FSS pays record cash rewards for reporting violations

South Korea's state financial watchdog said Friday it paid more than 120 million won ($100,000) last year in cash rewards for helping punish violators of capital market rules.

A total of 120.7 million won was given to five informers of such irregularities as stock price manipulation, unfair trading and the use of undisclosed information, according to the Financial Supervisory Service.

It marks the largest-ever amount of cash rewards since the agency introduced the public merit system in 2000.

The maximum cash rewards were lifted to 2 billion won in 2013 from 100 million won in 2004 and 5 million won in 2000.

The payment of cash rewards has been largely on the rise.

The amount stood at 41.4 million won in 2013, 104 million won in 2014 and 59 million won last year.

"Unfair transactions in the capital market tend to be growing sophisticated. In taking actions against those, reporting from (informers) has become more important," an FSS official said. "We will continue to thoroughly keep the information on informers secret and protect them."

Informers need to offer details of any violation and related evidence to receive the cash reward. 

Meanwhile, the FSS reinstated a bank risk management office in its latest organizational change announced later in the day. Last year, it had transfered the related work to two bank-related bureaus in a bid to streamline the organization.

However, it decided to put the office back in operation amid growing external uncertainties and political situations at home surrounding a high-profile bribery and influence-peddling scandal.

The FSS plans to create a special team on the stress test of insurance firms to prepare for the introduction of new global accounting rules on insurers.

The watchdog will also hire 20 more officials in order to tighten the oversight of accounting fraud at listed firms. (Yonhap)