Prohibition on Profit-Making Business

Definition of profit-making business

• Act of continuous *pursuit of property gains

  Definition of continuity: ① Something that is done regularly, e.g. each day, week, or month, etc. ② Something that is done seasonally ③ Something that is done continually, although not with clear frequency ④ Something that is done by a civil servant with the intention and viability of being continuous

• Profit-making business by civil servants under Article 25 of the Service Regulations
  • Where he/she obviously pursues profit by personally managing a commercial, industrial or financial business, or any other profit-making business
  • Where he/she becomes a partner with unlimited liability, manager, initiator, or any other executive officer who performs the duties of a director or auditor of a private enterprise engaged in a commercial, industrial or financial business, or any other profit-making business
  • Where he/she invests in another person's company related to his/her own duties
  • Where he/she performs any other affairs, the purpose of which is to continuously pursue property gains

Cases where profit-making business is prohibited under Article 25 of the Service Regulations

• reduce the efficiency of official duties of a civil servant
• unfairly influence official duties
• allow the civil servant to earn profits in conflict with national interests
• have dishonorable influence on the Government
  → Civil servants may be engaged in profit-making businesses that do not fall under any of the above cases by obtaining permission for holding concurrent offices

Permission for Holding Concurrent Offices

• Scope: “any other business” as specified in Article 26, Paragraph 1 of the Service Regulations
  • Profit-making business: businesses that do not fall under the prohibited cases specified in Article 25 of the Service Regulations
  • Non-profit-making business: Continuous business not aimed at profit-making
  • Unless it is plainly clear to everyone that the duty of the concurrent office is not related to a continuous business, the civil servant must request permission from the head of the competent agency for holding concurrent offices
• The permission shall be granted only when the concurrent office does not impede the performance of the primary duties of the civil servant*

  Where such business may reduce the efficiency of official duties of a civil servant; unfairly influence official duties

• /The authority to grant permission is held by the head of the competent agency
• Procedure
  • (Application) The civil servant applies for permission for holding concurrent offices by submitting detailed data on the duty that he or she intends to hold concurrently to the service-related department of the competent agency
  • (Review) The head of the service-related department verifies the facts of the application, decides whether it is within the scope of permission for holding concurrent offices, and reports such to the head of the competent agency
  • (Decision on permission) A decision is made individually and specifically based on comprehensive consideration of the nature of the applicant’s duty and the duty he or she intends to hold concurrently, and the intention of prohibition of profit-making businesses and permission for holding concurrent offices
  • (Result notification) The head of the service-related department provides notification of the review result through an official letter

  

  The permission for holding concurrent offices may be canceled if the application proves to be false, the actual concurrent duty is not substantively the same as the duty for which the permission is granted, or if the head of the competent agency decides that the permission shall be canceled due to material changes in circumstances

Survey of current status of concurrent offices and result notification

• Survey of the current status of concurrent offices: The head of each agency shall survey the actual status of civil servants holding concurrent offices and any violation of the prohibition on profit-making business and the duty to obtain permission for holding concurrent offices twice a year, in January and July
• Notification of survey results: The head of each agency shall submit the results of the survey of the current status of concurrent offices to the Ministry of Personnel Management each year