Protecting Whistleblowers (KR0056)

Why is this commitment relevant to OGP values? Enhance transparency

What is the public problem that the commitment will address? Expanding the safety net for whistleblowers such as ensuring confidentiality and strengthening exemption from responsibility is necessary because there is still a lack of general awareness that the whistleblower protection system is a trustworthy system for reporting, even with continued efforts to revise relevant laws. * 67.5% of respondents pointed to ‘subsequent career-related disadvantages due to whistleblowing’ as a barrier to whistleblowing. (2019 Corruption Perceptions Survey, 1,400 citizens respondents) Besides strengthening the whistleblower protection system, providing practical incentives to encourage insider whistleblowing is necessary as major cases of corruption are difficult to detect without insider whistleblowing disclosure.

What is the commitment? (Strengthen confidentiality for whistleblowers) Create effective sanctions for when the whistleblower’s identity is disclosed due to negligence. (Expand exemption from responsibility) Lay the legal grounds for public institutions to reduce disciplinary actions or administrative measures against the whistleblower or exempt the whistleblower from such disciplinary actions or administrative measures without the commission’s request. (Expand relief funds) Expand relief funds to cover expenses incurred in the civil and criminal litigation procedures resulting from whistleblowing. - Provide financial support, including attorney fees, when the whistleblower is charged with false accusations, defamation or obstruction of business. (Support non-real name disclosures by proxy) Ease the financial burden of whistleblowers by supporting expenses incurred in non-real name disclosures by proxy. ⇨ (Expected effect) Encourage whistleblowing by strengthening the whistleblower safety net and expanding financial support measures.

How will the commitment contribute to solve the public problem? The commitment will strengthen protection and increase financial support for whistleblowers by amending the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission and the Protection of Public Interest Reporters Act.

Exchange and Peer Learning N/A

Additional Information Relevant to Government Policy Task 2. To carry out anti-corruption reform for a corruption-free Korea

Milestone Activity with a Verifiable Deliverable Start Date End Date Amendment of the Act on the Prevention of Corruption and the Establishment and Management of the Anti-corruption and Civil Rights Commission September 1, 2020 August 31, 2023 Amendment of the Protection of Public Interest Reporters Act September 1, 2020 August 31, 2023

Action Plan Review

Commitment 6. Protect whistleblowers

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest

Protection and Reward Policy Division, Anti-Corruption and Civil Rights Commission (ACRC)

For a complete description of the commitment see Commitment 6 in South Korea’s 2021–2023 Action Plan.

Context and Objectives

The country has enacted laws that offer protections and rewards to whistleblowers within the public and private sectors. Whistleblowing in the Republic of Korea resulted in the removal of 1,621 public officials between 2014–2018 due to corruption like embezzlement and abuse of authority. [29] The prevalence of whistleblowing increased after legislative protection was introduced in 2011. [30] The number of whistleblowers rose from 292 to 4,531 between 2011 and 2021, with fluctuations due to measures related to the professional reporting system. [31] Through this commitment, the government proposes new amendments to the Act on the Prevention of Corruption and the Establishment and Management of the Anti-corruption and Civil Rights Commission (passed in 2008 and amended in 2009, 2010, 2012, 2013, 2014, 2016, 2017, 2018, 2019, and 2020) [32] and to the Protection of Public Interest Reporters Act (passed in 2011 and amended in 2014, 2015, and 2017). [33] Respectively, these acts protect public and private sector whistleblowers. According to the Anti-Corruption and Civil Rights Commission Protection and Reward Policy Division, the intended amendments aim to strengthen confidentiality by creating effective sanctions for negligent disclosure; expand exemption from responsibility if the reporter participated in corruption or illegal acts; expand relief funds to cover expenses incurred in legal procedures resulting from whistleblowing; and support non-real-name disclosures by allowing whistleblowers to file a report in the name of a lawyer, without revealing personal information. [34]

Potential for Results: Modest

Further amendments to the Republic of Korea’s strong legal whistleblower protections could continue to address some of the confidentiality issues surrounding whistleblowing. According to the action plan, ensuring confidentiality is one of the key challenges for improving perceptions of the current whistleblower protection system; 67.5% of citizens who participated in the 2019 Corruption Perceptions Survey believe whistleblowing could bring “subsequent career-related disadvantages.” [35] Improved protections and benefits could encourage more people to come forward and minimize concerns about the consequences of collaborating with authorities.

While Transparency International—Korea believes that strengthening legal protection of whistleblowers’ confidentiality would be helpful, it perceives this commitment as falling short on two key points. First, a gap in implementing legal whistleblower protections has limited their impact. Among other factors, this gap includes organizational practices on implementing anti-corruption regulations, and court and prosecutor behavior. Second, the country’s social system emphasizes a community-oriented culture in which potential whistleblowers experience pressure from their organizations and communities. In practice, this pressure can have a stronger impact than any protection offered by the government. [36] This issue was also mentioned in a 2017 study on factors that contribute to government employees’ intention to report corruption in their organization. Analysis of survey responses from 5,706 Korean central government officials showed that support for whistleblowing from both colleagues and organizations was the strongest predictor of employees’ attitude toward whistleblowing. The benefits of formal legal whistleblower protection were perceived to be limited if faced with potentially hostile responses from colleagues and the wider organization. [37]

Opportunities, challenges, and recommendations during implementation

This commitment offers an opportunity to explore gaps in implementation of whistleblower protection legislation. It also underscores the need to address the cultural and social dynamics that shape the context for whistleblowing in the Republic of Korea. The following recommendations could enhance this commitment:

● In tandem with this commitment, the government can assess the implementation process for legislation on whistleblower protection to identify weaknesses in enforcement and areas of opportunity. This assessment could particularly focus on courts, prosecutors, and organizational culture. This assessment could contribute to additional changes to legislation or other administrative measures aimed to strengthen the Anti-Corruption and Civil Rights Commission’s role.

● Civil society and the government could collaborate on continued public information campaigns on whistleblowing, focusing on providing information on the system’s accountability mechanisms and the additional protections to be enacted. Trainings and promotional materials can also outline the importance of supporting colleagues who report corruption. These efforts should be informed by awareness of the role of gender, tenure length, and position type in shaping risks associated with whistleblowing.

Results Report

Commitment 6. Protect whistleblowers

Implementing Agency: Anti-Corruption and Civil Rights Commission Protection and Reward Policy Division

Context and Objectives

This commitment continued more than a decade of legislative strengthening to support and protect whistleblowers, starting with the 2008 Act on Anti-Corruption (which guides public sector whistleblowing) and the 2011 Act on Protection of Public Interest Reporters (which guides private sector whistleblowing). Specifically, this commitment aimed to amend the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission (which governs whistleblowers reporting on public sector actors) and the Protection of Public Interest Reporters Act (which governs whistleblowers reporting on private sector actors). Since the Act’s introduction in 2008, the legislative environment for whistleblowing has strengthened, combined with increased public awareness of the protection system for whistleblowers. ^[39] In this period, whistleblower reports increased significantly (from 2,821 in 2011 to 9,858 in 2023). [40] From 2011 to the end of 2023, 13,310 of the 121,519 cases reported by corruption and public interest whistleblowers were confirmed as violations. [41]

Early Results: Moderate

In January 2022, the Act on the Prevention of Corruption and the Establishment and Management of the Anti-Corruption and Civil Rights Commission was amended and aligned with the Act on Protection of Public Interest Reporters to provide similarly high levels of protection. For anti-corruption whistleblowers, the amendment reduced liability by laying the legal grounds for public institutions to reduce disciplinary actions or administrative measures against whistleblowers or exempt them from such disciplinary actions or administrative measures without the commission’s request. [42] It also supported non-real name proxy reporting so that anti-corruption whistleblowers can file reports in the name of a lawyer without revealing personal information. [43] For public interest reporters, these protections had previously been amended in 2018. Additionally, for both public interest and anti-corruption whistleblowers, the amendment expanded relief funds to cover expenses incurred in the civil and criminal litigation procedures resulting from whistleblowing, including providing financial support (including attorney fees) when the whistleblower is charged with false accusations, defamation, or obstruction of business. [44] One of the targeted legislative amendments—to strengthen confidentiality by creating effective sanctions for negligent disclosure—was completed just for the Act on Protection of Public Interests Reporters in February 2024 (beyond the action plan period). [45]

The legislative amendments had moderate results on support for whistleblowers. Transparency International – Korea noted that these were necessary for whistleblower protection’s legislative framework. [46] The amendments contributed to increasing rewards and relief funds granted to cover losses incurred by whistleblowers as a result of reporting. [47] The number of whistleblowers applying for protection largely remained stable, with 270 in 2019, 285 in 2020, 287 in 2021, 289 in 2022, and 297 in 2023. [48] However, the amendments did not lead to an increase in the acceptance rate for whistleblower protection applications, with a notable drop in rates beginning in 2021 documented by an Anti-Corruption and Civil Rights Commission White Paper. [49] According to People’s Solidarity for Participatory Democracy, one-third of whistleblowers granted protective measures were still penalized. [50] Meanwhile, Korea’s defamation law remains a key obstacle, as corrupt individuals and entities deter charges against themselves using the threat of criminal prosecution for defamation. [51] The law penalizes even true statements against perpetrators/violators unless the statements are found to be “in the public interest.” [52] Overall, whistleblower protection cases’ processing times and withdrawal rates have increased since 2018. [53]

Transparency International Korea and Justice Solidarity note the continued necessity to foster broader society-wide respect for the whistleblower system, including by prosecutors, courts, and the general public. [54] In addition to further legislative strengthening, greater efforts are needed to strengthen compliance with and enforcement of the whistleblower system. Unless supplemented by such efforts, legislative amendments will not be able to fully achieve their objectives in promoting whistleblowing and anti-corruption.

Looking Ahead

This commitment is continued in Korea’s 2023–2027 OGP action plan, which plans to pursue legislative amendments to expand and rationalize whistleblower protection. Protection will be expanded by amending the Act on Protection of Public Interest Reporters to add 19 laws to the list of laws subject to public interest whistleblower protection (492 currently, up from 180 in 2011). [55] Five laws covering five different types of whistleblower reports will be amended to unify compensation standards, specifically the Act on Anti-Corruption (covers public sector corruption), the Act on Protection of Public Interest Reporters (covers private sector violations of public interest), the Improper Solicitation and Graft Act (covers fraudulent claims), the Public Fund Recovery Act (covers fraudulent solicitation), and the Act on the Prevention of Conflict of Interest Related to Duties of Public Servants (covers conflict of interest). This ongoing commitment offers an opportunity to continue closing the gaps in whistleblower protection legislation. However, as implementation of the fifth action plan’s commitment shows, legislative protections must be accompanied by stronger implementation and enforcement, as well as efforts to build longer-term cultural acceptance of whistleblowers as protectors of the public interest.