Whistleblower Protection Act Recovers 137 Billion KRW Over 9 Years

Reward for Reporting and Bounties 10.1 Billion
Collusion Reporting Reward 690 Million
Highest Product Defect Concealment Reporting Bounty 200 Million
Reward Payments Prioritized by Health, Fair Competition, Safety, Consumer Benefit, and Environment

[Asia Economy Reporter Moon Chaeseok] Since the enforcement of the 'Whistleblower Protection Act' in September 2011, it has been revealed that the central and local governments have recovered 137 billion KRW as of last month. Compensation and rewards for whistleblowers amounted to 10.1 billion KRW.

◆137 Billion KRW Recovered through Whistleblowing... OECD Calls it "Notable Progress"

Source: Anti-Corruption and Civil Rights Commission

According to the Anti-Corruption and Civil Rights Commission on the 28th, since the law's enforcement until last month, 9,941 requests for compensation have been received. Among these, compensation of 9.64 billion KRW and rewards of 470 million KRW were paid for 6,417 cases.

The amount recovered by the central and local governments through whistleblowing is approximately 137 billion KRW. The highest amount ever awarded was 692.24 million KRW, given to a whistleblower who reported unfair collusion among businesses. The highest reward was 200 million KRW, paid to a whistleblower who reported concealment of product defects.

These reports helped restore 64.4 billion KRW to the national treasury. Recalls and improvements to related laws and systems were implemented.

The OECD Anti-Bribery Convention Implementation Review Group evaluated the 'Whistleblower Protection Act' at the time of its enforcement as "notable progress" by the Korean government.

Furthermore, in December 2018, the OECD Anti-Bribery Working Group praised Korea's comprehensive laws and systems for whistleblower protection as a positive example for member countries.

◆Highest Compensation under the Anti-Corruption Act: 1.1 Billion KRW... Report on Public Enterprise Procurement Corruption

Source: Anti-Corruption and Civil Rights Commission

The 'Anti-Corruption and Civil Rights Commission Act,' enforced in February 2008, also includes compensation provisions for whistleblowers reporting corruption.

The highest compensation under corruption reporting was 1.106 billion KRW, awarded to a whistleblower who reported suspected corruption in public enterprise procurement. The reward was 50 million KRW, given to a whistleblower who reported suspected embezzlement of government subsidies.

These reports led to the recovery of 26.3 billion KRW. Imprisonment and fines were imposed on the related parties.

Meanwhile, among the six major areas of public interest violations, the health sector received the highest compensation amounting to 4.86787 billion KRW (50.5% of the total). The number of payments was 4,320 cases (67.9% of the total).

The main types of reports included ▲pharmaceutical companies providing rebates ▲operation of doctor-run hospitals by non-medical personnel ▲illegal medical advertisements ▲false labeling of origin for agricultural, livestock, and fishery products ▲false expiration date labeling of food products.

Compensation in the fair competition sector amounted to 2.91558 billion KRW (30.2%), safety sector 880.32 million KRW (8.4%), consumer interest sector 572.99 million KRW (5.9%), and environment sector 473.76 million KRW (4.9%), following behind.

The Anti-Corruption and Civil Rights Commission has repeatedly added target laws and expanded the scope of whistleblower protection. Starting November 20, the number of target laws, which was 180 at the time of enactment, will increase to 467.

Han Samseok, Director of the Commission’s Review and Protection Bureau, stated, "We will make greater efforts in revising laws and improving systems to ensure active protection and prompt support for whistleblowers in the future."

This content was produced with the assistance of AI translation services.