Newspaper Reports on Corruption
Anti-Corruption Drive
http://www.koreatimes.co.kr/www/news/nation/2008/01/113_17525.html
This is the 11th in a series of articles on suggestions to President-elect Lee Myung-bak. ― ED.
By Kim Geo-sung
Chairperson of Transparency International Korea
Dear President-elect:
A great improvement in the control of corruption and enhancement of transparency in every sector of society should be preceded with to become an advanced society.
This is also shown in an agreement: “We agree that transparency is an important factor in national competitiveness in the era of globalization. We also agree that continual efforts to raise standards of transparency are badly needed if corruption is not to hinder us from becoming an advanced society,” which was signed by leaders of the four sectors (public, politics, economy, and civic society), involving President-elect Lee Myung-bak, at the initial signing ceremony of the Korean Pact on Anti-Corruption and Transparency (K-PACT) in 2005.
According to the Corruption Perceptions Index (CPI) of Transparency International, South Korea improved from scoring 3.8 out of 10 in 1999, right after the IMF crisis, to 5.1 last year. However, 5.1 is also shameful if one considers that it is the 43rd out of 180 territories and the 25th out of the 30 economies in the OECD.
Similarly, the Governance Indicators of World Bank does not show any great improvement in the Control of Corruption Indicator of South Korea by scoring 59.2 in 1998 and 64.6 in 2006.
It can be compared with a great improvement in the Government Effectiveness Indicator, which improved from 66.8 to 82.9 over the same period.
These measures show that more important and urgent issues are the control of corruption and accountability of the government than highlighting government effectiveness.
Recent reports from the President-elect’s transition team bring some worries, because it seemed to consider abolishing the Korea Independent Commission Against Corruption and other government committees that were suggested as mandatory factors to prevent corruption in the United Nations Convention Against Corruption.
Also, it is doubted whether the Defense Acquisition Program Administration, which was established and operated as a tool to promote transparency, efficiency, and effectiveness under the principle of checks and balances as well as the separation of power, can survive or not. The important thing is not the change itself but the direction of that change.
This is not the last of the story. Under the slogan of “pro-enterprise,” policies controlling corruption and unfair trade and promoting Corporate Social Responsibility (CSR) seem to be in the process of vanishing.
In this situation, there is the concern that the country is becoming one where corruption is easy due to the failure of control rather than a country where enterprises can succeed easily.
Actually, the root of anti-enterprise sentiment in South Korea can be found in the corruption and cozy relations between politics and businesses in the past.
Thus, the most important way to create a pro-enterprise atmosphere is better corporate governance. The promotion of CSR will be the second most important factor. Without a true improvement in corporate governance, any support by policies or abolition of regulations cannot strengthen the competitiveness of Korean enterprises and cure the so-called “Korea discount” phenomena.
It is very hard to get rid of corruption only by law enforcement. Also, social integrity and country competitiveness cannot be achieved without improving transparency and overcoming corruption.
People are expecting the President-elect will initiate a strong, sustainable and effective national anti-corruption program. The belief that a powerless citizen and a chaebol businessman are treated equally under the law should be planted.
Furthermore, the new government should consider including access to public information to basic rights in the new Constitution.
It is essential to have effective and continuous education on the value of integrity, which will lead to an improvement of ethics and the promotion of compliance in each sector of society. Indeed, these efforts will lead the country into becoming a truly advanced society.
Of course, reports related to the transition team shown fragmentarily through the press can be different from the truth, and surprising anti-corruption policies might be in the offing to counter these worries.
Then, I hope emphasis once more will be placed on the facts that transparency and integrity are essential elements for advancement.
I wish the new government under powerful anti-corruption initiatives of President-elect Lee will achieve improvement in the CPI by concentrating on efforts for transparency and integrity with each sector of society, as promised in the K-PACT.
[KT] [Anti-Corruption Forum] Confab to Tackle Global Corruption
http://search.hankooki.com/search/search.api?corruption;times;http://times.hankooki.com/lpage/special/200303/kt2003031917494811490.htm
By Soh Ji-young, Lim Bo-mi
Staff Reporter/Contributing Writer
More than 2,000 high-ranking government officials, representatives of non-governmental groups, academia and international organizations from around the world will convene in Seoul this May to exchange views on fighting corruption.
The Ministry of Justice will host the 11th International Anti-Corruption Conference (IACC) May 25-28 and Global Forum III on Fighting Corruption and Safeguarding Integrity May 29-31 at the COEX Convention Center in Seoul.
The is the first time the anti-corruption fora are being held back-to-back under the name 2003 Seoul Conference and the event is expected to open a new chapter in forming partnerships between the public and private sectors for curbing corrupt practices.
“The unprecedented integration of the two conferences will provide an invaluable chance to hear a wide range of opinions on measures needed to reduce corruption, which will then be discussed by government delegates to explore concrete solutions,’’ director general of the conference’s organizing office and senior prosecutor Park Sang-ok said.
“Our hosting is significant as it shows our government’s efforts to eradicate corruption is getting recognized by the international community,’’ Park said in an interview with The Korea Times.
The Global Forum is an inter-governmental gathering on the ministerial-level that was first convened in the United States under the auspices of then-U.S. vice president Al Gore in 1999.
The IACC is a forum for delegates from civic society, academia and other private sectors to find strategies to combat corrupt practices. Since its launch in 1983, it has been held biennially, mostly in developing countries.
Professionals and government officials, including minister-level officials from around 150 countries are expected to take part in the Seoul Conference, making it the biggest international event ever hosted by Seoul.
Among the distinguished invitees are President Stjepan Mesic of the Republic of Croatia, Mary Robinson, former U.N. High Commissioner for Human Rights, Prof. Hans Kung, president of the Global Ethic Foundation, His Holiness Sri Sri Ravi Shankar and Ioannis Gavrilis, general secretary of the European Union.
During the IACC, participants will focus on exchanging ideas on a wide range of related issues, such as private sector governance, law enforcement, healthcare and pharmaceuticals, and e-government, in 60 workshops.
At the end of the four-day IACC, a set of proposals, called, “Seoul Recommendations’’ will be drawn up setting forth ways to curb corruption.
Building on these recommendations, concrete and practical measures to implement these ideas on the governmental level will be explored during the Global Forum and they will be outlined in the “Seoul Declaration,’’ which will be adopted on the final day.
Under the theme “Ongoing Challenges, Shared Responsibilities,’’ participants in the Global Forum will reaffirm international commitment to eradicating corruption and seek ways to construct a global network to effectively put the discussed measures into practice. At present, the only international agreement addressing the issue of corruption is the U.N. Convention Against Corruption, which is still in its preparatory stage.
“The Seoul Conference will pave the way for the establishment of an anti-corruption institution in the nation that is fitting to our culture and, at the same time, in line with international standards,’’ Park said.
“We will also be able to enhance our understanding of the issue of corruption, bringing to light the importance of transparency,’’ the senior prosecutor said.
Hosting these conferences may also contribute to improving the nation’s Corruption Perceptions Index, the barometer for measuring the level of corruption perceived in a nation. The index is published annually by Transparency International, the world’s largest non-governmental organization devoted to fighting corruption and the IACC’s joint organizer.
South Korea was ranked 40th among 102 nations in 2002, with Finland ranking first and the United States 16th. While South Korea has made steady progress _ from 48th in 2000 and 42nd in 2001 _ it’s rating still remains low, especially, in consideration of its economic development.
“More important than simply raising the index is for everyone in society to uphold the principle of transparency,’’ Park said.
While it was a big challenge for the Korean government to coordinate these two large-scaled conferences, if successful, this will serve as a valuable opportunity to prove the nation’s expertise in the issue of corruption and its commitment to do its share in addressing such global issues, he said.
“The successful hosting will also greatly contribute to mitigating the escalating tensions on the peninsula from the current North Korean nuclear standoff,’’ Park concluded.
For more information, visit www.11iacc.org.
sl78zenith@hotmail.com
jysoh@koreatimes.co.kr
03-19-2003 17:50
[KH] Ex-mayor to head anti-graft body
http://www.koreaherald.co.kr/SITE/data/html_dir/2002/08/30/200208300042.asp
Transparency International-Korea, a private anti-corruption organization, said yesterday that it elected former Seoul Mayor Goh Kun as its new chairman at a general meeting.
Goh, who ended his four-year term as the capital’s top administrator at the end of June, said he is excited about his new post because it will enable him to fulfill his new mission of rooting out corruption.
“Since my retirement, I have considered the eradication of corruption and regionalism as my future work,” the former mayor said. “Now I am able to embark on one of those tasks.”
Established in August 1999, the civic group is dedicated to wiping out corruption from Korean society.
2002.08.30
[KT] Goh Kun Elected Head of Corruption Watchdog Group
http://www.hankooki.com/kt_nation/200208/t2002082918295741110.htm
Transparency International Korea (TI Korea) yesterday selected former Seoul mayor Goh Kun, who waged an aggressive anti-corruption campaign during his tenure at City Hall, as its new president.
Goh said in his acceptance speech that “after finishing my term as the mayor of Seoul, I kept two themes in my mind: eradicating corruption and wiping out regionalism. With my election today, I’m glad that I am able to tackle one of them.’’
He held the capital city’s highest post from 1998-2002, and was awarded the Global Integrity Medal in 2001 by Transparency International.
TI Korea, which was launched in 1999, started as a coalition of 830 non-governmental and civic groups.
At its fourth general meeting, the watchdog group also selected new board members including Korea University professor Kim Young-pyoung, lawyer Park Sang-ki and Sung Byong-wook, chief editorial writer of the JoongAng Ilbo.
ssm@koreatimes.co.kr
2002/08/29 18:29
[KT] ROK Ranked 40th in Combating Graft
http://www.hankooki.com/kt_nation/200208/t2002082919353941110.htm
By Lee Chi-dong
Staff Reporter
South Korea has made some progress in combating corruption, but still has to make more efforts before reaching global standards, a leading non-governmental anticorruption body declared Wednesday.
In its annual report, Berlin-based Transparency International (TI) ranked the nation 40th among the 102 countries it monitored.
This year’s survey lumped South Korea with Costa Rica, Jordan, and Mauritius, giving it 4.5 out of a possible 10. Higher marks mean higher levels of integrity and transparency.
The score is 0.3 point higher than the 4.2 South Korea received last year, when it was placed 42nd among the 91 countries in that poll.
Finland topped the list with 9.7 points, trailed by Denmark and New Zealand with 9.5, while Bangladesh was named the most corrupt nation with 1.2 points. Nigeria was second worst, Angola, Madagascar and Paraguay were tied at third from the bottom, and Indonesia and Kenya were jointly ranked as the fourth most corrupt nations.
Among Asian countries, Singapore was rated 5th, followed by Hong Kong in 14th place, Japan at 20th, while China ranked 59th with 3.5 points.
The watchdog organization also pointed out that corruption is becoming increasingly prevalent in the world, and the West, as well as developing nations, is to blame for the phenomenon.
“Political elites and their cronies continue to take kickbacks at every opportunity,” said Peter Eigen, Chairman of TI. “They increasingly pay lip service to the fight against corruption, but fail to act on TI’s clear message.”
lcd@koreatimes.co.kr
[KH] [Korea`s New Vision]<19>Eradication of corruption, gateway to business hub in N.E. Asia
http://news.naver.com/news_read.php?oldid=2002060800000043062
[영문뉴스] 2002년 06월 08일 (토) 19:19
A well-established infrastructure, massive, state-of-the-art airport and port facilities, a free economic zone providing tax benefits, foreigner-friendly living conditions and highly educated human resources.
Together these form the centerpiece of a blueprint drawn up by the South Korean government to develop the nation into the business hub of Northeast Asia, one of the world`s emerging markets.
But this ambitious, long-term vision will get Korea nowhere unless widespread corruption is eliminated, officials and analysts here said.
“When a foreign company sounds out the possibility of its investment in a country, the foremost factor it considers is the level of corruption of the country,” said Kim Chong-su, director of policy department at the nongovernmental Transparency International-Korea in Seoul.
According to a survey conducted two years ago by Control Risks Group, a London-based international business risk consultant, 20 percent of the U.S. companies polled and 34 percent of European firms said that they had ruled out doing business in otherwise attractive countries where corruption was a major problem.
“Corruption is a source of business risk. Without removing corruption, the vision of being the hub of Asia will prove to be nothing but a dream,” Kim told The Korea Herald in a telephone interview.
South Korean policymakers, too, agree. President Kim Dae-jung has repeatedly emphasized the need for rubbing out corruption since he took office as head of state early in 1998.”We cannot anticipate our country becoming one of the world`s leading countries if we fail to drive out corruption,” he said.
Kim has led the administration`s anti-corruption campaign. South Korea joined the anti-bribery convention of the Organization for Economic Cooperation and Development (OECD) in 1999, under which domestic businesses are strictly banned from bribing foreign public officials in international business deals, a move aimed at creating fair and free competition.
Last year, it also enacted an anti-corruption law that calls for the setup of a presidential arm combating corruption in officialdom, and a law on the prevention of money laundering that gives a financial intelligence unit the power to trace bank accounts under suspicion.
Despite these efforts, however, foreign perception of corruption in Korea was negative.
According to the Corruption Perceptions Index (CPI) 2001, published by the Transparency International (TI), a Germany-based nongovernmental organization whose purpose is to take on corruption on a global level, South Korea ranked 42nd among 91 countries with an index score of 4.2. Finland was rated the cleanest with a nigh-perfect 9.9.
The CPI score relates to perceptions of the degree of corruption as seen by businesspeople, academics and risk analysts, and ranges between 10 (highly clean) and 0 (highly corrupt).
TI also released last month its 2002 Bribe Payers Index (BPI) showing “very high levels of bribery in developing countries by corporations from Russia, China, Taiwan and South Korea.”
South Korea came in 18th among 21 countries with 3.9 points. The BPI is based on a survey of over 770 respondents in 14 key emerging market countries.
TI Chairman Peter Eigen said this BPI shows that companies from Russia and China are using bribes “on an exceptional and intolerable scale”. “The extent to which companies from Taiwan and South Korea use bribes abroad is only marginally less.”
In South Korea, corruption has been prevalent in almost all sectors, including the public administration, political community, business, and even schools, for so long it is commonly called the nation`s “chronic disease.”
Korean Presidents had promised to clean up society, but their campaign against corruption came to nothing. Anti-corruption crusaders Chun Doo-hwan and Roh Tae-woo, who ruled the nation from the early 1980s to the mid-1990s, were branded as corrupt after stepping down from the presidency.
But the problem took a new turn as the specially formed Korea Independent Commission against Corruption (KICAC) started on its mission to build a clean society in January this year.
The organization, which is under the direct control of the President, receives reports on corruption cases from the public and hand them over to investigative authorities. It can demand that cases be reinvestigated on the basis of complaints, report shady practices by senior government officials or lawmakers to the attention of law enforcement authorities, and request a high court`s review on the prosecution`s withdrawal of legal action in a certain case.
Some critics said KICAC might serve merely as a nominal organization because it has no right to investigate a case. But KICAC officials said their organization will eventually help wipe out corruption because it aims to uproot its causes, embedded in Korea`s bureaucratic and corporate culture, rather than to focus on detection and punishment.
“We will work to build a powerful community of like-minded individuals against corruption so that a clean and responsible society can be passed down to future generations,” said KICAC Chairman Kang Chul-kyu.
A recent set of massive corruption scandals allegedly involving President Kim`s sons, his close aides and senior administration and intelligence officials effectively undermined the President`s anti-corruption campaign.
Kim`s third son was indicted early this week on charges of accepting bribes from several companies, including a scandal-ridden sports lottery firm, and evading taxes. The President`s second son is also suspected of being involved in a separate corruption scandal.
The graft scandals did serve a purpose, however. They highlighted the importance of directing anti-corruption forces against the power elite. In recent surveys, eradication of corruption topped the list of urgent tasks the next administration should take on.
Two major presidential candidates, Lee Hoi-chang of the Grand National Party and Roh Moo-hyun of the Millennium Democratic Party, both vowed to build a squeaky-clean Korea if elected to the presidency.
In particular, Lee, former Supreme Court justice whose nickname is “Bamboo,” a Korean symbol of integrity, promised to have KICAC play a role of monitoring any misdeeds of his family members and relatives.
But many experts stress the need for the nation to set up a long-term plan to eradicate deep-rooted corruption.
“There is an urgent need to establish measures to prevent corruption promptly, such as strengthening education on morality and anti-corruption in schools,” said Kim of the TI-Korea.
According to an opinion poll released in January, about 90 percent of secondary school students believe Korean society is rife with corruption, but many follow their elders` examples, viewing corruption as an acceptable survival tactic.
About 28 percent of the respondents said they would resort to bribery if it would help solve a problem, and 22.7 percent responded that they would overlook corruption on the part of their families or relatives.
(shinyb@koreaherald.co.kr)
By Shin Yong-bae Staff reporter
[Survey] Korea’s youth lack ethics, Anti-corruption Education needed
Survey: Korea’s youth lack ethics, Anti-corruption Education needed
TI Korea polled 1,005 students from 10 middle and high schools in Seoul Dec. 10-21. Some of the findings of the survey were very shocking: Some 90% of Korean youth consider Korea to be a “corrupt country,” and of them, 51.6 percent described the level of corruption as being “very serious.” About 70 percent of the Korean youth forecast the country would rank between the first and 20th on a list of 100 most corrupt nations of the world, with no prospects of improvement even when they become adults. Only 9.2 percent were optimistic about the prospect of a less corrupt society.
< Question> The Korean society is corrupt (%)
Strongly agree agree neutral disagree Strongly disagree
51.6% 38.9% 8.1% 1.1% .3%
The teenagers themselves have critically lax morality against corruption
The survey found that 91 percent of middle and high school students believe their society is corrupt. However, 41.3 percent feel no need to abide by the law, as long as “no one is watching.”
A considerable number of them wouldn’t mind jumping on the bandwagon if given the chance. It menas that many would follow their elders’ examples, viewing corruption as an acceptable survival tactic. Most alarming is the fact that the teenagers themselves have critically lax morality against corruption.
Of the middle and high school students that participated, asked why they think corruption such as bribery persists in Korean society, 64 percent cited inadequate punishment, followed by 29.9 percent who attributed it to the perception that a person stands to suffer by obeying the law.
Some 41% say they don’t feel they need to obey the law when no one’s looking, and 33% say that even if they were to witness corrupt activity, they would pretend they’d never known as long as the activity didn’t harm them directly. As many as 28% even said that if giving a bribe were the means to an otherwise unobtainable position, they would gladly use a bribe.
Sixteen percent of respondents said they would be willing to engage in corruption and spend ten years in prison in exchange for one billion won, while 22.7 percent said they would overlook corruption on the part of their families or relatives
< Question> Willing to engage in corruption and spend ten years in prison in exchange for one billion won (%)
Strongly agree agree neutral disagree Strongly disagree
7.9% 8.8% 13.9% 19.8% 49.7%
< Question> I would overlook corruption on the part of my families or relatives (%)
Stronglyagree agree neutral disagree Strongly disagree
7.4% 15.3% 22.7% 26.8% 27.8%
< Question> even if I were to witness corrupt activity, I would pretend I would never known as long as the activity didn’t harm me directly (%)
Strongly agree agree neutral disagree Strongly disagree
11.9% 21.1% 27.0% 21.3% 18.6%
Politicians, Supposed the most corrupt social group
Students considered politicians the most corrupt social group, with 33 percent of respondents identifying them as such. Corporations were in second place (12 percent), followed by public servants (11 percent), lawyers (9 percent), media personnel (9 percent), and police (7 percent).
< Question> the most corrupt social group
group ranks(%) ranks
Politician 33% 1
Business sector 12% 2
Public offical 11% 3
judicial circles 9% 4
press 8% 5
High tolerance for their own (corrupt) actions
Parallel with the survey, TI Korea polled with the same question ca. 100 students who had participated in the anti-corruption education that had been organized by a teacher group with the support of TI Korea. The results of this survey for this ‘educated’ students were positive. In every answer they showed less corrupt compared to the students who did not participate in anti-corruption education.
Finally, while teenagers appear to be critical of corruption in their society, they also show a high tolerance for their own (corrupt) actions. This reveals a serious lack of systematic anti-corruption education for teenage students. If the anti-corruption education can be implemented in earlier stage of school year such as in elementary school, it could be more effective than later do.■
[Chosun] Korea Still Perceived as Bribe Giving Country (2002.05.14)
http://srch.chosun.com/cgi-bin/english/search?did=46803&OP=5&word=TRANSPARENCY%20INTERNATIONAL%20&name=english/National&dtc=20020514&url=http://english.chosun.com/w21data/html/news/200205/200205140020Transparency
International, based in Sweden, ranked Korea 18th out of 21 countries surveyed with regard to transparency and bribery in its Bribe Payers Index 2002 survey, indicating the country was perceived as one where bribe paying was common. TI Korea the domestic branch said in a news conference Tuesday held in the Sejong Center for Performing Arts that the country was still thought of as one where bribery is highly likely.
The survey of 835 businesspeople from accounting firms, foreign chambers of commerce, and global trading banks to emerging markets such as South Korea, Taiwan, Russia, and Argentina was jointly conducted with Gallup International. The lower the score out of ten, the higher the chances of bribes having to be paid. South Korea ranked 18th with 3.9 points just above Taiwan with 3.8 with China at 3.5 points and Russia, ranking 20th and 21st, respectively.
Australia was rated the most transparent with the lowest chances of bribery at 8.5 points, followed by Sweden and Switzerland with 8.4 points coming second jointly. Among Asian nations, Singapore (6.3 points), Japan (5.3), Malaysia (4.3), and Hong Kong (4.3) were ahead of Korea with regard to transparency.
In a 1999 survey South Korea also ranked 18th out of 19 nations, but had a score of 3.4, meaning there has been a little improvement.
(Lee Gil-seong, atticus@chosun.com )
[KH] College students have no time to lose in battling difficult mid-term exams
http://news.naver.com/news_read.php?oldid=2002050300000050062
[영문뉴스] 2002년 05월 03일 (금) 19:19
It is mid-term season in Korean colleges. Even the most indolent students start picking through their books around this time. School libraries, vacant for most of the year, all of a sudden teem with life.
To be sure, some students are more afflicted than others. Some may have to take exams for all classes while others have relatively easy term papers to worry about. The lucky few might have just a couple of tests or term papers.
Nevertheless, it is clear that students these days generally study harder because they feel more heat about their academic records. In the past, professors could give out whatever grades they wanted, and it was common for them to be extremely lenient on their pupils.
Not surprisingly, college students were routinely lambasted by the media for spending so little time studying and so much time playing. The saying went that one enters college ready-witted (thanks to all the cramming in high school), and comes out to society half-witted after four years of all the fun.
Embarrassed by such criticisms, many schools have set a uniform percentage quota of A`s or B`s that can be given out in every class. Now, to get an A, a student really has to earn it. “Getting a B+ from one class in those days was like getting an F from that same class today,” recalls one senior that has lived through both eras. Some students refuse to study and flunk anyway, but most have adjusted to the new rules of the game.
It used to be that freshmen were immune to such mundane concerns as grades. Having braved out the preparations for college entrance in the past few years, relaxing for a semester or two seemed to be a just compensation for these new kids on campus. Gone are the good old days, however.
Several colleges now let the students choose their majors after attending the school for one year, with their grade point average as the main criterion for selection. Before the majors were decided upon the entry. Since there are always excess applicants for popular majors such as business administration and English literature, there is a cutthroat competition among the freshmen.
“This year you had to get a GPA of 3.4 out of 4.3 to become a business major. That`s a B+ average,” says Soh Soon-kang, a sophomore at Yonsei University. Although there were some other reasons for the change, pushing the idle freshmen to study was no doubt one of them.
The students, for their part, have some genuine complaints about their tests as well. Many professors give out unsophisticated true/false or multiple-choice exams that require more memory work than creative thinking or deep understanding of the subject. “I was very disappointed. I expected some high-level evaluations, but in fact it`s little different from the high school exams,” recalls Kim Dong-hyun in disgust.
One reason for the popularity of such dull questions is the over-congestion of many of the classes in Korean colleges. An instructor points out that with more than four hundred students in her class, it is simply impossible to grade all the essay questions. The solution then would be to beef up the faculty or reduce enrollment, but neither option is palatable for Korea`s cash-strapped colleges.
More complaints from students concern foul play of their peers. Cheating, called “cunning” in Konglish, is endemic. Even the shining new desks are littered with legible scribbles such as “Advance payment goes under current liabilities, not assets.” Plagiarism too is the rule, not the exception. Since so many people cheat or plagiarize, the honest students find it difficult to maintain their principles.
“It`s so rampant, and professors and teaching assistants don`t care either. There is no sense of guilt or remorse whatsoever. This is simply not fair,” frets Soh.
Of course, such behavior does not come out of nowhere. A poll taken by the Korean chapter of Transparency International last December showed that 91 percent of teenagers believe that Korean society is corrupt. Worse yet, 41 percent felt no obligation to abide by law as long as no one is watching, and 28.4 percent said they would use bribery if it could solve problems.
After the dismal business of mid-terms comes a period of relative calm when students contemplate what they could do. “I can play Starcraft again,” Kim chuckles. “On the more academic side, I would like to use the occasion to buy some books to study modern Korean history. I think I know too little about this important subject,” Kim says modestly.
For those who have fared badly at the exams, this is not an easy time. One saving grace of mid-term exams is that there is still a second chance. Many bet their hopes on the next exam. One such fellow moans, “Better start preparing for the finals.”
The writer is a junior of economics at Yonsei University. – Ed
By Shin Hee-seok Contributing writer
[Chosun] Editorial – Corrupt Korea
http://news.chosun.com/w21data/html/news/200201/200201030284.html[Editorial] Corrupt Korea
Some 90% of Korean youth consider Korea to be a “corrupt country,” and a considerable number of them wouldn’t mind jumping on the bandwagon if given the chance according to a shocking survey by Transparency International’s Korean branch. Of the middle and high school students that participated, 64% have even psychoanalyzed their reasons, and say they might engage in such illegal activity “because when you break the law you are not punished,” showing a particularly shocking level of thinking. Some 41% say they don’t feel they need to obey the law when no one’s looking, and 33% say that even if they were to witness corrupt activity, they would pretend they’d never known as long as the activity didn’t harm them directly. As many as 28% even said that if giving a bribe were the means to an otherwise unobtainable position, they would gladly use a bribe. Four out of ten individuals who are part of the generation that is about to take lead of the country will either actively join in the chain of corruption or have the latent potential to do so.
Korea has established something of a name for itself in the international community for its corruption, and every year continues to rank in the middle of Transparency International’s survey of nations around the globe. Granted, Korea may not have pretty ratings, but this latest information shows how our society’s moral and ethical base is on the verge of complete collapse when teenagers, who should know not yet of what the world is really like, already think their country is as spoiled as can be. It becomes a warning light for the country’s future; instead of looking at the corrupt land before them with a fiery, youthful sense of justice, close to half of them are thinking “why should I be excluded from giving and taking of bribes?”
Our society has come to be dominated by an extreme form of money-worship. It got to its worst in the midst of the financial crisis, when dozens of trillionaires, who do no work at all, were born overnight at the same time as people were losing their jobs. When this happened, people in the government agencies and institutions, who are the backbone of the country, joined in this food chain of corruption. The traditional values that have long sustained us, things such as morals, faith, propriety, friendship, respect, filial piety and loyalty are all in a state of collapse.
There will be no way to stop the corruption and depravity without revolutionary change. There has to be a clear goal for the nation, just methods of achieving them, and homes and schools must begin teaching proper values and ethics from the earliest age possible. As theoretical and abstract as this may sound, it is exactly the work that must be done.
(January 4, 2002)
[Korea Times] Korea Ranks 42nd in World Corruption Index
http://www.hankooki.com/times/200106/t2001062809484640110.htmIn a survey of 91 countries ranking them in terms of corruption, Korea was found to have come in 42nd.
According to a report by the National Solidarity Against Corruption (NSAC), Korea received 4.2 points out of a possible 10 in the corruption perceptions index (CPI), placing it 42nd in the world. NSAC serves as the Korean chapter of Transparency International (TI), an international organization working to counter corrupt international business and government practices.
This year’s rank is a slight improvement over last year, when Korea placed 48th out of a total 90 countries with 4.0 points.
But it still trails far behind other Asian countries in the battle against corruption.
Singapore was the most corruption-free country in Asia, ranking 4th with 9.2 points, followed by Hong Kong which recorded 14th with 7.9. Japan placed 21st with a total of 7.1 points, while Taiwan came 27th and Malaysia, 36th.
Finland topped the list with 9.9 points. Denmark followed with 9.5 points and New Zealand with 9.4. Meanwhile, Bangladesh was pegged as the most corrupt nation among the 91 countries with 0.4 points.
2001/06/28 09:48
[Korea Times] Today’s Editorial – Corruption Perceptions Index/Rising Public Utility Charges
http://www.hankooki.com/kt_op/200106/t2001062816334448110.htmSouth Korea’s corruption perceptionss index (CPI) has been slightly, but steadily improving over the past three years, according to a report Wednesday by Transparency International (TI), an international civic watchdog working to eliminate corrupt practices by businesses and governments.
But it shows the nation still has a long way to go to fight the deep- rooted corruption that exists in every nook and cranny of our society, particularly by politicians and government officials, to the extent that the country has earned the disgraceful nickname, “The Republic of Corruption.” TI’s Korean branch, the National Solidarity Against Corruption, said that Korea ranked 42nd out of 91 nations in the CPI by scoring 4.2 out of the possible 10 points, slightly improving from 50th in 1999 and 48th in 2000.
However, the nation is still more corrupt than other Asian countries, such as Singapore that was found to be the least corrupt in this region, ranked fourth with 9.2 points. Hong Kong came 14th with 7.9 points, followed by Japan at 21st with 7.1 points, Taiwan at 27th with 5.9 percent and Malaysia was 36th with 5.0 points.
For reference, Finland retained the honor as the most corruption free country on the globe, with its CPI registering 9.9 points, followed by Denmark (9.5 percent), New Zealand (9.4 points), Iceland (9.2 percent) and Sweden (9.0 percent). The United States finished 16th.
In contrast, the most corrupt country was Bangladesh, which scored only 0.4 percent, followed by Nigeria (1.0 points), Uganda (1.9 points) and Indonesia (1.9 points).
The CPI is based on surveys conducted by seven independent institutions, including the World Bank and the World Economic Forum of CEOs, public officials and bankers.
It is, of course, significant that the nation’s CPI ranking rose, thanks to the sustained efforts of the government and people to eliminate corrupt elements since 1999, instead of only temporary crackdowns on crooked officials and politicians.
But the government has failed to effectively battle the chronic evil, as seen by the many corruption scandals involving leading politicians and high- ranking officials that have rocked the nation. Many investigations ended up as much ado about nothing, with only light punishments handed down against the offenders, which the general public could hardly understand in view of the seriousness of the crimes.
Furthermore, the ruling and opposition parties have been at odds for several months over the Anti-Corruption Bill and the Anti-Money Laundering Bill, obsessed with their own political interests and even attempting to free political funds of the envisioned Anti-Money Laundering Law.
It is urgent to pass the two bills necessary for the construction of a system to control corruption in the National Assembly and to institute more bold deregulatory measures of the administration that will help get rid of fundamental sources of corruption by officials.
Rising Public Utility Charges
Various public utility charges and prices of items related to the daily lives of citizens will go up, starting from Monday, although the hikes have been planned since earlier in the year.
Since the taxi fares, piped water rates, LPG prices and cigarette prices are closely connected to the livelihood of people in the low-income bracket, the projected hike is expected to cause greater burden to the personal finances of citizens.
Even if the hikes are deemed to be necessary due to the increases in international crude oil prices, the won-dollar exchange rate and other factors, what initially concerns general citizens is that they may lead to inflation under the still-difficult economic conditions.
The government says that the hikes of such charges and fares will not directly affect the increase rate of consumer prices, since they were already noticed in early 2001 and were reflected in the expected inflation rate for this year.
However, the Bank of Korea last week lowered the growth rate for this year to 3.8 percent from the earlier-predicted 5 percent, and raised the inflation rate to 4.4 percent from the expected 3 percent in its revised outlook on the economy.
This indicates that the economy may not get better in the second half either, but rather worsen amid a fear of stagnation, meaning low growth and high prices.
In particular, contrary to the prices of agricultural or industrial products, the public utility charges seldom go down once they go up, so their simultaneous hikes are feared to create chronic inflation in our economy.
The government had stressed in May that there would be no raises in public utility charges until the end of this year, except for taxi fares that have been frozen for the past three years. However, it appears to be looking with folded arms at the decisions of local governments to raise their tap water rates, garbage bag prices and other public utility charges, although raising the charges is a matter under their own jurisdiction.
The government has to confirm whether the local governments are attempting to cause unnecessary expenses, based on wrong methods of calculating the cost of providing tap water or other public utility charges.
Once and for all, the government should seek ways to minimize the increase rates, in close cooperation with related agencies and consumer organizations, while inducing public corporations to eliminate elements causing price raises. Curbing inflation is the most crucial way to protect the people’s livelihood under the stubborn economic hardship.
2001/06/28 16:33
[Korea Times] Today’s Editorial – Passage of Anti-Corruption Law/Overnight Interest Rate Should Be Cut
http://www.hankooki.com/kt_op/200106/t2001062916374548110.htm
After five long years since the legislation to help prevent corruption was first proposed, the National Assembly finally passed the Anti-Corruption Law on Thursday to provide institutional devices to efficiently control unethical practices of politicians, government officials and businessmen.
Under the new law, which will go into effect next January, the government will set up the “Anti-Corruption Commission” under the direct control of the President to fight the deeply-rooted shady practices in officialdom and the political world.
As reported on Wednesday, South Korea ranked 42nd out of 91 countries in the corruption perceptions index (CPI) announced by Transparency International, a civic watchdog that monitors corrupt practices by businesses and governments, showing we still have a long way to go to battle the evil that exists in every corner of our society.
The new law enables any citizen to file a complaint with the envisioned presidential commission against corrupt practices of officials or politicians. It also stipulates that public post holders, in the event they find corrupt practices, must report them to the commission, prosecution or the Board of Audit and Inspection.
In particular, the law stipulates that “whistleblowers” who file corruption charges shall be protected. However, the provision lacks fairness in that it calls for a prison term of up to 10 years for those who make false charges, while imposing a maximum fine of only 10 million won on those who take retaliatory actions against the whistleblowers.
The government is required to seek a revision and reinforce the stipulations to get tougher with acts of retaliation and to provide stronger measures to protect those who file complaints against the corrupt officials.
It was also regrettable for the Assembly to vote against the proposed introduction of the independent counsel or special prosecutor, who would be appointed to exclusively investigate serious cases of corruption involving high-ranking public post holders.
Many cases in the past showed that it was not that easy for the prosecution to maintain neutrality in probing corrupt officials in high- level posts, raising the necessity for the appointment of an independent counsel.
Timed with the passage of the bill, the Supreme Public Prosecutor’s Office (SPPO) decided to set up a “prosecutor’s office for special investigation” under its wing, which will independently dig into politically sensitive cases involving politicians and high-ranking government officials.
But what is important for the impartiality of the prosecution is not the introduction of such a special organ inside the SPPO, but the will of the government and prosecution leaders to assume a neutral stance.
Overnight Interest Rate Should Be Cut
The Federal Reserve of the United States cut a key interest rate on Wednesday for the sixth time this year, lowering the federal funds rate, the interest that banks charge each other on overnight loans, by a quarter of a point to 3.75 percent, the lowest since April 18, 1994.
The Fed’s action to lower the rate to 3.75 percent from 6.5 percent at the start of the year is drawing keen concern here, due to speculation over whether the Bank of Korea will follow suit.
As reasoning for its move, the Federal Reserve cited the patterns evident in recent months – declining profitability and business capital spending, weak consumption and slowing growth abroad that continue to weigh heavily on the U.S. economy.
Korea is not free from those negative elements plaguing the U.S. economy, while the bourse has yet to find decisive momentum for a rebound.
The economy still shows no sign of early recovery, although consumer spending is slightly increasing and the unemployment rate is decreasing a little, as indicated by the central bank’s recent downward readjustment of this year’s expected growth rate to 3.8 percent from the earlier 5.3 percent.
There is a dominant view in the market that the central bank will have no choice but to reduce the current 5-percent overnight interest rate to 4.75 percent early this month, to boost the economy and pump-prime the bearish stock market.
The possibility for the quarter-point reduction also appears to be largely due to the sluggish exports and increase in inventories. The slowdown in industrial production is also a key factor pressuring the central bank to lower the rate.
A cut in the overnight interest rate is expected to create a bullish market for state bonds and healthy corporate bonds, and help boost the bourse as well.
Although the nation’s exports are hitting a snag amid the global economic slowdown, particularly because of the U.S. economy, on which Korea greatly relies, consumer spending is gradually reviving and the continuing favorable trends are bolstering the long-term prospects for both the growth of local productivity and the American economy.
What is required in the current economic situation is to create a momentum for the enterprises to turn over a new leaf, strengthening the nation’s export competitiveness. An overnight interest rate cut is a prerequisite to help pump-prime the economy, and such a gesture would be accepted by the public as the government’s strong will to inject fresh air into the ailing economy.
2001/06/29 16:37
[Korea Times] Anti-Corruption Body to be Launched
http://www.hankooki.com/kt_nation/200108/t2001081916271141110.htm
The National Solidarity Against Corruption (NSAC), the Korean chapter of Transparency International, will launch a civil watchdog group at the end of this year to ensure transparency in public administration, the organization said yesterday.
The People’s Shinmungo, named after the public complaint-handling mechanism from the Choson period, will bring together related officials from government agencies and the private sector, assigning them to monitor public administration processes as commissioners, civil ombudsmen and outside directors.
“We intend to foster a supervisory network which works to safeguard transparency by participating in public administration, in cooperation with the administrative agencies,” a NSAC spokesperson said.
“Our monitoring will be comprehensive and far-reaching,” he said, noting the network will cover areas including the environment, human rights, public administration, law, military affairs, construction, public health, finance, education, media, agriculture and labor.
To this end, the NSAC will complete a roster of experts from each area to form a 500-person network by the end of the year, and be increased to include 2,000 to 4,000 people by the end of 2002.
ysheo@koreatimes.co.kr
2001/08/19 16:27
[Korea Times] Head of Transparency International Says Seoul is on Right Track Against Corruption
http://www.hankooki.com/kt_nation/200108/t2001083017282841110.htm
The visiting head of a global anti-corruption watchdog said yesterday the Seoul City government’s anti-corruption policy will have a positive impact on enhancing transparency in South Korea’s government sectors.
“I think the Seoul Metropolitan Government’s OPEN system will have a very practical impact on curbing corruption in Korea,” said Peter Eigen, 63, chairman of the board of Transparency International (TI) in a press conference in Seoul.
Eigen came to Korea to attend the two-day Seoul Anti-Corruption Symposium 2001, co-hosted by Seoul City and the United Nations, that kicked off yesterday.
During the conference, Seoul City’s ambitious manual to prevent corruption through an innovative e-government system, the Online Procedures Enhancement for Civil Applications (OPEN), was introduced to the global community.
“South Korea is on the right track for tackling corruption but still has a long way to go in achieving transparency,” the German head said.
According to the Corruption Perceptions Index (CPI) issued by TI this year, Korea was placed 42nd out of 91 countries, barely ranking in the upper half of the list.
“Korea has improved in the last three years, but is still placed at the middle of the 91 countries,” he said.
“This is not good enough for Korea, which is known to have a good government structure and a strong democracy,” the chairman said.
Eigen pointed out that Korea is perceived to be especially corrupt in the international business sector.
According to the Bribe Payers Index announced last year by TI, which measures the level of corruption in 19 of the world’s most important exporting countries, South Korea ranked 18th, placed at the very bottom of the list, before China.
“This means the perception of businessmen and observers is Korean companies tend to bribe those outside Korea in order to get contracts,” he said.
Sweden was viewed as the most transparent among the exporting countries, while most Asian countries were at the bottom of the list with Taiwan ranking 17th, Malaysia 15th, and Japan 14th.
He said Korea will to have to patiently launch a long-term effort in its war against corruption, as it is very easy for a society to become corrupt but very difficult for it to change the system and its perception.
“Since there is a strong coalition between the private sector, the government and civil society in Korea, which is essential to root out corruption, Korea has great potential to move upward in the level of transparency,” he said.
“It is essential that countries deal with corruption systematically, using tools like the OPEN system. Countries must develop local solutions for themselves rather than relying on a global blueprint,” he stressed.
Eigen ended his 25-year career at the World Bank in 1991 to found TI in 1993 and lead an international battle against corruption, which he views to be “the root of devastation for mankind.”
TI is a non-governmental organization dedicated to increasing government accountability and curbing corruption around the world. It currently has 85 national chapters worldwide.
Guido Bertucci, director of the division for public economics and public administration at the U.N., Barnet F. Baron, executive vice-president of the Asia Foundation, which is the sponsor of the symposium, and Sally Shelton-Colby, deputy secretary-general of the OECD, also took part in the two-day conference.
By Soh Ji-young
Staff Reporter
jysoh@koreatimes.co.kr
2001/08/30 17:28
[Korea Times] Head of Transparency International Says Seoul is on Right Track Against Corruption
http://www.hankooki.com/kt_nation/200108/t2001083017282841110.htm
The visiting head of a global anti-corruption watchdog said yesterday the Seoul City government’s anti-corruption policy will have a positive impact on enhancing transparency in South Korea’s government sectors.
“I think the Seoul Metropolitan Government’s OPEN system will have a very practical impact on curbing corruption in Korea,” said Peter Eigen, 63, chairman of the board of Transparency International (TI) in a press conference in Seoul.
Eigen came to Korea to attend the two-day Seoul Anti-Corruption Symposium 2001, co-hosted by Seoul City and the United Nations, that kicked off yesterday.
During the conference, Seoul City’s ambitious manual to prevent corruption through an innovative e-government system, the Online Procedures Enhancement for Civil Applications (OPEN), was introduced to the global community.
“South Korea is on the right track for tackling corruption but still has a long way to go in achieving transparency,” the German head said.
According to the Corruption Perceptions Index (CPI) issued by TI this year, Korea was placed 42nd out of 91 countries, barely ranking in the upper half of the list.
“Korea has improved in the last three years, but is still placed at the middle of the 91 countries,” he said.
“This is not good enough for Korea, which is known to have a good government structure and a strong democracy,” the chairman said.
Eigen pointed out that Korea is perceived to be especially corrupt in the international business sector.
According to the Bribe Payers Index announced last year by TI, which measures the level of corruption in 19 of the world’s most important exporting countries, South Korea ranked 18th, placed at the very bottom of the list, before China.
“This means the perception of businessmen and observers is Korean companies tend to bribe those outside Korea in order to get contracts,” he said.
Sweden was viewed as the most transparent among the exporting countries, while most Asian countries were at the bottom of the list with Taiwan ranking 17th, Malaysia 15th, and Japan 14th.
He said Korea will to have to patiently launch a long-term effort in its war against corruption, as it is very easy for a society to become corrupt but very difficult for it to change the system and its perception.
“Since there is a strong coalition between the private sector, the government and civil society in Korea, which is essential to root out corruption, Korea has great potential to move upward in the level of transparency,” he said.
“It is essential that countries deal with corruption systematically, using tools like the OPEN system. Countries must develop local solutions for themselves rather than relying on a global blueprint,” he stressed.
Eigen ended his 25-year career at the World Bank in 1991 to found TI in 1993 and lead an international battle against corruption, which he views to be “the root of devastation for mankind.”
TI is a non-governmental organization dedicated to increasing government accountability and curbing corruption around the world. It currently has 85 national chapters worldwide.
Guido Bertucci, director of the division for public economics and public administration at the U.N., Barnet F. Baron, executive vice-president of the Asia Foundation, which is the sponsor of the symposium, and Sally Shelton-Colby, deputy secretary-general of the OECD, also took part in the two-day conference.
By Soh Ji-young
Staff Reporter
jysoh@koreatimes.co.kr
2001/08/30 17:28
[Korea Times] Today’s Editorial – War Against Student Smoking / `Republic of Corruption’
http://www.hankooki.com/kt_op/200201/t2002010416503748110.htm
The Seoul Metropolitan Office of Education has declared war against the ever-increasing smoking by elementary, middle and high school students by declaring on Thursday that smoking is forbidden at all 1,171 school buildings in the capital city.
The anti-smoking measure is encouraging since the number of young students who habitually light up is steadily increasing, particularly among elementary school pupils.
Seoul is the first among 16 municipal and provincial education offices to completely prohibit smoking on school premises, and others are urgently required to follow suit.
According to statistics by the Commission on Youth Protection and the Korean Association of Smoking and Health, a civic anti-smoking group, three in 10 male students and one in 10 female ones are addicted to the deadly habit.
What is surprising is the fact that the number of smokers among elementary pupils, aged seven to 13 on average, is sharply increasing, as 12.3 percent of male kids and 3.4 percent of female ones light up secretly, without their parents knowing about it.
The global trend of today is quitting smoking, and the battle against smoking at workplaces is fierce. Many companies offer special rewards to employees who successfully kick the habit, designating their buildings as no-smoking zones.
Despite this worldwide current, the number of smokers among our young students shows no sign of decreasing. The young people’s smoking has become a serious social problem, not to mention its harm to their health, as students are even brave enough to smoke in their school uniforms.
An episode at a girls’ high school proves the seriousness of situation. One day before the winter vacation started, a female teacher received a telephone call from the owner of a fast food shop in front of the school. Arriving at the restaurant, she found some adult customers standing nervously outside the shop’s bathroom door, and when she went inside, found it full of smoke and about 10 students from her school smoking in their school uniforms. The young girls left in a leisurely manner, without showing the slightest sign of embarrassment from the sudden appearance of their teacher.
To prevent young students from becoming addicted, teachers should set an example, like Superintendent Yu In-jong of the Seoul Metropolitan Office of Education, who declared his resolution on New Year’s Day to quit smoking, and other ranking officials of the agency joined the crusade.
The anti-smoking campaign at schools cannot be successful without the cooperation of parents and cigarette sellers. It is the responsibility of the entire society to help young smokers quit the deadly habit.
`Republic of Corruption’
It is not surprising at all that nine out of every 10 middle and high school students of our country consider the Republic of Korea to be the “Republic of Corruption.”
Some may think it is utterly shocking to hear that 91 percent of the young students believe their society is corrupt and view corruption as an acceptable means of survival.
A recent survey conducted by Transparency International Korea, in particular, found that 28.4 percent of 1,005 students questioned are willing to resort to bribery if it would solve a problem.
Another 33 percent said they would feign ignorance of corruption if it would prevent them from suffering personal losses. And 16 percent of respondents said they would be willing to engage in corruption and spend ten years in prison in exchange for one billion won.
It is no wonder that the growing generation harbors such a negative and dangerous view in light of the never-ending corruption scandals involving leading figures of society, like high-ranking government officials, politicians and businessmen.
The leading figures of our society are to blame for such dreadful views by our young people. The chronic “corruption culture” prevailing in every corner of our society has a direct and adverse affect on them.
The corruption in every sector, like the political world, officialdom and business circles, is deeply rooted, with power-related scandals taking place one after another these days.
The Republic of Korea is still considered the “Republic of Corruption” in the international community. Korea was given 4.2 out of a possible 10 points, ranking in 42nd place among 91 countries, in terms of the 2001 corruption index announced by Transparency International, a non-profit anti- corruption non-governmental organization (NGO).
It is needless to say that a corruption-ridden society discourages the majority of the people, who are living honestly, and promotes disrespect for law and order, depriving the nation of hope for development and competitiveness.
The government is basically responsible for corruption, but all the members of our society, especially adults, must also share the blame.
In July last year, the National Assembly managed to pass the Anti- Corruption Bill, but the law is not supposed to solve all the problems. What is important is not the system, but our will to terminate the evil practice.
In its final year, the incumbent administration is required to launch a resolute battle against corruption to help students have healthy ethical views.
2002/01/04 16:50
[Korea Times] End Corruption by Limiting Government Intervention
http://search.hankooki.com/search/search.api?Transparency;kt;http://www.hankooki.com/kt_nation/200201/t2002012417220341110.htm
MUMBAI, INDIA _ According to Transparency International, Korea’s ranking in terms of freedom from corruption improved six places from last year to 42nd out of 90 countries. Nonetheless, Seoul has announced wide-ranging measures to root out the remaining elements of deeply entrenched corruption.
Happily, although President Kim Dae-jung has given state prosecutors free rein in this battle, there is no sign that there will be a slaughter of human beings as there was in China’s anti-corruption campaigns. Beijing has put thousands to death in its futile attempt to reduce corrupt practices.
An effective campaign against graft requires clear thinking about the nature and cause of these misdeeds. Most agree that corruption refers to the abuse of authority and misuse of discretionary power to promote one’s personal interests instead of public interests. However, there is considerable confusion and disagreement over the source and impact of corruption.
One flawed interpretation of bribery is that it serves as a lubricant that gives flexibility to the management of political affairs. According to recent announcements, most government officials in Korea have been disabused of this notion.
Few can any longer believe that bribery of officials will promote economic activity or that graft will increase the efficiency of bureaucratic system.
This is because corruption pollutes society by lowering the authority of public offices and reduces economic efficiency by destroying the principle of fair competition while imposing unnecessary costs on the private sector.
It also causes problems in dealings in the global market by raising the cost of international credit.
The recent spate of financial turmoil in emerging markets has been rightly attributed to a reassessment of risk that resulted in a crisis of confidence and net outflows of capital. Governments were considered unable to provide an environment where asset values would be protected and domestic financial institutions were seen as non-responsive to market signals. Restoration of confidence requires decisive and convincing action to limit government regulations and interventions that invite corruption.
Declarations of a war against corruption are often no more than political posturing and are often used selectively to dispose of opponents. Indeed, allowing corruption can be a means by which rulers control the population.
Those who benefit from corrupt activities are less likely to object to the abuse of power.
Given the common knowledge and religious understanding of the imperfection of humans, it is ironic that this condition is most often the central theme in discussions of corruption. This approach considers corruption as a moral issue with the blame being placed on individual greed.
This moralistic perspective leads to the approach used in China that emphasizes moral standards of public servants and imposes severe punishment on violators to deal with graft. Such self-righteous pleas to end corrupt business practices do not address the flawed incentive structures that are outcome of legal and cultural institutions. Even moral people act improperly when they act within warped incentive structures. Similarly, immoral and imperfect individuals will tend to act more appropriately if the incentive structure rewards them for doing so.
Instead of expanding political power to eradicate corruptive practices, the opposite is needed. Yet many politicians and bureaucrats distrust the private sector due to a belief that unfettered markets cause undue harm without the oversight and regulation of public officials. As a result, regulatory authorities are created to issue licenses and permits. In this setting, there is an imbalance of power, with public officials monopolizing power with the understanding that they will act in the best interests of their fellow citizens. However, these unequal powers impose harm on some citizens, who face a strong incentive to protect themselves through bribery.
Instead of moralizing, legal and institutional reforms are necessary to prevent public graft. Giving extensive authority to government officials over quotas and to assign privilege invites corrupt practices. Since the essential problem with corruption arises from excessive government intervention, the best solution involves reduction of political intervention in people’s lives.
Rooting out corruption requires a change in the overall political culture, combined with an ideological shift away from encouragement or toleration of invasive government powers. The answer to resolving corruption is to move towards depoliticizing life whereby governments regulate less.
Under free competition in transparent markets, no corruption arises in the relationship between consumers and suppliers, since both parties have equal power. Indeed, almost all sustained market imbalances arise when governments act to restrain competition.
Certainly Seoul can make considerable headway. It could start by disposing of its 30 percent stake in the banking sector with due haste.
Competition in open markets will always involve legitimate action, not unlawful means. Those who wish to live in a free and open society should insist upon greater guarantees of free and open markets with less government involvement in their lives.
By Christopher Lingle
Global Strategist
[Korea Herald] Transparency Int’l credits Korea’s anti-corruption efforts
http://www.koreaherald.co.kr/SITE/data/html_dir/2001/08/31/200108310052.asp
Peter Eigen, chairman of the international anti-corruption watchdog Transparency International (TI), gave good marks yesterday to Korea’s ongoing efforts to fight corruption, but called for more attention to the global issue.
“In our corruption perception index (CPI), Korea has improved during the last three years as its score moved from 3.8 out of a possible 10 points in 1999 to 4.2 this year,” Eigen said in a joint press conference at the Lotte Hotel on the opening day of the two-day Seoul Anti-Corruption Symposium 2001.
The Seoul symposium, which is being organized jointly by Seoul City and the United Nations, drew some 150 anti-corruption experts from home and abroad.
In 1999, Korea placed 50th in the CPI rankings among some 90 countries surveyed but it moved to 42nd this year, according to the TI, which was founded in 1993 in Berlin. It now has 85 chapters around the world.
“This trend is very important and I think Korea is on the right track,” Eigen said.
He painted a bright picture of Korea’s anti-corruption efforts by saying, “There is a strong coalition between the government, the private sector and civil society here in Korea working together to diagnose this problem of Korea and to develop remedies for the problem,” he said.
Eigen said Korea has in many ways reformed itself very well and has built a very strong society, economy, government structure and democracy.
But Eigen warned that it would not be an easy task to change a system overnight, calling for continued efforts to fight corruption.
“It is not easy to change a system overnight and it is even harder to change the perception about corruption overnight,” Eigen said. “I hope that Korean society will not lose its patience and determination and not become frustrated because changing is a long-term effort.”
And he also said the Korean government should take the TI-issued bribery payers index (BPI) very seriously.
The TI ranks the leading export countries in terms of the degree to which their companies are perceived to be paying bribes abroad. The BPI is based on a survey of over 770 respondents in 14 key emerging market countries.
“Korea has seen an improvement in the CPI, but it is still very low in the BPI as Korea ranked 18th of the 19 countries surveyed in 1999 and this means that the perception of Korean businessmen is of them going outside Korea to bribe decision-makers in other countries in order to get contracts,” Eigen said.
“Now the Organization for Cooperation and Development (OECD) has for the first time established a prohibition against foreign bribery, and we are very pleased that Korea is playing a leading role in implementing the OECD convention,” he said.
At the joint press conference, Eigen said the Seoul City’s online anti-corruption system, called Online Procedure Enhancement for Civil Applications (OPEN), would have a positive impact on the perception of corruption in Korea, thereby helping raise Korea’s CPI ranking.
The OPEN system is set to be disseminated among U.N. member countries in six different languages.
(sjkang@koreaherald.co.kr)
By Kang Seok-jae Staff reporter
2001.08.31
[Korea Herald] Transparency Int’l dedicated to preventing corruption
http://www.koreaherald.co.kr/SITE/data/html_dir/2001/09/01/200109010007.asp
Transparency International (TI) is a non-governmental organization dedicated to increasing government accountability and curbing international and national corruption. Founded in Berlin in 1993, TI now has chapters in more than 80 countries.
TI works on various levels. On the country level, national chapters work with governments, the private sector and other NGOs, building coalitions to tackle corruption at the local level. Working with international organizations has been its biggest success. In particular, it was very instrumental in bringing the OECD member states to launch the Anti-Bribery Convention, which went into effect two years ago. It is now monitoring progress in the countries that signed the convention to ensure that they implement the corresponding national legislation and appropriate enforcement mechanisms.
Furthermore, TI is raising public awareness of corruption and its prevention. Since 1995, TI has released an annual Corruption Index. The index plays an important role in making governments aware of the international image of their countries in terms of the prevailing business environment. In October, TI will be launching the first-ever edition of the Global Corruption Report, which is expected to become an indispensable annual state-of-the-world report on corruption.
TI’s movement has multiple concerns: humanitarian, as corruption undermines and distorts development and leads to increasing levels of human rights abuse; democratic, as corruption spoils democracies and in particular the achievements of many developing countries and countries in transition; ethical, as corruption undermines a society’s integrity; and practical, as corruption distorts the operations of markets and deprives ordinary people of the benefits.
“Combating corruption is only possible with the involvement of all the stakeholders which include the state, civil society and the private sector,” TI said in a statement.
Through its National Chapters, TI brings together people of integrity in civil society, business and government to work as coalitions for systemic reforms. It does not “name names” or attack individuals, but focuses on building systems that combat corruption.
TI takes a holistic view of National Integrity Systems, in the belief that simply strengthening prosecution and judicial powers cannot by itself curtail corruption. In line with this, its National Integrity Source Book provides a framework. A standard reference point for reformers, it describes practical steps that can be taken in each sector of society and contains extensive best practice documentation.
Corruption often transcends the national level. Working closely with a growing number of international organizations now starting to tackle the issue, TI plays a catalytic role in defining and implementing the international agenda against corruption. A key concern is to monitor the implementation of the OECD anti-bribery convention.
2001.09.01
[Korea Herald] Internet becoming crucial in fighting against worldwide corruption
http://www.koreaherald.co.kr/SITE/data/html_dir/2001/09/01/200109010008.asp
Chairman of the board, Transparency International
The World Wide Web is increasingly a focus of anti-corruption practitioners around the world, and the prospect of an improved flow of information between government and citizens – a two-way flow – is central to the fostering of open government and free access to information. For this reason, the Internet and e-government is an area of increasing importance for Transparency International (TI), an international NGO dedicated to the fight against corruption.
In the Internet age, transparency means not only free access to information on the public sector’s activities, budget and finance management, but also evaluating performance and making public the results of any assessment of public administration. Best practices are central if we are to remove the scope for discretionary administrative behavior, favoritism, clientelism and discriminatory practices, including bribery. Furthermore, the work of Transparency International’s chapters is increasingly involved with the Internet. From Lithuania to Korea to Colombia, they are going online in the fight against corruption.
In Lithuania, TI is working with the parliamentary working group on the draft of the National Program on the Development of the Information Society. The chapter is focusing on e-government and transparency in terms of providing public access to government information and providing avenues for public feedback. As well as working with the creators of the e-government program, experts from the TI chapter are working on the preparation of a project that will combine e-government, NGOs and anti-corruption initiatives.
The age of the Internet also enables citizens’ groups to call politicians to account. In Colombia, Argentina, Ecuador and Panama, TI has promoted greater transparency in election campaigning via the Visible Candidates project. Candidates are publicly called to issue statements about their financial history, campaign financing, their political record and their policies, and a database of candidates is compiled and disseminated to the media on the basis of their submissions.
The transparency of public procurement has become an important focus of the work of TI, and we are especially proud that the Seoul Metropolitan Government has introduced – assisted and monitored by TI Korea and other civil society organizations – the Integrity Pact in a number of procurement areas with substantive use of the Internet to further enhance the transparency of the process. Under an Integrity Pact, bidders competing for the supply of goods and services provide a binding assurance that they have not paid any bribes in order to obtain this contract, and an undertaking that they will not do so in the future. Pre-agreed sanctions come into force if this undertaking is breached.
In Colombia, the presidential anti-corruption program (www.anticorrupcion.gov.co) provides information on anti-corruption initiatives and channels for complaints. It also explicitly promotes the implementation of integrity pacts in Colombia’s public procurement processes, including the public discussion of tender documents. Transparencia por Colombia is heavily involved in supervising the transparency of public contracting and monitors the response of public officials to enquiries submitted via the web. We are especially proud that the Seoul Metropolitan Government has introduced – assisted and monitored by TI Korea and other civil society organizations – the Integrity Pact in a number of procurement areas with substantive use of the Internet to further enhance the transparency of the process.
Four keys to open and transparent e-governance are: accountability; a well-functioning legislative framework and judicial system; best practices to ensure transparency, fairness, equal access, and security; and independent monitoring.
But there are dangers, too, for instance the possible misuse of public data/user traffic information – either by government agencies or by private partners, conflicts of interest and the growing problem of e-fraud.
Some public agencies (for example, customs, city development, and tax collection) are more prone to corruption than others. We will see what e-government can offer in these areas – both the opportunities and the dangers. In the case of automated customs processing, the removal of corrupt intermediaries can remove an enormous number of bribes from the process, but even on the internet a public service ethos is required in the case of customs and excise, tax collection, procurement, tenders and business licensing.
By Peter Eigen
2001.09.01
[Korea Herald] Seoul’s online anti-corruption system acclaimed as groundbreaking tool
http://www.koreaherald.co.kr/SITE/data/html_dir/2001/09/01/200109010011.asp
The Seoul Anti-Corruption Symposium 2001, which concluded yesterday in Seoul, has served as a springboard for the worldwide dissemination of Seoul City’s innovative online anti-corruption system, called Online Procedure Enhancement for Civil Applications, or OPEN.
At the two-day Seoul forum, the first of its kind, some 150 anti-corruption experts from at home and abroad reviewed and exchanged opinions on the user manual for the OPEN system, which will soon be distributed in six languages among U.N. member countries.
Under the theme “The Role of Online Procedures in Promoting Good Governance,” the participants also shared experiences and ideas on transparency and e-government.
The OPEN system, which went into operation in April 1999, is an online system aimed at enhancing transparency and preventing corruption by allowing citizens to monitor the entire process of Seoul City officials’ handling of civil applications in 54 areas. Under the new system, areas most susceptible to corruption – sanitation, housing, construction and tax administration – can be monitored over the Internet 24 hours a day.
“OPEN is a ground-breaking system that can be used by other countries and the Seoul symposium provided a good opportunity for municipal-level leaders and administrators to explore the intersection of three interlinked areas of interest – transparency, accountability and e-government,” said Guido Bertucci, director of the Division for Public Economics and Public Administration of the U.N. Department of Economic and Social Affairs (UNDESA).
Bertucci said transparency in government does not point to old and obsolete information. “It does not mean information that is hard to access or hard to understand once it has been obtained, it means accurate, reliable and relevant reporting based on reliable and regular records.”
The United Nations organized the Seoul gathering together with the Seoul metropolitan government.
Barnett F. Baron, executive vice president of the Asia Foundation, also spoke highly of the OPEN system. The non-profit, non-governmental grant-making foundation, established in 1954, sponsored the Seoul seminar.
“This system is without doubt one of the most advanced and ambitious efforts to deal with the global issue of corruption,” Baron said. “Seoul City offered a shining example of how information technology can be used to fight corruption, improve the delivery of public services, and strengthen positive interactions between citizens and their government.”
Baron pointed out the “unusual explosion of anti-globalization sentiment and demonstrations at almost all international meetings.” He said ” a loss of confidence in governments ” was the catalyst for this growth.
He said e-government provides tremendous new opportunities for Asian governments and societies, adding that the OPEN system provides an outstanding model for addressing transparency and accountability through innovative, technology-based solutions.
“In addition to improving transparency, e-government also provides an opportunity for government to increase efficiency, cut costs, and increase revenue, which enables governments to dedicate scarce funds to other areas.
Seoul Mayor Goh Kun anticipates that the successful Seoul anti-corruption symposium would have a positive impact on the perception of corruption in Korea.
“The Seoul forum and our city’s planned hosting of an international anti-corruption conference in 2003 will definitely help enhance Korea’s image within the international community,” said Goh. “One of the achievements of the symposium is that it has served as a good opportunity for the public to be aware of the global issue of corruption.”
In October 1999, Goh presented the city’s OPEN system before the 9th International Anti-Corruption Conference (IACC) in Durban, South Africa.
Reflecting the growing popularity of the system, the number of visitors to the city’s online anti-corruption Web site exceeded the 2-million mark as of Aug. 20, meaning an average of 2,300 people visited the site every day.
Peter Eigen, chairman of the international anti-corruption watchdog Transparency International (TI), was also positive on Seoul City’s OPEN system and other efforts to fight corruption.
“I think the OPEN system is a system which will have a very practical impact on corruption in Korea and you have a very effective spokesman who is presenting this system in the international community,” Eigen said. “Goh made a very successful presentation in Durban two years ago and he is going to present it in Prague, showing the success of the system.”
He also predicted that Seoul City’s various anti-corruption efforts would greatly help improve Korea’s corruption perception.
According to TI’s corruption perception index (CPI), Korea placed 50th among some 90 countries with a score of 3.8 out of a possible 10 points in 1999, but it moved to 42nd with a score of 4.2 this year.
“The trend is very important and I think Korea is on the right track, but I have to warn you that it is not easy to change a system overnight,” Eigen said. “A change in the perception of corruption may require years and I hope that Korean society will not lose its patience, its determination and not become frustrated because changing is a long-term effort.”
By Kang Seok-jae Staff reporter
2001.09.01
[Korea Herald] Only half of 30 largest Korean firms have ethics codes
http://www.koreaherald.co.kr/SITE/data/html_dir/2001/09/28/200109280012.asp
A report released yesterday by an anti-corruption organization found that only about half of the 30 largest firms in South Korea have codes of ethics.
According to Transparency International Korea, a non-governmental organization dedicated to curbing corruption, a survey on the “Actual Condition of Businesses with a Code of Ethics,” found that 14 of the 28 local firms that responded have codes of ethics for their employees.
But seven of the 14 firms either have an inadequate set of ethical principles or are reluctant to share them with the public, TIK said.
“A code of ethics reflects the firm’s commitment and responsibility to its clients, who therefore have the right to know what its ethical standards are,” said Sung Eun-mi, chief director of the policy division at TIK. “A firm’s transparency also is important for determining whether or not it is practicing the ethics code.”
Last year, however, only eight of the 30 firms had adopted codes of ethics, it said.
As for those companies providing education on codes of ethics to fight corruption, the report found that Korean Air topped the list by running eight classes a year, followed by Kolon with three classes a year.
The top five also include Lotte Trading and Hanwha, which organized two classes a year, and LG Electronics, which organized one.
The report also found that only seven firms, among which is Hyundai Motor Company, make a pledge to follow their codes of ethics.
“The business environment in Korea needs a lot of improvement,” Sung said. “In developed countries like the United States, 90 percent of businesses have implemented codes of ethics; in Japan it’s 80 percent.”
(sohjung@koreaherald.co.kr By Yoo Soh-jung Staff reporter
2001.09.28
[Korea Herald] Korea`s youth lack ethics: survey
http://www.koreaherald.co.kr/servlet/kherald.article.view?id=200201030015&tpl=print
About 90 percent of secondary school students believe Korean society is full of corruption, but many follow their elders’ examples, viewing corruption as an acceptable survival tactic, a recent survey released yesterday showed.
The survey by Transparency International Korea found that 91 percent of middle and high school students believe their society is corrupt. However, 41.3 percent feel no need to abide by the law, as long as “no one is watching.”
The civic group polled 1,005 students from 10 middle and high schools in Seoul Dec. 10-21.
Further, 28.4 percent of respondents said they would resort to bribery if that solved a problem, while 33 percent said they would feign ignorance of corruption if acknowledging it were to result in personal loss.
Sixteen percent of respondents said they would be willing to engage in corruption and spend ten years in prison in exchange for one billion won, while 22.7 percent said they would overlook corruption on the part of their families or relatives.
Asked why they think corruption such as bribery persists in Korean society, 64 percent cited inadequate punishment, followed by 29.9 percent who attributed it to the perception that a person stands to suffer by obeying the law.
Students considered politicians the most corrupt social group, with 33 percent of respondents identifying them as such. Corporations were in second place (12 percent), followed by public servants (11 percent), lawyers (9 percent), media personnel (9 percent), and police (7 percent).
An official of Transparency International Korea said the outcome indicates the urgency of the need to educate teenagers about corruption.
“While teenagers appear to be critical of corruption in their society, they also show a high tolerance for their own (corrupt) actions,” the official said.
(mhkim@koreaherald.co.kr
By Kim Min-hee Staff reporter
[2002.01.03][pagePrint]
[Korea Times] Most Teenagers See Society Corrupt: Survey
http://www.hankooki.com/kt_nation/200201/t2002010217352441110.htm
Most Korean teenage students view society as being corrupt while themselves harboring questionable attitudes towards corruption, an anti- corruption body’s survey suggested yesterday.
In a recent survey conducted by the Korean chapter of Transparency International (TI) which polled 1,005 middle and high school students in Seoul, more than 90 percent of those surveyed said South Korean society is corrupt and of them, 51.6 percent described the level of corruption as being “very serious.”
About 70 percent of them forecast the country would rank between the first and 20th on a list of 100 most corrupt nations of the world, with no prospects of improvement even when they become adults. Only 9.2 percent were optimistic about the prospect of a less corrupt society.
South Korea ranked 42nd out of 91 countries in last year’s Corruption Perception Index published by the TI.
“Most alarming was the fact that the teenagers themselves have critically lax morality against corruption,” said Kim Chong-su, who coordinated the survey.
About 40 percent of those surveyed said they would not obey a law unless supervised, while 28.4 percent declared they would use bribery if it was seem as being instrumental in handling a problem.
Sixteen percent stated they would turn to kickbacks if it brought them one billion won, even if they have to serve 10 years in jail for the illegal action.
Further, the students said they would preferred to remain silent about other people’s corruption, with 33 percent saying that they would overlook such cases if revealing them would only cause trouble. About 23 percent answered they would look away if their kinsmen were involved in unlawful actions.
“A majority of those surveyed considered there is no or only negligible punishment against unlawful deeds,” Kim explained, noting 29.9 percent of the surveyed considered observing the law would be even disadvantageous of them, depending on the case.
“This reveals a serious lack of systematic anti-corruption education for teenage students,” Kim said, adding that his organization plans to produce anti-corruption teaching materials for classroom use. It will also request that TI conduct surveys of the same kind in other nations for comparative analysis of the national situation.
By Heo Yun-seon, Staff Reporter
ysheo@koreatimes.co.kr
2002/01/02 17:35
[Korea Herald] Editorial – Moral crisis of children
http://www.koreaherald.co.kr/SITE/data/html_dir/2002/01/12/200201120031.aspRecent survey results concerning the psyche of young generations in this country hide a pitfall for worried adults. It may be easy to label these children who hardly respect elders but worship money as bad kids and condemn ineffective school education. But it is just too obvious that children are the mirrors of family and society. These worrisome youngsters are no threatening visitors from other planets. They are the products of our society that has pursued fast materialistic growth in exchange for sound mental values over the past decades.
It is sad and shocking to learn that an absolute majority of our teenagers (91 percent) believe Korean society is full of corruption. It is no less disturbing that a considerable number of these children (41.3 percent) view corruption as an acceptable survival tactic and feel no need to abide by the law as long as nobody is watching. Not a few (28.4 percent) would take bribes if that can solve problems and an even greater number (33 percent) would feign ignorance of corruption in case they fear to incur personal loss by acknowledging it.
These are some of the negative outcomes of an opinion poll conducted last month by Transparency International Korea with 1,005 students in 10 middle and high schools in Seoul. They point to the gloomy reality that teenagers in our society have a dangerous level of tolerance for their own dishonest actions, while they are critical of corruption, or the rampant hypocrisy in the adult world. These young people are already developing cynical attitudes toward society and their own moral perception as well. No doubt this is an utterly undesirable phenomenon.
Earlier, another survey had exposed a stunningly low level of respect held by Korean teenagers for older people. In a poll conducted with 10,073 youths aged nine to 17 from 17 nations in East Asia and the Pacific region, Unicef said that only 13 percent of Korean youths were found to have “a lot of respect” for their elders. It showed a staggering disparity from the regional average of 72 percent, let alone the highest 92 percent in Vietnam. It even fell far below Hong Kong that came next to Korea at the bottom with 39 percent.
These figures obviously indicate that young people in this country have lost touch with their parents and teachers, among other adults in society, far more seriously than the youth in other countries. Their response to another question as to their favorite topics in peer conversation backs up this assumption. As many as 35 percent of Korean respondents cited the Internet and computer games as the most popular topic, in contrast to the regional average of 4 percent. Only 15 percent of Korean teenagers said they liked to talk about their teachers and class activities, which was far lower than the region-wide average of 53 percent.
Alienation among generations has long been a universal problem. A sweeping wave of urbanization and industrialization has been around for decades in much of the Asian region. Families have grown smaller and fragile, with parents spending more time at work. The society at large has been increasingly dominated by the material wealth that was often gained at the sacrifice of personal lives. In a young capitalist democracy like Korea, the unbounded competition among individuals has left little room for the classical education for character development on a solid basis of humanities.
The nation has dashed ahead to achieve remarkable economic development over the decades, but not without costs. From the 1960s well into the 80s, much of the populace was forced to sacrifice various freedoms. Workers had to make concessions with their wages; nature was adulterated and the environment was destroyed; society lost its sense of justice and the ends came to override the means under pressures for growth; and finally those who had money and power did not know how to use their resources in ways to benefit the larger society.
The country became increasingly saturated with a pleasure-oriented culture, with families and schools exposed to damages from their unhealthy surroundings. This is about the time for the nation to look back upon its hectic years to build the economy and sort out what it has missed in the process – sound moral values at the very base of our society to hold all of its members together. There is no use in lamenting our crumbling morality. The recent surveys of our youths should serve as alarm bells to wake the nation to the urgency of the matter.
2002.01.12
[Korea Herald] Survey finds low ethical standards, transparency in venture companies
http://www.koreaherald.co.kr/SITE/data/html_dir/2002/01/12/200201120044.asp
Amid around-the-clock breakouts of scandals involving heavyweight politicians and venture businesspeople, a civic group released a survey showing that Korean venture businesses have low ethical standards and transparency.
Officials of Transparency International Korea said yesterday that South Korean venture businesses received a rating of 4.5 points out of 10 for transparency.
The group conducted the survey on 17 reporters covering the securities market for daily newspapers and 42 employees at security corporations, asking for their takes on the transparency and ethics of venture businesses.
The survey assigned points to each answer, which included “strongly agree,” 10 points, “agree,” 7.5 points, “neutral,” five points, “disagree,” 2.5 points and “strongly disagree,” zero points. After calculations, the average venture business recorded a low transparency rating of 4.5, the officials said.
About 66 percent of respondents agreed that venture businesses provided and distributed erroneous information in business reports, while 15.3 percent said they strongly agreed. Only 6.8 percent said they did not.
When asked whether venture businesses had a stronger sense of ethics than large corporations, 44.1 percent said no. About 9 percent strongly disagreed with the statement, while 10.2 percent agreed that venture businesses were more ethical.
A statement suggesting ventures provide illegal political funds or contributions drew agreement from 43.1 percent of respondents, who said it was either true or very true, the survey showed.
Another 48.2 percent agreed that venture companies take advantage of rival companies’ weak points, or misstate their profits, it said.
Around 40 percent said venture businesses engage in corrupt activities such as manipulating stock prices, while 51 percent saw a problem in the way venture companies attract their capital.
Another 60.3 percent of respondents said companies’ invested funds are occasionally used for personal purposes, while 66.1 percent said the government’s policy on venture companies should be redrawn in such a way as to increase levels of transparency.
“The survey, though very small-scale, reflects the current state of venture companies’ transparency because all respondents were deeply familiar with the venture business field,” said Seong Eun-mi from Transparency International Korea.
“What we need is a strategic system that objectively adjudicates whether the investment money was used for its original purpose, and to adopt such developed business administration tactics as securing transparency and diversifying businesses’ open markets,” she said.
(angiely@koreaherald.co.kr)
By Lee Joo-hee Staff reporter
2002.01.12
http://www.koreaherald.co.kr/SITE/data/html_dir/2002/01/12/200201120044.asp