Compliance by death

Global Suicide Rate Map from Business Insider
Global Suicide Rate Map from Business Insider

South Korea has a very high suicide rate. It is second only to Lithuania. (Temporarily Greenland unseated Lithuania with the highest per capita suicide rate, but traditionally it has been Lithuania and South Korea.) South Korea’s suicide rate is more than double the rate in the United States. South Korean culture put a high price on one’s reputation. Once tarnished, the chance of recovery is slim. The work around is death. Forget about wrongdoing, death is the ultimate sacrifice one is willing to make to save his/her family from shame and is traditionally a sign of innocence. Innocence because only the innocent would find it unbearable to subject innocent family members to a tarnished reputation.

A construction executive, Sung Wanjung, had created a “bribery list.” As it sounds, it is a list of bribes he would pay to make his business more successful. He had accidentally left a printed copy of it somewhere and it was discovered. On the list were many of the President’s advisers and aides. The executive was on trial and facing imprisonment. Prison’s in South Korea are not nearly as nice as those in the States. So, he killed himself.

As the story implies, he killed himself out of guilt, not out of innocence. This has been the theme of suicides among politicians and the people in their circles. Former president of South Korea, Roh Moohyun, also killed himself when he was charged with taking bribes and embezzling. He was mourned. But right up until the news of his suicide was reported, most Koreans believed him to be guilty. Even if he was cleared of any wrongdoing, the Korean culture would have made him an outcast.

In South Korea, compliance, it seems, would have to take an extra care to prevent crimes from growing so that the result isn’t suicide.

Jang Jayeon

To prove that innocent suicides are common, or as common as they can be among suicides, a string of entertainers have killed themselves over the past twenty years due to pressures put on them by their management companies. It often happens when expectations for their success gets too high. One rising actress, Jang Jayeon, killed herself because the price she had to continue paying to get roles. She had to sleep with directors and financial backers to keep getting roles. She was a good actress, but with such fierce competition, she found the only way to get roles was to use her body. Victims of other crimes is what often leads to crime-inducing suicide, or, in the case of Jang, directly to suicide.

Sung’s death cannot be compared to Jang’s. Jang was a victim of systemic prostitution. Sung’s was likely a victim of his own guilt.

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About the Author: Marcus Maltempo is a compliance professional with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.


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China’s New Corporate PR Problem

Corruption in the People’s Republic of China is nothing new to Western media consumers. The usual story is some corrupt politician in one of the ministries or provincial government who has been giving favorable contracts to friends and family for kickbacks. But in the past couple of years, a rise in a new type of corruption has been coming to light: corporate corruption.

https://chinadailymail.files.wordpress.com/2015/02/20-china-corruption.jpg
from China Daily Mail

Major Chinese corporations are generally state-owned and state-controlled. This makes these corporations arms of the government, even though they are participating in the private sector like other private sector firms. So, when corporate corruption takes place, the Chinese government is on the hook for them.

Chinese state-owned enterprises, especially China Construction Corporation (CCC), have been bidding for construction contracts in South Asian, Middle East and Africa against, primarily, South Korea. With the financial backing of the Chinese government, these firms have been winning the contracts for building infrastructure in Africa and private real estate projects elsewhere. Though these firms are working outside of China, their practices haven’t changed. Client-governments have been receiving bills that are twice as expensive as comparable projects, environmental studies and other feasibility studies have not been performed, and local officials have been getting offers to look the other way on these activities.

In a bold move, the Chinese government has primarily taken to defending CCC, asking client-governments to respect the contracts and pay up. Local governments find it hard to swallow such counter-accusations when China won’t produce evidence of work being done properly or at all. The Chinese government has a difficult time with diplomacy under such circumstances because they are considered intimately involved in these firms.

Corruption for Chinese firms like CCC puts Chinese government in a bind because it has been trying to crackdown on corruption in the government and cleanup its image. In the technology sector, firms like Xiomi has been able to prove to the world very quickly that it can compete fairly by producing better phones. If other sectors in China are to attempt to work across its borders, it’ll have to learn to compete with rules it can’t break.


About the Author: Marcus Maltempo is a compliance professional with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.


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