Reward ceiling for stock manipulation whistle-blowers to be scrapped

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Reward ceiling for stock manipulation whistle-blowers to be scrapped

A finance meeting is held at the Seoul Government Complex in Jongno District, central Seoul, on Jan. 21. [FINANCIAL SERVICES COMMISSION]

A finance meeting is held at the Seoul Government Complex in Jongno District, central Seoul, on Jan. 21. [FINANCIAL SERVICES COMMISSION]

Korea's 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 whistle-blowers in order to track and punish stock rigging and accounting fraud.
 

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Currently, the cap on rewards for unfair stock trading is set at 3 billion won ($2.1 million), and the cap on fraudulent accounting is at 1 billion won.
 
But with the revision of the decree of the Capital Market Act and External Audit Act, whistle-blowers 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.

Yonhap
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