Amongst other stimuli, the 1997 Asian Financial Crisis resulted in the bankruptcy of major Korean companies, provoking not only corporation, but also government officials towards corruption.
Korean companies received preferential treatment from the government, resulting in poor financial structure, excessive corporate debt, and an enervated competition between businesses both nationally and abroad.
In light of such, the government implemented regulatory reforms, improving the transparency of business, and invested great efforts in anti-corruption legislation and practices.
In the following months, the president-elect directed anti-corruption legislation, particularly the protection of whistleblowers and the establishment of investigative bodies that would exercise searches of government offices.
The public responded favorably to this audacious move by the civic groups, whose subsequent outcome was the passing of the Anti-Corruption Act (ACA) on 28 June 2001.
In spite of the KICAC's debut, corruption in South Korea wasn't pointedly affected, raising feelings of doubt and skepticism about the necessity of an anti-corruption agency.