The ACRC paid approx. KRW 4.18 billion to 415 corruption and public interest violation reporters

The Anti-Corruption and Civil Rights Commission (ACRC, Chairperson Pak Un Jong) paid KRW 4.187 billion in rewards and prize money to a total of 415 corruption and public interest violation reporters this year. The aggregate amount that reverted to state coffers or local governments as a result of such corruption and public interest violation reports is KRW 37.738 billion in total.

For the past three years, the amount of compensations paid to reporters of corruption and public interest violation has been on a steady rise, and the rate of acceptance of reward payment decisions has been also increasing.

• By area for which rewards were paid this year, government subsidy-related cases accounted for the largest proportion in terms of the number and amount of payments paid for corruption whistle-blowing cases.

  According to the analysis conducted by the ACRC, it appeared that the reward system plays a significant role in preventing the leakage of government subsidies, since subsidy frauds of various kinds are committed in almost all areas for which subsidies are provided, including research and development (R&D), agricultural, fishery and livestock, health and welfare, labor, culture and sports.

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• Moreover, by area of public interest whistleblowing for which rewards were paid, a total of KRW 1.076 billion (54.2%), the biggest amount, was paid in rewards to whistleblowers in the public health sector for reporting such cases as practicing medicine without a license or false labeling of the place of origin of produce, etc. KRW 241 million (12.1%) in the consumer interest area for reporting the case of selling fake gasoline mixed with kerosene, etc., KRW 238 million (12%) in the fair competition area for reporting the case of unjust pricing by the association of business operators, etc., KRW 230 million (11.6%) in the safety area for reporting the case of non-compliance with safety standards to acquire safety certification for hazardous machines, etc., and KRW 202 million (10.1%) in the environment area for reporting the case of illegal discharge of waste, etc. 

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  The single largest amount of rewards paid for corruption reporting this year was KRW 539 million paid in June to a person who filed a report on a company A that received an aid loan from the government for its operation of a business and underpaid the amount to be paid to the government.

  Major examples of reward payments for corruption reporting include: (a) KRW 218 million paid to a person who reported non-installment of lock bolts for tunnel construction; (b) KRW 71.78 million paid to a person who reported a fraudulent receipt of a government subsidy for technology development; (c) KRW 61.76 million paid to a person who reported a improper receipt of a subsidy for government-supported forestry income enhancement project; (d) KRW 41.24 million paid to a person who reported an illegal receipt of energy rationalization fund.

  In particular, prize money of KRW 3 million was offered to a person who reported an employee of a public institution who received monetary gifts from a company, violating the Improper Solicitation and Graft Act.

  On the other hand, the largest amount of rewards paid to a public interest whistleblower was KRW 124.36 million paid in May to a person who reported an imported liquor distributor that offered cash to owners of bars and clubs to entice them to purchase their liquor products.

  Major examples of reward payments for public interest whistleblowing include: (a) KRW 112 million paid to a reporter of an illegal medical rebate by a pharmaceutical company; (b) KRW 15.89 million paid to a person who filed a report on the case of false reporting of an immovable property transaction; (c) KRW 9 million paid to a reporter of an insurance firm’s violation of the standard for handling its basic files; (d) KRW 8.97 million paid to a reporter of a medical personnel’s unlawful receipt of medical rebates and establishment of plural medical institutions, violating the Medical Service Act that provides a medical personnel shall not establish nor operate at least two medical institutions.

  The ACRC has also given prize money of KRW 5 million to a reporter of a company that used rotten flour as an ingredient for wheat starch.

  As the amount of budget has been increased by about KRW 1.5 billion to KRW 5.2 billion for reward payments and to KRW 256 million for prize money payments, the ACRC will make efforts to compensate corruption and public interest violation reporters expeditiously and adequately in order to spread a cultural atmosphere in which people are more willing to report and thereby contribute to enhancing social integrity.