Presentation by Joo-mi Park at the OECD Whistleblower Protection Seminar on 17th June 2014. More information available at www.oecd.org/gov/ethics/whistleblower-protection-seminar-june-2014.htm

1. Whistleblower’s Rights in Korea
2014. 6
Anti-Corruption & Civil Rights Commission

2. Structure of Whistleblower Laws in Korea
ACRC Act
A P P I W
2

3. Subject Matters of Protected Disclosure
Bribery and pursuit of private
interest by public officials
Fraud or acts causing financial
damage to the public org.
Coercion/offer to commit or
conceal the acts mentioned
above
Public health
Public safety
Environment
Consumer interest
Fair competition
A C R C A c t A P P I W
3

4. 1 ACRC receives and verifies reports of corruption.
2 ACRC refers them to investigative agencies.
3 The agencies conduct investigation.
4 The agencies notify ACRC of the results.
5 ACRC notifies the whistleblowers of the results.
Handling Procedure of Disclosures
4

5. Disclosure & Other Activities to be Covered
1. Status of Protected Whistleblowers
2. In Good Faith and With Reasonable belief
3. Where to Make a Disclosure
4. Other Activities to be Protected
5

6. Reward moneyIn Employment Relations
Protection Rewards
In Non-Employment
Relations
Protecting and Rewarding Measures
Award money
6

7. Protection in Employment Relations
1. Request for corrective action to the ACRC
2. Investigation & Deliberation by the ACRC
3. Corrective Action Ordered by the ACRC
4. Punishment: 1 year in prison or fine (USD 10,000)
7

8. Protection in Non-Employment Relation
1. Protection of Personal Safety
2. Special Protection in Criminal Proceedings
3. Confidentiality: 3 years in prison or fine
4. Administrative & Economic Warranties
5. Mitigation of culpability
8

9. Guarantee of Employment
Cases of Protecting Whistleblowers
9
The whistleblower requested guarantee of employment
claiming that he suffered disciplinary action after reporting
corruption of his predecessor related to waste disposal.
-
TheACRC confirmed need for whistleblowertoact as described
anddemandedrevocationofdisciplinaryactionandimposedapenalty.
☞Headofagencynullifieddisciplinaryactionandpaidthepenalty.
Case detail
Result of investigation
Reductionofsalaryfor1month&SurchargeofKRW100,000
forreceivingprohibitedentertainmentandhamperinginstitutionalreputation

10. Physical Protection
Cases of Protecting Whistleblowers
10
The whistleblower was threatened to cancel his report
on illegally raised purchasing price,
and requested physical protection to the ACRC.
TheACRC confirmed need for protection,
and demanded the police toprovide emergency protection
including regular patrol inwhitsleblower’sneighborhood.
Case detail
Result of investigation

11. Confidentiality
Cases of Protecting Whistleblowers
11
The whistleblower requested theACRC to confirm whether
his identity was leaked claiming that in 8 hours from reporting
he canceled his report on overestimating construction expenses
as head of construction team after threatened by the company.
OfficialAwhoreceived report revealed reporter’s identity toB
of the company, B again toC.
The ACRC demanded disciplinary action against them.
☞Warning and admonition weregiven respectively.
Case detail
Result of investigation

12. ♦ Whistleblowers suffer mental illnesses
Ex) Anxiety, Stress for fear of identity exposure, etc
☞ MOU with Korean-NeuroPsychiatric-Association
to provide financial support(KRW 500,000)
for psychiatric treatment of whistleblowers
♦ Legal aid is provided upon request of whistleblower
☞ MOU with Korean-Bar-Association to provide legal aid
Ex) litigation service, legal counseling
Medical Support and Legal Aid
Cases of Protecting Whistleblowers
12
Medical Support
Legal Aid

13. Reward & Award to Whistleblowers
Reward Money
Whistleblower contributing directly to increasing or
recovering revenues of public organization
4 ~ 20% of recovered money awarded
* maximum USD 2 million
Award Money
Whistleblower contributing to public interest, institutional
improvement & disciplinary action
Up to USD 100,000
13

14. Corruption Disclosures Made (2002-2013)
Performance in Handling Disclosures
Category total Referred to
investigative
agencies
Identified
violation of code
of conduct
Forwarded
to agencies
Closed
Reports
handled
28,246 1,035 430 9,620 17,161
0
1000
2000
3000
4000
02 03 04 05 06 07 08 09 10 11 12 13
14

15. Number of Cases Referred to Investigative Agencies (2002-2013)
Performance in Handling Disclosures
Total
Referral to investigative agencies
Notification of result Under
Investigation
Subtotal
①
Corruption
Detected ②
Acquittal
1,035
907 647 260 128
Detection Rate(②/①)
71.3%
15

16. Number of Requests for Protection (2002-2013)
Performance in Protecting whistleblowers
Category
Protection in
employment
relations
Protection of
personal safety
Guarantee of
confidentiality
Requests 146 22 13
Accepted
48
(33%)
14
(64%)
4
(31%)
16

17. Reward for Whistleblowers (2002-2013)
No. of Cases
Amount of
Recovered money
Amount of Reward
220 USD 60,313,858 USD 6,228,664
* The largest amount of reward is USD about 400,000
Performance in Rewarding Whistleblowers
-
500,000
1,000,000
1,500,000
2,000,000
02 03 04 05 06 07 08 09 10 11 12 13
Amount of Reward
17

18. Award for Whistleblowers (2006-2013)
No. of Cases Amount of Award
63 USD 487,000
Performance in Rewarding Whistleblowers
18

19. Largest Ever Award Case
Cases of Rewarding Whistleblowers
19
A construction company was paid approx. KRW 5.5 billion
for sewage pipelines that they didn’t build.
11peoplefacedimprisonmentandfine,
andKRW5.5billionwasrecoveredincludingconstructionexpenses.
☞USD400,000waspaidinaward.(largesteveramount)
Case detail
Result of investigation

20. From ex post facto system
To pre-emptive and preventive protection system
Improving Public Awareness and Efficiency of Whistleblowing
Public-Private Partnership
- MOU with best businesses
- Cooperative council with
report-receiving organizations to
support implementation
Customized promotion and
education for private companies
and public organizations
Introducing “Emergency
Suspension of Disadvantages
Against Whistleblower”
Promoting Financial Reward
System
- Promoting payment of financial
reward and recommendation
system for reward
Recommend organizations to
set up policies, and distribute
manuals and standardized
whistleblowing procedure
-Guidelines for businesses
-* Providing immunity for violations
of confidentiality under the
standard employment regulation
20