Relationships, Rules, and Restaurant Visits: What You Need to Know When Dealing with the Public Sector in South Korea

Written By Maj Bjerre

(Image by Canva)

When doing business with South Koreans, relationships play a crucial role. In South Korea, trust and collaboration are often built on personal connections — and Koreans go to great lengths to form strong bonds. This might include arranging airport pickups, giving gifts, or inviting you to lunch before a meeting or dinner later in the evening.

However, when public sector representatives are involved, the rules of the game change significantly. And it’s important to understand those rules if you want to appear professional and avoid misunderstandings — or in the worst case, break the law and put someone in an uncomfortable position.

The Anti-Corruption Law: The Kim Young-ran Act

In 2016, South Korea enacted its anti-corruption law, officially known as the Kim Young-ran Act. The law aims to prevent corruption and overly close relationships between public officials and private entities. It sets clear limits on what public employees are allowed to receive in connection with their work. "Benefits" are interpreted broadly — including money, goods, services, and entertainment.

In 2024, the monetary thresholds were adjusted. The current limits are approximately:

  • A maximum of 50,000 KRW for gifts and meals

  • A maximum of 100,000 KRW for condolence or congratulatory money, including any floral arrangements

The law applies broadly — covering government officials, teachers, journalists — and may also apply when dealing with state-owned enterprises or semi-public organizations.

What Does This Mean for You?

It’s important to understand that something as seemingly harmless as a meal at a slightly upscale restaurant can be considered a legal violation if your counterpart works in the public sector. It’s not just about the gesture — it’s about the value and the message it sends. A taxi ride from the airport to the office can easily be viewed as a “benefit” if the cost exceeds the limits, or if the transport is too luxurious — like a limousine service.

Keep It Simple — and Legal

You can still be helpful and courteous toward your public sector contacts. Instead, consider:

  • Recommending and booking appropriate hotels and restaurants

  • Offering assistance with planning and transportation without covering the costs yourself

It’s about showing respect for the rules — and demonstrating that you understand and appreciate South Korea’s cultural and legal framework.

When Working with Private Companies

Different conditions apply here. There are no specific legal restrictions, and relationships are often built through much more personal interactions. That doesn’t mean anything goes — but there is much greater freedom when it comes to dining and social activities.

Maj Bjerre