[Consulting] Possibility of violation of the Gift Prohibition Act due to consulting fees provided by a professor

Venture company A is continuing efforts to grow the company through research and development using AI. In this process, they wanted to receive advice on data mining from Professor B of a domestic university. However, because Professor B is employed by a school foundation rather than a private university, the so-called Kim Young-ran Act, or the Act on the Prohibition of Improper Solicitation and Gifts (hereinafter referred to as the ‘Prohibition of Solicitation Act’), applied, which became a problem. Accordingly, A felt the need to review related legal issues and sought out Law firm Veat.

The Prohibition of Solicitation Act applies not only to public officials but also to employees working in public organizations and public institutions, so caution is required. Even when a company pays a justified amount for consultation or lectures from external parties, the Prohibition of Solicitation Act limits the upper limit and procedures for the payment, making it an area that requires expert review.

Law firm Veat reviewed various items, including whether the Prohibition of Solicitation Act applies to Professor B, the amount A can pay, the procedures to be observed at the time of payment, and the forms in which payment is possible, and through this, we were able to assist A in its business operations.

Thank you.

Law firm Veat