Utilising 1986-2000 annual data we examine that regulatory reform is a causal factor for anti-corruption in the fields of Korea's architecture, fire-fighting, sanitation, and environment. In order to reinforce the above propositions and to evaluate regulatory reform, we estimate the regulation elasticities of corruption in Ministry of Construction and Transportation, Ministry of Government Administration and Home Affairs, Ministry of Health and Welfare, and Ministry of Environment. For this the cross-section models are estimated using data on Korea's thirty four ministries in 2000. In addition, we test for structural change in education and training for civil servants, caused by regulatory reform on anti-corruption. The empirical evidence is consistent with the hypothesis that regulatory reform is associated with anti-corruption. From the estimated regulation elasticities of corruption, regulatory reform should be strengthened in Ministry of Construction and Transportation, Ministry of Health and Welfare and Ministry of Environment, whereas regulatory quality management as well as deregulation is important in Ministry of Government Administration and Home Affairs. The econometric results also indicate that a significant structural break is observed. An implication of this is that corruption is lowered, due to additional course in relation to regulatory reform in education and training.

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