstly, the government must abolish the drafted privatization of tap water sector which was crafted under the name of “inducement of private investment” and “greater development.” Secondly, the government must repeal the proposed Water Industry Support Act which was deferred due to the public opinion.

We need to firmly establish governance in water-related sectors through the Korea Pact on Anti-Corruption and Transparency.

As it was indicated in the report, Transparency International supports the three mandatory provisions; establishment of governance based on transparency, and participation of civil society, fair competition and accountability, and reinforcement of supervision and restriction.

Transparency International recommends the government to follow the first provision of the K-PACT stating “transparency and participation of citizens should be the leading principle of governance in overcoming water-related corruption.” We believe that the P-PACT which is considered as a role example in the international community takes a complementary role to such governance, and it would be firmly established if the public sector corporations and the municipal groups implement the K-PACT.

Transparency International Korea re-emphasizes the necessity of reinforcement of public sector accountability in water-related sectors which can never be substituted for continuous development, and terminating corruption.
June, 25, 2008

[Report] Monitoring Report on 2008 OECD Convention on Combating Bribery of Foreign public Officials in International Business Transactions

Press Release (Immediate release)
South Korea does have a legal enforcement for foreign bribery of Korean corporations, yet it has very moderate confinement

– Transparency International released its monitoring report on 2008 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.
-Since 2002, only 13 cases were prosecuted, and most of the cases occurred within Korea.
– A government of Korea does not intend to restrict them vigorously, and the clauses for prosecution is weak as well. – It needs to reinforce legislation and prosecution on corruption and bribery of private sectors as the UNCAC was ratified. – Transparency International recommended re-establishment of independent anti-corruption organization.

A NGO organization renowned for its Corruption Perceptions Index in international and Korean community, Transparency International (Berlin, Germany) released its monitoring report on 2008 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. This convention prohibits bribing public officials when contracting business in foreign soil, and corporations involved in bribery are subject to legal consequences in its home ground. South Korea ratified the convention in 1997, and enacted relevant laws.

According to the 2008 report by Transparency International, South Korea possesses well structured legal and institutional system for preventing foreign bribery of corporations yet its investigation and prosecution on such corporations are still lacking. Statistics from 2002 to 2007 demonstrated that only 13 cases were reported for bribery on foreign soil. Only one of them was the foreign bribery, and the rest was domestic bribery.
When we closely looked at the cases, five cases were indicted as a Korean company bribed the officials for supplying goods to the U.S Army based in Korea, and the three were accused for bribing the official at the Chinese Immigration Service with U.S $20, 000. In domestic sphere, the former executive officer from IBM Korea was sentenced in prison for bribery and illegal business activities in contracting services, and computer parts supplies.

It is pointed out that the lack of investigation and prosecution is caused due to weak clauses for prosecution, and the government’s merely existing willingness to do so. The current clauses of prosecution states that a violator of foreign bribery will either be sentenced five years in prison, or required to pay fine under $20,000 U.S. If a violator makes profits over $10, 000 U.S through bribery, he or she will be required to pay the doubled amount of his or her profits as fine.

It was also pointed out that there is no adequate protection system for internal whistle-blower. Transparency International quoted from a Korean expert stating that protection for internal whistle-blower was reinforced in public sectors, however, the Anti-Corruption Act does not include whistle-blowers in private sector as a subject to such protection. In addition, the efficient itself is doubtful. Transparency International also indicated the fact that the parliament ratified the UNCAC in Feb, 2008, and the legislation enactment included the bribery and corruption in private sectors.

Korea is categorized as having satisfactory enforcement for foreign corruption act along with Argentina, Australia, Austria, Denmark, Finland, France, Germany, Hungary, Italy, Netherland, Norway, Spain, Sweden, Switzerland, and the United States out of 34 countries which ratified the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Among these countries, France, Germany, and the United States are considered to be the most successful countries in having legal system, and in carrying out implementation.

On the other side, other 18 countries such as Austria, Brazil, Bulgaria Canada, Chile, Estonia, Greece, Ireland, Japan, Mexico, New Zealand, Poland, Portugal, Slovakia, Turkey, and U.K apparently are having lack of enforcement or they do not have relevant laws.

It is shown that the number of investigation and prosecution cases do not mach in Korea. Korea was categorized as one of the 11 countries having insufficient investigation and prosecution. Among these countries, only Korea and Hungary are classified as having legal adequacies yet not properly enforced.

Professor Junki Kim from Department of Law, at Yonsei University pointed out that the reinforced educational training on bribery of foreign public officials are highly needed for corporations, and an immediate report is needed to be open for such cases, and statistics. In addition, Chairperson of Transparency International Korea, Mr. Geo-sung Kim stated that “apart from recommendations from Transparency International, the government needs to implement leading policies, and to have willingness to do so in order to increase efficiency of preventing corruption in foreign soil,.”

Some of the press reports stated that the South Korean government made greater effort in anti-corruption, however, Transparency International argued that what the reports of the press are totally different from the monitoring report on 2008 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Transparency International Korea argued; firstly, the monitoring report does not analyze the anti-corruption efforts made by each state. Secondly, the monitoring report stated South Korea has well structured legal system on anti-corruption, however, the press reports exaggerated such statement as if South Korea made great efforts in anti-corruption.

[Statement] Non-Democratic Appointment System by Lee’s Government
Transparency International, Korea
Statement on Non-Democratic Appointment System by Lee’s Government

System for Appointing Public Officers needs to be Transparent and Fair.
Communicate with people

Do not distort legacy of democracy by appointing your close one to posts

We, Transparency International Korea, urge Lee’s government to make fair and transparent appointment system and to communicate with citizens in this way. We highly condemn Lee’s undemocratic appointment system which neglects fairness and adequate procedure. Lee’s government constantly failed in appointing public officers with appropriate process, and that produced short-lived public officers in different posts. We Transparency International Korea, have made effort in constructing anti-corrupted, and transparent society. Today June 10, we celebrate the 21st June Democratic Movement, and Transparency International Korea requests the Lee’s government to restore democratic sprit through fair and transparent appointment system.

June 9, President Lee invited senior members of the catholic community, and admitted that the new government’s appointment system neglected moral standard of the people. We give President Lee credit for his acknowledgement, however, if he continuously appoints his close ones to the post without communicating with people, and without admitting the problems of such process, he would not gain any trust from his own people.

Recent replacement of the public officer exhibits that political pressure was involved, and it demonstrates the inadequate process is destroying democracy. This should not be possible in a state where rule of law governs the state. While there are massive candle light movements in Korea at present, the replacement has been continuously conducted. Using the Public Prosecutor’s Office and the Board of Audit and Inspection, the government condemned the public enterprises and pushed its heads to resign from their posts. The government then planted the posts with its own people. Additionally, the government is pressuring heads of civil organizations to resign although it does not have authority to do so.

Newly appointed heads of the Korea Land Corporation, Korea Water Resources Corporation and Korail are also close to President Lee himself. One of these new chairpersons was once accused for accepting bribery from the companies involved in implementing screen door for the Seoul Metro Corporation. South Korea under democracy has legal procedure for defining qualities when appointing a public officer. Each public corporation has a designated term for a chairperson, and it also has application procedure. The Public Prosecutor’s Office and the Board of Audit and Inspection are not tools to strengthen political ambition. Application procedure is not just a formality, and it is there to be performed. In the case of electing a chairperson for Korea Housing Finance Corporation, the Blue House extended the application period stating that the Blue House recommended candidate was missing. How this be possible in state with rule of law.

We Transparency International Korea have actively engaged in anti-corruption movement since its foundation in 1999. We have been trying to spread anti-corruption phenomenon in our society, and to expand legal instrument for anti-corruption. With these efforts, the Anti-Corruption Act was created in 2001, and the Corruption Perception Index points were increased from 3.8 to 5.1 in 1999. There are also laws related to transparency of public officers including code of conduct, ethics, and identity accounting system. Lee’s government, however, is destroying these efforts for transparency and anti-corruption by unfair appointment system.

We Transparency International Korea, therefore request the government to stop appointing Lee’s ardent supporters at the public posts, and stop pressuring current heads of public corporation to resign. We also urge President Lee to implement formal, and principal appointment system. Further, this system should not be interfered for political purpose, and it also should be supported by legal and fair standard. The government has to have systematic structure for the public officers to fulfill their duties to citizens. Also, the government needs to meet the increased moral standard of the citizens.

[Report] TI Korea and Korea Infrastructure Safety and Technology Corporation signed agreement
On April 1st, Transparency International Korea and Korea Infrastructure Safety and Technology Corporation signed an agreement called, “Transparency: Commitment on Ethical Administration.” By signing the treaty, these two organizations seek to raise awareness on the issues of anti-corruption and transparency in order to embody transparent culture and institute continual effort to pursuit chronic expansion and trust. By doing so, these two organizations hope to attain transparent society in order to contribute to the competitiveness of Korea.

Agreements between the two organizations are these:
1. Act as a role-model for the society and the citizens.
2. Institute the importance of safety in the realms of society by keeping responsibility to the society.
3. Pursuit collaboration between two organizations to construct transparency system.
4. Education and information exchange between two organizations, in order to establish ethical management.

(Statement) President Lee and Tasks on Anti-corruption
“President Lee and Tasks on Anti-corruption”
Opinions of Participants

TI-Korea
I. Open Forum Outline
Last March, 19th 2008, Transparency International Korea led an open discussion group at the National Assembly Hall on the topic of “President Lee Myung Bak’s Government and Transparency Tasks.” At this discussion, everyone agreed that the newly elected government should listen to citizens’ opinions on conquest of corruption, it should reflect on the previous achievements of the pasts, and move forward.

Based on this discussion, the sponsor, TI-Korea and the participants organized opinions presented at the discussion and decided to make official document in order to send it to government related offices, national assembly, and related organizations.

1. Date, Place.
Date: March 19th 2008 Wednesday 10am ~ 1pm. (3 hours)
Place: National Assembly Hall.
2. Sponsor.
Transparency International Korea.
3. Topic and contents.
Topic: “President Lee Myung-bak’s government and Transparency Tasks.”
– Examination on President Lee’s anti-corruption legislation and tasks.
– Examination on President Lee’s anti-corruption policies and tasks.
– President Lee’s government and civil societies’ anti-corruption tasks.
4. Format
Presentation of 3 people, discussions of 3 people, answering questions from the audience and sum up.
5. Participants of discussion.
Director of the meeting: Geo-sung Kim (President of TI-Korea)
Academia: In-hwan Park (Professor of Kunkuk University, Lawyer)
Soo-il Jun (Professor of Kwang-woon University, Advisor of Korea’s Corruption Studies)
Hong-sik Park (Professor of Joongang University, Dean of Administration)
Sung-nam Kang (Professor of Korea National Open University)
Civil Society: Sung-goo Kang (Secretary General of Transparency International Korea)
Hae-mong Kim (Secretary general of Citizen’s Solidarity for Participation and Self-Governance of Busan)

II. Opinions of Participants

1. Problems of Anticorruption.
1) Problems of Korea’s corruption have been showing improvements for the past 5 years. However, there is still long ways to go and recent stagnation on the speed of improvement and put back is a concern.
2) Therefore, there should be enforcement on anticorruption policies. However, based on what President Lee has suggested so far, it is apparent that his government has lack of understanding on the topic of anticorruption and has feeble will as well.
2. International Anticorruption Organization

1) The process of abolishing K-PACT, the Ombudsman of Korea, the Administrative Appeals Commission under the Prime Minister and integrating them as Anti-Corruption and Civil Rights Commission was hasty and imprudent. Especially, problems have occurred such as contradicting capacity between three organizations, lack of independence of anticorruption organization, and investigating authority. Therefore, in order to guarantee the professionalism and independence of these organizations and increase the general ability to deal with corruption problems and efficiency. As a result of these efforts, anticorruption organizations should enforce their status right under the President and granted with investigation authority.
2) Personnel verification program needs reinforcement as well. As a solution, authority of managing ethics of public officials should be given to main anticorruption organization, Anti-Corruption and Civil Rights Commission.
3) As a long-middle-term task, the participants agreed to incorporate topics of anticorruption and human rights and create National ombudsman system, which has its roots to the constitution. Also, when there is constitutional amendment, as the rights of citizens, access to information should be added on.
3. Anticorruption Policies

1) The dominant way of approaching anticorruption issues such as prosecution and punishment should be abolished. Instead, holistic approach of incorporating both the enforcement of law system and improvement on consciousness is needed. On top of this, active participation of different core societal groups as a basis for National Integrity System is needed.
2) Holistic anticorruption policy is needed, especially on ethical administration, participation of citizens, international collaboration, prevention of corruption, education on corruption, self-regulation on corruption, cooperation, and participation in order to create new paradigm and to produce new policies in base with these new paradigm. Therefore, execution of The Korean Pact on Anti-Corruption and Transparency is very crucial. In order to institute this process, it is needed to renew The Korean Pact on Anti-Corruption and Transparency as of 2008. Also by using this it is needed to expand transparent culture.
3) Solutions on regional corruption should be established.
4) Like the government promised on The Korean Pact on Anti-Corruption an Transparency, investigation system on corruption of higher ranking official should be established.
5) Different areas of civil societies should institute anticorruption initiatives.
6) Between national chapters, there should be enforcement of monitoring system.
7) Transparency in law enforcement bureau is needed.
8) President Lee’s government should revaluate the tasks of anticorruption through right experts and enforce the status of anticorruption organization by using civil activists.

New Government needs to construct Nation Wide Transparency System

-Transparency International Korea organized an open debate on the topic of “President Lee Myung Bak’s Government and Transparency Tasks.”
-Criticism on abolition of K-PACT and post-punishment policy.
-Pointing out the problems of Anti-Corruption and Civil Rights Commission’s hasty unification.
-Comprehensive construction of National Anti-Corruption including private, public and corporate sectors.
-Following global trend of anti-corruption by strengthening the power of anti-corruption organizations, improving ethics of public office and integrating the capacity of anti-corruption.
-Suggestion of giving anti-corruption organization with authority of personnel verification system.
-As a short period task, institute ethic education and code of conduct on newly elected government. Also, station supervisors on public servants’ ethics in the public offices.
-As an urgent reality check, establishment of anti-corruption on high ranking public officials is crucial.

On 19th of March, 2008, Transparency International Korea organized an open debate on “President Lee Myung Bak’s Government and Transparency Tasks,” including many representatives from academic sphere and NGOs at the National Assembly Hall. During this forum, examination of newly elected governments’ problems on corruptions was discussed. At this meeting, Professor In-hwan Park (Konkuk University and Lawyer), Professor. Soo-il Jun (Kwang-woon University and Advisor of Korea’s Corruption Studies), and Secretary General Sung-goo Kang (Transparency International Korea) presented and Professor Heung-sik Park (Joongang University ), Professor Sung-nam Kang (Korea National Open University), Managing Director Hae-mong Kim (Citizen’s Solidarity for Participation and Self-Governance of Busan) debated.

At this open debate, presenters and debaters criticized President Lee’s lack of will on the issues of anti-corruption, his post-corruption-punishment system, and ignorance on trend of global anti-corruption movement. Participants agreed that closing down of K-PACT and putting it all under Anti-Corruption and Civil Rights Commission is degrading the problem of anti-corruption in the level of civil petition. The participants also criticized that this move was also, neglecting the hopes of citizens and portraying the ironic connotation in the legal system.

As a basis for anti-corruption policies, the participants believed it is crucial for newly elected government to develop a comprehensive National Integrity System, incorporating all public, private and corporate sectors. As to follow the global standard on anti-corruption, it is needed to enhance the power of anti-corruption organization and incorporate the government’s anti-corruption system along with code of ethics on public service. As for a recent problem of personnel verification system, the participants suggested to transfer the ethic-inspection system to anti-corruption organization. As a short period task, necessity of education on ethics for leaders of newly elected government was proposed, especially on instituting ethical director, and ethical advisors in a public institution caught many participants’ eyes. Participants also agreed on instituting an organization for investigating the corruption of high-ranking public officials as an urgent matter.

Professor In-hwan Park led the first debate on his statement, “Examination and task for President Myung-bak Lee’s anti-corruption law.” According to his statement, what is needed now is application and settlement of already legislated “Prevention of Corruption and Integrity Society System.” K-PACT is an independent representative system for prevention of national anti-corruption and not a system for protecting citizens’ rights or interests. However, the newly elected government’s decision to consolidate K-PACT, the Administrative Appeals Commission under the Prime Minister and the Ombudsman of Korea to Anti-Corruption and Civil Rights Commission is basically neglecting citizens’ wish, which is ironic itself. Anti-Corruption and Civil Rights Commission’s related law, “Law on Prevention of anti-corruption and Anti-Corruption and Civil Rights Commission’s installment and operation,” is just a patchwork of anti-corruption prevention law and the Administrative Appeals Commission under the Prime Minister law. Therefore, it does not meet the criteria of being a stand alone law. In addition to this, by having bureaucracy and positions such as chairperson, vice-chairperson, standing committee and vice-standing committee, it is distorting the role of committee as representative consultants. Also, Anti-Corruption and Civil Rights Commission has problem on its title, and internal reciprocity system. Also, Prime Minister’s office is also entrenched in the commission and most of all, technical discrimination on granting investigation on predicaments on citizen but not on anti-corruption within the committee were criticized. As an alternative, Professor Park suggested unifying the function of Public Office Ethic Committee and anti-corruption organization. Also, as for the current criticism on ethical verification system on personnel, he proposed the authority to verify the ethical standpoint of higher-ranking officials and that authority should be given to the anti-corruption organizations.

During this open forum, Professor Soo-il Jun emphasized that President Lee’s effort on revitalizing Korean economy and South Korea’s take-off of becoming a well-developed country can be only achieved when anti-corruption policies are taken as priority. He criticized on President Lee’s way of unifying many existing committees by thinking of only reducing the number of them and President Lee’s lack of will on prevention of corruption, dependence on post-control, deficient understanding on making laws on anti-corruption and, ignorance on international flow on prevention of corruption. As for President Lee’s task on anti-corruption, Professor Jun suggested that the newly elected government should look into the successful case of Hong Kong’s Independent Commission Against Corruption where investigation on various fields, such as corruption of public officials and citizens, abuse of power of public officials, establishment of policy on prevention of corruption and education of anti-corruption on citizens have been undertaken. Professor Jun recommended that like this independent anti-corruption committee, Korea should reinforce the status of anti-corruption organizations. Moreover, he also expressed that Korea should focus on the changing paradigm of anti-corruption and institute counter measurement on anti-corruption in the areas of public, private and corporate sectors. Lastly, Professor Jun suggested the direction of Korea’s future on anti-corruption by cooperation between government offices and NGOs on investigation authorities, focusing on self-regulation and prevention on corruption, expansion of The Korean Pact on Anti-Corruption and Transparency, and active participation of anti-corruption movement.

Through a statement, “President Lee Myung Bak’s Government and Transparency Tasks,” and TI’s CPI, TI-Korea’s Secretary General Sung-goo Kang claimed that Korea has been showing gradual improvement on anti-corruption but internationally speaking, Korea has only slightly escaped from absolute corruption. Therefore, compared to what Korea has been achieving socially and economically, in terms of anti-corruption, there is far more things to do, especially by looking at last 3 years’ stagnation. By looking at the 3 areas such as accepting corruption, doing corruption, and recognizing corruption, Korea’s has a risk of following Japan’s case where many improvements were made in the lower level but no progress in the higher-level. Therefore, he claimed Korea should follow the structure of National Integrity System. Based on this, Secretary General Kang suggested that President Lee’s government should establish anti-corruption policies on top of the achievements from the previous government. Therefore, whether than focusing on punishment and prosecution, President Lee should wholly approach the problem with instituting laws and changing consciousness of people. Moreover, public-private-and civil activists should form cooperation to build National Integrity System. In order to do so, there should be enforcements on monitoring system, law abiding, and authority of anti-corruption organization. He also suggested, synergism between all these three factors is indispensable and looking at citizens’ suspicion towards leadership, special investigation unit for preventing higher-rank officials’ corruption are necessary.

As a debater Professor, Hong-sik Park suggested that expecting execution of consciousness and adoption of anticorruption from bureaucrats will be hard because of their interest sharing tendencies with civil service. Therefore, he claimed that anticorruption organization should be established by civil activists who can understand and speak for citizens. By doing so, there should be a challenge on development of legal fiction on anticorruption, and extraction of corruption on authority and public service.

Through this debate, Professor Sung-nam Kang said that pragmatism is basically a tool to achieve someone’s objective and when it does not reflect the step-by step approach of reality and strategic attitude towards problem solving, it will merely become opportunism without principle. He criticized that President Lee’s anti-corruption policies turned work of prevention of corruption into administrative work of the government. Like the utility pole incident, overly emphasizing efficiency has a risk of normally running the system and also danger of expanding corruption.

During the discussion, Managing Director Hae-mong Kim suggested that Anti-Corruption and Civil Rights Commission is still unfamiliar and ambiguous to many, so it is important to establish its ability and role really quickly and if it does not show any improvement on instituting transparency, it should move back to as an independent organization. On top of this, Professor Kim also criticized President Lee’s punishment oriented anti-corruption policies and emphasized that having preventive measurement toward corruption should be encouraged.

March 24th 2008
Transparency International Korea/Transparency International
President: Geo-sung Kim

(Statement) TI’s Review on Parliament’s Ratification of the UNCAC

“Implementation is more importantly than ratification”

1. The Parliament ratified the UNCAC today. Since signing the UNCAC (United Nations Convention Against Corruption) in December, 2003, it took four years for South Korea to be the 108th state of ratification. Although it was delayed but we warmly welcomes the ratification.

2. However, it is very unfortunate to hear that the Korea Independent Commission against Corruption was abolished when the UNCAC was ratified today. The abolishment was enacted in accordance with Corruption and the Establishment and Operation of ACRC』 (act no. 8878)

The Commissioner, and three vice- commissioners are appointed by the President with recommendation from the Prime minister. Three standing committee members are recommended by the Commissioner, and the President appoints the committee. The 6 non-permanent committee members are either appointed or recommended by the President, and the other two non-permanent committee members are elected by appointment or recommendations from the Parliament or the Chief Justice of the Supreme Court. This obviously exhibits the receded independence, and such appointment system cannot be considered as an autonomous anti-corruption organization. The appointment system violates the Article 6 of the UNCAC stating “each State Party shall grant the body or bodies, in accordance with the fundamental principles of its legal system, to enable the body or bodies to carry out its or their functions effectively and free from any undue influence. ”

3. There is an increasing concern with regard to the anti-corruption policies which is receding in the new government. During his inaugural speech, President Lee did not mention any corruption related issues, which was quite disappointing. Wouldn’t he try to inherit past achievement and improve current status? He would not construct South Korea a renowned transparent nation? Or is he being careless and let South Korea sink to the past blurred with corruption and illegal actions

4. Although South Korea has not been able to overcome profoundly serious corruption, it is the fact that it has been perceived as a role model for presenting anti-corruption campaigns in the international community Since the establishment of the Anti-Corruption Act in 2001, South Korea has made great effort in reducing corruption, and increasing transparency through Korea Independent Commission against Corruption.
In addition to such effort, K-PACT(the Korean Pact on Anti-corruption and Transparency) was enacted, and many civil and social groups have actively engaged in promoting K-PACT.

Municipal government of Seoul initiated open system for civil petition process and the Public Procurement Service opened electronic procurement system. The United Nations, and International Anti-Corruption Conference have complimented these achievements.

Through a newly established Defense Acquisition Program Administration, transparency and efficiency of the defense acquisition sector have been dramatically improved. OECD addressed this achievement as a role model of implementing UNCAC successfully. With these efforts, South Korea received 5.1 out of 10 in TI’s Corruption Perceptions Index(CPI) in 2007 which was a tremendous achievement compared to the year of 1999 receiving 3.8. We urge the new government to be more proactive in improving corruption problems with previous achievements.

5. It is too early to celebrate the ratification of the UNCAC. The most important task is how effectively the government would implement such agreement. In order to implement the UNCAC, there should be a “gap analysis.” This profound investigative research finds sectors needed to be restructured in order to meet the standard of UNCAC. Through the investigation process, more efforts need to be made. Implementing the UNCAC agreement will drive South Korea on track for its greater social foundation.
Feb 29, 2008

Transparency International, Korea

(statement) No sound economic development without fighting corruption ?

No sound economic development without fighting corruption ?

Transparency International makes statement on its concern with regard to the abolishment of the Korea Independent Commission against Corruption, and the receded policies against corruption.

-The government’s plan to abolish the Korea Independent Commission against Corruption and to integrate it with the Anti Corruption and Civil Rights Commission under the Prime Minister distorts independence of the anti-corruption organization, and violates the UNCAC.
-The economic efficiency that the current South Korean government hopes to achieve is only possible through the anti-corruption.
-Active participation of the civil society and overall indication of anti-corruption policies are urgently needed.

Transparency International, and Transparency International Korea released statement together from Berlin, Germany and Seoul, Korea, and presented their concerns over the abolishment of the Korea Independent Commission against Corruption which would recede anti-corruption policies. In the statement, Transparency International argued that the government’s plan to abolish the Korea Independent Commission against Corruption and to integrate it with the Anti Corruption and Civil Rights Commission under the Prime Minister distorts independence of the anti-corruption organization, and clearly violates the mandatory provisions of the UNCAC.

Transparency International also argued that the South Korean Parliament is being paradoxical since it passed Asset Recovery Act yet it decided to abolish the Korea Independent Commission against Corruption.

Transparency International also urged that the stable economic growth cannot be achieved without anti-corruption, and the economic efficiency that the current South Korean government pursues to obtain is only possible with anti-corruption policies as a base to such. It also advocated the necessity of fostering active participation of the civil society, and the government’s effort in constructing overall anti-corruption policies.

Transparency International is a civil society organization focusing on anti-corruption having its Secretariat in Berlin, Germany. Since its establishment in 1993, it contributed to the establishment of the UNCAC, and it has been monitoring the OECD “Convention on Combating Bribery of Foreign Public Officials in International Business Transactions.” Transparency International is well known to our public as well through its annual report on corruption perceptions index for each country. Transparency International has its headquarter in the 80 countries and Transparency International Korea is a national chapter of Transparency International as a civil society organization for anti-corruption.

No sound economic development
Without fighting corruption
South Korea’s new government must face the task
Berlin/Seoul 27 February, 2008 ? The proposed dismantling of Korea’s only independent national anti-corruption agency by the incoming administration is of grave concern to Transparency International (TI) and Transparency International Korea(South).

The agency in question, the Korea Independent Commission Against Corruption (KICAC), is slated to be merged with two other agencies, the Ombudsman of Korea and the Administrative Appeals Commission to form the new Commission for People’s Rights and Interests. This is part of a “New Age of Pragmatism”and the consolidated agencies would answer to the Prime Minister’s office. South Korea’s new President ,Lee Myung-bak, took office on Monday 25 February

“In his attempt to boost economic growth and fulfill his promise to make South Korea one of the world’s top seven economies, it is highly disappointing that the President’s first step is to weaken the country’s anti-corruption agency. An impartial watchdog is essential for a clean business environment”, said Geo-Sung Kim, Chairperson at TI-Korea and a board member of TI.

Reducing corruption means increasing efficiency and to do that, the new government should:
○ Work out a comprehensive strategy to address corruption, especially corruption in the private sector and overseas bribery; taking necessary measures to strengthen the national anti-corruption agency and to ensure its independence

○ Encourage participation from civil society in the fight against corruption and in monitoring the implementation of international anti-corruption instruments, like the UN Convention Against Corruption and the OECD Anti-Bribery Convention

The decision to consolidate the agencies came on 4 February, through the Preparing Commission of the New Government. Since then, TI Korea rallied 311 NGOs nationwide and has been taking public actions to halt the dismantling of KICAC.

South Korea is set to ratify the UNCAC, yet as it took a step in that direction by passing a bill on asset recovery, on the same day, Parliament also approved a bill to close KICAC. The dismantling of KICAC will further undermine and erode its independence and clearly runs counter to the provisions of the UNCAC, by shifting the KICAC from President’s Office to that of the Prime Minister’s.

“The relegation of KICAC means putting the cart before the horse and is creating an adverse effect on the drive against corruption in the country which has gained momentum over the past 10 years”, said Liao Ran, Senior Programme Coordinator for South and East Asia at TI.

Geared by international trends and public demand, especially through participation and initiation from civil society, South Korea has introduced rules and regulations, and the general public is increasingly becoming aware of the importance of good governance, integrity and anti-corruption. With promotion from civil society, the Anti-Corruption Law was enacted in 2001 and KICAC was upgraded from a presidential advisory board to a national-level anti-corruption agency in 2002.

Transparency International is the civil society organisation leading the fight against corruption.

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