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Photo courtesy of Yonhap News |
[Alpha Biz= Ellie Kim] SEOUL, May 21 — Fair Trade Commission announced a plan to abolish the cap on whistleblower rewards for reporting violations of competition laws, allowing payouts of up to 10% of imposed fines with no upper limit.
Under the proposed revision, rewards—previously capped depending on violation types—will now scale proportionally with the total penalty amount. The move is aimed at encouraging reporting of large-scale cartel and unfair trade practices, which had been discouraged under the existing capped system.
The new framework will calculate rewards based on 10% of the total fines, adjusted for the whistleblower’s contribution and the quality of evidence. For example, a case resulting in KRW 100 billion in fines could yield rewards of up to KRW 10 billion, significantly higher than the current ceiling.
The revision also broadens eligible evidence, including internal information demonstrating intent in unfair support cases, and strengthens incentives for reporting technology theft. Safeguards against false or malicious reporting will remain, allowing authorities to reduce rewards by up to 30%.
The Fair Trade Commission said the changes are expected to boost internal reporting of major violations and enhance deterrence against illegal business practices, with implementation targeted within the first half of the year.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
