FSC Chairperson Lee Eog-weon: “Whistleblower Rewards for Stock Price Manipulation Will Be Dramatically Increased in Proportion to Illicit Gains”

[The Financial News] As the era of “KOSPI 5000” begins, the financial authorities will completely overhaul the reward system for reporting unfair trading and push strong follow-up measures to improve market fundamentals, including embedding a shareholder-centered corporate culture.
On the morning of the 3rd, at the “KOSPI 5000 and Beyond” seminar held at the Korea Exchange in Yeouido, Seoul, Chairperson of the Financial Services Commission Lee Eog-weon stated in his congratulatory address, “The breakthrough of KOSPI 5000 symbolizes that the level of trust in the Korean economy and capital market has risen to a new stage.” He then presented four key policy directions for the capital market.
The most notable point is the strengthening of the monitoring system against unfair trading. Lee said, “To encourage voluntary reports from insiders, which stock price manipulators fear the most, we will significantly raise the upper limit on whistleblower rewards.”
In particular, the government is discussing with relevant ministries the creation of a separate fund financed by recovered illicit gains and other sources, so that rewards can be paid in proportion to the size of the illicit profits uncovered. This marks a departure from the current fixed-amount reward scheme and is seen as a strategy to maximize the effectiveness of insider tips in large-scale stock price manipulation cases with wide-ranging impact.
Lee also stressed the need to establish a robust system to protect ordinary shareholders. He made clear the government’s intention to ensure that the fruits of corporate growth are fairly returned to shareholders and that such a management culture becomes the norm.
He went on to mention concrete financial solutions to support corporate innovation. “Through projects such as the Gukmin Growth Fund and productive finance, which are part of the ‘Great Economic Transformation’ initiative, we will focus on nurturing future-oriented strategic industries,” Lee explained. “We will also enhance investment incentives—such as improving market infrastructure in line with global standards and providing tax support—to attract both domestic and foreign investors,” he emphasized.
The financial authorities made it clear that the KOSPI 5000 milestone is not the end point of the capital market, but a new starting line. Lee said, “This figure is not just a change in the index; it marks the beginning of a greater responsibility for the market to serve as the core driver of a virtuous economic cycle,” adding, “We will remain steadfast in our efforts so that the capital market can become a solid foundation for people’s lives.”

elikim@fnnews.com Reporter Kim Mi-hee Reporter