By Heekyong Yan

YONGIN (South Korea) -South Korean engineer Kim Gwangho almost knew he would be able to receive substantial compensation from the U.S. safety regulator’s whistleblower program for a tip about safety lapses at Hyundai Motor Co., his 26-year-old employer.

After a long five year process, Kim is now more than $24million richer. He also plans to establish a foundation that promotes responsible corporate culture.

Kim, 59, who was part of the quality strategy team at the company, stated to Reuters that the “compensation I received from whistleblower programs in the United States exceeded the sacrifices I made in South Korea.”

Kim’s action led to an agreement last year by Hyundai and its affiliate, Kia, which are among the world’s top 10 automakers by sales, to pay a record civil penalty https://www.reuters.com/article/us-usa-recalls-hyundai-kia-idUSKBN28725X of $210 million over recalls involving nearly 1.7 million vehicles.

Kim plans to start a YouTube channel that teaches people how to expose bad employers. He learned all about U.S. Law through Hyundai’s training, which inspired him, he stated in an interview.

Kim said, “The amount” isn’t amazing or like that. He was speaking in the living room of his house in Yongin in south Seoul.

Kim stated that Kim’s actions had cost him his job. He also severed all connections with colleagues.

“After reading my report, I think automakers realize that anybody can whistle them and that they must not hide.”

Hyundai Motor Group didn’t have any comment.

BIGGEST WIDE

Tuesday’s reward https://www.reuters.com/business/autos-transportation/us-auto-safety-regulator-awards-over-24-mln-hyundai-motor-whistleblower-2021-11-09 was the first by the U.S. regulator and the biggest in a whistleblower case in the automobile sector worldwide, says law firm Constantine Cannon, which represented Kim.

It comes as the regulator and U.S. transport authorities ready regulations for a programme for whistleblowers in the automotive sector that Congress created in 2015 https://www.reuters.com/article/us-autos-whistleblower-idUKKBN0LU25K20150226.

Whistleblower Program: The program rewards information providers about safety breaches and helps the regulator police the auto industry. The fines and penalties that are collected from successful whistleblowers can range anywhere between 10% to 30%.

According to the regulator, Kim will receive 30% of an initial payment of $81 Million that Hyundai and Kia have agreed upon.

He said that “I was relieved that it had come to an end”, adding that his law firm and he were checking to see if there were any additional benefits.

Kim informed the U.S. regulator Hyundai in summer 2016 that Hyundai had not taken enough steps to correct an engine fault which increased crash risk. Kim also cited an internal report of the strategy team to management.

Vehicle recalls in 2017 and 2015 were among the most important such operations by American firms.

Investigation https://www.reuters.com/article/us-hyundai-motor-recall-usa-idUSKCN18G094 by the regulator begun in 2017 led to its decision that the firms had failed to recall the vehicles in a timely fashion, bringing last year’s $210-million penalty.

In 2018, Reuters reported that U.S. prosecutors were investigating https://www.reuters.com/article/hyundai-motor-probe-idUSL4N1XW5HP whether Hyundai’s vehicle recalls were done properly.

Kim believes that his efforts were not successful today.

“Those who attempted to conceal recalls during that period are still employed as executives in affiliates Hyundai Motor Group,” he stated.