Government to Dramatically Boost Rewards for Public Interest Whistleblowers

The government is establishing a new 'Public Interest Reporting Encouragement Fund' to significantly increase the rewards offered to individuals who report acts harmful to the public interest, such as collusion or stock manipulation. The fund is intended to boost participation among public interest whistleblowers by allowing for larger reward payouts and ensuring no aspects are overlooked systemically.

Previously, rewards were paid out of departmental budgets, limiting their scale. Now, a separate fund will be established to offer greater compensation based on the whistleblower's contribution.

The Ministry of Economy and Finance plans to unveil a related special bill this month, aiming for its passage in August. Priority will be given to supporting reports of illegal activities directly linked to monetary penalties, such as surcharges and fines.

The Financial Services Commission is preparing measures to abolish the cap on reward payments, allowing for rewards of up to 30% of illicit profits reported and apprehended. The Korea Fair Trade Commission has also announced a public notice for legislation that would include subcontractors as eligible recipients for rewards related to violations of the Subcontracting Act.

Beyond reward payments, the new fund will also be used for indirect support to victims, including preventive education and legal assistance. The Ministry of Economy and Finance will oversee the fund's overall operation, with detailed operational plans to be established by a fund management review committee involving relevant ministries.