South Korea moves to unify whistleblower rewards at 30% of recovered funds, scrap payout cap

South Korea is moving to standardize whistleblower rewards at 30% of recovered public funds and eliminate the current 3 billion won ($1.99 million) cap on payouts.

The Anti-Corruption and Civil Rights Commission said Tuesday it had drafted amendments to the enforcement decrees of the Anti-Corruption and Civil Rights Commission Act, the Public Interest Whistleblower Protection Act and the Public Finance Recovery Act, and would open a 41-day legislative comment period running from Tuesday through Aug. 24.

The amendments aim to bring the reward structure in line with the public benefit of each report and improve fairness across different categories of whistleblowing cases.

Under the current system, rewards are calculated on a sliding scale of 4 to 30% of the "compensable amount" — defined as the sum directly recovered or saved by a public institution, or the amount confirmed by a legal ruling, as a result of the report. Reports filed under the Public Interest Whistleblower Protection Act carry no payout ceiling, while those filed under the Anti-Corruption and Civil Rights Commission Act or the Public Finance Recovery Act are capped at 3 billion won.

The commission said critics had long argued that the reward rate falls as the compensable amount grows, and that the cap on certain report categories leaves whistleblowers inadequately compensated relative to their contribution to restoring public finances.

To address this, the commission plans to set a flat reward rate of 30% of the recovered amount regardless of the total sum. Provisions allowing reductions based on the whistleblower's degree of contribution will be retained to keep the system fair.

In addition, the commission will scrap the payout ceiling that currently applies to reports of corruption and violations of the Public Finance Recovery Act, allowing whistleblowers in those categories to receive unlimited compensation — bringing them in line with protections already available under the Public Interest Whistleblower Protection Act.

Lee Myeong-sun, the commission's vice chairperson for anti-corruption, said the amendments were significant in ensuring that citizens who show courage in reporting wrongdoing for the public good receive rewards commensurate with their contribution.