Overview of the Reform
The revised Whistleblower Protection Act (2025 amendment), effective December 2026, significantly strengthens protections for internal reporters to promote early detection and correction of corporate misconduct.
Building on the 2022 revision that required companies with 300+ employees to establish reporting systems, this amendment further expands those requirements and reinforces the prohibition against retaliation.
Expanded Scope of Protection
Previously Protected
- Current employees (full-time, part-time, dispatched)
- Employees of business partners
Newly Protected Under the Reform
| Category | Condition |
|---|---|
| Former employees | Within one year of departure |
| Officers | Directors, auditors (subject to certain conditions) |
| Freelancers | Those in ongoing business relationships |
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Try for free →Corporate Reporting System Obligations
Companies with 300+ Employees (Mandatory)
The following systems must be legally established:
- Internal reporting channel: In-house or outsourced to external counsel
- Designated response personnel: Ensuring independence and impartiality
- Confidentiality of reporter identity: Criminal penalties for disclosure (Article 21: fines up to ¥300,000)
- Investigation and corrective action: Investigating reports and implementing necessary remedies
- Follow-up: Notifying reporters of outcomes and confirming no retaliation occurred
Companies with 300 or Fewer Employees
Establishing these systems is a best-effort obligation but strongly recommended.
Strengthened Anti-Retaliation Protections
The most significant change is the strengthened prohibition against adverse treatment of whistleblowers.
Prohibited Adverse Actions
- Dismissal or non-renewal of contract
- Demotion or pay reduction
- Disadvantageous transfers
- Forced resignation
- Harassment or bullying
- Unjustified work-related disadvantages
Reversal of Burden of Proof
The revised law shifts the burden of proof to the employer in retaliation claims. Previously, whistleblowers had to prove that adverse treatment was caused by their report. Under the new law, employers must demonstrate that adverse actions were taken for legitimate, unrelated reasons.
Practical Steps
What Companies Should Do Now
| Priority | Action |
|---|---|
| High | Review and revise internal reporting policies |
| High | Establish or outsource reporting channels |
| Medium | Train designated response personnel |
| Medium | Communicate the reporting system to all employees |
What Whistleblowers Should Know
- Protection requirements: The report must not be made with improper intent and must have reasonable basis in truth
- Reporting channels: Internal → administrative agencies → media (protection requirements become stricter at each stage)
- Evidence preservation: Secure relevant evidence before making a report
- Consultation: Consumer Affairs Agency whistleblower hotline (03-3507-9262)
