"Activation of Proxy Reporting and Expansion of Whistleblower Rewards"… Strengthening Protection and Support for Whistleblowers

On the 9th, marking the 5th anniversary of 'Public Interest Whistleblowing Day,' measures to strengthen the protection and support for whistleblowers are expected to be enhanced.

Jeong Seung-yoon, Vice Chairman of the Anti-Corruption and Civil Rights Commission, is holding a press conference on the morning of the 5th at the Government Seoul Office in Jongno-gu, Seoul. [Image source=Anti-Corruption and Civil Rights Commission]

The Anti-Corruption and Civil Rights Commission (ACRC) announced at a press briefing held at the Government Seoul Office on the 5th plans to expand compensation and rewards, activate anonymous proxy reporting, and broaden the scope of laws subject to public interest reporting, among other measures to strengthen protection and support for whistleblowers.

First, the compensation payment rate for public interest reports will be expanded from the current 4-20% to 4-30%. The upper limit for rewards will also be raised from 200 million KRW to 500 million KRW. The revision of the enforcement decree containing these changes is scheduled to be submitted to the Vice Ministerial Meeting on the 7th and the Cabinet Meeting on the 12th. According to the Public Interest Whistleblower Protection Act, compensation, rewards, and relief funds are provided as compensation systems for whistleblowers. Internal whistleblowers can apply to the ACRC for compensation if their report leads to direct revenue recovery or cost savings for a public institution. The maximum compensation limit is 3 billion KRW. Additionally, even if there is no direct revenue recovery from the report, a reward of up to 200 million KRW can be given if the report contributes to the public interest. Relief funds are also provided if the whistleblower suffers damages such as medical expenses or wage losses or incurs costs due to the report.

Measures to activate anonymous proxy reporting will also be pursued. Public interest reports are generally required to be made with the reporter’s real name and personal information. However, as an exception, the anonymous proxy reporting system allows reports to be filed without disclosing the reporter’s personal information, instead listing only the name of a proxy lawyer to prevent exposure of the reporter’s identity. Since 2019, the ACRC has operated a panel of advisory lawyers for anonymous proxy reporting, enabling internal whistleblowers to use the system free of charge without bearing the cost of hiring a lawyer. The ACRC is currently working on revising laws to extend support for lawyer fees beyond the reporting stage to include investigation, prosecution, and reward procedures.

The expansion of laws subject to public interest reporting is also under discussion. Under current law, acts that violate 471 laws related to six major public interest areas?public health, safety, environment, consumer interests, fair competition, and equivalent public interests?are considered public interest violations and must be subject to penalties or administrative sanctions under those laws. Anyone who becomes aware of the occurrence or potential occurrence of a public interest violation can report it to investigative agencies, administrative bodies, or the ACRC. The ACRC plans to expand the scope of laws eligible for public interest reporting as long as the range of reporters is not narrowed.

The ACRC established the Public Interest Whistleblower Protection Act in 2011 to create an institutional foundation for protecting whistleblowers. Since then, through active education and promotion of whistleblower protection systems, public interest reporting has steadily increased. According to the ACRC, over the past five years, a total of approximately 18.87 million public interest reports have been received by the ACRC and other agencies, and the amount of financial penalties imposed as a result of these reports has reached about 2.3855 trillion KRW.

Jung Seung-yoon, Vice Chairman and Secretary General of the ACRC, said, "We will continue to strengthen the whistleblower protection system and measures so that anyone can report with confidence and receive practical assistance."

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