President Yoon praised the decision to eliminate the maximum cap on rewards for reporting stock manipulation, allowing rewards up to 30% of the illegally obtained gains.
On September 25, President Yoon Suk-yeol commended the financial authorities for their proposal to abolish the cap on whistleblower rewards for reporting stock manipulation and accounting fraud. The new regulation, announced by Financial Chairman Lee Ok-won, allows for rewards to be paid up to 30% of the money recovered from illegal activities, which could mean potential rewards in the tens or hundreds of millions of won depending on the severity of the case. This change seeks to encourage more thorough reporting of such fraudulent activities by making the rewards more appealing.
President Yoon emphasized the ease of receiving large rewards through whistleblowing, comparing it to a lottery win. He noted that the amended regulations could motivate individuals who might have otherwise stayed silent about stock manipulation. Additionally, he mentioned the possibility of easing penalties for those involved in stock manipulation in exchange for their cooperation, aiming to foster a culture of transparency and accountability in the financial markets.
The discussion on these reforms indicates a broader commitment by the current administration to tackle corporate fraud and ensure fairness in the financial system. By removing the existing monetary limits on whistleblower incentives, the government aims not only to deter stock manipulation but also to actively encourage citizens to report wrongdoing, thereby promoting healthier capital markets overall.
