Antigraft law sparks retail worries

Retail industries are expressing concerns about the new tough anticorruption law that was passed in the National Assembly on Tuesday, on fears of revenue falling.

In particular, golf clubs, department stores and high-end restaurant industries voiced discontent with the so-called Kim Young-ran bill, claiming that the law would likely drag down domestic consumption by incriminating even businesspeople and civil servants who attend casual business gatherings.

The bill, to go into effect September 2016, also retains a controversial article prohibiting civil servants from receiving money, gifts or entertainment, including food, of more than 30,000 won ($27) in value from parties held in professional capacities.

Golf country clubs reportedly argued that the law would curb their weekend business that mostly accommodates the businessmen and their influential peers.

A round of golf over the weekend typically costs about 300,000 won per person, including the green fees, caddy fees and other expenses, according to managers of high-end golf courses in Gyeonggi Province.

But with the Kim Young-ran bill, such practices can lead to fines of up to 30 million won.

The law also subjects civil servants to a maximum jail term of three years or a fine of five times the amount they accepted in monetary or nonmonetary valuables, provided they are worth more than 1 million won.

Department stores and other retail outlets fear that the act will undermine the sales of high-end gift sets, commonly given among the top economic bracket. Gifts such as red ginseng, premium meat and seafood comprise about 30-40 percent of the sales volume, according to a retail official.

“Having a bottle of soju with roasted bacon can easily cost you more than the 30,000 won limit,” a senior official complained, calling the act unreasonable.

By Chung Joo-won (joowonc@heraldcorp.com)