SOUTH KOREA Law and Practice Contributed by: Jeena Kim, Kyunghwan Lee, Eunyoung Row and Bochan Kim, Bae, Kim & Lee LLC
Financial reward If a public interest report results in significant financial benefits for a public institution or prevents a loss, or contributes to the promotion of the public interest, a reward of up to KRW500 million may be granted, or honours such as decorations or medals may be awarded. Relief money Whistle-blowers, their co-operators or their relatives/ household members who suffer from the following due to the public interest report may apply for compensa - tion, including: • physical and mental treatment costs; • relocation expenses incurred due to reassignment, secondment, etc; • costs incurred in legal proceedings related to the public interest report; and • wage loss during the period of retaliatory actions. When an individual or a corporation is convicted of a bribery-related crime, the penalties or administrative sanctions imposed are as referenced in 5.1 Penalties on Conviction . Additionally, if a bribery crime leads to direct finan - cial loss or infringement of rights, the victim may seek compensation through a civil lawsuit against the perpetrator (the person who offered or received the bribe). Since bribery is a legally prohibited act, if someone suffers harm as a result, the victim can claim damages based on Article 750 of the Civil Code (liability for unlawful acts). For example, if a prosecutor accepts a bribe from a complainant and files charges in a case, the defendant in that case may be able to seek damages from the prosecutor. 7. Enforcement Trends 7.1 Enforcement Furthermore, Article 399 of the Commercial Code stipulates that directors are liable for damages to the company if they engage in illegal acts. If a director uses company funds to offer a bribe while perform - ing company duties, this constitutes a violation of the law as defined by Article 399. Therefore, the director
is responsible for compensating the company for the amount of the bribe, as ruled in the Supreme Court decision of 28 October 2005 (Case No 2003Da69638). 7.2 Enforcement Bodies Public Prosecution Prosecutors have prosecutorial powers to investigate and prosecute bribery and corruption. Article 196 of the Criminal Procedure Act grants pros - ecutors the authority to begin an investigation if there is suspicion of a crime being committed. However, according to Article 247 of the Criminal Pro - cedure Act, even if a prosecutor believes that a crime has occurred based on their investigation, they may choose not to pursue prosecution, taking into account factors such as the offender’s age, character, behav - iour, intelligence, environment, relationship to the vic - tim, motive and methods, as well as the aftermath of the crime. The Special Investigation Department within each prosecutor’s office prioritises bribery and corruption cases in its enforcement efforts. National Police Agency The police can also investigate crimes but do not have authority to prosecute. The Bureau of Audit and Inspection (BAI) The BAI is an agency within the executive branch responsible for auditing the accounts of State agen - cies and overseeing the actions of administrative agencies and public officials. Under the ACRC Act, the BAI has the authority to conduct audits if a public report is filed regarding a violation of the Graft Act. Additionally, public officials are required to report to the BAI or the appropriate investigative body if they become aware of corrupt activities by other officials or if they are coerced or offered into engaging in such activities. The BAI will investigate these reports and, depending on the findings, may discipline the offend - ing official or refer the case to the relevant authority if criminal activity is suspected.
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