The National Assembly recently approved an amendment to the Improper Solicitation and Graft Act (the "Anti-Graft Act").  The enacted amendment (the "Amendment") increases the upper limit on gifts of agricultural, livestock, and fishery products that may be received or provided to Public Officials from KRW 100,000 (approx. USD 83) to KRW 200,000 (approx. USD 166, applying the exchange rate of 1 USD = KRW 1,200 as of January 10, 2022) for the period prescribed by the Presidential Decree, including the Lunar New Year and/or Chuseok (Korean Thanksgiving) holidays.  This Amendment was promulgated and went into effect as of December 16, 2021.  Shortly thereafter, the Enforcement Decree of the Anti-Graft Act was amended on January 5, 2022 to further define the period as "the period ranging from 24 days before the Lunar New Year and/or Chuseok holidays to 5 days after the said holidays. " 

As a result, for the upcoming Lunar New Year on February 1, 2022, gifts of agricultural, livestock, and fishery products amounting up to KRW 200,000 (approx. USD 166) may be received by or provided to Public Officials during the period between 24 days before (January 8, 2022) and five days after (February 6, 2022) the Lunar New Year holiday.

As you may be aware, the Anti-Graft Act generally prohibits giving (i) anything of value to Public Officials (including national/local government officials, officers and employees of public institutions or public service-related organizations, heads and faculty members of both public or private schools, and journalists and others employees of media companies) when related to the Public Official’s duties, and (ii) any benefit exceeding KRW 1 million (approx. USD 833) per instance or KRW 3 million (approx. USD 2,500) in aggregate per fiscal year when not related to the Public Official‘s duties.  

The Anti-Graft Act provides several exceptions, including for meals and gifts provided to facilitate the relationship or as a matter of courtesy (but not when there is a "directly pending matter").  The limit for meals is KRW 30,000 (approx. USD 25) and the limit for gifts is KRW 50,000 (approx. USD 41), with a higher limit of KRW 100,000 (approx. USD 83) for gifts comprised of at least 50% agricultural or fisheries products.  "Agricultural or fisheries products" are defined by statute and include, for example, boxes of fruit, meat, or fish, which are common holiday gifts in Korea.  However, they do not include, for example, salt or certain processed foods.

The Amendment would also apply to cases where such gifts are mailed within the relevant period and received by the Public Official 5 days after the Lunar New Year and/or Chuseok holidays.

Notwithstanding the above temporary measure to increase the upper threshold limit for holiday gifts for a predefined period under the Anti-Graft Act, gifts within the increased threshold may still be prohibited under other laws and regulations.  For example, the provision of holiday gifts to healthcare professionals is prohibited under the Pharmaceutical Affairs Act and the Korean Research-based Pharmaceutical Industry Association Fair Competition Code.