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Retailers, restaurants struggling to adjust to anti-graft law

이름 임서영 등록일 16.08.21 조회수 699

An array of Chuseok gift sets hit the shelves Tuesday - most priced at less than 50,000 won- at the Hanaro Mart in Yangjae-dong, southern Seoul. / Yonhap
By Kim Ji-soo

As Chuseok  — one of the biggest Korean holidaysfalls on Sept. 15, Koreans are surveying gifts that they may have to buy for acquaintances and colleagues.

This year, however, one factor looms large in their shopping decisions: the so-called Kim Young-ran anti-graft law that takes effect on Sept 28. Under the law, among other things, public officials, private school teachers, journalists may be punished with fines for being given a meal that costs more than 30,000 won ($26), a gift priced at more than 50,000 won or congratulatory or condolence contributions more than 100,000 won.

The new law is expected to affect some 4 million people in the nation.

The law, which is either embraced by some or fiercely opposed by othersopponents sent it to the Constitutional Court, which in July ruled it constitutionalmay cause a significant shift not only in how Koreans interact but also in how some industries operate.

In response to the law, retailers and restaurants have put out lower-priced gifts and menus. The major department stores in Seoul are also retailing gift sets priced at less than 50,000 won each. While their pricier and highly preferred giftssuch as packages of dried corvina and Korean beefare still available, sellers and customers are mindful of the new law.

Lotte Department Store has begun offering gifts such as a jujube tea set from the Boeun region for 30,000 won and a Samjin fishball gift set at 25,000 won. Meanwhile, Hyundai and Shinsegae Department stores are selling fruit gift sets and traditional liquor sets priced at less than 50,000 won.

Retail outlets run by the National Agricultural Cooperative Federation have introduced fruit gift sets for less than 50,000 won.

The Kim Young-ran law, officially the Improper Solicitation and Graft Act, is named after former judge Kim Young-ran, who sponsored the act while serving at the state-run Anti-Corruption and Civil Rights Commission.

The idea behind the law is to tackle corruption that has permeated the Korean social structure, which highly values blood, school and hometown ties, and considers treating these relations with social interactions over meals and rounds of drinks. Consequently, one of the most visibly affected industries is the restaurant business, in particular those that serve sumptuous Korean full-course meals, usually known ashanjeongsik.”

These hanjeongsik restaurants, usually clustered around Insa-dong and Tongui-dong in northern Seoul, are either closing or remarketing themselves and their products. The famous restaurant Yoo Jeong, which has been around for 60 years, recently made headlines for deciding to close before the anti-graft law takes effect.

Other Korean restaurants in the neighborhood have also started preparing for post-Sept. 28 days.

We are mentally gearing up and will probably have to adjust our prices,” said one restaurant worker at Daesong in Tongui-dong. The restaurant now offers lunch sets from 30,000 won to 35,000 won and dinner, pricier.

Seon Cheon, which has been in business since 1970 in Insa-dong, has began making adjustments.

People can just order the basichansikmeal priced at 12,000 won and add one or two side dishes,” an employee at Seon Cheon said.

Other restaurants like Jirisan have no problem making adjustments according to the new law. The set meals on the Korean menu at Jirisan are priced at 15,000 won and 20,000 won.

Han Yoon-joo, owner of Congdu Restaurant in Seoul, said she is worried about the law and will probably have to readjust prices, such as for the popular four-course corvina menu (priced at 36,000 won).

Questions have arisen over whether enforcement of the law will be effective or intrusive, given the law provides for a cash reward from the government for those who report a violationif the information is deemed in the public interestand a penalty reduction for those who self-report solicitations or acceptance of meals or gifts.

Public sentiment is that such a law is required.

“I am seeing a lot of 29,000 won meals or 99,000 won gift sets,” said a housewife, 47, and mother of a daughter in Panggyo, Gyeonggi Province. “I think it’s a step in the right direction.”

The new law is a bit black-and-white in its logic, but I believe it will provide a good opportunity to create a schism in the root of the widespread corruption in the nation,” said Kim Hyun-mi, 45, an English instructor and housewife in Seoul.

There are some unrealistic clauses in the law but as it is expected to take effect soon, we should comply with it,” an official, 45, working at an economic ministry in Sejong, said. “There is a downside to the law, too, where government officials now in the Sejong City will refrain from seeing individuals who have to make their cases to government officials,” he said.

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