whistleblower-rewards

Reward ceiling for stock manipulation whistleblowers to be scrapped

SEOUL, Feb. 25 (Yonhap) -- The financial regulator said Wednesday that it will revise related regulations to scrap the ceiling on rewards to those who help expose stock manipulation and accounting fraud.

The Financial Services Commission (FSC) said it will seek to fully reward whistleblowers in order to track and punish stock rigging and accounting fraud.

Currently, the cap on rewards for unfair stock trading is set at 3 billion won (US$2.1 million), and that on fraudulent accounting is at 1 billion won.

But with the revision of the decree of the Capital Market Act and External Audit Act, whistleblowers will be rewarded up to 30 percent of gains from unfair stock trading and fines levied on such illegal activities.

The measure comes after President Lee Jae Myung once again warned against stock price manipulation earlier this month.

Lee has repeatedly stressed his commitment to cracking down on stock manipulation and illegal acts that disrupt financial markets.

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