Corporate entertainment expenses at South Korean companies declined by more than 200 billion won ($180 million) from 2015 to 2016, as a result of the anti-graft law that took effect on Sept. 28, 2016.
According to corporate entertainment expenses calculated based on corporate tax records, companies spent a total of 10.6 trillion won for entertainment purposes in 2016.
It marks a decrease of 245.1 billion won from a total of 10.89 trillion won in entertainment expenses observed in 2015, prior to the enactment of the anti-graft law, also known as the “Kim Young-ran law.”
According to Kang, the anti-graft law appears to have played a role in scaling down Korea’s entertainment and gift-giving culture, instigating the drop in entertainment expenses.
(
khnews@heraldcorp.com)
