SOUTH KOREA Law and Practice Contributed by: Soo Bong Jung, Jinwook Song, Jinwon Choi and Jiyoung Sohn, Bae, Kim & Lee LLC
increase or an expense reduction for a public insti - tution, or if it otherwise establishes the necessary evidence for such outcome. Separately, an individual can qualify for a reward of up to KRW200 million if it is determined that the corruption reporting either brought material gain or prevented material loss to a public institution or otherwise served the public inter - est. It is strictly prohibited to disclose the identity of the reporting person or any information that could lead to their identification. A reporting person may also seek protection by filing an application for protective measures with the Anti-Corruption and Civil Rights Commission (ACRC). In addition, if reporting leads to any discovery of the reporting person’s own criminal conduct, the reporting person may seek an exemption from or reduction in the penalties that would otherwise be imposed against them. Any action that imposes personal, administra - tive or economic harm upon that person is prohibited. Breaching this provision may result in an administra - tive fine of up to KRW10 million. Furthermore, if the reporting person becomes subject to any disadvantage because of the reporting, they may seek restitution or corrective measures by apply - ing to the ACRC. Failure to comply with ACRC’s cor - rective measures can result in an imprisonment of up to one year or a criminal fine of up to KRW10 million. Whistle-Blower Protection Act Under the Whistle-Blower Protection Act, legal pro - tection is exclusively extended to those who report violations of specific statutes enumerated within the Whistle-Blower Protection Act. These statutes pertain to matters of “public interest”, such as corruption, car - tel activities and environmental protection. Currently, the Whistle-Blower Protection Act does not cover reports of corporate fraud. Regardless of whether all whistle-blowers are afforded legal protection, many well-managed companies con - sider whistle-blowing a commendable practice. This encourages compliance and early discovery of mis - conduct that could have had a serious impact on the business operations.
As in the case of reporting corruption under the Cor - ruption Prevention Act, a whistle-blower under the Whistle-Blower Protection Act may receive compen - sation of up to KRW3 billion if the reporting direct - ly results in recovery, or an income increase, or an expense reduction for a public institution, or if it oth - erwise establishes the necessary evidence for such outcome. Separately, an individual can qualify for a reward of up to KRW200 million if it is determined that the whistle-blowing either brought material gain or prevented material loss to a public institution or otherwise served the public interest. Under the Whistle-Blower Protection Act, a whistle- blower may seek anonymity. Unlawful disclosure of a whistle-blower’s personal information can lead to imprisonment for up to three years or a fine of up to KRW30 million. Acts that cause personal, administrative or economic harm to a whistle-blower are strictly prohibited, with violations punishable by imprisonment for up to two years or a fine of up to KRW20 million. Any adverse action taken against a reporting person within two years of report - ing is presumed to be retaliatory. A whistle-blower may also seek remedies by applying to the ACRC if the whistle-blower faces: • disadvantage to personal status; • discriminatory employment action; • employment action against the whistle-blower’s will; • disadvantage in a performance evaluation or in terms of salary or bonus payment; • physical or mental harm; • undue audit or investigation and disclosure of its results; • disadvantageous working conditions; • administrative disadvantages; or • economic disadvantages. Any person who refuses to implement the corrective measures ordered by the ACRC may be subject to imprisonment for up to three years or a criminal fine of up to KRW30 million.
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