Limit on Rewards to be Lifted and Legal Fees to be Provided for Internal Whistleblowers

- Cap on rewards for public interest reports to be removed… rewards within 30 percent of the amount recovered as a result of reports to be paid to reporters

- Violations of the Act on the Protection of Financial Consumers and the Disaster and Safety Communication Network Act to be subject to public interest reporting

(15^th January 2024, ACRC)

From now on, the limit on rewards for public interest reporters (3 billion won) will be removed and the amount recovered as a result of reports to the state, local governments, and public institutions will be paid as rewards to the reporters within 30 percent of the retrieved amount.

In addition, legal fees will be provided in case where internal whistleblowers receive support from lawyers in the process of investigation, interrogation, and litigation, as well as filing a non-real name proxy report through lawyers.

A person who reports unregistered financial product distributors or acts of interfering 119 first responders using their two-way radios shall be protected and supported under the Public Interest Whistleblower Protection Act.

The Anti-Corruption and Civil Rights Commission (ACRC, Chairperson Yoo Cheol-hwan) announced that the Public Interest Whistleblower Protection Act revision bill that covers the aforementioned was passed in the National Assembly plenary session on Jan. 9.

Previously, public interest whistleblowers could receive up to 3 billion won in case where the public interest reports resulted in the recovery of or increase in the revenues of public institutions.

When the revised law becomes effective*, there will be no cap on rewards for public interest reporters and rewards will be paid to the reporters within 30 percent of the amount recovered as a result of his/her reports.

* The revised law will enter into force six months after the date of its promulgation. However, the repeal of the cap on rewards will be applicable to the case of a public interest report received after the enforcement of the revised law.

Before the revision, legal fees were provided only for non-real name reports by proxy* for whistleblowing disclosure according to the official order from the ACRC, but as a result of a new amendment, legal fees will also be provided if whistleblowers go through investigation, interrogation, and litigation after reports or submit request for protection or compensation.

* A non-real name report by proxy: a system for a public interest reporter to be able to report without revealing his/her identity through an attorney-at-law

In addition, the Act on the Protection of Financial Consumers and the Disaster and Safety Communication Network Act were included in the scope of laws subject to the Public Interest Whistleblower Protection Act in order to provide protection and support for whistleblowers.

The revised law also provides that in cases where the Commission demands disciplinary action against those who disclose personal information of whistleblowers or take retaliatory measures for whistleblowing, the disciplinary authority shall comply with the disciplinary demands unless there is a justifiable reason to do otherwise.

To facilitate claims for damages by whistleblowers after the Commission has paid rewards, provisions have been added to the revised law to allow the Commission to request various s and information related to the property of the party causing the damages from relevant agencies when necessary.

Jeong Seung-yoon, the Secretary-General and Vice Chairperson of the ACRC, said, “This amendment to the law is expected to strengthen substantive protection and support for internal whistleblowers and contribute to establishing a transparent and upright social atmosphere.”