The exterior of the Financial Services Commission /Courtesy of Financial Services Commission

The limit for rewards for reporting unfair transactions in the capital market has increased from 2 billion won to 3 billion won; however, the total amount paid this year was less than 200 million won. Nevertheless, this figure is about three times higher than the average over the past 10 years.

On the 25th, the Financial Services Commission noted that six rewards were paid from February to December this year, with a total payout of 194.4 million won. This is 2.7 times higher than the average total payout of rewards over the past 10 years (71.61 million won). The amount of reward paid per case also increased from 18.84 million won (2014-2023) to 32.4 million won this year, which is an increase of 1.7 times.

The Financial Services Commission's Securities and Futures Commission reported that, based on the reports from the recipients of the rewards, it has filed or notified investigative agencies regarding three cases of fraudulent trading, two cases of market manipulation, and one case of insider trading. The informants detailed the illegal activities and submitted relevant evidence.

However, there are evaluations that the amount paid is low compared to the reward payment limit. Earlier this year, the Financial Services Commission announced it would crack down on unfair transactions in the capital market and increased the reward limit from the previous 2 billion won to 3 billion won. It also raised the criteria for rewards. However, the total rewards paid by the Financial Services Commission this year amount to less than 200 million won.

The Financial Services Commission stated that it would continue to actively pay rewards in order to minimize the losses for participants in the capital market and noted that it would consistently promote the reward reporting system.