Reporting Persons in Private Schools and Educational Foundations Legally Protected and Rewarded with up to KRW 3 Billion

Revised Act on anti-corruption went into effect on April 18

A legal foundation has been established to protect those who report corruption in private schools from disadvantageous actions, such as dismissal.

The ACRC announced that a revision of the Act on Anti-Corruption and the Establishment and Operation of the Anti-Corruption and Civil Rights Commission was proclaimed and went into effect on April 18.

Teaching staff at private schools, and executives and employees of educational foundations are now included under the categories of “public organizations*” and “public officials,” which are subject to protection of reporting persons under the Act.

* Private schools at all levels established according to the Elementary and Secondary Education Act, the Higher Education Act, the Early Childhood Education Act, or any other Act or subordinate statute; and educational foundations receiving contributions or subsidies from central or local governments according to the Private School Act.

* There were 7,663 private schools and educational foundations as of January 2017. The central and local governments offered financial support worth KRW 10.4 trillion in 2015.

Prior to the revision, teaching staff at private schools and executives and employees of educational foundations were not subject to the Act; therefore, those who reported embezzlement of educational expenditures or budgetary and accounting fraud were not protected against disadvantageous actions.

As the majority of private schools and educational foundations receive financial support from the central or local governments, the necessity for measures against corruption in private schools, such as embezzlement and breach of trust, has been repeatedly singled out as a pressing concern.

The revision was also aimed to extend the scope of application of the Act in line with the Improper Solicitation and Graft Act, which took effect last September and covers private schools as well as public organizations.

According to the revised Act, anyone can report acts of corruption, including embezzlement, malpractices in contracting, and abuse of authority which have occurred since the proclamation of the revised Act. If reporting persons face disadvantageous actions such as dismissal and disciplinary action as a result of their reporting, protective actions, such as personal protection and guarantee of employment status, may be taken.

Furthermore, if the reporting of corruption results in the direct recovery or increase of revenues for a public organization, compensation of up to KRW 3 billion may be offered.

An ACRC official explained that “Those who were left in a blind spot regarding corruption at private schools can now be protected thanks to this latest revision. It is hoped that the revision provides opportunities to eradicate various types of potential corruption and improves the transparency and public nature of education.”