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Criminal Risks Faced by the At-Fault Driver After a Traffic Accident

Immediately after an accident, many at-fault drivers experience confusion when they are contacted by investigative authorities, even after having completed insurance reporting procedures.
 

Questions commonly arise, such as:

“Why is a criminal process involved if insurance has already been applied?”
“Is imprisonment possible if no settlement is reached?”
 

Not all traffic accidents lead to criminal punishment.
 

However, criminal liability becomes an issue in cases involving fatal accidents, serious bodily injury, or accidents falling under one of the 11 statutory exceptions set forth in the proviso to Article 3(2) of the Act on Special Cases Concerning the Settlement of Traffic Accidents.
 

Article 268 of the Criminal Act provides that a person who causes death or injury to another through occupational negligence or gross negligence may be punished by imprisonment for up to five years or a fine of up to KRW 20 million.
 

Where an accident falls under the exceptions of Article 3(2) of the Traffic Accident Special Cases Act, or where the driver is not covered by comprehensive insurance, criminal punishment may apply, and depending on the severity of the case, the possibility of actual imprisonment cannot be ruled out.
 

The Meaning and Role of Criminal Settlement Payments in Traffic Accidents

Criminal settlement payments in traffic accident cases are not merely civil compensation for damages.
 

In criminal proceedings, they serve as a significant sentencing factor in assessing whether meaningful victim recovery has occurred.
 

Where a criminal settlement is reached, and where prosecution cannot be initiated against the victim’s explicit will pursuant to the main text of Article 3(2) of the Traffic Accident Special Cases Act, a decision of non-referral or dismissal due to lack of prosecutorial authority may be possible.

Even in other cases, prosecutorial discretion such as suspension of indictment may be considered, and at the trial stage, the settlement may affect decisions regarding imprisonment or suspended sentences.
 

What investigative authorities and courts focus on is not “how much was paid,” but whether the victim’s damage has been substantively remedied and how the offender has fulfilled their responsibility.
 

Offering an excessive settlement amount does not automatically result in leniency, and a purely formal settlement is unlikely to yield meaningful mitigation.
 

In such cases, the core issue is not the amount of money, but the legal significance of the settlement within the criminal process.
 

Limitations of Attempting a Criminal Settlement Without Legal Representation

When an at-fault driver attempts to negotiate directly with the victim, several risks arise:
 

• Failure of settlement due to emotional confrontation

• Statements that may adversely affect the criminal investigation

• Drafting settlement agreements with unclear legal validity

• Issues concerning the validity and potential withdrawal of a letter of non-punishment

The timing of the settlement is also critically important.
 

A settlement reached at an early investigative stage may work favorably toward non-referral or suspension of indictment. However, a settlement reached after the commencement of trial may only be partially reflected in sentencing and may have limited impact on whether imprisonment is imposed.
 

In particular, settlements reached at the Supreme Court stage cannot be reflected in sentencing, making careful judgment regarding timing essential.
 

Even well-intentioned attempts to resolve the matter may lead to unfavorable outcomes, demonstrating the clear limitations of handling criminal settlement matters independently.
 

Decent Law Firm’s Approach to Criminal Settlement in Traffic Accident Cases

Decent Law Firm begins by diagnosing the applicable legal provisions and criminal risks faced by the at-fault driver from the earliest stage of the case.
 

• Determination of whether a criminal settlement is necessary

• Tailored strategies for each stage: police, prosecution, and trial

• Conducting settlement negotiations through legal representation to prevent emotional conflict

Settlement terms and language are thoroughly reviewed, and following settlement, procedures are systematically linked, including submission of opinions requesting non-referral or suspension of indictment and organization of sentencing materials.
 

If criminal charges are being discussed and there is uncertainty regarding the appropriate settlement amount or method, early legal consultation is critical.
 

Traffic accident criminal settlement payments are not about “how much to pay,” but about choosing the right response at the right time.
 

An incorrect decision may lead to irreversible consequences, while appropriate legal assistance can change the direction of the case.
 

If you are struggling with this issue, you do not have to handle it alone.
 

Before it is too late, even a brief consultation with a legal professional is strongly recommended before proceeding with the case.