CONTENTS
- 1. Act on Aggravated Punishment of Specific Economic Crimes | Content
- - Types
- - Differences from the General Crime of Fraud
- 2. Act on Aggravated Punishment of Specific Economic Crimes | Penalty Levels
- - Aggravated Punishment of Specific Property Crimes
- - Crime of Flight of Property Abroad
- - Crime of Receiving Bribes and Related Offenses
- - Penalty Levels as Seen Through Relevant Case Law
- 3. Act on Aggravated Punishment of Specific Economic Crimes | Methods of Response
- - When an Inquiry Is Imminent
- - Seeking to Reduce the Penalty
- 4. Act on Aggravated Punishment of Specific Economic Crimes | When Responding Alone Is Difficult
1. Act on Aggravated Punishment of Specific Economic Crimes | Content
The Act on Aggravated Punishment of Specific Economic Crimes is a special act that provides for the aggravated punishment of specific economic crimes and specific property crimes.
A person involved in a case subject to this Act may have the profit gained from the crime confiscated or its equivalent value collected, and may be subject to a restriction on employment for a certain period.
Imprisonment and a fine may also be imposed together, and where this Act applies, life imprisonment may be imposed for a property crime.
Types
If the charge under the Act on Aggravated Punishment of Specific Economic Crimes applies, identifying the scale of the gains obtained from the crime becomes the most important issue.
The crimes to which the Act on Aggravated Punishment of Specific Economic Crimes applies are as follows.
Fraud by use of a computer
Extortion and special extortion
Embezzlement and breach of trust
Crime of flight of property abroad
Acceptance and offering of bribes
Differences from the General Crime of Fraud
Fraud is a commonly encountered crime, but the crime of fraud subject to the Act on Aggravated Punishment of Specific Economic Crimes is by no means a minor or commonly encountered matter.
In the case of fraud under the Act on Aggravated Punishment of Specific Economic Crimes, there are significant differences not only in the level of punishment but also in the investigative authority that handles and investigates the case and in the composition of the panel that handles the trial.
If a charge of violating the Act on Aggravated Punishment of Specific Economic Crimes applies, an actual custodial sentence may be imposed even where a settlement with the victim is reached, so effort should be devoted to submitting materials for consideration in sentencing, and an active response at the early investigation stage is important.
2. Act on Aggravated Punishment of Specific Economic Crimes | Penalty Levels
The levels of punishment under the Act on Aggravated Punishment of Specific Economic Crimes are as follows.
Aggravated Punishment of Specific Property Crimes
Certain property crimes, such as fraud and fraud by use of a computer, are included among the subjects of aggravated punishment.
Article 3 of the Act on Aggravated Punishment of Specific Economic Crimes
Where the value of property or pecuniary benefit obtained, or caused to be obtained by a third party, through fraud, fraud by use of a computer, extortion, embezzlement, or breach of trust is 500 million won or more | Where the amount of gain is 500 million won or more but less than 5 billion won : imprisonment for a definite term of 3 years or more |
| Where the amount of gain is 5 billion won or more : life imprisonment or imprisonment for 5 years or more (a fine of up to the amount of the gain may be imposed concurrently) |
Crime of Flight of Property Abroad
The crime of overseas flight of property refers to a crime in which, in violation of statutes, the property of the Republic of Korea or of a Korean national is moved overseas, or property that should be brought into the country is concealed or disposed of and hidden overseas.
An attempt may also be punished by the penalty corresponding to each crime.
| Article 4 of the Act on Aggravated Punishment of Specific Economic Crimes | Imprisonment for a definite term of at least one year, or a fine equivalent to between 2 and 10 times the value of the object of the relevant crime |
If the amount of property flight is 500 million won or more, aggravated punishment is imposed according to the following classification.
| Where the amount of property flight is at least 500 million won and less than 5 billion won | Imprisonment for a definite term of at least five years |
| Where the amount of property flight is 5 billion won or more | Life imprisonment or imprisonment for at least 10 years |
Crime of Receiving Bribes and Related Offenses
In any of the following cases, a person may, under Article 5 of the Act on Aggravated Punishment of Specific Economic Crimes, be subject to imprisonment of up to 5 years or suspension of qualification for up to 10 years.
② Where an executive or employee of a financial company or similar entity, having received an improper solicitation in connection with their duties, provides, demands the provision of, or promises money, goods, or other benefits to a third party
③ Where an executive or employee of a financial company or similar entity, using their position, receives, demands, or promises money, goods, or other benefits in connection with mediation relating to the duties of an executive or employee of the company to which they belong or of another financial company
If the value of the money, goods, or other benefits received, demanded, or promised is 30 million won or more, aggravated punishment is imposed according to the following classification.
| Where the amount received is 30 million won or more but less than 50 million won | Imprisonment for a definite term of at least 5 years |
| Where the amount received is 50 million won or more but less than 100 million won | Imprisonment for a definite term of at least 7 years |
| Where the amount received is 100 million won or more | Life imprisonment or imprisonment for at least 10 years |
Penalty Levels as Seen Through Relevant Case Law
Ulsan District Court, Judgment of November 26, 2021, 2020 Gohap 183
Thereafter, the defendant continued to request investments and the raising of funds, telling false facts to multiple victims in the same manner.
Ultimately, through such deceptive conduct, the defendant received a total of 2.5 billion won from the victims, and
3. Act on Aggravated Punishment of Specific Economic Crimes | Methods of Response
The risks of the Act on Aggravated Punishment of Specific Economic Crimes should not be overlooked, given its broad scope of application and very strict level of punishment.
In particular, where the amount of gain from a property crime is large, life imprisonment may be imposed, so a thorough legal response from the early stage is necessary.
When an Inquiry Is Imminent
If you have been contacted by an investigative agency on suspicion of a violation of the Act on Aggravated Punishment of Specific Economic Crimes, or are about to undergo an investigation, your statements can directly affect not only the level of punishment but also whether you are indicted and the outcome of the trial, so advance preparation is crucial.
You should first organize the following matters.
▷ A statement strategy that may change depending on the statements of accomplices or co-conspirators
▷ Supporting materials regarding intent and the intent of unlawful acquisition
Seeking to Reduce the Penalty
Under the Act on Aggravated Punishment of Specific Economic Crimes, aggravated punishment applies when the amount of the crime exceeds a certain threshold (for example, 500 million won in the case of fraud, and 500 million won or more for embezzlement and breach of trust), and in some amount ranges a statutory minimum sentence is set, so there are cases in which a fine cannot be chosen.
Therefore, rather than acknowledging the entire alleged amount or confessing unconditionally, a person should respond by carefully weighing the following points.
▷ Proof of where or for what purpose the money was used (demonstrating lawful use rather than misappropriation)
▷The possibility of settlement with the victim and whether partial repayment has been made
4. Act on Aggravated Punishment of Specific Economic Crimes | When Responding Alone Is Difficult
If you need a legal review of whether the Act on Aggravated Punishment of Specific Economic Crimes applies, or a response to defend against punishment, you are welcome to consult with the criminal specialist attorneys of Daeryun Law Firm at any time.
This firm includes a number of experienced specialist attorneys, allowing it to quickly grasp the characteristics of a case and the method of calculating the amount of gain and to present a response plan.
In addition, in cooperation with its in-house evidence examination center, the firm systematically collects the materials needed to prove the facts and prepares an effective defense strategy.
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