1. Overview

1) Corruption in the private sector is now surpassing corruption of officialdom in its scale and influence. Hence, this study aims to explore the ways to improve the system for preventing corruption in the private sector at this time.
2) This study deals with the current issues and the measurement of corruption in the private sector. Also, it discusses about the trends of international society change for the prevention of corruption in the private sector. Moreover, it focuses on the Korean criminal penalties for corruption in the private sector.

2. Issues of Statistics Related to Corruption in the Private Sector and its Solution

1) The long-term solution is to systematically reform laws related to corruption in the private sector and to integrate them into a single legal system. However, it will be not achieved in a short period of time.
2) Instead, it is needed to establish a proper system and department which is responsible for collecting statistics regarding offences of the Korean Criminal Act, the Special Criminal Acts and the Korean Administrative Acts related to corruption in the private sector.
3) In the short term, maintenance of the most critical statistics related to ‘Article 357 (Receiving or Giving Bribe by Breach of Trust)’ of [the Korean Criminal Act] and corruption in the private sector of [the Act on the Aggravated Punishment, etc. of Specific Economic Crimes] should be carried out.

3. Implications from International Conventions and Foreign Legislation: Legislation on Foreign Public Officials

1) Because foreign officials are not public officials in their own countries, bribery of foreign public officials in international commerce constitutes corruption in the private sector. The recent trends in international conventions and foreign legislations have implications for the amendment of anti-bribery laws for foreign public officials in Korea.
2) There are grounds for criminalization bribery against third parties in connection with foreign public officials in OECD Convention, European Council Convention, UN Convention and UK Bribery Act of 2010.
3) The National Assembly of Korea passed amendment(Article 3, Section 2) to [the Act on Combating Bribery of Foreign Public Officials in International Business Transactions]. Hence, there is a ground for criminalization bribery against third parties in connection with foreign public officials.

4. Modification of Criminal Penalties for Corruption in the Private Sector

1) Under the current system of corruption in the private sector, the best practical measure for penalties for corruption in the private sector prescribed in administrative laws is a unified arrangement of the most basic elements of penalties; acts, objects, sentencing of both imprisonment and fine, confiscation and additional collection, and joint penal provisions. It is considered to be a feasible work.
2) Moreover, modification of statutory penalty should be carried out to ensure consistency and uniformity among relevant laws and regulations or similar laws such as medical, election, judicial, construction and manufacturing, athletic, finance, and traffic. And, it should be supplemented with legislations which has defects.
3) In addition, the measures for protection of whistleblowers in corruption in the private sector are as follows: In order to protect whistleblowers, it is important to improve legislative and institutional measures such as strengthening the confidentiality guarantee for whistleblowers, preparing measures to prevent disadvantages, establishing sufficient compensation and support plan, and structuring practical integrated reporting system. It is also necessary to make efforts to improve the negative social perceptions of whistleblowers.