Members of the 5.4 Club, a group of prominent figures aiming to promote culture in Korea, gathered to discuss the aftermath of Korea’s recently enforced antigraft law Thursday evening at the InterContinental Seoul Coex.

The law is one that stipulates globally unprecedented guidelines, according to Jai Lee, senior foreign counsel at Yulchon LLP.

“The whole world is paying attention,” he said. “(This law) affects more than 40,000 organizations and over 4 million people in Korea ... including professors, journalists and lawmakers.”

The law, dubbed the Kim Young-ran Act after the lawmaker who proposed it, sets a maximum price limit for food and gifts –- 30,000 won ($26) and 50,000 won respectively –- that public officials can receive, among other restrictions.

Since its September enforcement, the law has hotels and highbrow eateries wringing their hands, according to industry insiders.

“The hotel business is heavily affected. Fine dining restaurants are almost empty. People do not want to take the risk (of getting caught),” according to Darren Morrish, general manager of Grand Intercontinental Seoul Coex and Parnas.

There has been a shift in the clientele as well, restaurateurs added, with a drastic decrease in government officials.

Some restaurants have been developing courses dubbed “Kim Young-ran menus,” priced under 30,000 won so as to avoid legal infringements. But this is not a viable option at hotels, Morrish added. “We can’t survive at those prices.”

One interesting fact, hoteliers noted, is that though reservations for banquets and meetings have fallen, the number of wedding ceremonies largely remains the same.

Some worried the law’s consequences could add further stress to Korea’s already lagging economy.

“Hotels may have to begin laying off people if this continues,” said Didier Beltoise, CEO of consulting firm Cs.

More optimistic speakers felt that current inconveniences could be birth pangs ultimately resulting in a culture of more transparency and less corruption.

The 5.4 Club is a suborganization of the Corea Image Communication Institute, a nonprofit aiming to promote Korean culture overseas. Thursday’s meeting was attended by members from various fields including Choi Jung-wha, president of CICI.

By Rumy Doo (doo@heraldcorp.com)