The National Tax Service of South Korea announced on March 9 that cases of tax evasion reported by whistleblowers increased 3.6 percent last year and resulted in 1.53 trillion won to be collected.
Since early 2013, the government has been ramping up its war against tax evaders, which was a campaign promise by President Park Geun-hye. Cracking down on the so-called underground economy was a way for the president to pay for expanded welfare programs.
Tax authorities explained that the increase in whistleblowing and additional tax collection were the result of an increase in the compensation cap for whistleblowing to 2 billion won from 1 billion won.
This year, it will raise the maximum compensation cap to 3 billion won to urge more individuals to disclose illicit activity, and will also prepare other measures to protect whistleblowers.
