Reward cap lifted; payouts to reach up to 30% of fines imposed

A Korea Land and Housing Corporation official demonstrates how to scan a QR code displayed on a whistleblower reward program poster. [Korea Land and Housing Corporation]
A Korea Land and Housing Corporation official demonstrates how to scan a QR code displayed on a whistleblower reward program poster. [Korea Land and Housing Corporation]

The Korea Land and Housing Corporation announced Wednesday that it has significantly strengthened its reporting and reward system to stamp out illegal subcontracting at construction sites.

The corporation has lowered the bar for filing reports, dropping a previous requirement for documentary or photographic evidence. Detailed statements and circumstantial tips alone are now sufficient to trigger an investigation. Illegal subcontracting practices covered under the system include coerced hiring, forced use of specific equipment or materials, demands for cash or monthly payments, obstruction of construction work, blocking site access and assault.

The previous reward cap of 30 million won ($22,300) has been abolished, with payouts now reaching up to 30% of any fine levied.

The corporation has also introduced a new "first-stage reward" to speed up payments. Under the scheme, up to 500,000 won is paid out early — specifically when the corporation confirms illegal activity through its own investigation and requests that the relevant administrative authority take action, at which point 10% of the expected fine, up to 500,000 won, is disbursed in advance.

The change addresses a longstanding shortcoming of the previous system, in which the gap between a report and a final administrative ruling meant reward payments were often delayed for extended periods.

The reporting process has also been streamlined: scanning a QR code posted at construction sites with a smartphone now links directly to the tip submission page.

To publicize the revamped system, the corporation will post posters and banners featuring the QR code at construction sites nationwide and hold outreach briefings.

"We will do our utmost to firmly establish a fair working culture where construction workers can work with peace of mind and receive the treatment they deserve," said Lee Seong-hun, president of the Korea Land and Housing Corporation.


hss@heraldcorp.com