The whistleblower who reported a group that manipulated stock prices to the financial authorities will receive a reward close to 100 million Korean won. On the 2nd, the Securities and Futures Commission under the Financial Services Commission announced that it had resolved to pay Mr. A, who reported the stock manipulation group he knew about, a reward of 93.7 million Korean won.
According to the Financial Services Commission, Mr. A detailed the plans and methods the suspected stock manipulation group used to inflate stock prices and submitted evidence such as audio recordings to the financial authorities. The Financial Supervisory Service initiated a planned investigation after determining that Mr. A’s report had merit. Based on the investigation results, six individuals whose suspicions were confirmed were referred to the prosecution for violating the prohibition of unfair trading practices and failing to report large-scale holdings. Consequently, the financial authorities decided to pay Mr. A a reward in accordance with the *Financial Investment Services and Capital Markets Act*.
To receive a reward, one must report specific violations related to unfair trading practices, including the violators, location, time, and methods, according to the financial authorities. Anonymous reports are also possible. Evidence necessary to prove suspicions of market manipulation, use of undisclosed information, unfair trading, etc., must be submitted, and it must be recognized that the report aided in detecting and addressing unfair trading practices. Publicly available information such as stock price fluctuations, disclosure documents, and media reports will not be accepted. In the case of anonymous reports, the reporter must submit documents proving their identity and status as the reporter within one year from the report date to be eligible for the reward.
The reward amount is categorized from Grade 1 (3 billion Korean won) to Grade 10 (15 million Korean won) based on the severity of the unfair trading practice. The amount is calculated by multiplying the base amount for each grade by the contribution rate (0–100%). A source from the financial authorities stated, “We strictly protect the identity of whistleblowers when receiving reports or tips on unfair trading,” and added, “We urge the public to report data or information containing specific factual relationships related to stock manipulation to the financial authorities to establish a sound capital market trading order.”
