No such thing as a free lunch: South Korea graft law eats into restaurants’ profits

The owner of Poom Seoul, an upmarket restaurant in South Korea’s capital is seriously considering closing her business, as customers dwindle ahead of new anti-graft laws designed to curb paid-for favours.

The law, which comes into effect on Wednesday, will make it illegal for government employees, private school teachers and journalists to accept meals worth 30,000 won (US$26) or more.

“The number of reservations have recently fallen sharply as customers are apparently worried they might be caught in breach of the law,” Roh Young-hee said. “There are meals of different price ranges in the world, but with 30,000 won you cannot produce decent Korean dishes,” she added.

The legislation, the latest effort to curb low level corruption endemic in South Korea, targets teachers bribed by parents to give better grades, journalists paid to give favourable publicity and officials bought off by businessmen to speed up bureaucratic processes.

The law has prompted some restaurateurs to introduce graft-busting menus.

“Instead of expensive Korean beef, we are now using imported US beef for our new dinner set priced at 29,800 won,” Restaurant Condu manager Han Yoon-joo said.

The ban also forbids teachers, officials and journalists accepting gifts worth 50,000 won or higher, and cash gifts above 100,000 won for weddings or funerals.