With the looming effectuation of the antigraft law, most South Korean companies are suffering from confusion about how they can prepare for promotional and other events.

The Improper Solicitation and Graft Act basically bans businesses from offering meals over 30,000 won, gifts over 50,000 won and congratulatory or condolence money over 100,000 won to selected groups of people. 

It has been usual here for staff in charge of public and government relations at large companies to meet journalists and government officials and form favorable ties by dining with them, playing golf or giving gifts.

With the new anti-bribery law taking effect next month, local companies are preparing internal guidelines to help prevent unintended violations of the law.

“At the moment, we are studying cases that might happen during operations and also are planning on a special training program based on reports provided by the Anti-Corruption and Civil Rights Commission,” said a PR manager at a local electronics-maker.

Another PR employee at one of major conglomerates said: “Because there are many parts that are considered vague, working-level staffers are quite confused. … Our legal team is carefully combing through the law to come up with a list of possible violations.”

Some companies, meanwhile, are moving forward with plans to roll out media events, including launches of new products and overseas trips, but with new limits.

The automobile industry, for instance, usually throws large and fancy events to promote their new vehicles.

Hyundai Motor Group is going to unveil the New Morning and Grandeur around September, and the automaker says there is no change in the plan yet. But the company is definitely not taking journalists on overseas tours this year.

“The new vehicle launch events are not just for reporters but also for ordinary consumers, so we are now thinking that there will be no problem,” said Baek Byung-wook, a PR manager at the group.

“There has been annual overseas trips for journalists, but we are not planning one for this year, and our legal team is going to compile possible violation cases and educate employees soon.”

The financial industry is also responding to introduction of the anti-graft law next month.

Korea Exchange said it will hold an introductory seminar on the new law for all executives and employees on Sept. 2. The stock market operator is not officially a public institution but is considered to be a related institution that is subject to the bribery law.

Korea Financial Investment Association is also preparing guidelines as it continues to receive inquiries from securities firm members. The association, which represents interests of the capital market players, is expected to be affected by the new law, because its officials are supposed to contact government servants to discuss industry-related policies and journalists to promote the industry as well.

“The association’s legal and PR teams are analyzing the Kim Young-ran law,” said an official at the institution. “We plan to come up with the guidelines before the implementation and provide them to our members.”

The guidelines currently being prepared by the abovementioned companies and institutions were not available yet.

Some securities brokerage firms are already cancelling golf appointments to conform with the law.

“We are soon going to release a so-called ‘Kim Young-ran law checklist’ to our employees, which tells do’s and don’ts,” said a spokesman at a securities firm. “For now, we are cancelling golf appointments with clients or journalists, which were scheduled in October, as well as dinners.”

By Song Su-hyun (song@heraldcorp.com)