Gyeonggi Province Provides Maximum Reward of 30.9 Million Won to Public Interest Whistleblowers on Illegal Loans

[Suwon Ilbo=Park No-hoon Reporter] Gyeonggi Province will provide a report reward of 30.9 million won to a public interest whistleblower who reported an illegal private lending organization.

This is the highest amount paid out since Gyeonggi Province established and operated the "Gyeonggi Province Public Interest Whistleblowing Hotline," a dedicated channel for public interest and corruption reports, in 2019.

On the 30th of last month, the province held its fourth Gyeonggi Province Public Interest Whistleblower Support Committee meeting for 2021 and decided to distribute 53.63 million won in rewards for 20 public interest reports regarding illegal private lending, illegal subcontracting by unregistered construction contractors, and neglected fire safety facility malfunctions.

Whistleblower "A" reported that "there is an illegal lending organization that charges high-interest rates and engages in illegal debt collection targeting low-income individuals."

Based on the report, Gyeonggi Province's Special Civil Enforcement Police Unit conducted an investigation, and seven members of the organization engaged in illegal lending at an annual interest rate of up to 31,000% were referred to prosecutors, resulting in sentences ranging from four months to one year and six months imprisonment.

The illegal lending organization operated an illegal lending business on a scale of 3.5 billion won by lending small amounts to 3,610 financially vulnerable and low-income individuals who could not access primary financial services and charging interest rates exceeding the legal limit of 24%.

The committee said, "Through the whistleblower's public interest report, we were able to apprehend an illegal lending organization that was profiting excessively from financially vulnerable people and low-income individuals," and decided to pay 30.9 million won in rewards.

On June 24, Gyeonggi Province opened the "Illegal Private Lending Damage Report Center (gfrc.gg.go.kr)" to resolve illegal private lending issues comprehensively, unifying investigation, victim compensation, financial rehabilitation, and reward payments through a single report. The province is making all-out efforts to eradicate illegal private lending occurring throughout Gyeonggi Province, and this reward payment is part of these efforts.

The committee also decided to provide 5 million won each in rewards to two whistleblowers who reported illegal subcontracting by unregistered construction companies.

As a result of investigations conducted by the province based on the reports, the company received a six-month business suspension.

The committee stated, "As evidenced by the recent building collapse incident in Gwangju, illegal subcontracting by unregistered contractors leads to poor construction workmanship and reckless construction to cut costs, seriously threatening public safety," and added, "Gyeonggi Province plans to actively provide rewards for reporting illegal subcontracting to establish fair construction practices within the province."

Additionally, the committee decided to provide 300,000 won in rewards to a whistleblower who reported the neglect of malfunctioning indoor fire extinguishers in a factory building, preventing potential fire accidents, and 400,000 won to a whistleblower who reported a business site storing and handling 2,000 liters of diesel fuel—double the designated quantity—without permission.

In addition, the committee will distribute 22.73 million won in rewards for 19 public interest reports including ▲unreported atmospheric emission and waste treatment facilities installation and operation (7 cases) ▲illegal landfill and improper storage of construction waste (2 cases) ▲bus driver mask non-compliance (1 case).

The committee previously distributed 15-25% of the penalty amount as rewards for reports resulting in financial penalties, but in April, it raised the reward distribution standard to a uniform 30% to promote more active reporting through expanded rewards.

Hong Sung-deok, Investigation Director at Gyeonggi Province, said, "Public interest and corruption reports from residents are important for realizing a fair society," and added, "Through raising reward distribution standards to promote public interest reporting, expanding whistleblower protection systems so that reporters can report with confidence, and more thoroughly operating the 'Gyeonggi Province Public Interest Whistleblowing Hotline,' we will enhance our efforts."

Those wishing to make public interest reports to Gyeonggi Province can report to the "Gyeonggi Province Public Interest Whistleblowing Hotline - Fair Gyeonggi 2580 (hotline.gg.go.kr)," a dedicated reporting channel.

To protect the identities of internal whistleblowers and provide legal consultation, Gyeonggi Province is actively operating the "anonymous proxy reporting system," which allows lawyers to provide legal consultation and file reports on behalf of whistleblowers before reporting.