Fair Trade Commission in Sejong City. [Photo by Yoo Dae-gil]
Starting June 18, individuals who report unfair trade practices, including collusion, will be eligible for rewards of up to 10% of the fines imposed. The Fair Trade Commission announced this change on June 17, following an amendment to the regulations governing whistleblower rewards for violations of the Fair Trade Act.
President Lee Jae-myung emphasized the importance of incentivizing reports of unfair practices during a Cabinet meeting in February, stating, "We need to make it so that people would rather report collusion than play the lottery. Even if it costs hundreds of millions, giving 10-20% of the fines is acceptable."
Previously, the maximum reward limit was capped at 3 billion won, and the reward rate decreased as the fines increased, which limited the effectiveness of the program. The new amendment removes this cap and allows for rewards of up to 10% of the fines.
For instance, in a recent case involving collusion among flour mills, a whistleblower who provides top-tier evidence could receive a reward of 671 million won, which is 10% of the 6.71 billion won fine. While the reward is typically paid after the final legal determination regarding the fines, if there are delays due to litigation, the basic reward will be paid first, with the remaining amount settled after the conclusion of any appeals.
The scope of evidence accepted for claims of unfair support and self-dealing will also be expanded. Previously, only transaction records and conditions were considered valid evidence, but now information related to the intent of support will also be included.
Additionally, the Fair Trade Commission has established a basis for increasing the reward rate for technology protection monitors to combat technology theft. The revised regulations also stipulate that rewards may be reduced if the whistleblower fails to cooperate with investigations or does not fulfill their social responsibilities.
A Fair Trade Commission official stated, "We expect that internal reporting of large-scale collusion violations will be activated and we will do our utmost to prevent unfair trade practices to promote a fair market economy."
President Lee Jae-myung emphasized the importance of incentivizing reports of unfair practices during a Cabinet meeting in February, stating, "We need to make it so that people would rather report collusion than play the lottery. Even if it costs hundreds of millions, giving 10-20% of the fines is acceptable."
Previously, the maximum reward limit was capped at 3 billion won, and the reward rate decreased as the fines increased, which limited the effectiveness of the program. The new amendment removes this cap and allows for rewards of up to 10% of the fines.
For instance, in a recent case involving collusion among flour mills, a whistleblower who provides top-tier evidence could receive a reward of 671 million won, which is 10% of the 6.71 billion won fine. While the reward is typically paid after the final legal determination regarding the fines, if there are delays due to litigation, the basic reward will be paid first, with the remaining amount settled after the conclusion of any appeals.
The scope of evidence accepted for claims of unfair support and self-dealing will also be expanded. Previously, only transaction records and conditions were considered valid evidence, but now information related to the intent of support will also be included.
Additionally, the Fair Trade Commission has established a basis for increasing the reward rate for technology protection monitors to combat technology theft. The revised regulations also stipulate that rewards may be reduced if the whistleblower fails to cooperate with investigations or does not fulfill their social responsibilities.
A Fair Trade Commission official stated, "We expect that internal reporting of large-scale collusion violations will be activated and we will do our utmost to prevent unfair trade practices to promote a fair market economy."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.