People who report violations of the Fair Trade Act such as collusion to the Korea Fair Trade Commission will be able to receive up to 10% of the penalty surcharge as a reporting reward.
The Korea Fair Trade Commission (FTC) on the 21st announced a proposed revision to the reward rules with these points at its core and said it will preannounce the legislation until Aug. 10.
Currently, the reward cap by type of violation ranges from 100 million won to 3 billion won, but once the revision takes effect, this ceiling will be removed. The Korea Fair Trade Commission (FTC) said, "(Because rewards are currently capped,) from the perspective of whistleblowers, the compensation may not be sufficient compared with the risks of reporting," adding, "By abolishing the cap, those who report large-scale cases with sizable penalty surcharges can receive an ample amount of reward."
In addition, the payout rate for rewards will be raised to a maximum of 10%. At present, the reward is calculated by multiplying fixed rates by penalty surcharge brackets and then adding them together, and reflecting a proportion according to the level of evidence. For example, say the evidence submitted by the reporter played a decisive role in uncovering collusion, and the Korea Fair Trade Commission (FTC) imposed a 100 billion won penalty surcharge on the company.
Currently, 10% applies to the portion up to 5 billion won, 5% to the portion over 5 billion won and up to 20 billion won, and 2% to the portion over 20 billion won, resulting in a total reward of 2.85 billion won. But going forward, the reporter will be able to receive 10 billion won, which is 10% of the penalty surcharge aggregates.
The Korea Fair Trade Commission (FTC) will also expand the scope of evidence recognition for unfair support and self-dealing under the revision. To eradicate technology misappropriation, it will also establish a basis for a cap on the reward rate for technology protection monitors.