By Michael Ha
Staff Reporter

The government's monetary reward program for corruption whistleblowers reached a new record this year.

The Anti-Corruption and Civil Rights Commission said it gave out some 328 million won in rewards to 18 whistleblowers who reported corrupt practices this year.

It said their action saved even more money ― the individuals helped save the government some 2.14 billion won.

The government first started its reward program for whistleblowers in 2002. In that year, the government gave out some 740,000 won, and the amount has steadily gone up since then.

The commission stated that one whistleblower received 76 million won in compensation this year, a new individual record for the seven-year-old program.

When corruption cases are reported, the commission does not disclose the whistleblower's identity. The commission can also take further steps to offer protection to the reporters of corruption if deemed necessary.

The biggest case this year involved an equipment manufacturer and provider that supplied parts to the military. The company had been supplying chemical detection equipment to the Ministry of National Defense over the past few years, and reportedly made hundreds of millions of won illegally by inflating costs in their contracts.

Another case involved the state assistance program for the needy, where more than a hundred million won was reportedly embezzled. In one case, a corporate official illegally appropriated workers' overtime pay. Also the government was defrauded through a rehabilitation project following the 2006 hurricane season.

The anti-corruption commission was launched in February, by combining three previously separate agencies: the Ombudsman of Korea, the Korea Independent Commission Against Corruption and the Administrative Appeals Commission. The panel leads the government's effort in creating and implementing anti-corruption policies nationwide.

The commission also recently embarked on a new program to help small- and medium-businesses struggling in the current economic downturn.

It said there have been reports of small business owners who are unfairly treated by various financial institutions and are often turned down for bank loans.

The commission said it will examine petitions from businesses and, in conjunction with the Financial Supervisory Board, seek ways to assist troubled, cash-strapped companies that are unfairly denied business loans.

michaelha@koreatimes.co.kr