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Korea to scrap cap on rewards for reporting stock manipulation and accounting fraud

South Korea will abolish the ceiling on rewards paid to people who report stock manipulation and accounting fraud, raising incentives to report major unfair-trading cases. The Financial Services Commission said amendments to enforcement decrees under the Capital Markets Act and the External Audit Act were approved by the cabinet. Rewards will be simplified and paid up to 30 percent of illicit gains or penalties. The rules also expand eligibility, allow partial advance payments and strengthen information-sharing among agencies.