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.

Samchundang Pharm moved to explain controversy over alleged stock manipulation and a Korea Exchange notice of possible sanctions for inadequate disclosure. Chief executive Jeon In-seok cancelled a planned 250 billion won block deal to sell a major shareholder stake, saying the sale was intended to pay taxes of 233.5 billion won. He said he will instead pay the taxes through a stock-backed loan and focus on proving management performance. He also apologised for poor communication and pledged greater transparency.