To encourage greater participation and increase detection, Korea's national postal service, Korea Post, plans to remove the cap on rewards paid for reporting insurance fraud in the country.
The Postal Service under the Ministry of Science and ICT has been handing out rewards of up to KRW30m ($20,000) to those who reported insurance fraud, which it will now scrap entirely to encourage more public participation in providing tips on insurance fraud cases.
Over the past five years, insurance fraud totalled about KRW4.2bn and involved 742 people, but tip-based cases accounted for about KRW47m, or 1.1%, and reward pay-outs for seven cases amounted to KRW3.6m. The Postal Service plans to scrap the reward ceiling within a month of serving an administrative notice period and has already prepared a revision to an internal directive on this.