-
BlogsFSS 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.
2026-03-24 Naver Blog -
Blogs
Setting Up a Company in Dubai: Mainland, Freezone, and Tax Structure Explained
Inquiries about setting up a company in Dubai have increased noticeably in 2026. The ability for foreigners to hold 100% ownership, a relatively streamlined incorporation process, and a wide range of Free Zone options have made Dubai a particularly attractive destination for businesses in IT, fintech, and digital assets. Mainland, Freezone, Offshore — What Is the Difference? Dubai company structures fall into three main categories. A Mainland company is essentially a standard operating entity that can trade directly in the local UAE market. A Free Zone company offers 100% foreign ownership, packaged licensing options, and bundled office and visa arrangements — making it the most popular choice among Korean businesses. An Offshore company is generally used for holding structures, investment vehicles, or asset management purposes rather than local operations, and is typically only considered when the purpose is clearly defined. Type Key Features Best For Mainland Direct access to UAE local market; local sponsor may be required depending on industry Local retail, F&B, service businesses Freezone 100% foreign ownership, tax benefits, straightforward visa processing IT, trading, consulting — most popular among Korean companies Offshore No local operations permitted; used for holding and asset management Holding companies, investment vehicles, asset management The 9% Corporate Tax Era — Are Free Zones Still Tax-Efficient? The old assumption that Dubai means zero corporate tax no longer tells the full story. The UAE has introduced a federal corporate tax of 9%, which applies in principle to all Dubai-registered companies. However, Free Zone entities that meet certain conditions may still qualify for a 0% tax rate on specific categories of income. The key point is that Free Zone status does not automatically guarantee a 0% rate. The outcome depends on which Free Zone is selected, where the revenue is generated and from which clients, and where the actual staff and office are located. This is why tax structuring should be part of the incorporation process from the outset, not an afterthought. What to Check Before Choosing a Free Zone Selecting a Free Zone based solely on cost can create serious complications down the line — particularly when it comes to license renewals and opening a corporate bank account. Industry fit: For crypto and Web3 businesses, a Free Zone with a well-developed regulatory sandbox (such as those aligned with VARA) is essential. Operational substance: Consider the office requirements, the number of visas needed, and how demanding ongoing compliance will be in practice. Scalability: Whether the business is service-based or trade-focused will determine which type of license is appropriate — and the right answer varies significantly between the two. Why Crypto and Web3 Projects Choose Dubai Establishing a Dubai entity goes beyond simply setting up an overseas company. It is closer to building a global base of operations — a hub through which to engage international partners, exchanges, and investors. In practice, a common structure involves a Korean entity handling development and operations, while the Dubai entity serves as the contracting and relationship hub for global counterparties. How the token issuance vehicle is structured will significantly affect the regulatory, tax, and governance picture, making early-stage design essential. Decent Law Firm's International Practice Team Decent Law Firm's international practice team provides integrated structural design that accounts for international tax, foreign exchange regulations, and digital asset compliance — drawing on hands-on experience with Dubai Free Zones, local banks, and regulatory authorities. This is not a filing service. We work with clients to design a structure across Korea, the UAE, and other jurisdictions that minimizes risk and maximizes utility. If you are considering a Dubai entity — even at the early idea stage — please reach out, and we will map out the options that fit your situation.
2026-03-23 Naver Blog -
Blogs
School Violence in Korea: What Parents Need to Know About School Violence Committees, Juvenile Justice, and Legal Procedures
If you receive a call saying your child was bullied at school — or that your child has been identified as the aggressor — most parents feel completely lost about what comes next. School violence in Korea does not end with a teacher's reprimand. It can escalate into a review by the district School Violence Committee (학폭위), a criminal complaint, a juvenile court hearing, and in serious cases, placement in a juvenile detention facility. Recently, public debate has emerged around lowering the age threshold for juvenile offenders from 14 to 13, meaning even cases involving elementary and middle school students can no longer be treated lightly. How a School Violence Case Unfolds Once an incident is reported, the homeroom teacher or principal notifies the district Office of Education, which then determines whether to convene a School Violence Committee (학교폭력대책심의위원회). Minor cases may be resolved at the school level, but most are referred to the committee, which reviews the facts and determines the appropriate disciplinary measure. If the conduct constitutes a criminal offense — such as assault, injury, threats, sexual violence, or cyberbullying — the victim's family may file a separate criminal complaint with police. It is important to note that the School Violence Committee process and criminal or juvenile court proceedings can run simultaneously. Disciplinary measures range from Level 1 (written apology) to Level 9 (expulsion). These are not merely school-level sanctions — they are recorded in the student's academic file and can affect university admissions and school transfers, leaving a long-term impact on both the victim and the offender. When the Offender Is a Juvenile Under 14 If the offending student is between 10 and 14 years old, they are classified as a juvenile offender under Korean law and are not subject to criminal punishment. Instead, the case is handled under the Juvenile Act and referred to the Family Court's juvenile division, where a protective disposition is issued. Protective dispositions range from Level 1 (supervision by a guardian) to Level 10 (placement in a juvenile reformatory). The higher the level, the greater the restriction on the child's freedom and the more significant the social stigma. With ongoing discussions about lowering the juvenile offender age to 13, it is no longer safe to assume that cases involving young children fall entirely outside the scope of juvenile court proceedings. The Outcome Is Often Decided Before the Committee Meets In many school violence cases, the direction of the outcome is already set before the School Violence Committee convenes. How a party responds in the early stages — before the first written statement, before the committee is called, before a police interview — can significantly shape the entire process that follows. These cases move faster than most people expect. From the moment the school becomes aware of an incident, a committee hearing typically takes place within a matter of weeks. If criminal or juvenile court proceedings follow, the window for preparation becomes even shorter. Within that time, the affected party must establish the direction of their account, organize the evidence, and prepare for the other side's claims. The first written statement submitted becomes the reference point for everything that follows — the committee members, the police, and the juvenile court judge will all scrutinize its consistency and credibility. A statement written in haste, driven by emotion, or containing inaccuracies is very difficult to correct later. And once a School Violence Committee ruling or a juvenile protective disposition is issued, overturning it through an appeal process is rarely straightforward in practice. When Should You Consult a School Violence Lawyer? If a medical certificate has been issued, or if the case involves group bullying, persistent exclusion, sexual misconduct, or the distribution of recordings, legal counsel should be sought from the very beginning. Where criminal proceedings or a juvenile court referral are anticipated, careful preparation — separate from the committee process — is essential. Once the seriousness of a case becomes clear, there is no time to delay in reviewing your options. Decent Law Firm's school violence team handles the full process — from the School Violence Committee through criminal and juvenile court proceedings — starting from the initial consultation through to resolution.
2026-03-20 Naver Blog -
Blogs
Inheriting Crypto from Binance and Other Overseas Exchanges: What Heirs Need to Know
If a family member passed away while using overseas exchanges such as Binance, Bybit, or KuCoin, the cryptocurrency remaining in their accounts is part of their estate. Unlike a domestic bank account, however, the process is far from straightforward. Most heirs have no idea where to begin. Crypto Held on Overseas Exchanges Is Part of the Estate The fact that an exchange is based overseas does not exclude its assets from inheritance. Any asset with economic value is subject to estate laws, regardless of where it is held. The following types of crypto assets are typically included in the estate: Coins held in spot and futures accounts on overseas exchanges such as Binance, Bybit, and KuCoin Assets held in sub-accounts, Earn/staking products, Launchpad/Launchpool, and similar products Stablecoins such as USDT and USDC, as well as altcoins and tokens of all kinds Coins stored in personal wallets such as MetaMask or hardware wallets The challenge is that, unlike domestic bank accounts, there is no centralized system for looking up balances across exchanges. Heirs must track down every exchange and wallet the deceased used on their own. This typically requires piecing together evidence from emails, text messages, OTP apps, exchange notification emails, and bank transaction records. Why Inheriting from Overseas Exchanges Is So Complicated Overseas exchange accounts are built around a single-user model. From account registration and KYC verification to two-factor authentication, everything is tied to the account holder personally. Even as a legitimate heir, you cannot simply log in or withdraw funds. ⚠️ Important: Attempting to access the account without authorization carries serious legal risk. Guessing login credentials or bypassing 2FA to move assets could expose you to criminal or civil liability. If there are multiple heirs, it could escalate into a dispute over embezzlement, breach of fiduciary duty, or unjust enrichment. Each exchange also has its own inheritance process and documentation requirements. Some, like Binance, have a formal inheritance procedure in place. Others have no published guidelines at all and handle requests case by case via email. If the account was registered under a non-Korean nationality — such as a European or Japanese address — the exchange may require documents that conform to that country's legal standards. When multiple heirs are involved, some exchanges require signatures and consent from all parties, which can stall the process for months if family cooperation breaks down. Three Problems That Are Hard to Solve Alone These are the most common difficulties heirs encounter in practice. ① The documentation cycle Even after contacting customer support, heirs often receive nothing more than a generic reply asking for proof of death and proof of heirship. Submit one set of documents, and the exchange asks for another. Misunderstandings in English-language correspondence can send the process back to square one. ② The estate tax deadline If the tax filing deadline arrives before the crypto has actually been recovered, heirs face a separate problem: which date's price should be used for valuation, and how should the filing be handled? Missing the deadline or filing incorrectly can result in significant penalties and surcharges. ③ Disputes among co-heirs One heir may want to recover and divide the assets quickly, while another delays or refuses to cooperate on documentation. If one heir accesses the account and moves assets unilaterally before an agreement is reached, it can give rise to claims of embezzlement or unjust enrichment against them. Decent Law Firm's Five-Step Process Decent Law Firm's dedicated digital asset team handles inheritance cases involving not only domestic exchanges such as Upbit and Bithumb, but also overseas exchanges including Binance. ① Identifying the deceased's crypto holdings We begin by reviewing emails, mobile records, 2FA apps, and transaction histories to build a complete picture of every exchange account and wallet involved. ② Structuring the estate and tax strategy We assess the composition of heirs, the existence of a will, the proportion of crypto relative to other assets, and the optimal approach to estate tax filing — helping the family reach a clear agreement on how assets will be divided. ③ Analyzing each exchange's requirements and preparing documentation We review the inheritance procedures and requirements for each overseas exchange, then design the appropriate authentication process — including translation, notarization, and Apostille certification where required. ④ Filing inheritance claims and supporting asset recovery We handle all English-language correspondence with the exchanges, manage document submission, and respond to follow-up requests — working to ensure the inherited crypto is transferred safely into the heirs' accounts. ⑤ Estate tax filing and ongoing risk management We oversee valuation timing, exchange rate application, and tax return preparation, while accounting for the risk of future tax audits or disputes. Not sure where to start? Let's talk first The decisions made early in an overseas crypto inheritance case can significantly affect the odds of recovery, the time it takes, the tax burden, and the likelihood of family conflict. Decent Law Firm's digital asset team is with you from the initial consultation through to final recovery and tax resolution.
2026-03-19 Naver Blog -
Blogs
Penalties for Unpaid Wages: If You Are an Employer, This May Be Your Critical Opportunity to Respond Properly
Unpaid Wages Are No Longer Just a “Civil Matter” Failure to pay wages is no longer treated as a simple contractual or civil issue. It may result in criminal liability under the Labor Standards Act. In particular, recent legislative amendments have significantly strengthened the maximum penalties applicable to employers involved in unpaid wage cases, increasing the maximum sentence from up to three years’ imprisonment to up to five years’ imprisonment. Under the revised law, the maximum penalty for employers responsible for unpaid wages has been increased from: Up to 3 years’ imprisonment or a fine of up to KRW 30 million to: Up to 5 years’ imprisonment or a fine of up to KRW 50 million This means unpaid wage cases are no longer matters that simply end with administrative fines. Employers must now realistically consider the possibility of actual imprisonment. The Initial Response During the Investigation Stage Determines the Outcome The moment a criminal complaint regarding unpaid wages is filed, criminal proceedings effectively begin. At this stage, the following factors become critically important: ① Whether there was intentional misconduct ② The employer’s actual financial ability to make payment ③ Efforts made toward repayment or settlement Investigative authorities do not focus solely on whether wages were unpaid. They place significant weight on how the employer responded to the situation. Depending on the employer’s initial statements and conduct, the case may be viewed either as: “Malicious and intentional nonpayment of wages,” or “An unavoidable financial or managerial difficulty” This distinction often has a direct and substantial impact on the severity of punishment. Why Legal Representation Matters One of the biggest mistakes employers make in wage-related cases is assuming: “I’ll just attend the investigation first and deal with it later.” However, once a statement is submitted during an investigation, it cannot easily be reversed. Legal counsel plays an essential role in areas such as: Legally restructuring and explaining the circumstances surrounding the unpaid wages Organizing evidence demonstrating payment intent and repayment efforts Designing settlement strategies and determining the appropriate timing Establishing an effective response strategy toward investigative authorities In unpaid wage criminal cases, whether and when a settlement is reached often becomes one of the most decisive factors affecting the final outcome. There are many cases where employers either attempt settlements recklessly or, conversely, neglect the matter entirely, ultimately worsening the situation. Improper handling of the case may lead not merely to fines, but to actual imprisonment. This is therefore not an issue that should ever be taken lightly. Decent Law Firm’s Response Strategy Decent Law Firm approaches unpaid wage cases not merely from the perspective of defense, but with a primary focus on minimizing criminal liability and overall legal risk. Our main response strategies include: Analyzing the structural causes of unpaid wages and narrowing the scope of liability Establishing strategies to demonstrate lack of intentional misconduct Designing phased settlement processes Simultaneously managing criminal proceedings and related civil risks In particular, wage-related disputes arising during business operations require a structural and strategic approach rather than the type of response typically used in ordinary individual disputes. By combining expertise in both labor law and criminal law, Decent Law Firm provides strategies focused on achieving practical and meaningful results. Now that criminal penalties have already been significantly strengthened, the decisions made at this stage may ultimately determine whether criminal punishment is imposed. If you are currently facing concerns regarding this issue, establishing the right direction now may substantially change the outcome of the case. This is not the time to allow the problem to escalate. It is the time to strategically control and minimize legal risk.
2026-03-17 Naver Blog -
Blogs
The Revised Yellow Envelope Act Is Now in Effect: The First Thing You Need to Check
Key Changes to Articles 2 and 3 of the Labor Union Act (Yellow Envelope Act) “Does this mean our company could now be held responsible for issues involving subcontractor employees?” This is a question increasingly being raised in real business environments. The revised Yellow Envelope Act, which took effect on March 10, 2026, is not merely a technical amendment to statutory language. It represents a major institutional shift that strengthens the authority of labor unions and fundamentally redefines the scope of employers’ responsibilities. The key changes introduced by the amendment include: Substantial expansion of the definition of “employer” Expansion of the scope of recognized labor disputes New grounds for reducing or limiting damages claims against labor unions Ultimately, the core implication is clear: labor unions now possess broader bargaining power, while companies face increased legal responsibility. As a result, companies must comprehensively review their contractual structures and internal decision-making processes, while labor unions must prepare lawful response strategies aligned with their newly expanded authority. The extent of advance preparation will ultimately determine the scale of future legal risk. The following response measures therefore deserve close attention. Key Response Points for Companies and Labor Unions Through this amendment, the scope for recognizing a principal contractor as an employer has broadened significantly, while limitations on damages claims have substantially changed the landscape of labor-management relations. From the corporate perspective, companies must carefully assess the extent to which they exercise control over working conditions within indirect employment structures such as subcontracting and outsourcing arrangements. If a principal contractor substantially influences employees’ working conditions, bargaining obligations may arise. Accordingly, companies may need to revise contractual provisions and approval procedures. In workplaces where multiple labor unions exist, it is also essential to establish strategies for responding to successive bargaining requests. To address these issues, companies should establish: Standards for unified bargaining channels Internal information disclosure procedures Response systems for damages claims arising from lawful labor disputes From the labor union perspective, direct bargaining channels with principal contractors are becoming more accessible, and the burden of damages liability during lawful labor disputes has been reduced. As a result, the legality of bargaining procedures and the efficiency of organizational strategies have become increasingly important. In essence, the amendment establishes a new standard for both labor and management: “clear responsibility and transparent procedures.” Whether adequate preparation is undertaken now will become the most important factor in determining future dispute risks. Why Work With Decent Law Firm? The revised Yellow Envelope Act is not simply about changes to statutory provisions. It is a major issue requiring companies to redesign their entire decision-making structures and labor-management communication systems. In situations like this, businesses need professionals who understand not only legal theory, but also operational realities and practical risk factors in the workplace. Decent Law Firm operates a dedicated team specializing in corporate advisory services and labor risk management, providing practical solutions in the following areas: Employer status analysis and legal risk assessment Design of bargaining and labor dispute response structures Damages liability risk control strategies Advisory services regarding collective bargaining agreements and internal policy revisions Decent Law Firm goes beyond providing abstract legal interpretations. We act as a practical partner helping businesses maintain stable labor-management relations even after the revised law takes effect. If your organization needs practical and immediately applicable response measures, now is the time to begin preparing with Decent Law Firm. Ultimately, This Is an Unavoidable Process of Change At this stage, the key response strategy is to accurately understand the purpose of the revised system, reduce unnecessary disputes, and ensure that necessary bargaining procedures become more transparent. At Decent Law Firm, consultations are conducted directly by attorneys who are also certified labor consultants, as well as legal professionals with extensive corporate operational experience. We help both companies and labor unions respond in predictable and legally sound ways while preserving the intent of the law. With sufficient case analysis and properly documented procedures, risks can be managed in advance. Before it becomes too late, it is important to seek professional legal guidance and prepare strategically.
2026-03-12 Naver Blog
