Higher Monetary Award Proposed for the Reporting of Accounting Irregularities

Laws and Regulations Announcement Higher Monetary Award Proposed for the Reporting of Accounting Irregularities Agency: Financial Services Commission Regulation to be amended: Regulations on Procedure and Reward for Reporting Accounting Irregularities FSC Notice number: 2017-199 Announcement date: July 19, 2017 Summary: The Financial Services Commission proposed amendments to the Regulations on Procedure and Reward for Reporting Accounting Irregularities that will set a higher monetary award for the reporting of accounting irregularities. This is a follow-up revision of the increased award for whistleblowers in the Enforcement Decree of the Act on External Audit of Stock Companies. Key provisions:  The maximum amount of whistleblower award will be increased by ten-fold from KRW50 million to KRW500 million.  Specific criteria for determining the amount of the award will be set with considerations given to the whistleblower’s contribution to investigation of accounting irregularities. Public comment for the proposed amendments: The public comment period for the proposed rule changes ends on August 30, 2017.