ACRC Delivered
a Keynote Speech at BIS Summit 2022
to Underscore the Need to Practice Integrity and Ethical Management

- ACRC asked private enterprises and public institutions to proactively implement K-CP, scheduled to be introduced this year -

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On the 25th, Anti-Corruption and Civil Rights Commission (ACRC) delivered a keynote speech at BIS Summit 2022, emphasizing the need to practice integrity and ethical management in enhancing Korea’s national integrity and transparency in business management.

* BIS Summit : A global conference sponsored by the World Bank and Siemens Integrity Initiative hosted every year as a part of the Business Integrity Society (BIS) project. Global businesses, public institutions and civil society organizations come together to discuss up-to-date anti-corruption agenda and plans to increase transparency of enterprises.

In the speech, ACRC asked businesses to proactively apply integrity and ethical management given that indicators related to business management in the Corruption Perception Index (CPI) have remained unimproved while Korea’s overall scores of CPI are rising for five consecutive years.

In 2021 Corruption Perceptions Index that Transparent International released in January, South Korea scored 62 out of 100 and ranked 32nd out of 180 countries, continuously increasing its performance except for business related indicators remained without progress over the last five years.

* Korea scored 59 in Global Insights Country Risk Ratings (where IHS Markit measures corruption in business activities) and 55 in Economist Intelligence Unit Country Ratings (on embezzlement of public funds and bribery for winning contracts, etc.)

ACRC also mentioned that whereas ESG management that stresses non-financial responsibilities of enterprises is becoming more important, Korean businesses tend to have lower scores in corporate governance that matters bribery, corruption, etc. than environmental and social factors in global ratings, adding that ACRC, which oversees the government’s anti-corruption efforts, will introduce K-Integrity and Ethics Compliance Evaluation & Certification Program (K-CP), and fully support businesses to practice integrity and ethical management.

* A series of systems and activities designed to minimize corruption risks that might arise in business management, encourage the compliance of anti-corruption laws and regulations, and create a culture of integrity and ethical management

In accordance with Article 12 (Functions) and Article 5 (Duties of Enterprises) of ACRC Act and Article 3 (Support, etc. for Ethical Business Management) of the Enforcement Decree of the Act, the Commission has carried out a variety of activities to support integrity and ethical management. We are working at the adoption of K-CP to strengthen the competence of businesses in managing global corruption risks this year.

K-CP reflects the best practices of international organizations and key learnings from foreign corruption prevention laws of major countries, including the United States and France. It was designed after collecting feedback from and holding discussion sessions with stakeholders from the academia, civil society, and business community. We are working on developing K-CP that addresses the creation of a better environment, corruption risk mapping and management, monitoring and improvement, sanctions and incentives, among others.

We plan to distribute a manual to public enterprises and other public institutions, and conduct a test run over the program in the first half of this year; and deliver the manual to private enterprises in the second half to enable them to voluntarily implement integrity and ethical management. The introduction of K-CP is expected to be substantially effective for Korean enterprises to respond to U.S. Foreign Corrupt Practices Act.

An ACRC Official mentioned “considering a research pointing out that when Korea’s national integrity improves to be comparable to the average of OECD member states, real GDP will increase by around 23%, it is important for the government and businesses work together to enhance the national integrity. As practicing integrity and ethical management has become not an option but a must along with our country’s elevated standing in the world, the ACRC will distribute K-CP and fully support voluntary implementation of enterprises so that they can lead the world in corruption-free, transparent and upright business management.”