LH Offers Reduction for Voluntary Reporting of Bidding Irregularities... Compensation Up to 3 Billion Won

[Financial News] The Korea Land and Housing Corporation (LH) is expanding the scope of leniency for voluntary reporting, which was previously limited to collusion, to include all irregularities in the bidding process, such as bribery. If the report results in a direct increase in revenue or cost savings, a reward of up to 3 billion won will be paid.
On the 7th, LH announced that it would implement a "plan to promote reporting of bidding irregularities" to reduce concerns about disadvantages for whistleblowers, complex procedures, and distrust regarding compensation systems. The purpose is to prevent the occurrence of corruption by encouraging voluntary reporting and mutual checks among bidders.
Last year, LH introduced a leniency program based on the Monopoly Regulation and Fair Trade Act (MRFTA) and other laws, which reduces or exempts penalties for companies involved in bid rigging if they report themselves.
The newly established 'LH-style leniency program' is characterized by expanding its scope beyond collusion. By utilizing the leniency provisions for voluntary reporting under the PUBLIC INTEREST WHISTLEBLOWER PROTECTION ACT and the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission, it includes all forms of corruption occurring during the bidding process—such as identical bids and the acceptance of bribes related to evaluations—as eligible for leniency.
Rewards for reporting are also being strengthened. In accordance with the 'Operational Guidelines on Reporting Irregularities and Public Interest and Protection of Whistleblowers,' a reward of up to 100 million won will be paid if the public interest contribution of the report is recognized. If the report results in a direct increase in revenue or cost savings, compensation of up to 3 billion won will be paid first.
LH also recommends the whistleblower as a candidate for the Anti-Corruption and Civil Rights Commission (ACRC)'s public interest reporting reward and compensation. The ACRC's reward is up to 500 million won, and the compensation is 30% of the recovered amount with no upper limit. Accordingly, a whistleblower who meets the requirements can receive additional compensation in addition to the amount paid by LH.
A separate reward system applies to corruption occurring during the proposal evaluation process for technical services. Subject to reporting include prior contact or explanations to reviewers, as well as misconduct related to the evaluation.
Currently, the maximum reward payable for reporting bribery or collusion is 30 million won. LH plans to revise its internal regulations within the year to raise this to a maximum of 100 million won.

[email protected] Choi Ga-young Reporter