Korea's Anti-Solicitation Act (Kim Young-ran Act): Overview
The Anti-Solicitation Act (formally: Act on the Prohibition of Improper Solicitation and Acceptance of Money and Valuables — commonly known as the Kim Young-ran Act) is Korea's primary anti-corruption statute, enacted on September 28, 2016. It prohibits improper solicitation and the acceptance of money and valuables by public officials and employees of public institutions. The reason this law matters for overseas business operations is that KOTRA trade office staff, embassy personnel, and secondees from public institutions are all within its scope of application. Korean companies operating in Dhaka, Bangladesh, must have a precise understanding of the law's applicability and value thresholds when conducting business with KOTRA, the Korean Embassy, Korea Eximbank, and other public institutions.
In Bangladesh's business culture, gift exchanges, meal hospitality, and facilitation favors are often understood as part of relationship building — but in transactions involving Korean public officials subject to Korean law, these practices can become legal liability. Providing money or valuables to Korean public officials while overseas still constitutes a potential violation of the Anti-Solicitation Act. Field-level awareness before the fact is essential.
Money and Valuables Acceptance Standards and Hospitality Rules
Article 8 of the Anti-Solicitation Act stipulates that a public official who accepts money or valuables exceeding 1 million KRW in a single transaction, or 3 million KRW in a single fiscal year, from the same person — regardless of whether it relates to official duties — is subject to criminal punishment (imprisonment of up to 3 years or a fine of up to 30 million KRW). Even amounts below 1 million KRW are subject to a fine of 2–5 times the value received if a quid pro quo relationship to official duties is established.
| Type | Permissible Limit | Conditions | Penalty on Violation |
|---|---|---|---|
| Meals | 30,000 KRW | Per person per occasion | Fine: 2–5x the value received |
| Gifts | 50,000 KRW | Agricultural/fishery products: 300,000 KRW special provision | Fine: 2–5x the value received |
| Ceremonial events | 100,000 KRW | Floral wreaths not separately permitted | Fine: 2–5x the value received |
| External lecture fees | Grade-based ceiling | Minister-level: 500,000 KRW; Grade 4+: 400,000 KRW | Return of excess + fine |
| Over 1,000,000 KRW | Completely prohibited | Regardless of duty-relatedness | Up to 3 years imprisonment / 30M KRW fine |
| Over 3,000,000 KRW (annual) | Completely prohibited | Per fiscal year basis | Aggravated criminal punishment |
The practical compliance point for overseas business operations is that these thresholds apply on a Korean won-conversion basis. Even if expenses are incurred in Bangladeshi Taka (BDT), a violation occurs if the KRW equivalent exceeds the applicable limit. Also note that if a meal and a gift are provided on the same day, each limit applies separately — but a pattern of repeated provision can be judged to exceed the bounds of socially acceptable norms.
Conflict of Interest Prevention Act: Key Provisions and Overseas Application
The Public Officials Conflict of Interest Prevention Act (effective May 19, 2022) operates as a preventive mechanism complementing the Anti-Solicitation Act, requiring public officials to disclose and recuse themselves when private interests arise in the course of official duties. The law applies equally to public officials stationed overseas — all Korean institution staff posted in Dhaka are subject to its provisions.
Building an Overseas Business Compliance Framework
Korean companies operating in Bangladesh must build an integrated compliance framework that addresses not only the Anti-Solicitation Act and Conflict of Interest Prevention Act, but also Bangladesh's local anti-corruption law (the Anti-Corruption Commission Act 2004) and international anti-corruption standards including UNCAC (UN Convention Against Corruption), the US FCPA (Foreign Corrupt Practices Act), and the UK Bribery Act 2010. If a Korean parent company is registered with the US SEC or has UK business relationships, the acts of the Bangladesh subsidiary can be attributed to the parent.
Bangladesh-Specific Circumstances and Practical Compliance Notes
Bangladesh ranks 149th out of 180 countries in Transparency International's 2025 Corruption Perceptions Index, placing it among higher-corruption-risk markets. Local business practices include "speed money," informal facilitation, and agent commissions as recurring features — and Korean companies' locally hired staff may inadvertently create Korean legal violations without awareness of the applicable rules.
| Risk Type | Local Practice | Anti-Solicitation Act Application | FCPA / UK Bribery Act | Mitigation Approach |
|---|---|---|---|---|
| Speed money | Expediting licensing approvals | Violation if directed at public officials | Facilitation payment controversy | Adhere to formal procedures only |
| Agent commissions | Licensing via intermediaries | Constitutes indirect provision of valuables | Third-party payment prohibition | Conduct agent due diligence |
| Festival gifts | Eid/Puja seasonal practice | Subject to 50,000 KRW limit | Reasonable range judgment | Set limits in advance |
| Meal hospitality | Standard in business meetings | Subject to 30,000 KRW limit | Reasonable range judgment | Keep receipts and records |
| Donations and sponsorships | Community expectations | Duty-relatedness determination required | Direct benefit linkage prohibited | Operate separate CSR channel |
Major Violation Cases and Penalty Levels
Cumulative reports under the Anti-Solicitation Act exceeded 50,000 cases through 2025, with annual fines increasing year on year. Overseas violations are also on a rising trend — the assumption that "the law doesn't apply overseas" is no longer valid. The Korea Anti-Corruption and Civil Rights Commission actively investigates violations involving public officials posted abroad, and private sector individuals who provide money or valuables are also subject to sanctions.
The Anti-Solicitation Act and the Conflict of Interest Prevention Act set mandatory legal standards that must be observed in all dealings involving Korean public officials — without exception in overseas business settings. Korean companies operating in Bangladesh must establish a compliance framework that simultaneously satisfies Korean law and international anti-corruption standards within a higher-risk local corruption environment. Advance training, clear internal rules, and systematic record-keeping are the most effective means of minimizing legal risk — and companies are encouraged to actively use the consultation channels available through the Korea Anti-Corruption and Civil Rights Commission and the KOTRA Dhaka Trade Office.