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South Korea cracks down on graft

Friday, August 05, 2016 - 01:29

The anti-corruption law that takes effect in South Korea next month imposes spending limits on entertainment and gifts, leaving businesses scrambling to adjust. Natasha Howitt reports.

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In South Korea, gift sets like these are becoming less extravagant. The country is cracking down on corruption with a new law that imposes spending limits on gifts and entertainment. As of next month, civil servants, teachers and journalists will no longer be able to receive lavish free meals, rounds of golf and expensive boxes of beef and ginseng from business counterparts or sources. But many are worried this could have a negative impact on an already sputtering economy. One research institute says the law could wipe out over $10 billion in revenue for sectors including food, golf, consumer and retail goods. Cattle breeder Lee Jae-eun says the law will drive down the price of his beef and deal a blow to farmers like him. But graft scandals are common in the country, and the government is hoping the law will help clean this up. South Korean President Park Guen-hye.... (SOUNDBITE) (Korean) SOUTH KOREAN PRESIDENT, PARK GEUN-HYE, SAYING: "Once the law is implemented and transparency and fairness in our society are improved, the effectiveness of our economy will increase and South Korea's potential growth may be improved," According to an anti-corruption survey last year, almost 60 percent of South Koreans thought their country was corrupt. South Korea ranks 37th out of 168 on Transparency International's corruption perceptions index.

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South Korea cracks down on graft

Friday, August 05, 2016 - 01:29