Golf Lobby and Anti-Grafting Law: Evidence from South Korea

Abstract

Abstract In 2016, the Improper Solicitation and Graft Act entered into force in South Korea, which prohibits any improper activities that can be regarded as lobbying. The Golf industry was expected to have a direct effect from the Act since the sport of golf in Korea has been regarded as highly political. Therefore, this study focuses on the impact of the Act on the demands of golf. Our empirical analysis shows that the Act led to a decrease in the number of visitors and membership prices of private golf courses. The results indicate that those who had regarded golf as a political activity may now have little incentive to be involved in lobbying held on private golf courses.