Korea scraps 3 billion won cap on whistleblower rewards

The Anti-Corruption & Civil Rights Commission will abolish the 3 billion won ($2.21 million) ceiling on rewards paid to people who report fraudulent claims on public money, part of a decree revision meant to draw more whistleblowers forward.

Under the amendment to the enforcement decree of the Act on the Prevention of Fraudulent Claims on Public Funds and Recovery of Illegitimate Profits, rewards will be set at a flat 30 percent of the amount a tipster's report recovers, the commission said, replacing a sliding scale that paid between 4 percent and 30 percent depending on the size of the sum recovered. The revision is intended to fix a limit in the old system, in which the larger the amount recovered, the lower the rate applied. The revised standards apply to reward applications filed from Sept. 29.

"Reporting corruption and violations of the public interest plays an important role in uncovering corruption and protecting the public good," commission chairperson Chung Il-youn said. "I hope this revision leads to compensation commensurate with the contribution of whistleblowers and serves as an opportunity to encourage more active reporting."

Rewards are calculated on the money a public institution directly recovers or gains, or the costs it saves, as a result of the report. The decree also gives the commission discretion to reduce a reward or decline to pay one, weighing the accuracy of the report and the credibility of its evidence, whether the fraudulent claim had already been made public by the media, whether the informant committed an illegal act connected to the report, how much the report contributed to removing or preventing the fraudulent claim, and whether the informant was obliged to report the matter or did so in the course of official duties.

Applications filed before the enforcement date will still be assessed under the previous standards.

Chung said the commission will continue to strengthen the whistleblower protection and reward system so that informants can report with confidence.