ACRC Compensates for All Litigation Expenditure Due to Reporting to Enhance Reporter Protection

- Grounds for monetary rewards and awards made inclusive
to promote public interest reporting -

- Revised Act on the Protection of Public Interest Reporter
came into force on October 21 -

(20th Oct. 2021, ACRC)

Korean citizens will now be able to seek relief funds for expenses incurred in filing a lawsuit involving public interest reporting. Additionally, in case such a report leads to recovery of the State or local government’s fund, the administrative agency’s disposition for the fund recovery will make the reporter eligible for a monetary reward instead of a court’s decision.

The Anti-Corruption and Civil Rights Commission (Chairperson Jeon Hyun-Heui, ACRC) began implementing the revised Enforcement Decree of the Act on the Protection of Public Interest reporters on October 21, which will enable the compensation for expenses incurred for public interest reporting.

A reporter who has economically affected, such as a reduction in income, or has spent expenditure for a relocation, medical treatment, litigation, among others due to the public interest reporting can now seek a relief fund with the ACRC. Compensation used to be only applicable for litigation expenses to abolish unfair measures taken against the reporter, for example, dismissal and disciplinary punishments.

However, now all expenses for lawsuits filed due to public interest reporting are subject to relief funds. For instance, a reporter who would spend an attorney’s fee to defend himself in civil or criminal case against which he is filed for defamation after his reporting can be compensated for his litigation expenditure.

Importantly, the revised Decree is expected to significantly help public interest reporters as the compensation is retroactive for the expenses incurred before October 21 on which the updated Decree came into force. Previously, in case a public interest report resulted in a confirmation of the legal relationship regarding a recovery or increase of the State or local government’s revenue, the inside reporter was able to claim the Commission a monetary reward within two years from when he is informed of the decision.

However, monetary rewards will no longer require a court decision on compensation for damage or recovery of illicit gains, but an administrative agency’s measure for a fund recovery after reporting. Additionally, the application period is extended from two years to three.

For example, if a public interest report reveals a hospital’s illegitimate receipt of public fund for medical checkups, and the local government elects to retrieve the subsidy, the reporter is entitled to a monetary reward. Updated rules for the reward, however, will be applicable for public interest reports made after October 21, the effective date of the revised Decree.

The grounds for monetary awards for reporting was also made more inclusive. Formerly, only a public interest report that results in fines or penalties was subject to a monetary award, but now additional charges and levies are included.

In addition, a legal basis was formed to enable an administrative agency to voluntarily lessen or invalidate disciplinary actions taken against a reporter, if necessary, even through the ACRC does not demand the reduction or exemption, which has made the protection of reporters more timely and preemptive.

The ACRC Chairperson Jeon Hyun-Heui said “the revision of the Act has made the reporter protection and support system that the ACRC supervises more advanced and powerful. We will continue to work on updating the law to leave no one behind in protecting reporters.”