Financial disclosure of newly elected local government officials

Sept 28, 2018

Ministry of Personnel Management

The Republic of Korea

< Overview of the Property Disclosure >

The Government Public Service Ethics Committee (the “Committee”) (Chairperson Park Si Hwan) disclosed in its official gazette dated 28 September 2018 registered matters regarding the property of 670 public officials newly elected in the June 13 local elections, including metropolitan mayors and provincial governors.

※ In accordance with Article 10 of the Public Service Ethics Act, the Committee shall disclose to the public registered matters concerning the property of public officials by publishing them in the official gazette or public bulletins, within one month after the time limit for registration or reporting expires.

Among the newly-elected public officials, heads of local governments (upper and lower level), superintendents of education in metropolitan cities and provinces, and upper level local council members under the jurisdiction of the Committee have reported the matters concerning their property after they were elected in the June 13 local elections.

※ The property registered by lower level local council members is to be disclosed by the competent Public Service Ethics Committee in metropolitan cities and provinces.

※ Under the Public Official Election Act and Public Service Ethics Act, (1) an elected official who has been reelected for the same post; and (2) a member of the National Assembly, etc. who has been retired from the office on or after April 2 will be excluded from the scope of those liable for this first time registration of property.

The disclosed property includes real estate, deposits and stocks owned by an official liable for registration of property, his/her spouse, and lineal ascendants and descendents of the official that are registered on a report of property as of 1 July 2018 on which the term of office begins.

Detailed statements of property reported by each of the 670 newly-elected officials can be found on the official Web site of the Electronic Official Gazette of the Republic of Korea at www.gwanbo.mois.go.kr on 28 September 2018.

< The Current Status of Property Reported >

The average value of the property reported by the 670 newly-elected officials per household (including spouse, lineal ascendants and descendants) which has been disclosed this time amounts to KRW 828.44 million.

To break it down by post, the average value of the property reported by heads of the upper level local governments (6 people), superintendents of education (5 people), heads of the lower level local governments (136 people) and members of the upper level local councils (523 people) amounted to KRW 2601.11 million , 359.14 million, 968.32 million, and 776.22 million, respectively.

< Examination of Registered Matters Regarding Property >

The Government Ethics Committee plans to complete the process of examination of registered matters regarding property of officials disclosed this time within this year.

The Committee will not only examine whether there have been any omitted or over-reported matters, but strengthen investigation into the income source to acquire the property or the background for the acquisition of the property, including unlisted stocks or claims/debts traded between private persons, which is not traceable with the information possessed by financial institutions.

Based on the findings from the examination, the Committee will have officials who falsely reported matters regarding their property correct what is misreported, while requesting a competent court to impose administrative fines in case where the value of misreported property is KRW 300 million or above, or where the value falsely reported by officials regarding their untraceable property is KRW 100 million or above.

A Secretary of the Committee said “the system of property disclosure has been introduced with an aim to prevent illegal accumulation of property by public officials and to secure fairness in the performance of public duties. I hope it will bring forth more mature local self-governance by improving transparency in the property of elected-officials and building trust in local communities.”