Whistleblowers who report cartels and other violations of Korea's Fair Trade Act will be able to receive up to 10% of the imposed fine as a reward, with no upper limit. With multibillion-won fines becoming increasingly common, the change opens the door to "mega-rewards" worth tens of billions of won.
The Fair Trade Commission (FTC) said Tuesday it has drafted an amendment to the "Regulations on Reward Payments to Reporters of Fair Trade Act Violations" and will provide administrative notice through the 10th of next month.
The core of the amendment is the elimination of the reward ceiling. Current limits are set by violation type: 3 billion won for cartels, 2 billion won for unfair support and private benefit-seeking, and 500 million won for violations of the Subcontracting Act, Franchise Act, and Agency Act. The FTC said this structure offered insufficient compensation relative to the risks borne by whistleblowers, discouraging tips on major cases.
President Lee Jae-myung had also instructed at a Cabinet meeting that the system be revamped to encourage reporting of misconduct such as stock manipulation and cartels, saying, "When someone reports a large organization, they should be able to receive a reward large enough to change their life for good — that's how you maximize the deterrent and preventive effect."
Once the amendment takes effect, the reward cap will be removed for all categories of violations. Rewards will rise in proportion to the size of the fine. The...
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