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KRW 205 million reward paid for public interest whistleblowing in H1

  • Date2015-01-08
  • Hit1,408
July 1, 2014

Increased threefold year-on-year

Among the cases of public interest violations reported in the first half of the year, 332 cases brought about incomes for the central or local governments. And a total of KRW 205 million has been paid to whistleblowers as reward.

This is already close to matching the total amount of KRW 227 million that the ACRC paid to whistleblowers last year based on the Act on the Protection of Public Interest Whistleblowers, and is a sum three times larger than the KRW 72 million which was paid year on year.

The reward system for public interest whistleblowers provides financial reward to a whistleblower who reports a case violating any of the 180 laws stipulated in the Act on the Protection of Public Interest Whistleblowers, such as the public health and safety, the environment, consumer interests, and fair competition. After each case is reported to the public authorities, such as the ACRC and local governments, violators are forced to pay administrative penalties, penalty surcharges or fines, up to 20% of which will be paid to each whistleblower by the ACRC.

A company that failed to report industrial accidents to the authorities for several years and consequently violated the Industrial Safety and Health Act has led to the payment of the largest ever recorded amount of reward ever. As a result, the whistleblower was paid KRW 43.2 million, the biggest single reward payment since the Act on the Protection of Public Interest Whistleblowers was enforced on September 30th, 2011.

The second biggest reward amounted to KRW 13.6 million, paid to a whistleblower who reported violations of the Act on Origin Labeling of Agricultural and Fishery Products. The violators, rice wholesalers, were deemed to have threatened the public health by forging the country of origin, the year of production, and the date of polishing.

Among the total public interest whistleblowing cases, violations against the public health accounted for 299 cases with reward of KRW 142 million. And the violations against public safety accounted for 7 cases with KRW 50.7 million, whilst those against the environment accounted for 26 cases with KRW 12.86 million.

"Since the enforcement of the Act on the Protection of Public Interest Whistleblowers, increased public awareness on the reward system has encouraged whistleblowing. Against this backdrop, the cases and amount of reward for whistleblowing are expected to increase going forward," said an ACRC official.