The Korea Fair Trade Commission (“KFTC”) revised the Guideline on Reward to Whistleblowers (hereinafter, “Reward Guideline”) for enforcement starting November 6, 2012.
The reward is calculated by multiplying the administrative surcharge by the applicable reward rate and the evidentiary support rate. The revised Reward Guideline increases the maximum reward from KRW 2 billion to KRW 3 billion, and increases both the administrative surcharges and the relevant reward rates as follows:
Click here to view table.
Thus, under the revised Reward Guideline, a whistleblower in the case of the same level of administrative surcharge and level of evidentiary support would receive more than twice the amount of reward compared to that under the previous Reward Guideline.
Although there has yet to be a case in which a whistleblower receives billions of KRW in reward, the revised Reward Guideline is expected to encourage whistleblowing by internal officers and employees who have access to information regarding cartel activities.