Embezzlement and the Crime of Embezzlement

For embezzlement to be recognized, the following requirements must be satisfied.

① The property must belong to another

② The person must be holding another's property in custody

③ There must be an intent of unlawful appropriation (the intent to use the property as one's own)

④ There must be an act of embezzlement

Embezzlement is established when a person who keeps another’s property unlawfully embezzles that property.

Breach of trust, by contrast, is established when a person who handles another’s affairs commits an act in violation of his or her duty, thereby obtaining a pecuniary benefit or causing a third party to obtain one, and thereby causing loss to the principal.

Occupational embezzlement is established when ‘a person performing a duty keeps and holds another person's property in custody’ and embezzles that property.

Here, ‘duty’ refers to work that is repeated and continuous.

Holding another person's property in custody does not necessarily apply only where one earns a living or receives remuneration from that work; it is sufficient if the property is held in connection with one's duty.

It is also not necessary that remuneration or benefit be received in holding the property.

Misappropriation of lost property refers to a case in which another person's property is acquired through improper means.

Here, ‘lost property’ means an item that someone has lost.

For example, one may consider a case in which a person picks up another's item or money on the street.

An item dropped on the street originally had an owner, but through being lost it is regarded as temporarily out of that person's possession, and in such a case misappropriation of lost property applies.

Where embezzlement involves 500 million won or more, it is punished under the Act on Aggravated Punishment of Specific Economic Crimes.

Article 3 of the Act on Aggravated Punishment of Specific Economic Crimes

The statute of limitations for prosecution for simple embezzlement is seven years, and a statute of limitations of ten years applies to occupational embezzlement.

When notified of questioning by the police or the prosecutors' office, a person must attend, and before attending should carefully organize the circumstances of the case and the related evidence.

The matters that should be prepared before questioning are as follows.

If you deny the charges, a simple denial may be disadvantageous, so the relevant legal principles and evidence must be thoroughly reviewed.

In order to obtain a reduction of punishment, it is very important to clearly demonstrate active efforts to promptly remedy the harm on one's own and a sincere attitude of remorse for the offense.

Embezzlement in the context of an occupational relationship may carry a higher level of punishment, and it is a serious matter that may lead not only to economic loss but also to criminal punishment.

Daeryun LLC responds with criminal law specialist attorneys who have backgrounds in the courts, the prosecutors' office, and the police at its core, forming a task force of 1 to 20 members together with specialists in related fields according to the scale and difficulty of the case.

In addition, through collaboration with an evidence investigation center (a partner company), it analyzes a range of materials, including accounting ledgers, bankbook transaction records, contracts, emails, and communication records, and accurately ascertains the facts.

On this basis, it closely reviews the legal issues and establishes a response strategy favorable to the client.

If you are in a situation that requires an investigation or response concerning embezzlement, please confirm a response strategy suited to your current situation through a 🔗criminal attorney legal consultation reservation.

Daeryun, the 9th-ranked law firm in the Republic of Korea (based on 2025 National Tax Service value-added tax filings), supports the resolution of cases through the systematic strategy of legal specialists across multiple fields.