FSS Special Judicial Police Investigations: Why You Need a Lawyer Before the First Interview
When an FSS Inquiry Becomes a Criminal Investigation
From April 2026, the Financial Supervisory Service's Special Judicial Police (특사경) gained the authority to initiate independent investigations without first going through the Securities and Futures Commission or obtaining a formal prosecutorial referral.
In practical terms, this means that a search and seizure, communications inquiry, or other coercive investigative measure can now follow directly from an FSS inquiry — with far less warning than before.
Previously, there was a buffer period between the FSS identifying a potential violation and formal criminal proceedings beginning. That window allowed companies time to review the facts internally, develop a response strategy, and retain counsel.
Under the new framework, that buffer has effectively disappeared.
Your First Statement Can Become the Basis for a Search Warrant
Under the new investigative model, statements made and documents submitted during an FSS inquiry can become the foundation for a search and seizure warrant — and for the prosecution's case that follows.
The scope of materials that may be seized is broader than most people expect: office servers, employees' mobile phones, laptops, messaging records, transaction histories, and disclosure-related documents are all potential targets.
In cases involving alleged violations of the Financial Investment Services and Capital Markets Act (FSCMA), investigators will focus heavily on internal communications and decision-making processes to establish intent and coordination. How questions are answered in the inquiry room can directly influence whether intent or conspiracy is inferred.
The first statement given is extremely difficult to walk back. Getting it right from the start is not just advisable — it is critical.
Why Legal Counsel Is Needed From Day One
Capital markets cases turn not on facts alone but on how those facts are legally characterized. The same conduct may be an ordinary investment decision, insider trading, or market manipulation depending on the legal framework applied — and the consequences vary dramatically.
Early legal involvement makes a concrete difference in the following areas:
- Defining the scope of answers and the direction of the account before the first interview
- Responding appropriately to questions that embed legal conclusions
- Preventing unnecessary admissions or speculative statements
- Managing the scope of document production and anticipating search and seizure risk
Under the new investigative framework, the approach of waiting to respond until after the inquiry is over is itself a risk. By the time the first interview concludes, the direction of the investigation may already be set.
When Should You Call a Lawyer?
In an environment where investigation and prosecution are effectively merged, response speed is defensive strength. The earlier in the process counsel is retained, the better the likely outcome.
Stage 1: When the possibility of an inquiry is identified internally
Stage 2: Upon receiving official notice of an FSS investigation
Stage 3: Before attending the first interview
⚠️ A first statement given without preparation can lock in a disadvantageous position that carries through to prosecution and trial. At minimum, a response strategy should be in place before any interview is attended.
Decent Law Firm's Financial Crime Team
Decent Law Firm's financial crime team provides integrated defense across the full arc of FSCMA and financial crime cases — from FSS inquiry through prosecution to trial.
In an environment where the first one or two statements can determine the outcome of a case, we focus on three things: blocking unnecessary admissions, constructing a consistent and legally sound account, and preparing proactively for the possibility of search and seizure.
If you have received notice of an FSS investigation, or if a potential FSCMA issue is on your radar, please contact us. We will design a defense strategy built around your specific situation.
