Press Coverage

A hospital director was investigated on suspicion of ordering an employee to perform a skin procedure that constitutes medical practice without face-to-face consultation with the patient, but the charges were dropped after it was acknowledged that the procedure was not medical practice. According to the legal community on the 20th, the Incheon Bupyeong Police Station decided not to forward Doctor A and two officials who were booked on charges of violating the medical law on the 1st of last month. Mr. A was investigated for allegedly ordering the procedure to a nursing assistant after determining the patient's condition based only on video data and consultations last year. I received it. Article 27 of the Medical Service Act prohibits non-medical practitioners from performing medical practices that may cause harm to health and hygiene. Mr. A denied the charges. Mr. A claimed, “The patient visited the medical institution in person and underwent consultation and photography, and based on this, we judged whether or not the procedure was necessary. The act in question was at the level of skin care management that did not involve direct harm to the human body or tissue deformation, and was a procedure carried out within the medical institution according to the judgment and instructions of the doctor.” The police also believed that the procedure was within the scope of skin care, rather than medical treatment, and was unlikely to cause significant harm to the human body. At the same time, it was determined that it could not be considered a violation of the medical law because the procedure was performed by a nursing assistant under the doctor's judgment, management and supervision within the medical institution. Lawyer Jang Se-chang of Daeryun Law Firm, who represented Mr. A, said, "Whether or not the medical law was violated should be determined by comprehensively considering the content and risks of the actual act and the degree of medical intervention, not simply a formal procedure such as face-to-face contact." revealed. Reporter Jeong Cheol-wook[View full article] Hospital director not guilty of ordering skin treatment for employee... “Skin care, not medical practice” (Shortcut)

Daeryun Law Firm announced on the 20th that, as the advancement of domestic companies into the global market has become more active, it will strengthen the integrated advisory system with its New York local office SJKP to encompass the advancement of domestic companies into the United States and the settlement of foreign companies in the Korean market. In line with the global expansion of domestic companies, the inflow of American companies seeking to use the Korean market as a test bed is also steadily increasing. As cross-border expansion between the two countries becomes more active, the importance of 'cross-border risk management' is also increasing. According to the Ministry of SMEs and Startups and the Ministry of Trade, Industry and Energy, as of 2024, exports to the US by Korean small and medium-sized enterprises increased by $1.88 billion compared to the previous year. Direct investment (FDI) by U.S. companies in Korea also reached $5.24 billion, showing active two-way exchange. However, during the entry process, companies face complex legal and institutional differences, such as U.S. employment and environmental regulations that differ by state, Korea's unique serious accident punishment law, and fair trade regulations. In particular, small and medium-sized businesses that have difficulty in systematically establishing an in-house legal system often face difficulties in responding to these risks. Considering these market demands, Daeryun provides integrated advisory services in conjunction with SJKP, a local corporation in New York. First, we support corporate establishment and M&A, local labor law and tax risk checks, and core technology protection so that domestic companies can stably take root in the U.S. market. In the process of localizing American companies in the Korean market, we operate an 'inbound customized package' such as reviewing tax reduction benefits related to foreign investment, establishing a personnel and labor system optimized for domestic laws, reviewing business combinations, and responding to fair trade risks. Here, we combine practical customs solutions such as customs screening and country of origin verification that occur during import and export customs clearance. The policy is to manage the legal and logistics risks experienced by companies in both countries. Related practical advice will be provided by experts with diverse field experience in each field. Kyeong-won Yoon, head of the corporate legal group, who is well-versed in domestic and international corporate law, having served as a legal affairs partner at an embassy as a former chief prosecutor, and Jong-soo Shin, a former partner at Kim & Chang Law Firm, support M&A and tax strategies. Gye-jun Son, a former secretary of the Fair Trade Commission, provides advice on regulatory response, and Jae-ho Myung and Dae-ryun Kim, customs experts, support trade and customs clearance. Local response in the U.S. and coordination between the two countries are handled by Daeryun. Foreign lawyers and lawyers from SJKP are in charge. Foreign attorney Dong-Hoo Son (USA), who has experience in advising bio companies on their market entry, Mia Kim (USA), who is in charge of English-language contracts, and foreign lawyers Won Yeon Won and Joon-Yong Ahn (USA), who specialize in international arbitration and M&A, collaborate closely. At SJKP in New York, Bryce S. Robins, a former US local prosecutor, James Meaney, an expert in litigation practice, and Joseph Anthony, who has financial know-how, Attorney Joseph A. Raia will assist domestic companies in settling into the U.S. market. Daeryun CEO Kim Kuk-il said, "For a successful global business, not only product power but also thorough risk management based on the laws of each country must be supported. By combining the internal infrastructure of Daeryun Corporate Law Group and the local expertise of SJKP in New York, we will play the role of a legal assistant to help companies from both countries enter the stable market." Eunhye Lee (zhses3@joseilbo.com)[View full article] Jose Ilbo - "One-stop entry into the U.S. and investment in Korea"... Daeryun-SJKP strengthens two-way cross-border cooperation (Click here) LoLeader - ‘One-stop’ for entry into the U.S. and investment in Korea...Daeryun-SJKP strengthens two-way cross-border support (Go here)

Recently, the Ministry of Employment and Labor announced the 2026 basic plan to investigate illegal receipt of employment insurance and began a large-scale special inspection on illegal receipt of unemployment benefits. In the past, if you only returned the amount you received illegally, you might be treated leniently or passed over quietly, but now the situation has completely changed. When caught, it has become difficult to avoid not only punitive additional collection of up to five times the amount of illegal benefits, but also heavy criminal punishment. Due to a moment of wrong judgment, they were left with a huge debt and faced an irreversible crisis. According to Article 116 of the current Employment Insurance Act, a person who receives unemployment benefits by lying or other illegal means is subject to imprisonment for up to 3 years or a fine of up to 30 million won. If a crime is committed in collusion with a business owner, the offender will be punished with imprisonment for up to 5 years or a fine of up to 50 million won. Hiding the fact of re-employment after leaving the company or income from part-time work, as well as false proof of job-seeking activities are all clearly illegal, and depending on the intentionality of the case and the scale of the damage, the possibility of even being charged with fraud and being sentenced to prison cannot be ruled out. A clear defense strategy from the early stage of the investigation is essential to prevent criminal punishment and excessive punitive recovery. Bluntly denying or making excuses for the charges will only be seen as an attempt to conceal the crime from investigative agencies and provide an excuse for aggravated punishment. Rather, you must acknowledge the facts, actively cooperate with the investigation, and objectively prove that there was no malicious intent to defraud by explaining that the act was accidental and unavoidable. In addition, promptly returning the full amount of illegally received funds and showing a sincere attitude of remorse are key requirements for eliciting leniency. No matter how severe the punishment is expected, going through this systematic explanation process can prevent the worst outcome. In fact, one case in which the author personally acted as the defense attorney and led to a non-indictment is a representative example. Client A received a total of 12 million won in unemployment benefits over 6 months. However, even though he was re-employed only two months after leaving the company, he submitted a false unemployment certificate to the employment center, and the approximately 8.5 million won he received after re-employment was caught as illegal, putting him at risk of heavy criminal punishment. The author focused on proving that Mr. A did not have malicious and deliberate intent to defraud. The extenuating circumstances, including the health difficulties and extreme economic hardship that Mr. A was experiencing at the time, were summarized as objective data and submitted to the investigative agency. In addition, Mr. A strongly expressed that he was deeply reflecting on all of his crimes and was actively cooperating with the investigation, and most importantly, he promptly and voluntarily returned the entire amount of money he had illegally received. Accordingly, the prosecution accepted the defense's arguments, including Mr. A's sincere attitude of remorse and the fact that the full amount of benefits was returned, and decided not to indict. Mr. A was able to safely avoid imprisonment and return to his daily life. In cases of illegal receipt of unemployment benefits, the results are sharply different depending on how the initial golden time before attendance at the Labor Office and police investigation is spent. Rather than hastily reacting out of embarrassment, the wisest solution to get out of a crisis is to collect fact-based evidence and systematically explain it with the help of a legal expert with extensive experience in criminal cases from the beginning of the case. Lawyer Wooyeonjin Woo of Daeryun Law Firm (Limited)[View full article] [Column] Amid the strengthening of crackdowns on illegal receipt of unemployment benefits, the importance of systematic explanation (link)

A man in his 40s was accused of assaulting and confining his wife who was in divorce proceedings, but the indictment was dismissed after proving that his wife's claims were unreliable. According to the legal community on the 17th, the Daegu District Prosecutor's Office Pohang Branch cleared Mr. A, a man in his 40s, who was transferred on charges of injury and confinement on the 26th of last month. Mr. A was accused of assaulting his wife, Mr. B, at their home in November of last year, causing two weeks worth of injuries, and confining her to prevent her from leaving the house until the next day. Ms. B claimed that her husband assaulted her face and other areas several times in front of her children. On the other hand, Mr. A denied all charges, saying that Mr. B was making false claims in order to gain an advantage in the divorce suit. Mr. A countered, saying, “At the time my wife said she was detained, she had already gone to work, and the children who were at home also stated that there had been no assault.” The prosecution acknowledged that there was a fight between A and B, but judged B’s claim that she had been assaulted to be unreliable. This is because the witnesses' statements that the assault did not occur were consistent, and Mr. B's statement regarding the injury and the contents of the medical certificate were different. Attorney Kim Hyun-soo of the Daeryun Law Firm, who represented Mr. A, said, "In this case, there were many circumstances in which the spouse made up untrue facts and filed a complaint to pressure the spouse during the divorce lawsuit. We quickly secured objective circumstantial evidence and the children's statements from the beginning of the case, and actively explored loopholes in the injury medical certificate submitted by the other party to protect Mr. A's right to defense. “There was,” he said. Reporter Jeong Cheol-wook[View full article] Wife sues husband to win divorce suit... Prosecutors do not indict man in his 40s on assault charges (link)

Expert on various risks by employment structure such as e-commerce, franchise, catering, manufacturing, etc. "2A union can be formed if there are more than one person.…Preemptive contract inspection required" After the implementation of the Yellow Envelope Act, the labor community's attention is focused on the distribution industry's employment structure that extensively utilizes multi-level subcontractors.. Logistics on site, service, There are voices saying that it is difficult to determine at what point usability issues will arise because each manufacturing industry has different contract types and work instruction methods.. Experts advise that subcontractors should be checked for signs of substantive control before a request for negotiation is made..17According to the distribution industry, e-commerce, department store, franchise, large supermarket, Potential issues under the Yellow Envelope Act appear differently depending on the employment structure and actual work control method of each industry, including food and beverage manufacturing.. Initially, the industry judged that mid-to-high-end sectors such as manufacturing and construction would be affected first, but the distribution industry, which is involved with outsourced manpower, is also trending to ignore risks..In the distribution industry, the first to request negotiations were the logistics sector, including the courier union and cargo union.. Accordingly, online and offline channel industries such as e-commerce platforms are directly affected.. In distribution channels, the logistics subcontract structure and the ratio of outsourced manpower utilization have increased due to competition in delivery speed.. The key issue is the usability issue for special types of workers such as delivery drivers.. Platform companies control the work of delivery drivers through algorithms and applications, but classify the contract type as individual business.. If the actual control of the main contractor, the platform headquarters, is proven, an obligation to negotiate with the subcontractor's union arises, and a breakdown may lead to a paralysis of the logistics network..In the department store, outlet, and duty-free industries, there is a dispatch risk arising from a specific purchase structure.. The majority of store sales staff are affiliated with the store brand rather than the distribution channel.. Observe business hours, If the distribution channel has a practice of directly controlling business operations, such as customer service manuals, it may be considered an exercise of actual control, and issues of usability may arise.. If evidence of direct work instructions from the main contractor is secured, financial pressure is likely to occur..In the franchise and convenience store industry, joint userability issues between franchisors and franchise owners are emerging.. The franchise headquarters provides logistics for brand unity., store management, Apply the service manual to franchisees. The store owner hires part-time workers, but working conditions and work intensity are subordinate to the headquarters manual.. The possibility has opened for workers at franchise stores to request direct negotiations with headquarters..Hypermarkets and the restaurant industry also face structural risks.. Large supermarkets have parking, US Dollar, The risk of direct employment was avoided by transferring security positions to subsidiaries, but the wage gap between employees directly managed by the headquarters and employees of subsidiaries remained an issue.. The practice of sending supplier employees to store management is also an issue.. Group catering companies entrust cooking and distribution staff.. If the primary contractor, the catering company, directly dictates the cooking time and hygiene standards, there is a possibility of user recognition.. The food and beverage manufacturing industry in-house subcontracts the production line., Logistics outsourcing, A complex subcontracting structure, such as dispatching promotional personnel, requires more detailed attention.. There is an urgent need to inspect subcontract contract actual control signs. There is a possibility that issues raised before the enforcement of the law will be rekindled with the implementation of the Yellow Envelope Act.. 2019In 2018, Lotte Mart hired suppliers’ employees without a separate written agreement. 906If the same situation is repeated, such as the case where a person was dispatched and was sanctioned by the Fair Trade Commission for illegal dispatch, legal liability may expand.. Hite Jinro 2022During the Korea Freight Workers' Solidarity Strike in 2011, the issue of whether the main contractor was responsible for direct negotiations emerged as an issue in relation to the demand for an increase in transportation rates by drivers belonging to logistics subsidiaries..The distribution industry is perplexed by unexpected risk exposure.. One industry insider said "Contrary to industry expectations before the implementation of the Yellow Envelope Act, the distribution industry appears to be exposed to risks first."saying "As distribution is a field directly related to people's livelihood, if labor-management conflict continues, it may also affect living prices."I was concerned.Experts advise that it is necessary to review subcontracts in advance before a request for negotiation is made.. Lawyer Bang In-tae of Daeryun Law Firm "There is no choice but to raise the standards for judging usability from past illegal dispatch lawsuits."as "Business hours that focus on the work itself rather than a contract that focuses on the outcome, dress code, If the work process is instructed in detail or the service fee is calculated based on the number of people and wages, you may be exposed to risk regardless of business type."said.Lawyer Bang continued: "For example, if a safety issue arises because the franchise headquarters imposes a dress code or enforces the use of certain machines, franchise workers can request negotiation with the headquarters."as "When a department store contracts with a cleaning subcontractor, if the service price is calculated in detail based on the number of people and wages involved, the target of wage negotiation for subcontracted workers is the main contractor, not the subcontractor's owner."explained. And then "It is a mistake to be confident that subcontractors do not have unions."He said "According to the union law 2Since it is possible to establish a union and request negotiation with just a name, management must be aware that the obligation to negotiate can arise at any time even without a large-scale national organization."added. Reporter Hwang Jeong-won (garden@sidae.com) [View full article] Distributors involved in dispatching, subcontracting, and franchises… Yellow Envelope Law Risks by Business Type (Shortcut)

For civil servants, the amount is ‘1 million won per time’, and for spouses, it is based on ‘job-relatedness’… The application of the law may vary depending on the type of sponsorship. In the wake of the controversy over famous YouTuber ‘Kwak Tube’ sponsoring a postpartum care center for the spouse of a public official, interest is focused on how the standards for receiving money and valuables differ between public officials and their spouses. Even if the sponsorship is the same, the standards for applying the law may vary depending on whether the public official receives it or his or her spouse receives it. Recently, Kwak Tube was at the center of controversy after it became known that it had received room upgrades and some services from a postpartum care center after the birth of a spouse's child. Kwak Tube said, “We confirmed through legal advice that it was a private contract unrelated to the spouse’s job,” but paid the difference in sponsorship as controversy arose. According to Article 8, Paragraph 1 of the Act on the Prohibition of Improper Solicitations and Receiving Money, etc. (Anti-Corruption Act), if a public official is assessed to have received money or valuables, regardless of job-relatedness, the contract exceeds 1 million won per time (3 million won per year). In principle, receiving, requesting, or promising money or valuables is prohibited. For this reason, it is pointed out that in this case, the legal judgment may be divided solely by the explanation that it is ‘not related to the job.’ This is because, regardless of the form of sponsorship, the amount standard can be applied if it is assessed that the actual benefit was enjoyed by the public official. The Anti-Corruption and Civil Rights Commission is said to have received a related complaint on April 10 and is reviewing the possibility of applying the law. On the other hand, when the spouse of a public official receives money or valuables, the standards for application are different. Money received by a spouse is a violation only if it is related to the public official's duties. Article 8, Paragraph 4 of the Anti-Graft Act stipulates that “the spouse of a public official, etc. is prohibited from receiving money or valuables in connection with the duties of a public official, etc.” Dae-soo Kim, general counsel at Daeryun Law Firm, explained, “If a spouse receives money or valuables, there is a possibility of violating the Anti-Graft Act only if it is related to the public official’s duties,” and explained, “The application of the law does not change depending on whether the spouse is an influencer or a member of the public.” Reporter Kim Jeong-ah ja.kim@ilyo.co.kr[View full article] The anti-graft law in light of the Kwak Tube controversy... Where do the criteria for application to public officials and spouses differ? (Shortcut)

BR Korea direct employment and Coupang CLS negotiations accepted… Most preemptive response industries are “keeping a close eye on the situation”… Pointing out the need for prior inspection Marking the first month since the implementation of the Yellow Envelope Act (Amendment to the Labor Union and Labor Relations Adjustment Act), which expanded the bargaining rights of subcontracted workers and limited liability for strike damages, the distribution industry's response was divided into three. While some companies are resolving legal disputes in advance or going through negotiation procedures, many companies are monitoring the situation without clear guidelines. According to Donghaeng Media Times' coverage on the 16th, each company in the distribution industry is responding to the characteristics of the industry by switching to direct employment, accepting negotiation within the law, and taking a wait-and-see approach. The most proactive types are those that changed their employment structure before legal disputes arose. BR Korea changed its employment structure to reduce the possibility of legal disputes. On the 8th of this month, the Chungju branch of the Ministry of Employment and Labor and the labor union announced a joint declaration between labor, management, and government, and directly hired all 180 production workers from HB Corporation, a partner company at the Eumseong factory in North Chungcheong Province. This is the result of three months of labor-management consultation. Baedal Minjok and E-Mart are examples of proactive responses to risks that were raised even before the enactment of the Yellow Bag Act. Woowa Brothers, the operator of Baedal Minjok, has regularized negotiations with the Delivery Platform Labor Union through its subsidiary Woowa Youth since 2020. Since 2013, E-Mart has converted its subcontracted and dispatched workforce to direct employment. At that time, more than 10,000 people were transferred to the headquarters. Some companies accepted the request for negotiation in accordance with legal principles. A representative example is the courier industry, where subcontractor unions have continued to be active. Under the Trade Union Act, the primary office that receives a request for negotiation must announce this, and if multiple unions exist, the representative negotiating union must be selected through the process of unifying the negotiation channel. CJ Logistics, Hanjin Express, Lotte Global Logistics, and Coupang CLS are currently waiting for the representative union selection process after receiving and responding to requests for negotiations from five courier unions. Industry officials said, “We will faithfully proceed with the negotiation process in accordance with relevant laws and regulations.” “Avoiding negotiation is a greater risk.” Check the contract structure first. Most distribution companies have not yet received a request for negotiation, so they are keeping an eye on the situation. However, the convenience store industry, such as GS Retail and BGF Retail, and e-commerce platforms, such as Musinsa, Avery, and Curly, have a high proportion of outsourced logistics, so guidelines need to be established. The food service industry, including Samsung Welstory, Our Home, and Hyundai Green Food, also has a large number of subcontractors. Each company is taking a cautious stance. An industry official said, "As the distribution industry involves various stakeholders such as partners, franchises, and logistics, we will respond carefully by examining the impact of system changes on the field." Concerns from the field were also raised. Industry insiders pointed out that "it is difficult to prepare proactive measures in a situation where there are no clear cases," "reckless demands may arise," and "the law was implemented with insufficient preparation for both workers and companies." Experts advise that even if a request for negotiation has not yet been received, subcontracts, etc. should be reviewed in advance. Attorney Bang In-tae of Daeryun Law Firm said, "It is natural for companies to lose their sense because a completely different order from the existing concept of user has been introduced," and pointed out, "Now is not the time to worry about whether or not to accept negotiations, but rather to consider each negotiation agenda." Attorney Bang continued, "The degree to which workers are dependent on the main contractor claiming to be the employer is a key indicator in determining usability." “If the processing process is instructed in detail or the service price is calculated based on the number of people and wages, you may be exposed to risk,” he said. He added, “Risk is more likely to arise from unprepared negotiation or avoidance than from incorrect negotiation,” adding, “It should be recognized as a problem not only in the human resources department but also in the overall management, which is connected to production, logistics, and legal affairs.” Reporter Hwang Jeong-won (garden@sidae.com)[View full article] Should we negotiate or wait and see? Temperature difference in distribution industry due to ‘Yellow Envelope Law in one month’ (Click here)

As the misuse of business loans for purposes other than their intended purpose is rapidly emerging as a key risk in the financial sector, a comprehensive investigation is in full swing. In the past, it was limited to sample inspections focusing on a few detected cases, but recently, the situation has changed with the financial authorities and the National Tax Service intervening simultaneously to track the entire process from loan execution to use of funds. In addition, there is a trend of strengthening crackdowns by investigative agencies. The National Police Agency announced that it conducted a 'special crackdown on real estate crime' for about 5 months from October 17 last year to March 15 this year, cracking down on a total of 1,493 people and sending 640 people, of which 7 people were arrested on serious charges. In particular, the Financial Supervisory Service and the National Tax Service are increasing the intensity of inspections as cases of real estate acquisition using business loans are accumulating, viewing this as an act of disrupting financial order and the real estate market. In this regard, the law firm Attorney Daeryun Shin Hye-jin emphasized, "If business loans and real estate acquisition are combined, it can lead to tax investigations and criminal liability beyond financial sanctions, so early management through cooperation with experts is essential." The following is a Q&A with Attorney Shin. Q. How is this full-scale real estate investigation conducted, and what are the key points that financial authorities look at first? ▲The core of the investigation is whether the purpose of the loan matches the actual use. This survey is not a simple sample check, but is conducted through comprehensive data analysis based on the financing plan. We collect all financing plans submitted when reporting home acquisition and classify them as business loans. Afterwards, financial institution loan data and National Tax Service reporting data will be cross-verified, and account flows will be analyzed to confirm whether the loan is connected to the real estate sale price, down payment, intermediate payment, or balance payment.Q. In what cases will it be detected? ▲The purchase of a home itself does not immediately lead to an illegality, but it may lead to investigation in cases where business loans are used directly as sales proceeds, when loan interest is treated as business expenses, or when real estate is acquired by lending corporate funds to individuals. In particular, if the loan flows through a personal account to the seller's account, or if the funds are transferred to a real estate transaction in a short period of time unrelated to the business, it may be judged as a loan for the purpose of acquiring real estate. In this case, corporate tax and additional taxes may be imposed due to denial of existing expenses.Q. What should I do if I have already purchased real estate using a loan, or if a problem is discovered during a thorough investigation? ▲Even if you have already acquired real estate using a loan, there is room for response. If you report corrections for evasion or voluntarily suggest a repayment plan before the financial institution's official notification of investigation, you can reduce the loss of overdue profits, reduction of additional taxes, and lower criminal risk. However, the timing of the revised report, method of explanation, submitted materials, and negotiation strategy vary greatly depending on the case. The National Tax Service can look into whether sales are omitted across the entire business, processing expenses, misappropriation of corporate funds, and mixing of personal and business funds, so it is important to review the law from the early stage.Q. If caught, what sanctions are there at the financial institution level? ▲Financial companies must check the suitability of business loans of 100 million won or more within 3 months after execution. If misuse other than the intended purpose is confirmed, the financial institution immediately recovers the loan, and the borrower's information is registered with the Korea Credit Information Service and shared with five financial industries, including banks, insurance, mutual finance, and credit-specialized financial institutions. If detected once, new loans may be restricted for 1 year, and if detected twice, new loans may be restricted for up to 5 years, which may affect overall business operations.Q. In what cases does it lead to criminal issues such as fraud? ▲The key is the intentional act of deception and defrauding at the loan application stage. If you stated that it was for business purposes but actually raised funds with the intention of purchasing real estate, you may be charged with fraud. In addition, if false business plans, sales data, tax invoices, or concealment of the use of funds are confirmed, this may lead to criminal charges. In particular, in the case of a corporation, if the representative used company funds to acquire a personal home, separate from fraud, the crime of business embezzlement under Article 356 of the Criminal Act may be raised. Because embezzlement at work is subject to aggravated punishment, the scope of criminal liability and level of punishment may be significantly heavier than for individuals.Q. How should I respond if I am notified of an investigation or if it leads to criminal proceedings? ▲It is most important to consistently organize the initial statement and direction for data submission. At the Financial Supervisory Service investigation stage, statements must be systematized focusing on the purpose of the loan and how funds were used, and at the National Tax Service response stage, all materials to prove the source of funds or business relevance must be prepared. At the criminal stage, the deceptive acts and intent to defraud, which are the requirements for establishing a crime of fraud, must be disputed in detail for each item, but a defense logic must be established in that criminal liability is not immediately established simply through simple violation of contract or change of use after the fact. In the end, depending on what and how this issue is explained, it could be the difference between whether it ends up as a tax risk, whether it escalates into financial sanctions, or whether it leads to criminal liability. Getting the initial response axis right actually determines the outcome. Eunhye Lee (zhses3@joseilbo.com)[View full article] "Blocking the source of misappropriation of business loans"... "Financial, tax, and criminal 'triple risks'" in joint comprehensive investigation (link)

‘Namu Wiki’, which is displayed at the top of online searches, is currently recording traffic that overwhelms that of large media companies and is having a significant impact on the formation of public opinion. However, behind the collective intelligence that anyone can edit, there is a fatal side effect of the indiscriminate distribution of unverified false information and malicious rumors. Unlike established media that go through strict fact checks, the structure without a minimum fact-checking process or even an editor in charge has become a hotbed of serious legal disputes. The biggest problem is evasion of the law through fragmentation of responsibility. Even if defamation or business damage occurs due to false information, it is not easy to realistically hold someone responsible. This is because it is difficult to identify malicious editors due to the nature of wikis where many people edit documents. The absence of identity verification and bypass access using a virtual private network (VPN) dramatically increase the difficulty of the investigation and ultimately lead to the ‘evaporation of responsibility phenomenon’, which causes victims to give up filing complaints. Holding the platform accountable also has clear limitations. According to Article 44-2 of the Information and Communications Network Act, when information that infringes on the rights of others is distributed, the information and communications service provider has the obligation to delete the information or take temporary measures at the request of the victim. Accordingly, Namuwiki is also taking temporary measures (temporary deletion of documents) against rights-infringing information. However, the 'transparency report', which discloses the information and reasons for victims' requests for relief, is causing further harm. This is because it triggers the ‘Streisand effect’, which amplifies controversy by stimulating the public’s curiosity, and encourages secondary harm. Deleted documents can also be rewritten after 30 days, so victims fall into the cycle of infinite deletion requests. Furthermore, the Supreme Court has ruled that if an information and communication service provider makes a profit by neglecting defamatory posts, it can be held liable for joint tort by aiding and abetting (see Supreme Court decision 2008 Da53812, etc.). Namu Wiki, headquartered in Paraguay, generates enormous domestic advertising revenue while hiding behind its own ineffective regulations and allowing the re-distribution of illegal information, which misrepresents the purpose of precedent. Even in this seemingly solid legal blind spot, there is a breakthrough to regain damaged rights. This is because some large law firms, including Daeryun Law Firm, where I belong, are providing services to track hidden perpetrators by simultaneously utilizing the legal systems of Korea and the United States. Specifically, it utilizes the U.S. court's discovery (evidence discovery) system to identify identity information of bypass users who accessed via overseas servers. Through this close cooperation between Korean and American lawyers, it becomes possible to take a practical response by holding users hiding behind anonymity directly civil and criminally responsible. Of course, structural problems cannot be justified just because an individual response is possible. Legislative and regulatory authorities must establish legal jurisdiction by strictly applying the domestic agent designation system to large platforms that avoid the law because they are overseas corporations. Furthermore, there is an urgent need to establish an institutional system that can impose effective sanctions in cases where platform management obligations under the Information and Communications Network Act are intentionally neglected. The rights and profits enjoyed by the platform must be accompanied by corresponding responsibilities. ● Contributions by external writers may differ from the editorial direction of this magazine. Gyeonggi Ilbo webmaster@kyeonggi.com[View full article] [Contribution] ‘Namu Wiki’ legal contradictions and the need for regulation (link)

A man in his 70s who was suspected of defrauding insurance money by repeatedly being admitted and discharged dozens of times was acquitted of charges. According to the legal community on the 15th, the Tongyeong Branch of the Changwon District Prosecutors' Office decided not to indict Mr. A, who was transferred on charges of fraud and violation of the Special Act on Prevention of Insurance Fraud on the 19th of last month. Mr. A received insurance money by repeatedly being falsely hospitalized for diseases such as lumbar spine and intervertebral disc disorders for about 10 years since 2008. He was accused of receiving it. The police believed that Mr. A had swindled more than 60 million won in insurance money and handed the case over to the prosecution. Mr. A completely denied the charges. He claimed that he only received long-term hospital treatment and hospitalization for an actual illness, and that there was no false hospitalization for the purpose of receiving insurance money. The prosecution found it difficult to acknowledge Mr. A's intentionality. In the case of insurance money received from 2008 to 2015, the statute of limitations has expired, and the insurance money of about 14 million won received in 2019 was also judged not to have been misappropriated by fraudulent doctors. Meanwhile, the prosecution ruled that the need for hospitalization treatment may vary depending on the patient's condition and the doctor's judgment, that actual treatment such as examination and surgery was performed during some hospitalizations, and that there are mixed evaluations of the appropriateness of medical treatment. It was cited as the basis for the disposition. In addition, taking into account the fact that Mr. A had maintained the insurance contract normally for a long period of time and the level of insurance premiums was also difficult to consider excessive, it was judged that it was difficult to conclude that there was a purpose for defrauding. Attorney Cho Ik-cheon of the Daeryun Law Firm, who represented Mr. A, said, "We focused on the fact that there was a need for actual treatment by comparing the medical records and treatment progress." “We have proven that there was no intention through legal principles that are difficult to determine,” he said. Reporter Kwon Byeong-seok (bsk730@fnnews.com)[View full article] People in their 70s suspected of stealing tens of millions of won in insurance money... Non-indictment disposition (link)