Rewards for reporting smuggling and tax evasion to the Korea Customs Service will now be paid based on the amount uncovered without any upper limit.

For internal whistleblowers, rewards will be increased to up to three times the previous payout amount.

The Korea Customs Service announced on September 21 that it is implementing the revised Regulations on Smuggling Report Processing and Reward Payments containing these measures.

The agency explained that the reward system was overhauled as crimes such as drug and firearm smuggling and customs evasion become larger and more sophisticated, while tips from industry insiders and internal sources increasingly play a decisive role.

Under the revised rules, the previous reward caps of up to 150 million won for general smuggling and up to 300 million won for drug-related crimes have been abolished.

For internal reports, the payout has been expanded from twice the original amount to up to three times.

The reward system is shifting to a progressive structure that accumulates a certain percentage based on the bracket of the uncovered amount.

Previously, fixed rewards were paid according to the scale of the case, but the overhaul ensures that informants reporting large-scale cases can receive greater compensation.

While cases involving 10 million won or less previously did not qualify for rewards, smaller cases will now be eligible for rewards equivalent to 5 to 10 percent of the case amount.

This is based on the rationale that minor illegal acts can serve as crucial clues for major cases.

The Korea Customs Service explained that rewards paid to smuggling informants will increase significantly starting with reports filed on this day due to the system restructuring.

For instance, if a person reports the smuggling of 300 kilograms of philopon worth 30 billion won, leading to the arrest of the culprit, the previous reward was capped at 300 million won, but under the new progressive system tied to the scale of the case, approximately 400 million won will be paid.

For an insider, the amount reaches up to 1.2 billion won.

If 2 billion won is recovered for the state coffers through a tip on smuggling that exploited tariff quotas, the reward—previously around 50 million won—will now be 200 million won (10 percent of the state revenue amount).

For an insider, it is up to 600 million won.

Korea Customs Service Commissioner Lee Jong-wook stated, "This institutional improvement is a measure to increase incentives for reporting large-scale cases and to block intelligent crimes or tax evasion through additional compensation for whistleblowing," adding, "We ask for active interest and reporting."

(Photo provided by Korea Customs Service, Yonhap News)