Reward for Reporting Unfair Trade Up to 3 Billion KRW... Anonymous Reporting Now Available

Financial Services Commission Announces Legislative Notice for Enforcement Decree of the Capital Markets Act

On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where financial authorities decided to promote a plan to include mortgage loans (Judaemae) in the 'debt refinancing' infrastructure scheduled to be launched in May by the end of the year. Financial authorities explained that they aim to reduce the interest burden on mortgage loans by building a debt refinancing platform that allows users to compare financial sector loan interest rates at a glance and switch loans easily. Photo by Dongju Yoon doso7@

From now on, the reward for reporting unfair trading such as stock price manipulation will be increased to a maximum of 3 billion KRW. Anonymous reporting will also be possible. However, to receive the reward after anonymous reporting, identification documents must be submitted later.

On the 13th, the Financial Services Commission announced that it will hold a public consultation on the amendment of the Enforcement Decree and Work Regulations of the Act on Capital Market and Financial Investment Business to improve the reward system for reporting, from the 14th of this month to the 8th of next month.

The reason for improving the reward system is to encourage reporting of unfair trading in the capital market. Although reporting or tips play an important role in detecting and investigating unfair trading, the average number of reward cases for unfair trading reports over the past five years was only two per year, and the amount of reward paid per case was about 28 million KRW.

With the system improvement, the criteria for calculating rewards will also change. The reward will be calculated by multiplying the base amount by the contribution rate. The base amount will be determined differentially according to the importance grade of the unfair trading act through quantitative evaluation, and the contribution rate will comprehensively consider the specificity of the report content and the degree of contribution to detection.

If the investigation results show that the suspect has obtained illegal profits, the scale of illegal profits will be newly reflected in the reward calculation criteria so that additional rewards can be paid according to the amount of criminal proceeds.

The current regulation requiring the reporter to disclose their personal information to make a report has been changed to allow anonymous reporting. However, to receive a reward after anonymous reporting, the reporter must submit documents proving their identity and that they are the reporter within one year from the date of the report.

Until now, the reward for reporting was paid from the Financial Supervisory Service’s budget, but it will now be reflected in the government budget, and the Financial Services Commission will pay the rewards. Since it is reflected in the government budget, it will be subject to supervision and control by the National Assembly and budget authorities.

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