South Korea is moving to guarantee larger payouts for people who report corruption and wrongdoing that prevents losses to public finances. The government plans to raise the budget for whistleblower rewards more than ninefold in a single year, from 4.9 billion won to 45.1 billion won.
Reward Budget Jumps From 4.9 Billion to 45.1 Billion Won
The Anti-Corruption and Civil Rights Commission said on the 8th that it has submitted to the National Assembly its proposed 2027 budget and fund plan totaling 186.2 billion won, up 74.5 billion won from this year. This year's budget stands at 111.7 billion won.
The largest increase goes to support for people who report corruption and matters of public interest. Spending on reward payments, prize money and relief funds will rise by 40.2 billion won, from 4.9 billion won this year to 45.1 billion won next year. The funds will be transferred to a new Public Interest Reporting Promotion Fund to be established by the Ministry of Planning and Budget.
The payment formula will also change substantially. Under the current system, payouts range from 4% to 30% of the "eligible reward amount" — the money a public institution recovers, gains in additional revenue or saves in costs as a result of a report. Amounts up to 100 million won draw 30%, but for sums above 4 billion won the rate applied to the excess falls to as low as 4%.
The commission will scrap that tiered structure and instead calculate rewards based on 30% of the amount of revenue recovered. It will keep the criteria for reducing payouts based on the reporter's contribution, including the accuracy of the report, the credibility of the evidence and the degree to which it helped eliminate or prevent corrupt practices.
Payment ceilings will also be removed. There is currently no cap on rewards for reports filed under the Act on the Protection of Public Interest Whistleblowers, but reports of corruption and violations of the public finance recovery law are subject to a maximum of 3 billion won. The commission says abolishing the cap will narrow the gap in compensation between different types of reports.
President Lee Jae-myung has repeatedly called for stronger rewards for whistleblowers. At a Cabinet meeting on June 20, he described a framework in which "if a private citizen reports a violation or a crime and government revenue increases as a result, up to 30% can be paid out after review," and asked the commission to "design a comprehensive system."
At a policy briefing on July 15, he said it "would be better not to penalize someone just because they are a professional informant," adding that "there is no need to ban people from making a business out of reporting." He also stressed that he sees "nothing wrong with making a living by digging up and reporting this kind of corruption."
One Report Saved 37.5 Billion Won and Earned 1.82 Billion
One corruption report has already produced a payout of more than 1.8 billion won. The commission said last December that it had decided, after deliberation by its reward review committee and full commission, to pay 1.82 billion won to a corruption whistleblower. It is the largest amount ever awarded to an individual since the corruption reward program was introduced in 2002.
The whistleblower reported to the commission that a district office had approved changes to a housing association project without legal grounds, cutting the area of state- and publicly owned land the association was required to purchase from about 10,000 square meters to about 5,000 square meters while expanding the area transferred free of charge.
After the commission referred the case to the supervising agency, authorities concluded that improperly altering and approving the licensing conditions violated relevant laws, and those involved were disciplined. About 37.5 billion won in proceeds from the sale of the state- and publicly owned land, which had been on the verge of being handed to the association for free, was preserved as public funds. The commission calculated the reward based on that amount and other factors.
Rewards are not paid automatically upon filing a report. Under the anti-corruption law and the whistleblower protection act, a report must actually lead to recovered or increased revenue or reduced costs at a public institution, and the related legal matters must be settled. The reporter then applies for a reward, and the commission reviews the statutory requirements before its reward review committee and full commission decide whether to pay and how much.
Concerns Over "Reporting for Profit" — "Compensation for Risk Taken"
The expansion of rewards has drawn concerns that it could breed so-called professional informants and turn public interest reporting into a money-making tool.
Others argue that active compensation is necessary given the risks whistleblowers must accept. Kim Eon-kyung, head of the Moongcle Media Human Rights Institute, discussed the president's plan to expand rewards on YTN Radio in June, saying the purpose of the system "is clear" and that it aims "to raise the incentive to report, because things like illegal collusion, tax evasion and internal wrongdoing are hard to detect unless you are an insider."
Kim pointed in particular to the risks whistleblowers face after filing a report, including being pushed out of their industry, facing lawsuits or losing their livelihood. "Reward money is not easy money — it is after-the-fact compensation for the risk a whistleblower takes on," Kim said.
Beyond whistleblower rewards, the commission is also strengthening its handling of public complaints. The budget for responding to group and unusual complaints will grow from 230 million won this year to 6.99 billion won next year, and private-sector experts will be appointed as citizen counselors. The commission also plans to deploy specialized officers to communicate one-on-one with people filing unusual complaints.
Jung Il-yeon, chairman of the Anti-Corruption and Civil Rights Commission, said the agency will "resolve the inconveniences citizens face in daily life before they escalate, and build a society where integrity is more highly valued, to realize a Korea where we are happy together."
