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Blogs CriminalRevenge Driving Penalties in Korea: From Special Intimidation to License Suspension or Revocation
1. What Legally Counts as Revenge Driving? There is no separate criminal charge called "revenge driving." Instead, when a driver uses a vehicle to inflict injury, assault, intimidation, or property damage on a specific other party, it becomes a matter of the corresponding aggravated ("special") offense under the Criminal Act. Article 93(1)(10-2) of the Road Traffic Act also separately provides for license suspension or revocation where a driver, using a vehicle, has violated the Criminal Act's provisions on special injury, special assault, special intimidation, or special property damage. So determining whether revenge driving occurred is not simply about whether the driving was rough. For example, after becoming angry over another vehicle cutting in or honking, a driver might chase that vehicle and then: Cut in front of the other vehicle and brake suddenly Repeatedly block its path Drive in a way that pushes the other vehicle sideways Deliberately collide with the vehicle Block the vehicle so the driver cannot get out These kinds of actions may be reviewed as revenge-driving-related offenses depending on the specific driving method and circumstances. However, the mere fact that there was sudden braking or a lane change does not automatically make it revenge driving. It is necessary to examine together whether the driving was required by traffic conditions, whether the action targeted a specific driver, and whether it actually posed a threat to the other party. 2. When Is Revenge Driving More Likely to Be Established? Whether revenge driving is established is determined comprehensively based on the intent toward a specific counterpart, the danger of the driving conduct, and the sequence of events before and after the incident. 1) Did It Target a Specific Vehicle? If, after a dispute with another vehicle, the driver followed only that vehicle and repeatedly obstructed its path, whether the conduct was directed at a specific person becomes a key issue. Conversely, if a driver happened to brake suddenly in a traffic jam or changed lanes to avoid an obstacle, the same vehicle movement may be evaluated differently. 2) How Dangerous Was the Actual Driving? The following facts can serve as concrete evidence for this determination. Distance between vehicles Driving speed at the time Degree of sudden braking Number and interval of lane changes Number of lanes and traffic volume on the road Degree of collision risk Whether an actual contact or accident occurred Whether the other vehicle had to brake or swerve suddenly to avoid it The point that what matters is not the vehicle itself as a means, but how it was used, is also confirmed in Supreme Court rulings on "dangerous objects." 3) What Was the Situation Before and After the Incident? In revenge driving cases, an emotional response is sometimes triggered by a honk, high beams, or a lane change. Therefore, in addition to dashcam footage, audio, vehicle driving records, and nearby CCTV footage, if available, should be checked together to confirm the flow of events. 3. How Is Reckless Driving Different From Revenge Driving? The biggest difference is that reckless driving governs cases where a driver commits several dangerous driving acts under the Road Traffic Act in succession, or continues or repeats a single act, whereas revenge driving involves a vehicle-related crime directed at a specific counterpart. Comparing the two is as follows. Category Revenge Driving Reckless Driving Key issue Threats, assault, injury, or property damage directed at a specific counterpart Continuous, sustained, or repeated dangerous driving conduct Applicable law Special intimidation, special assault, special injury, special property damage, etc. under the Criminal Act Article 46-3 of the Road Traffic Act Specific counterpart An important factor in the determination Not necessarily required Number of acts Not determined by number alone Two or more consecutive acts, or one act that is sustained or repeated Penalty The relevant Criminal Act provision applies depending on the actual conduct Imprisonment of up to 1 year or a fine of up to KRW 5 million Reckless driving may be punished with imprisonment of up to one year or a fine of up to KRW 5 million under Article 151-2 of the Road Traffic Act. It is difficult to automatically rule out the possibility of revenge driving simply because the driving conduct occurred only once. Conversely, driving dangerously multiple times does not automatically make it revenge driving either, so it must be specifically confirmed against whom, with what intent, and in what manner the driving was carried out. 4. How Severely Can Revenge Driving Be Punished? Article 93 of the Road Traffic Act also specifies these four types of offenses committed using a vehicle as grounds for administrative action against a driver's license. If a Vehicle Was Used to Threaten: Special Intimidation If a vehicle is used to threaten the other party as if to cause harm, special intimidation may be reviewed. Special intimidation under Article 284 of the Criminal Act is punishable by imprisonment of up to 7 years or a fine of up to KRW 10 million. If a Vehicle Was Used to Assault: Special Assault If conduct using a vehicle is evaluated as assault against a person's body, special assault may become an issue. Article 261 of the Criminal Act provides that special assault is punishable by imprisonment of up to 5 years or a fine of up to KRW 10 million. If the Other Party Was Injured: Special Injury If the other party actually suffered injury as a result of revenge-driving conduct using a vehicle, special injury may be reviewed. Special injury under Article 258-2(1) of the Criminal Act is punishable by imprisonment of 1 to 10 years. Unlike special intimidation or special assault, a fine is not provided as an alternative penalty. If the Other Vehicle Was Damaged: Special Property Damage If the other vehicle was damaged by conduct such as deliberately ramming it, special property damage may become an issue. Article 369(1) of the Criminal Act provides that special property damage is punishable by imprisonment of up to 5 years or a fine of up to KRW 10 million. However, which charge actually applies in a given case is not determined simply by whether a collision occurred; the applicable charge may vary depending on the specific facts, including the vehicle's movement, whether there was an impact, the distance to the other party, and whether an injury occurred. 5. Can Revenge Driving Lead to License Suspension or Revocation? Yes. Revenge driving can also be subject to administrative action against a driver's license, separate from criminal punishment. Under the current Enforcement Rule of the Road Traffic Act, Attached Table 28 provides that 100 penalty points are imposed when a person is booked for revenge driving involving special injury or similar offenses under the Criminal Act using a vehicle. The same table also provides that a driver becomes subject to license suspension once their cumulative penalty points reach 40 or more, with points generally converted to days on a one-point-per-day basis. In addition, since a cumulative score of 121 points or more within one year can meet the criteria for license revocation, drivers who already have existing penalty points need to check their existing cumulative score together with the 100 points imposed for revenge driving. Meanwhile, where a person is detained for committing special injury, special assault, special intimidation, or special property damage using a vehicle, the Enforcement Rule also sets out separate criteria for license revocation. Therefore, one should not assume that "paying a fine is the end of the matter." Separate from the handling of the criminal case, it is necessary to check the administrative disposition of one's license based on current penalty points, whether criminal charges have been filed, and whether detention has occurred. 6. What Should You Do First If You're Reported for Revenge Driving? The first thing to do is preserve objective evidence that can establish the entire flow of driving at the time of the incident. 1) Preserve the Original Dashcam Footage Rather than cutting out only the portion where the dispute with the other party occurred, it is better to preserve the footage from before the incident through to its end. 2) Organize the Reasons for Sudden Braking or Lane Changes If there were driving-related reasons at the time, such as a traffic signal, braking by the vehicle ahead, a pedestrian or obstacle, or a merging section, these should be organized in detail. 3) Organize the Sequence of Events It is necessary to organize, in chronological order, everything from the point of the initial lane change or honking to the point when one's own driving conduct ended. 4) Secure Objective Evidence In addition to dashcam footage, it is good to check vehicle GPS data, nearby CCTV footage, passenger statements, and photos of vehicle damage, if available. 5) Distinguish the Charges and Facts Before the Police Investigation The facts and legal issues that need to be explained may differ depending on whether special intimidation, or special assault, special injury, or even special property damage is at issue. 7. Frequently Asked Questions (FAQ) Q1. Can a single sudden stop lead to a revenge driving conviction? A single sudden stop does not automatically amount to revenge driving, but the possibility of revenge driving is not necessarily ruled out simply because it happened only once. It is necessary to check whether the driver targeted the other vehicle, blocked it, and then braked suddenly in a situation with a high risk of collision, or whether the braking was necessary for traffic reasons. Q2. Can someone be punished for revenge driving even without colliding with the other vehicle? Yes, it is possible. Even without an actual collision, if conduct using a vehicle is evaluated as a threat against the other party, special intimidation may become an issue. Since special intimidation is not a crime that requires vehicle damage or injury as an essential element, it is necessary to specifically examine whether there was a threatening element, based on factors such as the distance between vehicles, speed, and the degree of sudden braking or blocking of the path. Q3. If a settlement is reached with the victim, does that mean the revenge driving case will not be punished? Reaching a settlement does not automatically mean that every revenge driving case will be closed. Even if a settlement is pursued, it is necessary to check the applicable charge, the extent of harm, and the stage of the investigation together. 8. Key Takeaways Even the same act of sudden braking or path obstruction can be evaluated differently under the law, depending on the driving conditions at the time, the intent toward the other party, and the degree of threat involved. In particular, dashcam footage and the flow of driving before and after the incident can be important evidence for determining whether revenge driving is established and which charge applies, so it is necessary to preserve the original footage. As this can involve not only criminal punishment but also suspension or revocation of a driver's license, it is important to specifically check what issues exist in your situation before the police investigation, so you should be sure to get help from an expert to gather the materials your case needs. Decent Law Firm, based on its experience resolving numerous revenge driving cases, reviews dashcam footage and the circumstances before and after the incident to organize the charges and issues that may actually apply. If you are facing a police investigation, we can also help you organize the reasons for your driving conduct and the circumstances at the time based on objective evidence, and, where necessary, we can help review your response at each stage of the investigation together, including settlement with the victim and submission of a written opinion.
2026-08-18 Naver Blog -
Blogs Criminal
How to File for a Stalking No-Contact Order: The Difference Between Emergency and Provisional Measures
1. When Can You Obtain a Stalking No-Contact Order? If the other party's conduct is likely to continue or recur and there is a need to protect the victim, a no-contact order may be considered. It is first necessary to distinguish between "stalking conduct" and "stalking crime" as defined under the Act on the Punishment of Stalking Crimes. The Act defines stalking conduct as approaching or following a person without their consent and without justifiable reason, waiting for or watching them at their home or workplace, or using telephone calls or information and communications networks in a way that causes anxiety or fear. When such stalking conduct is carried out continuously or repeatedly, it may constitute a stalking crime. A stalking crime is currently punishable by imprisonment for up to three years or a fine of up to 30 million won, and by imprisonment for up to five years or a fine of up to 50 million won if a dangerous weapon or object was carried or used. Therefore, when reviewing whether a no-contact order is warranted, the analysis goes beyond simply confirming that a conflict occurred between the two parties, and also considers factors such as the following: Whether the other party clearly refused contact or communication Whether contact or visits continued afterward Whether the other party waited for or followed the victim at their home, workplace, or school Whether repeated conduct caused anxiety or fear Whether there is a possibility of renewed contact even after a report was filed These and other circumstances are examined together. In particular, even without text messages or KakaoTalk messages, repeated phone call attempts alone can be problematic. 2. What's the Difference Between Emergency Measures and Provisional Measures? Emergency measures are actions the police can take in urgent situations, while provisional measures are protective measures decided by a court following a request from a prosecutor, among other procedures. Both are commonly referred to as a "stalking no-contact order," but the actual legal procedures and durations differ. Category Emergency Measures Provisional Measures Authority Judicial police officer Court Main Requirements Stalking conduct is likely to continue or recur, and urgent action is needed to prevent a crime Risk of recurrence of a stalking crime and the need to protect the victim Access Restriction No-contact order within 100m of the other party or their residence, etc. No-contact order within 100m of the victim, cohabitants, family members, or their residence, etc. Communication Restriction No-contact order via telecommunications No-contact order via telecommunications Duration Up to 1 month No-contact/communication restrictions generally up to 3 months Additional Measures - Electronic location tracking device, detention at a holding facility or detention center, etc., may be possible Under Article 4 of the Act on the Punishment of Stalking Crimes, a judicial police officer may take emergency measures, such as a no-contact order within 100 meters and a no-contact order via telecommunications, when there is a risk that stalking conduct will continue or recur and urgent action is needed to prevent a crime. An emergency measure may not exceed one month in duration. A provisional measure, on the other hand, is decided by a court. If the court finds it necessary to protect the victim, it may order not only a no-contact order within 100 meters and a no-contact order via telecommunications, but also, depending on the case, provisional measures such as attaching an electronic location tracking device or detention at a holding facility or detention center. The no-contact order, the no-contact order via telecommunications, and the electronic device attachment are generally limited to three months, but may each be extended twice, up to three months at a time, if necessary to protect the victim. 3. What Factors Are Considered When Deciding on a No-Contact Order? The key issue is how specifically the risk of the stalking crime recurring and the need to protect the victim can be confirmed. Under Article 8 of the Act on the Punishment of Stalking Crimes, if a prosecutor finds a risk that a stalking crime will recur, the prosecutor may request the court to issue a provisional measure, either on their own authority or upon request by a judicial police officer. For example, the following circumstances may be considered together. Repeated calls or texts continue even after contact is refused If contact continues through a different number or SNS account after one number was blocked, or if repeated call attempts occur, it is advisable to preserve the dates, frequency, and content of such contact. The other party keeps showing up at your home or workplace It is helpful to establish repeated conduct through the time and place of the visits, CCTV footage, dash cam footage, entry records, and witnesses. Contact is made through a third party Indirect approaches, such as asking a friend or family member to relay messages or deliver items, may also be reviewed depending on the facts, so it is advisable not to delete related conversation records. Ultimately, the need for a no-contact order is not determined by the number of contacts alone, but is reviewed comprehensively based on the nature of the conduct, its repetition, the victim's refusal of contact, the history of the relationship, actions taken after a report was filed, and the likelihood of recurrence. 4. What Happens If the Other Party Contacts or Approaches You After a No-Contact Order Is Issued? If the other party shows up again or makes contact through a prohibited method after a no-contact order has been issued, it is necessary to immediately secure related evidence and file a report. Failure to comply with a provisional measure's no-contact order within 100 meters or no-contact order via telecommunications may result in imprisonment for up to two years or a fine of up to 20 million won. Failure to comply with a court-approved emergency measure may also result in imprisonment for up to one year or a fine of up to 10 million won. Therefore, if the other party appears again after a no-contact order has been issued, rather than trying to resolve the situation by meeting them directly, it is important to keep records of the following: The date and time of the approach The location and the distance from the victim CCTV or dash cam footage Records of calls, texts, KakaoTalk messages, and SNS activity Contact made through a different number or account Contact made through a third party Records of police reports and dispatches Keeping such records is important. In addition, even after the term of an existing provisional measure has expired, it does not necessarily mean that protective measures can never be granted again. Courts have found that, where there is a recognized risk of recurrence and a need to protect the victim, a new provisional measure may be possible even if no new stalking crime has occurred since the prior provisional measure. 5. What Should You Prepare First If You Need a Stalking No-Contact Order? The first step is to organize the timeline of events from when the stalking began to the present, and to secure evidence showing the repetition and risk of recurrence. 1) Do not delete contact records It is advisable to preserve not only text messages, KakaoTalk messages, SNS DMs, and emails, but also missed calls and records of blocked calls. 2) Secure records of the other party's visits Check whether CCTV footage from shared entrances, commercial buildings, or the workplace, dash cam footage, and entry records can be obtained before they are deleted. 3) Organize records showing that you refused contact If there are records of communicating a wish such as "please stop contacting me" or "please stop coming here," organize them as well. However, it is best to avoid unnecessarily contacting or meeting the other party again simply to create evidence. 4) Prepare a chronological account of events For example, organizing events as follows makes it easier to show the pattern of repeated conduct and what happened after a report was filed: August 1: Request to stop contact August 3: 12 phone calls August 5: Visit to the workplace August 7: SNS message from a different account August 8: Police report filed 5) Review any existing reports or protective measures If there are prior 112 emergency call records or existing emergency or provisional measure decisions, it is necessary to organize separately whether any further contact or approaches occurred after those measures were issued. 6. Frequently Asked Questions (FAQ) Q1. Does filing a stalking report automatically result in a no-contact order? Filing a report alone does not automatically result in a no-contact order. An emergency measure requires a review of whether the stalking conduct is likely to continue or recur and whether urgent action is needed, while a provisional measure proceeds based on the risk of recurrence of the stalking crime and the need to protect the victim. Therefore, it is necessary to specifically present records of repeated contact or visits, evidence of refusal, and actions taken after the report was filed. Q2. If a no-contact order is issued, does that also prohibit phone calls and KakaoTalk messages? If a no-contact order via telecommunications is issued together with the order, contact by phone or through information and communications services may also be restricted. Since the law separately provides for a physical 100-meter no-contact order and a no-contact order via telecommunications, it is necessary to check which measures are actually included in the decision. Q3. Once the term of a no-contact order ends, are there no further options? The mere fact that the term has ended does not mean that all possibility of further protective measures disappears. If there continues to be a risk of recurrence of the stalking crime and a need to protect the victim, a new provisional measure may be considered depending on the specific circumstances. However, the term and any extensions of the prior decision, as well as subsequent conduct, must be reviewed together. 7. Summary and Key Points A stalking no-contact order is examined based not simply on a dispute over contact, but on the repetition of the conduct, the victim's refusal of contact, the anxiety or fear caused, the likelihood of recurrence, and the need to protect the victim. In urgent situations, the police's emergency measures may be at issue, and in cases where a stalking crime is likely to recur, the court's provisional measures may be at issue, so it is important to identify the procedure appropriate to the current situation. In particular, records of calls, messages, and visits, along with CCTV footage, from before and after a no-contact order should not be deleted and should be organized chronologically. Decent Law Firm reviews contact records, visit records, and the circumstances of the report in stalking cases to help identify the protective measures and criminal procedure issues that may currently apply. If a no-contact order is needed, or if the other party continues to make contact or approach you even after a measure has already been issued, we can review the necessary response for further reports and investigative procedures based on the relevant materials.
2026-08-14 Naver Blog -
Blogs Crypto
When Does Crypto Trading Violate Korea's Specified Financial Transaction Information Act? Standards and Penalties Explained
Trading virtual assets frequently, or trading large amounts, does not by itself mean that someone has violated Korea's Specified Financial Transaction Information Act (특금법). What matters most is whether a person carried out virtual asset buying, selling, exchanging, transferring, storing, or brokering as a business for other people — and whether that person, as a Virtual Asset Service Provider (VASP), failed to file the required report with Korea's Financial Intelligence Unit (FIU). The Supreme Court of Korea has held that whether someone qualifies as a VASP must be judged comprehensively, taking into account the purpose and type of the transactions, their scale and frequency, the period and method of trading, and other relevant circumstances. Table of Contents What Is a Violation of the Specified Financial Transaction Information Act? Which Types of Violations Arise in Virtual Asset Trading? How Is Personal Coin Trading Distinguished From Operating a Virtual Asset Business? Can OTC, P2P, or USDT Trading Also Violate the Act? What Are the Penalties for Violating the Act? What Should You Check If You Are Being Investigated for a Suspected Violation? Frequently Asked Questions Summary and Points to Note 1. What Is a Violation of the Specified Financial Transaction Information Act? A violation of the Act refers to a breach of the reporting, notification, or customer due diligence obligations set out in the Act on Reporting and Using Specified Financial Transaction Information (특정 금융거래정보의 보고 및 이용 등에 관한 법률). The Act imposes certain obligations on financial companies and Virtual Asset Service Providers (VASPs) in order to prevent money laundering and the financing of illegal activities. In the virtual asset sector, the issue that most commonly arises for individuals and unregistered operators is operating a virtual asset trading business — while qualifying as a VASP — without filing the required report with the FIU. Accordingly, what matters is not simply the fact that coins were traded, but rather for whose benefit and through what structure the trading was carried out, and whether it was conducted continuously and repeatedly as a business. [Related Legislation] Act on Reporting and Using Specified Financial Transaction Information — Korea Law Information Center 2. Which Types of Violations Arise in Virtual Asset Trading? In the virtual asset sector, issues can arise not only from operating without registration, but also from failing to file required notifications or changes of registration, and from breaching anti-money laundering obligations. These can generally be divided into the following categories. Unregistered virtual asset business This refers to operating a virtual asset trading business — while qualifying as a VASP — without filing the required report with the FIU. Depending on the actual structure of the trades, even individual-to-individual OTC or P2P transactions may be found to constitute an unregistered virtual asset business. Failure to file required notifications or changes of registration Even a VASP that has already filed a report must file a notification of change, following the procedure set out in the Act, whenever the details of its original filing change. In particular, from August 20, 2026, the amended Act and its subordinate regulations take effect, tightening VASP registration requirements. Under the amended system, the scope of screening expands to cover the legal violation history, financial status, and social credibility of controlling shareholders, and a VASP's organizational structure, personnel, IT systems, and internal control system also become substantive elements of the registration review. In addition, notifications relating to controlling shareholders and the compliance system will shift from after-the-fact filing within 14 days of the change to advance filing 30 days before the change takes place. If a matter subject to advance filing is carried out before it has been accepted by the authorities, criminal penalties or administrative sanctions may follow — so VASPs planning changes to their governance structure or compliance system should check the filing timeline well in advance. [Related Source] Financial Services Commission & Korea Financial Intelligence Unit, "Comprehensive Revision of the VASP Registration Manual in Line With Strengthened VASP Registration Requirements" (Aug. 13, 2026) 3. How Is Personal Coin Trading Distinguished From Operating a Virtual Asset Business? Whether someone qualifies as a VASP is not determined by transaction amount or frequency alone. The Supreme Court has held that the following factors must be considered together: The purpose and type of the transactions The scale and frequency of the transactions The period over which the trading continued The specific method of trading Whether the trading was carried out for another person's benefit Whether consideration was received for the trading The Court found that an ordinary user who buys, sells, or exchanges virtual assets on an exchange solely for their own benefit and on their own account is, absent special circumstances, unlikely to be treated as a VASP. On the other hand, a person who continuously and repeatedly trades virtual assets for an indefinite number of customers or users, and receives consideration for doing so, may in principle qualify as a VASP. Criteria for distinguishing personal trading from a virtual asset business Category Personal Virtual Asset Trading Trading Likely to Be Treated as a Virtual Asset Business Purpose of trading Personal investment or asset management Providing trading convenience to another person Counterparty Self-directed trading through an exchange Customers or an indefinite number of users Source of funds Mainly the trader's own funds Involvement of customer or third-party funds Profit Capital gains from investment Fees, spreads, or other trading consideration Method of trading Based on the trader's own judgment At another party's request Continuity Depends on investment circumstances Continuous and repeated in a set manner A large trading volume does not, on its own, make trading a virtual asset business if it was conducted with the trader's own funds. Conversely, even a relatively small trading volume may require a review of VASP registration obligations, if the trader repeatedly bought and sold coins at the request of multiple people and received consideration for doing so. [Related Case Law] Supreme Court, Judgment of Dec. 12, 2024, Case No. 2024Do10710 4. Can OTC, P2P, or USDT Trading Also Violate the Act? Trading virtual assets through OTC or P2P methods does not, by itself, make the trading illegal. What matters is the actual structure of the transactions. If a person purchases USDT with their own funds and trades it on their own account, this is likely closer to ordinary investment activity. On the other hand, the following types of trading warrant a review of whether they constitute an unregistered virtual asset business: Repeatedly buying and selling USDT or other assets at the request of multiple people Receiving Korean won and sending the corresponding virtual asset to the other party's wallet Continuing to trade while receiving fees or spreads Brokering or carrying out another person's virtual asset trading, exchange, or transfer on their behalf Accordingly, what matters is not simply the trading volume, but whose funds were used, how the counterparties were found, and what consideration was received. 5. What Are the Penalties for Violating the Act? The severity of the penalty depends on which reporting obligation was breached. Criminal penalties for violations of the Act Type of Violation Penalty Operating a virtual asset business without filing a report with the FIU Imprisonment for up to 5 years, or a fine of up to KRW 50 million Filing a report through false or fraudulent means and operating a business Imprisonment for up to 5 years, or a fine of up to KRW 50 million Failing to file a required notification of change Imprisonment for up to 3 years, or a fine of up to KRW 30 million Filing a notification of change through false or fraudulent means Imprisonment for up to 3 years, or a fine of up to KRW 30 million These statutory penalty ranges remain unchanged under the amended Act, which takes effect on August 20, 2026. That said, actual cases also take into account the period and scale of trading, the profit obtained, and each party's role and degree of involvement. Depending on the trading method used, it is also necessary to separately review whether charges such as violation of the Foreign Exchange Transactions Act, fraud, or offenses related to proceeds of crime may also apply. 6. What Should You Check If You Are Being Investigated for a Suspected Violation? The first step is to organize all trading activity into transactions made for your own investment and transactions made on behalf of others. A large volume of account deposits and withdrawals or virtual asset transactions does not, on its own, reveal the true nature of the trading. Before an investigation, it is worth reviewing the following materials: Trading and transfer records from exchanges and personal wallets Deposit and withdrawal records for accounts used in the trading KakaoTalk, Telegram, or other messages exchanged with counterparties The actual profit structure, such as fees or spreads received How each counterparty was found, and the role each participant played In particular, if funds were repeatedly received in Korean won from multiple people and virtual assets were sent in return, it is essential to first trace the flow of funds and determine which deposit corresponds to which virtual asset transaction. Based on this, you should be able to explain whether you were an investor trading on your own account, or someone who continuously and repeatedly carried out virtual asset trading on behalf of others. 7. Frequently Asked Questions Q1. Does trading coins frequently automatically mean I have violated the Act? Frequent trading alone does not constitute a violation. If the trading was carried out for your own benefit and on your own account, it may qualify as ordinary virtual asset investment. However, if you repeatedly traded at another person's request and received consideration for doing so, this requires separate review. Q2. If I buy USDT low and sell it high, do I need to file a report? Earning a profit from the price difference alone does not make someone a VASP. The determination depends on whether the profit came from personal investment, or from repeatedly supplying USDT to customers while receiving fees or spreads. Q3. Is it a problem if I bought coins on behalf of an acquaintance as a favor? A one-off favor and continuous, repeated conduct of this kind must be distinguished. Relevant factors include the number and period of the transactions, whether consideration was received, and how far the range of counterparties expanded. 8. Summary and Points to Note Whether a violation of the Act has occurred is not determined by the amount or frequency of virtual asset trading alone. The key factor in distinguishing personal investment from an unregistered virtual asset business is whose funds were used, for whose benefit the trading was carried out, and what consideration was received. In addition, from August 20, 2026, the registration review and certain notification-of-change procedures for VASPs will be strengthened, so existing operators should also confirm the requirements and filing deadlines under the revised registration manual. Decent Law Firm reviews VASP status, violation risk under the Act, and investigation response strategy based on the structure of virtual asset transactions and the flow of funds involved.
2026-08-14 -
Blogs Crypto
Unregistered Virtual Asset Service Providers in Korea: Registration Requirements and Penalties
Frequent trading of virtual assets does not, by itself, mean that you are required to register as a Virtual Asset Service Provider (VASP) in Korea. However, if you repeatedly buy, sell, exchange, transfer, broker, arrange, or facilitate virtual asset transactions for others and receive compensation for doing so, you may be considered a VASP subject to registration requirements under Korea’s Act on Reporting and Using Specified Financial Transaction Information (the “Specified Financial Information Act”). 1. What Is an Unregistered Virtual Asset Service Provider in Korea? A person or entity may be treated as an unregistered VASP if it conducts regulated virtual asset activities as a business without completing the required registration with the Korea Financial Intelligence Unit (KoFIU). The Specified Financial Information Act regulates businesses engaged in activities involving virtual assets, including the purchase and sale of virtual assets, exchanges between virtual assets, certain transfers, custody or management, and the brokerage, arrangement, or agency of virtual asset transactions. Accordingly, the rules are not limited to large centralized exchanges. Depending on the actual structure of the business, an individual or smaller operator may also fall within the scope of a VASP. Specified Financial Information Act, Article 7 ↗ 2. How Is VASP Status Determined? The key issue is not simply whether virtual assets were traded, but whether the relevant activities were carried out “as a business.” The Supreme Court of Korea has held that VASP status should be determined by considering the circumstances as a whole, including: the purpose and type of the transactions; the scale and frequency of the transactions; the period over which the transactions were conducted; and the manner in which the transactions were carried out. In particular, an ordinary exchange user who repeatedly buys or exchanges virtual assets solely for his or her own account and benefit will generally not be regarded as a VASP, absent special circumstances. By contrast, a person who repeatedly conducts virtual asset transactions for the benefit of an unspecified number of customers or users and receives compensation in return may, in principle, be regarded as a VASP. Supreme Court Decision 2024Do10710, Dec. 12, 2024 ↗ 3. How Are Personal Crypto Trading and VASP Activities Distinguished? The amount or frequency of trading is not the decisive factor. What matters more is for whom the transactions are conducted and how the business operates. Factor More Likely to Be Personal Trading May Require VASP Review Purpose Personal investment or profit Providing transaction services to customers Funds Trader’s own funds Funds connected to customers or third parties Counterparty Trading through an exchange for one’s own account Transactions involving multiple customers Compensation No separate fee Fees, spreads, or other compensation received Transaction method Trading based on one’s own decisions Buying, selling, exchanging, or transferring at a customer’s request Continuity Trading as part of personal investment activity Activities performed repeatedly as a business A high transaction volume or a large number of trades does not automatically make a person an unregistered VASP. Conversely, even if transactions are conducted through a personal bank account or wallet, VASP status may need to be reviewed where the person repeatedly provides transaction services to customers and earns fees or other compensation. 4. Can OTC, P2P, or Crypto Transaction Services Require VASP Registration? Yes. OTC or P2P transactions are not automatically subject to VASP registration, but the actual business model may fall within the regulated scope. For example, VASP issues may arise where an operator repeatedly: receives Korean won from customers and transfers USDT or other virtual assets in return; buys, sells, or exchanges virtual assets at a customer’s request; earns fees or profits through transaction spreads; or solicits customers through Telegram, open chat rooms, or similar online channels. The absence of a formal exchange platform or physical business location does not, by itself, exclude the activity from VASP regulation. In June 2026, KoFIU specifically identified private exchange operators that buy and sell stablecoins and other virtual assets in exchange for fiat currency as a type of unregistered virtual asset business activity requiring regulatory attention. KoFIU / Financial Services Commission – Official Source ↗ 5. Can an Overseas Virtual Asset Business Be Required to Register in Korea? Yes. An overseas business may be subject to Korean VASP registration requirements if it conducts business activities targeting users in Korea. KoFIU considers various factors when assessing whether an overseas virtual asset business is conducting business in Korea, including: whether a Korean-language website or service is provided; whether payments in Korean won are supported; whether customer acquisition campaigns target Korean users; and whether marketing activities are directed at users in Korea. In June 2026, KoFIU announced that it had identified eight illegal OTC operators and four overseas exchanges conducting business in Korea, referred the cases to the police, and requested domestic access restrictions for the relevant websites and applications. Accordingly, the fact that a company is incorporated or headquartered outside Korea does not, by itself, exempt it from Korean VASP regulations. KoFIU / Financial Services Commission – Official Source ↗ 6. What Are the Consequences of Operating as an Unregistered VASP? Operating a virtual asset business without the required registration may result in criminal liability under the Specified Financial Information Act. Under Article 17(1) of the Act, a person who conducts virtual asset transactions as a business without filing the registration required under Article 7(1) may be subject to imprisonment for up to five years or a fine of up to KRW 50 million. Specified Financial Information Act, Article 17(1) ↗ In addition, amendments to the Specified Financial Information Act scheduled to take effect on August 20, 2026 will strengthen the entry and registration requirements applicable to VASPs. The amended framework expands the review of matters such as the financial condition and social credibility of the VASP and its major shareholders, as well as organizational, personnel, IT infrastructure, and internal control requirements. Financial Services Commission – Official Source ↗ KoFIU has also taken measures against unregistered operators, including referrals to investigative authorities, requests to restrict domestic access to websites and mobile applications, and restrictions involving transactions with registered VASPs. KoFIU / Financial Services Commission – Official Source ↗ If you have already conducted transactions that may fall within the scope of VASP activities, it is advisable to organize the relevant transaction records, bank account and wallet flows, communications with customers, fee or spread structures, and the specific role you performed before assessing the applicable regulatory and legal risks. 7. Frequently Asked Questions (FAQ) Q1. If I frequently buy and sell USDT, am I automatically considered a VASP? No. Frequent trading alone does not automatically make you a VASP. It is necessary to consider whether you were trading with your own funds for your own benefit or conducting transactions for customers in return for fees or other compensation. Q2. Do I need to register if I occasionally buy crypto on behalf of a friend? Not necessarily. An isolated transaction performed at the request of a friend does not, by itself, determine VASP status. The analysis may change depending on factors such as the number and range of counterparties, transaction frequency and duration, whether compensation was received, and whether the activity was carried out continuously or repeatedly. Q3. Am I outside the VASP rules if I do not have a registered business? No. The absence of a Korean business registration does not, by itself, determine whether you are a VASP under the Specified Financial Information Act. Even an individual operating through a personal account or wallet may need to consider VASP registration requirements if the person repeatedly provides virtual asset-related services to customers for profit. 8. Key Takeaways Whether a person or business constitutes an unregistered VASP in Korea depends not simply on the volume of crypto trading, but primarily on whether virtual asset-related services are repeatedly provided to customers as a business. For OTC, P2P, or transaction-facilitation arrangements in particular, the purpose of the transactions, counterparties, flow of funds, fee structure, and the operator’s actual role should be reviewed together. Decent Law Firm advises clients on whether their virtual asset business models fall within Korea’s VASP regulatory framework, including registration requirements under the Specified Financial Information Act and legal risks associated with unregistered operations.
2026-08-13 -
Blogs Corporate & Biz
Is a Term Sheet Legally Binding in Korea? Key Clauses to Review Before Signing
When a startup receives a term sheet from an investor, it may be tempting to treat the document as a preliminary summary that can be signed before the definitive investment agreement is negotiated. However, a term sheet is not necessarily non-binding simply because it is signed at a preliminary stage. Depending on its wording and the parties’ intent, the entire document may be non-binding while certain provisions—such as confidentiality, exclusivity, obligations to execute a definitive agreement, or liability for breach—may have legal effect. Before signing a term sheet, therefore, the key question is not simply what the document is called, but which terms have been agreed upon and which provisions are intended to create legally binding obligations. 1. What Is a Term Sheet? A term sheet is a document used to outline the principal terms of a proposed investment before the parties enter into a definitive investment agreement. It commonly addresses matters such as: Investment amount Company valuation Investment structure Type of shares or securities to be issued Key investor rights Conditions for proceeding with the investment Korean law does not establish a separate statutory category specifically for a “term sheet.” Accordingly, whether a document is titled a Term Sheet, Memorandum of Understanding (MOU), Letter of Intent (LOI), or preliminary agreement does not by itself determine its legal effect. The Supreme Court of Korea has held that a contract does not require agreement on every conceivable matter, but there must at least be a sufficiently specific meeting of minds regarding its essential or material terms, or an agreed method by which those terms can later be determined. (Supreme Court of Korea, March 23, 2001, Case No. 2000Da51650) 2. Does Signing a Term Sheet Make It Legally Binding? Not necessarily. Signing a term sheet does not automatically mean that the entire document has the same legal effect as a definitive investment agreement. At the same time, a term sheet cannot automatically be treated as having no legal effect merely because it precedes the final agreement. The central issue is the extent to which the parties intended to be legally bound by the terms contained in the document. In a Supreme Court case involving an MOU for a corporate acquisition, the document expressly provided that it was legally binding and required the parties to execute a definitive agreement by a specified deadline. The Court examined the actual obligations and provisions agreed upon by the parties rather than disregarding the document simply because it was labeled an MOU.(Supreme Court of Korea, July 14, 2016, Case No.) 2012Da65973 Accordingly, particular attention is required where a term sheet contains provisions concerning: A deadline to execute the definitive agreement Exclusive negotiations Confidentiality Deposits or other security for performance Liquidated damages or other consequences of breach Each provision should be reviewed separately to determine whether it was intended to create a legally enforceable obligation. 3. Which Clauses Should Be Reviewed in a Term Sheet? 🔹Key Clauses to Review in a Term Sheet Clause What It Covers Key Question Investment Terms Amount, valuation, investment structure Are the terms final? Exclusivity Restrictions on negotiations with other investors What is the scope and duration? Confidentiality Protection of information exchanged during negotiations What information is covered? Definitive Agreement Future execution of the investment agreement Is execution mandatory? Binding Effect Obligations intended to be legally enforceable Which provisions are binding? A term sheet may state that the document as a whole is non-binding while expressly providing that certain clauses, such as confidentiality or exclusivity, are legally binding. Conversely, even where the document does not clearly state whether it is binding, its legal effect may still require consideration of its specific wording, the course of negotiations, and the parties’ intentions. 4. How Is a Term Sheet Different from an Investment Agreement? A term sheet is generally used to identify and organize the principal commercial terms before a definitive agreement is executed. A definitive investment agreement, by contrast, sets out the detailed rights and obligations governing the actual investment. For example, a term sheet may provide that an investor will invest KRW 1 billion based on a particular company valuation. The definitive investment agreement may then address additional matters such as: Type and number of shares to be issued Payment and closing date Conversion or redemption rights Investor consent rights Restrictions on share transfers Representations and warranties Events of default and remedies A term sheet should therefore not be viewed merely as an informal summary. It may establish the framework for subsequent negotiations and materially affect the terms of the definitive investment agreement. 5. What Should You Check Before Signing a Term Sheet? 🔹Scope of Legally Binding Provisions Determine whether the entire document is intended to be binding or whether only specific provisions—such as confidentiality or exclusivity—create enforceable obligations. 🔹Whether the Investment Terms Are Final Check whether the valuation, investment amount, ownership percentage, and type of securities are final or remain subject to due diligence, investment committee approval, or further negotiation. 🔹Scope of Exclusivity Where the company is restricted from negotiating with other investors for a specified period, the duration and scope of that restriction should be clearly reviewed. For a startup actively raising capital, an overly broad exclusivity provision may significantly restrict other fundraising opportunities. 🔹Obligation to Execute the Definitive Agreement There is an important distinction between an agreement to continue negotiations in good faith and an obligation to execute a definitive investment agreement by a specified date. The Supreme Court case discussed above, Case No. 2012Da65973, involved an MOU that expressly imposed an obligation to execute the final agreement by a specific deadline. 🔹Liability if the Transaction Does Not Close A term sheet may also contain provisions relating to deposits, transaction expenses, liquidated damages, or other consequences if the transaction is terminated. Under Article 398 of the Korean Civil Act, parties may agree in advance on the amount of damages payable in the event of non-performance, and an agreed penalty is generally presumed to constitute liquidated damages. Accordingly, term sheet review should address not only the proposed investment terms but also what obligations arise upon signing and what liability may remain if the investment does not proceed. 6. Can a Party Walk Away If the Term Sheet Is Non-Binding? A non-binding term sheet does not necessarily mean that negotiations can be terminated without legal consequences in every circumstance. The Supreme Court of Korea has held that where one party creates a legitimate expectation that a contract will be concluded, the other party acts in reliance on that expectation, and negotiations are then terminated without reasonable grounds, liability in tort may arise depending on the circumstances.(Supreme Court of Korea, June 13, 2013, Case No. 2010Da65757) This does not mean that liability arises whenever investment negotiations fail. The stage of negotiations, the representations made by the parties, the extent of reliance, and the reasons for terminating negotiations must be considered together. 7. Why Legal Review of a Term Sheet Matters The legal effect of a term sheet cannot be determined solely by whether the document has been signed or whether it is described as preliminary. It is necessary to examine: Which investment terms have already been finalized Which provisions are legally binding Whether the parties are obligated to enter into a definitive agreement Whether exclusivity or confidentiality obligations apply What consequences follow if the transaction does not close Because a term sheet may become the basis for the subsequent investment agreement, companies and investors should review not only valuation and investment amount but also provisions that may restrict further negotiations or create liability if the transaction is terminated. Decent Law Firm advises startups, companies, and investors on term sheets and investment agreements, including the scope of legally binding obligations and contractual risks that should be addressed before proceeding with an investment.
2026-08-12 -
Blogs Criminal
Settlement in 12 Major Traffic Violation Cases: Criminal Settlement and Insurance Compensation Explained
1. Which Accidents Qualify as One of the 12 Major Traffic Violations? The "12 major traffic violations" do not simply refer to accidents where the driver is judged to be seriously at fault. Under the proviso to Article 3(2) of the Act on Special Cases Concerning the Settlement of Traffic Accidents, they refer specifically to accidents in which a person is injured as a result of violating one of twelve enumerated traffic rules. In an ordinary traffic accident, the driver may be exempt from criminal prosecution under the special provisions if the victim does not wish to press charges, or if the driver is covered by a qualifying comprehensive insurance policy. However, in accidents involving one of the 12 major violations, investigation and prosecution can proceed even if the victim does not wish to press charges, and holding comprehensive insurance alone does not necessarily end the criminal process. Article 3(1) of the Act on Special Cases Concerning the Settlement of Traffic Accidents provides that a person who causes injury through occupational negligence or gross negligence in a traffic accident may be punished by imprisonment for up to five years or a fine of up to KRW 20 million. The 12 Specific Categories of Major Violations Violation of traffic signals or instructions — whether the vehicle signal, a police officer's signal, or a no-passing/stop sign was violated Crossing the centerline — centerline crossing, or prohibited crossing, U-turns, or reversing Exceeding the speed limit by more than 20 km/h — the posted speed limit at the accident site versus the actual driving speed Improper overtaking or cutting in — whether the method, location, or timing of overtaking, or the prohibition on cutting in, was violated Improper railroad crossing procedure — whether the legally required stop-and-check procedure was followed Failure to protect pedestrians at a crosswalk — whether the pedestrian was crossing within the marked crosswalk Driving without a valid license — whether the license was suspended or revoked, or the driver lacked the license class required for the vehicle Driving under the influence of alcohol or drugs — blood alcohol level, whether normal driving was impaired, and the effect of any drugs Driving on the sidewalk — whether the vehicle entered or improperly crossed the sidewalk Failure to secure passengers before departure — whether doors were closed and other safety measures were taken before the vehicle moved Failure to exercise due care in a school zone — whether a child was injured within a designated school zone Failure to secure cargo — whether necessary measures were taken to prevent cargo from falling Formally falling within one of these categories does not automatically determine the outcome of a case. There must be a causal link between the specific violation and the victim's injury, which requires a detailed review of the actual signal status, the vehicles' positions, the point of impact, the speed limit, and the pedestrian's path of movement, among other factors. 2. How Do Criminal Settlement and Insurance Settlement Differ? The civil settlement handled by an insurance company and the criminal settlement a driver seeks directly from the victim are two separate processes. Payment of insurance proceeds does not, by itself, complete a criminal settlement, and conversely, reaching a criminal settlement does not necessarily resolve every civil damages issue the insurance company is responsible for. A civil settlement is intended to compensate the victim for the property and emotional damage caused by the accident. A criminal settlement, by contrast, carries the important additional meaning that the victim expresses a wish not to see the driver criminally punished, alongside compensation for the harm suffered. However, paying a criminal settlement amount does not always mean that amount is treated as entirely separate from civil damages. How the legal relationship develops afterward can depend on how the settlement agreement characterizes the payment and its relationship to civil damages and insurance claims. For this reason, the following points should be clearly confirmed when drafting a criminal settlement agreement. The legal character of the amount being paid Its relationship to the damages the victim will receive from the insurance company Whether additional civil claims will be permitted The scope of the victim's expressed wish not to see the driver punished Whether an additional claim will be possible if aftereffects develop later 3. What Determines the Amount of a Settlement in a 12-Major-Violation Case? There is no fixed schedule of amounts set by law for settlements in 12-major-violation cases. Rather than a uniform calculation, the amount must be negotiated by weighing the severity of the injury, the gravity of the accident, the risk of criminal punishment, and the actual extent of recovery achieved. The Severity of the Victim's Injury Whether the case involves a serious injury is treated as an important aggravating factor in traffic-accident-injury cases. The Degree of Illegality and Fault in the Accident Cases involving two or more overlapping major-violation grounds, or reckless driving, may be assessed as cases of "heightened illegality." Aftereffects and Loss of Income If the victim has been unable to work for an extended period, or has suffered a reduction in working capacity, the resulting damages can extend well beyond medical costs. The Victim's Own Fault If the victim's own conduct — such as running a red light, speeding, failing to wear safety equipment, or an unpredictable jaywalking crossing — contributed to the accident or increased the damage, this can be reflected in the calculation of civil damages. Whether Comprehensive and Driver's Insurance Are in Place If the driver holds comprehensive auto insurance, a substantial portion of the civil damages can be covered through that insurance. However, because holding comprehensive insurance alone is unlikely to secure the special exemption from criminal punishment in a 12-major-violation case, the need for a separate criminal settlement can still arise. The Risk of Criminal Punishment The importance of reaching a settlement increases where circumstances such as the following are present. The victim suffered a serious injury There are multiple victims Drunk driving or driving without a license is also at issue A child was injured in a school zone Two or more major violations overlap The driver has a prior record of similar traffic offenses The victim is requesting severe punishment 4. Does Reaching a Settlement with the Victim Guarantee Avoiding Criminal Punishment? Article 3(2) of the Act on Special Cases Concerning the Settlement of Traffic Accidents bars prosecution against the victim's express wishes in an ordinary traffic accident, but this special provision does not apply to accidents involving one of the 12 major violations. Accordingly, even if the victim submits a statement declining to press charges, the police investigation and the prosecutor's charging decision can still proceed. That said, a settlement can still have a significant effect on the severity of the criminal punishment imposed. The traffic-crime sentencing guidelines that took effect on July 1, 2026 list the following as mitigating factors in cases involving traffic-related injury or death. The victim's expressed wish against punishment Substantial recovery of the harm caused Meaningful recovery of the damage Holding comprehensive auto insurance Genuine remorse No prior record of criminal punishment Conversely, factors such as serious injury, a major violation involving heightened illegality, a prior record of similar offenses, or pressuring the victim during settlement negotiations can work against the driver. It is important to acknowledge the circumstances of the accident, offer a sincere apology, check on the victim's treatment and recovery, and objectively identify what harm remains uncompensated by insurance. 5. How Should You Prepare for a Settlement After a 12-Major-Violation Accident? If a 12-major-violation accident has occurred, the first step is not to propose a settlement amount, but to first organize the type of accident and the scope of the harm. Confirming Whether the 12-Major-Violation Provision Applies It is necessary to confirm whether the specific violation identified by the police is consistent with the actual accident record. [Evidence to Secure] The original dashcam footage from your vehicle Dashcam footage from nearby vehicles CCTV footage from intersections or nearby businesses Photographs of the accident scene The traffic signal cycle chart Vehicle speed data Navigation driving records The police-prepared traffic accident investigation report Witness contact information and statements In particular, whether a signal violation, a crosswalk accident, or centerline crossing occurred can turn on the exact point of impact and the vehicles' paths immediately before the collision. Confirming the Severity of the Victim's Injury The number of weeks of diagnosed recovery time alone does not determine the settlement amount. The following materials should be reviewed together. Medical certificates and injury diagnosis reports Surgical records Admission and discharge confirmations Future treatment plans The likelihood of lasting aftereffects Records of lost work or reduced income The treatment costs and settlement amounts already paid by the insurer If there are multiple victims, each victim's degree of injury and insurance treatment should be assessed separately. Also, if the victim declines to be contacted but is nonetheless repeatedly called, or family members or the workplace are contacted, this can be treated as secondary harm. The sentencing guidelines also treat persistently pressuring a victim, or hinting at disadvantages to them, during settlement negotiations as an unfavorable sentencing factor — so if the victim does not wish to be contacted directly, conveying your position through legal counsel is worth considering. 6. Frequently Asked Questions (FAQ) Q1. Is there a fixed settlement amount per week of diagnosed recovery time in 12-major-violation cases? There is no legal standard requiring a fixed amount per week of diagnosed recovery. The number of weeks is only one of several factors used to assess injury severity — surgery, length of hospitalization, aftereffects, the victim's occupation and income, the fault ratio, the insurance compensation already paid, and the risk of criminal punishment are all considered together. Q2. Do I still need a criminal settlement even if I have comprehensive auto insurance? In 12-major-violation cases, holding comprehensive insurance alone may not conclude the criminal process, so the need for a separate criminal settlement can still arise. That said, a criminal settlement is not always required in every case. It is necessary to comprehensively review whether the injury is minor, whether the harm has already been sufficiently recovered through insurance, whether the victim wants the driver punished, and whether the driver has a record of similar offenses. Q3. What should I do if the victim demands an excessive settlement amount? Rather than immediately accepting the demanded amount or reacting emotionally by refusing it, the basis for the figure should be reviewed. It is worth first examining the treatment costs and damages already paid by insurance, the severity of the injury, the likelihood of lasting aftereffects, the actual loss of income, and the likely criminal disposition in comparable cases. 7. Points to Keep in Mind There is no fixed market rate or standard formula tied to weeks of diagnosed recovery for settlements in 12-major-violation cases. The severity of the victim's injury, the likelihood of lasting aftereffects, the fault ratio, the insurance treatment history, the type of major violation involved, and the driver's prior record are the key factors that determine both the scope of settlement and the criminal outcome — and because the specific wording of the settlement agreement can determine whether the criminal settlement amount is treated as civil damages, or whether future claims are limited, the scope of the settlement should be confirmed before any payment is made or any signature given. Because a 12-major-violation accident requires reviewing the accident record, medical materials, and insurance treatment history together to determine the right course of action, anyone facing a police investigation or a settlement negotiation with a victim should first consult an attorney experienced in this area to review which major-violation category applies and the legal effect of the settlement agreement.
2026-08-10 Naver Blog -
Blogs Labor · Employment Disputes
Workers' Compensation Insurance Fraud Is Not Something You Can Take Lightly
What Does Workers' Compensation Insurance Fraud Mean Legally? Workers' compensation insurance fraud refers to falsely reporting an accident or illness that does not actually qualify as an industrial accident as if it were one, or misrepresenting the circumstances of the accident, work arrangement, or average wage, in order to wrongfully obtain workers' compensation benefits or premium advantages. Constitutes unlawful receipt of benefits under the Industrial Accident Compensation Insurance Act, subject to recovery of the wrongfully received amount as well as an additional surcharge If a falsified medical certificate or fabricated accident circumstances are confirmed, charges of fraud and forgery of private documents under the Criminal Act may also apply In many cases where the employer is involved, the employer is punished together with the employee as a co-principal As such, workers' compensation insurance fraud is not a mere administrative violation but a serious crime that can lead to criminal punishment, and this must be kept firmly in mind. From Detection to Trial: What Is the Process? Once suspicion of workers' compensation insurance fraud arises, the case generally proceeds through the following stages. Report and internal investigation The Korea Workers' Compensation & Welfare Service detects signs of irregularity and launches an investigation On-site verification and document request Medical records, work records, CCTV footage, and other objective evidence are cross-checked Referral to investigative authorities If clear evidence of fraudulent receipt is found, the case is referred to the police or prosecution Suspect investigation and referral After questioning those involved, the case is transferred to the prosecution Indictment and trial Sentences range from fines to actual imprisonment Because the direction of the initial statement and the preparation of supporting evidence largely determine the final outcome, it is critical to seek professional assistance as soon as you receive notice of an investigation related to workers' compensation insurance fraud. A Real Case of Workers' Compensation Insurance Fraud [Case We Handled] Mr. B, who ran a manufacturing company, falsified documents to make an employee's personal injury appear to be a work-related accident and applied for workers' compensation benefits, but the truth came to light during a verification investigation by the Korea Workers' Compensation & Welfare Service, leading to his being reported to the authorities. From the early stages of the investigation, Mr. B worked with Decent Law Firm to organize the facts and actively demonstrate his willingness to voluntarily return the benefits, ultimately resolving the case with a small fine. As shown, the outcome of a workers' compensation insurance fraud case can vary greatly depending on how it is handled in the early stages. The Role of Defense Counsel, and Why You Should Work With Decent Workers' compensation insurance fraud cases require professional handling in the following respects. Legal review of the Korea Workers' Compensation & Welfare Service's investigation materials Securing the right of defense during questioning and establishing a response strategy A comprehensive response that takes into account both recovery/additional surcharges and criminal punishment Based on extensive experience handling criminal cases related to industrial accidents and insurance, Decent carefully reviews each client's situation and builds a systematic defense strategy from the early stages of the investigation through trial. Workers' compensation insurance fraud is a type of case in which securing supporting evidence becomes increasingly difficult the longer you wait. If you have already received notice of an investigation or are troubled by related facts, we recommend consulting first with defense counsel experienced in labor and criminal cases rather than deciding on your own. Decent Law Firm is always ready to provide prompt and accurate legal consultation to help you find the best direction for your situation.
2026-08-06 Naver Blog -
Blogs Criminal
Elements of Special Assault: What You Must Know If You Want to Avoid Punishment [Must Read]
What Are the Legal Requirements for Special Assault? Special assault is defined under Article 261 of the Korean Criminal Act and carries harsher penalties than simple assault under Article 260. Existence of assault - the use of physical force against another person's body; this can be established even without direct physical contact or an injury result Carrying a dangerous object - what matters is not the shape of the object but how and in what situation it was used; even an everyday object can qualify Display of power by a group or crowd - the mere presence of two or more people at the scene is not enough; the group must have exercised enough force to be capable of overpowering the victim Because the elements of special assault focus less on the actual harm suffered and more on whether a dangerous object was carried or whether a group displayed force, simply arguing that there was no intent to use the object is often not enough to avoid the charge. What Is the Process From Investigation to Trial? Cases involving the elements of special assault typically proceed through the following stages. Filing a complaint or report - an investigation begins based on the victim's complaint or a witness report. Initial investigation - CCTV footage, dashcam recordings, and witness statements are collected at the scene. Suspect interrogation - the circumstances of the assault, whether an object was carried, and intent are examined. Referral to the prosecution - the case is transferred to the prosecutor's office based on the investigation results. Disposition decision - the prosecutor decides among a deferred indictment, summary indictment (fine), or formal indictment (trial). Trial proceedings - if formally indicted, the final sentence is determined in court. Special assault is a serious offense punishable by up to five years of imprisonment or a fine of up to 10 million KRW. Because it is not a crime that is automatically dismissed upon reaching a settlement with the victim, a settlement cannot by itself block prosecution — but it can significantly affect the final disposition, such as a deferred indictment or a fine, which is why an effective initial response strategy shapes the outcome of the entire case. A Real Case Involving Special Assault [Case We Handled] Mr. B, a man in his twenties, approached another person while holding a soju bottle during an argument at a drinking gathering, and was booked for special assault even though there was no direct physical contact. Mr. B argued that he "never intended to hurt anyone," but investigators determined that the soju bottle qualified as a "dangerous object." With the help of Decent Law Firm, he was able to demonstrate that the incident was accidental, actively submitted a settlement with the victim along with a plan to prevent reoffending, and ultimately received a deferred indictment. As this case shows, the outcome of a case involving the elements of special assault can vary greatly depending on how effectively the initial explanation and evidence are presented. The Role of Defense Counsel, and Why You Should Work With Decent Cases disputing the elements of special assault require the following professional responses. Legal review of whether an item qualifies as a "dangerous object" Gathering evidence to prove intent or the accidental nature of the incident Strategy for victim settlement and sentencing materials Based on its experience handling numerous assault and injury cases, Decent carefully analyzes each client's situation and builds a systematic defense strategy from the early stages of the investigation through trial. Whether a case meets the elements of special assault can only be properly contested when it is backed by accurate legal review and evidence response from the earliest stage of the case. If you have already been questioned or are facing an upcoming summons, we recommend consulting with defense counsel experienced in criminal cases rather than making the decision on your own. Decent will always work with you to find the best direction for your situation through prompt and accurate legal consultation.
2026-08-04 Naver Blog -
Blogs Criminal
Requirements for False Accusation (Mugo-jwe): Know Them to Prevent Unjust Harm
How Is the Crime of False Accusation Defined Under Korean Law? The requirements for the crime of false accusation are based on Article 156 of the Korean Criminal Act, and the offense is established when a person reports false facts to a public office or official for the purpose of causing another person to be subjected to criminal punishment or disciplinary action. The reported content must be false, differing from the objective facts The reporter must have been aware the report was false and intended for the other party to be punished The report must have been made to a state agency such as an investigative authority The false facts reported must themselves be capable of constituting a criminal offense or grounds for disciplinary action All four of these requirements must be met for the crime of false accusation to be established. Here, awareness need not be definite intent — conditional intent is sufficient — and as for purpose, merely being aware that the other party could be punished is enough; there is no need to actively wish for that outcome. Also, even if the reported facts are false, if they do not themselves constitute a criminal offense or grounds for disciplinary action, false accusation is not established, and the mere fact that a complaint ended in a non-prosecution decision does not automatically mean false accusation has occurred. However, if the reporter genuinely believed the report to be true, false accusation is not established. Here, "genuinely believing it to be true" means that, based on the objective facts known to the reporter, they were not even aware that the reported facts might be false or could be false. This does not apply to a case where the reporter was aware of the possibility of falsity but disregarded it, unconditionally believing their own claim to be correct. From Investigation to Trial: How Does the Process Unfold? Once a false accusation allegation arises, the process typically unfolds as follows. Recognition of the allegation or filing of a complaint - When the original case ends in a non-prosecution decision, the other party may file a counter-complaint, or the investigative authority may launch an ex officio investigation (note: this alone is not a requirement for establishing the offense) Summons for questioning - Securing statements on the circumstances and purpose of the original report Referral to the prosecution and determination of indictment - Reviewing whether the requirements for false accusation are met Trial proceedings - Final sentencing determined in court How the reporter's awareness and purpose at the time of the original report are explained has a decisive impact on the determination of whether the requirements for false accusation are met, so it is important to obtain legal assistance as soon as the allegation becomes known. A Real Case Involving False Accusation [A Case We Handled] Ms. B, a woman in her 40s, filed a complaint against her spouse for assault during divorce proceedings, but the case ended in a non-prosecution decision due to insufficient evidence. Her spouse then filed a counter-complaint for false accusation, and Ms. B visited Decent Law Firm seeking legal assistance. Decent actively demonstrated that there were circumstances at the time of the report that reasonably led Ms. B to believe she had actually been assaulted, and as a result, a determination was reached that the requirements for false accusation were not met. As this shows, because establishing the requirements for false accusation requires closely examining even the reporter's subjective awareness at the time of the report, the initial response can determine the outcome. The Role of Defense Counsel, and Why You Should Work With Decent Cases disputing the requirements for false accusation are an area requiring the following kind of specialized response. Precise analysis of the circumstances and supporting evidence behind the original report Legal defense concerning the determination of falsity and intent Securing the right to defense during questioning and establishing a sentencing strategy Based on our experience handling numerous false accusation cases, Decent closely analyzes each client's situation and carefully reviews whether the requirements for false accusation are met, establishing a systematic defense strategy from the early stages of investigation through trial. False accusation is a representative type of case in which the circumstances and purpose at the time of the report must be accurately explained. If you have already been questioned or are about to be summoned, we recommend consulting first with defense counsel experienced in criminal cases rather than making decisions on your own. Decent Law Firm will always provide prompt and accurate legal consultation to help you find the best direction for your situation.
2026-07-31 Naver Blog -
Blogs Criminal
Settling a Sexual Offense Case in Korea: What Victims Should Check Before Agreeing
This article explains how settlement amounts are determined in sexual offense cases in Korea, what to review in a settlement agreement and a Statement of Non-Punishment, and whether a victim may decline a settlement offer. Attorney in Charge | Hong Pureun Is a victim required to agree to a settlement? No. A victim of a sexual offense is not legally required to accept a settlement offer from the suspect or defendant. Even when the other party apologizes or offers compensation, the victim may decline the proposal. The victim may also request different terms if the proposed settlement does not adequately reflect the harm suffered. A victim does not have to respond immediately simply because a settlement request was made. Nor is the victim required to decide within a deadline unilaterally set by the other party. In particular, discussing the incident shortly after it occurred can be emotionally difficult. Direct calls or meetings with the accused may also create pressure and lead the victim to accept terms without sufficient review. The decision should therefore be made after considering the status of the criminal case, the extent of the harm, the attitude of the accused, and the specific settlement terms being offered. Does a settlement end the criminal case? Not necessarily. Reaching a private settlement does not automatically terminate a criminal investigation or trial in Korea. Under the Korean Sentencing Commission’s sentencing guidelines for sexual offenses, a victim’s expressed wish not to pursue punishment may constitute a special mitigating factor, while substantial recovery of damages may constitute a general mitigating factor, depending on the type of offense. Similar considerations appear in the sentencing guidelines for digital sexual offenses. However, a settlement or Statement of Non-Punishment does not automatically determine the outcome of the case or the sentence. Investigative authorities and courts may consider a range of circumstances, including the nature and seriousness of the offense, whether the conduct was repeated, the extent of the harm, the accused’s conduct after the offense, and the degree of actual recovery provided to the victim. Before signing any document, the victim should understand how the settlement agreement and the Statement of Non-Punishment may affect the criminal proceedings against the accused. How is a settlement amount determined? Korean law does not prescribe a fixed settlement amount for sexual offense cases. Even where the same criminal charge applies, the appropriate amount may differ depending on the conduct involved and the harm suffered by the victim. Relevant considerations may include: ▪️ The nature and seriousness of the offense ▪️ Whether the conduct occurred repeatedly ▪️ The physical and psychological harm suffered by the victim ▪️ Medical expenses, counseling fees, and other actual costs ▪️ Disruption to employment, education, or family relationships ▪️ The accused’s apology and efforts to repair the harm ▪️ Continued contact, intimidation, or other forms of secondary harm In cases involving unlawful filming or the distribution of intimate images, additional considerations may include how widely the material was shared, whether it has been deleted, and whether further distribution remains possible. A victim should therefore avoid relying solely on settlement figures found in other cases online. The assessment should also take into account the victim’s individual circumstances and the legal rights that may be waived under the proposed agreement. The wording of the settlement agreement may be as important as the amount A settlement in a sexual offense case should be reviewed not only for the amount offered but also for the conditions contained in the agreement. A settlement agreement commonly addresses: ▪️ The settlement amount and payment method ▪️ The payment deadline ▪️ Whether the victim will express a wish not to pursue punishment ▪️ Whether the victim will waive a future civil damages claim ▪️ Restrictions on future contact or access ▪️ Confidentiality obligations ▪️ Consequences of non-payment or other breaches Particular care is required when the agreement contains broad language such as: “The victim will not raise any further civil or criminal claims or objections in connection with this matter.” Depending on its wording and scope, this provision may affect not only the victim’s position in the criminal case but also the ability to pursue a later civil claim for damages. Further dissemination of intimate material or other previously unknown harm may be discovered after the settlement is signed. The agreement should therefore clearly state whether it covers only the harm currently known or also extends to future or additional harm. Are a settlement agreement and a Statement of Non-Punishment the same document? They are related, but they serve different purposes. A settlement agreement records the compensation amount, payment terms, and the parties’ future legal rights and obligations. A Statement of Non-Punishment—commonly referred to in Korean as a cheobeol bulwonseo (처벌불원서)—communicates to the police, prosecution, or court that the victim does not wish the accused to be punished. The settlement terms and the non-punishment statement may be included in a single document or prepared separately. A victim may also agree on financial compensation while reserving a separate position regarding punishment. The appropriate structure will depend on the circumstances of the case and the terms agreed by the parties. Receiving compensation does not, by itself, automatically mean that the victim has agreed not to seek punishment. The documents should clearly state exactly what the victim has agreed to and which rights, if any, are being waived. Should a Statement of Non-Punishment be submitted before payment is received? The accused or their representative may ask the victim to submit the Statement of Non-Punishment first, promising to transfer the settlement amount afterward. This arrangement may expose the victim to unnecessary risk. Once the statement has been submitted, the accused may delay payment or fail to pay the agreed amount, leaving the victim to pursue payment separately. Unless there is a specific reason to proceed otherwise, it is generally safer to arrange for payment and delivery of the relevant documents to occur simultaneously. Where the settlement amount will be paid in installments, the agreement should specify: ▪️ Each payment date and amount ▪️ The bank account and payment method ▪️ The consequences of late payment ▪️ Whether the full remaining balance becomes immediately due after a missed payment ▪️ The date or stage at which the Statement of Non-Punishment will be submitted Payment terms should be recorded in writing rather than left as a verbal promise. Bank transfer records and other evidence confirming payment should also be retained. Can a victim refuse a settlement? Yes. A victim may clearly state that they do not wish to settle. A victim may initially consider a proposal and later decide not to proceed after reviewing the accused’s conduct or the terms offered. Where the accused, their family members, or other representatives continue contacting the victim after a refusal, the victim should preserve call logs, messages, emails, and other records of the contact. The situation may then be reported to the investigator in charge or discussed with the victim’s attorney. The victim’s wishes should remain the central consideration throughout the process. A victim does not need to make an unwanted decision merely to help reduce the accused’s punishment. A victim does not have to contact the accused directly A victim is not required to speak with or meet the suspect, defendant, their family members, or their attorney to negotiate a settlement. Under the sentencing guidelines for digital sexual offenses, conduct that causes additional harm to the victim during an attempted settlement may be treated as an aggravating consideration. A victim’s attorney may assist with: ▪️ Confirming the other party’s settlement proposal ▪️ Negotiating the amount and payment conditions ▪️ Communicating the victim’s requests ▪️ Reviewing the settlement agreement and Statement of Non-Punishment ▪️ Coordinating payment and document delivery ▪️ Including restrictions on future contact or access ▪️ Submitting relevant documents to investigators, prosecutors, or the court Depending on eligibility, victims of sexual violence in Korea may also apply for assistance from a state-appointed victim’s counsel. This system provides legal support from the early stages of the investigation through trial proceedings. Before accepting a settlement offer A settlement in a sexual offense case is not simply a decision about how much compensation to receive. It also determines the scope of the harm being resolved, the victim’s position regarding punishment, and which civil rights will remain available after the agreement is signed. Before signing a settlement agreement, the victim should confirm: ▪️ Which rights will be waived under the agreement ▪️ Whether the amount and payment terms are clearly stated ▪️ Whether the victim will submit a Statement of Non-Punishment ▪️ Whether future or newly discovered harm is included in the settlement ▪️ Whether payment and document delivery will occur in a secure order ▪️ Whether restrictions on future contact or access are necessary How Decent Law Firm assists victims Decent Law Firm represents victims of sexual offenses in settlement discussions with suspects and defendants. Our assistance may include confirming the other party’s proposal, negotiating the settlement amount and payment terms, reviewing the settlement agreement and Statement of Non-Punishment, and coordinating the submission of relevant documents. We may also serve as the victim’s point of contact so that the victim does not have to communicate directly with the accused. Each proposed agreement is reviewed in light of the rights that may be waived and the possibility of additional or newly discovered harm. Victims who have received a settlement proposal but are uncertain whether the terms are appropriate should consider obtaining legal advice before signing an agreement or submitting a Statement of Non-Punishment. Official References ▪️ Korean Sentencing Commission, Sentencing Guidelines for Sexual Offenses ▪️ Korean Sentencing Commission, Sentencing Guidelines for Digital Sexual Offenses ▪️ Ministry of Justice, State-Appointed Counsel for Crime Victims
2026-07-29 -
Blogs Criminal
Marriage Fraud in Korea: Why You Need a Lawyer to Respond
What Does Marriage Fraud Mean Under Korean Law? In the past, Korea had a specific offense called "fraud through the pretense of marriage" (former Article 304 of the Criminal Act), which punished having sexual intercourse under a false promise of marriage. However, in 2009 the Constitutional Court ruled this provision unconstitutional, retroactively nullifying its effect, and the provision was completely abolished when the Criminal Act was amended on December 18, 2012. Today, "marriage fraud" is therefore not a separate criminal offense. Instead, it is prosecuted as ordinary fraud under Article 347 of the Criminal Act where a person, without any real intention of marrying, deceives another person into believing otherwise in order to obtain financial gain. If the amount defrauded is KRW 500 million or more, the offender may face aggravated punishment under Article 3 of the Act on the Aggravated Punishment of Specific Economic Crimes. A simple broken engagement, breakup, or failed relationship is not, by itself, punishable. The key question is whether the person never had the intention or ability to marry from the outset, yet deceived the victim to obtain money. Proving the causal link between the deceptive act and the transfer of property is the decisive factor in determining guilt or innocence. In other words, for fraud to be established, a sequential causal relationship must be recognized among the deceptive act, the victim's mistaken belief, and the victim's disposal of property. What Is the Process, From Investigation to Trial? When allegations of marriage fraud arise, the case typically proceeds through the following stages. Filing a complaint - The victim files a fraud complaint with the police. Investigation begins - Police examine phone records, text messages, bank account transactions, and other evidence of deception and the flow of funds. Suspect questioning - Statements are obtained on whether the suspect genuinely intended to marry. Referral to the prosecution and a decision on indictment. Trial proceedings - The court reaches a final determination on guilt and sentencing. Because how the existence of an intent to marry is proven often determines the outcome of the case, anyone who has been accused of, or victimized by, marriage fraud should seek legal assistance from the earliest possible stage. A Real Case of Marriage Fraud [Case We Handled] Ms. B, a woman in her 40s, gave tens of millions of won to a man who had promised to marry her, claiming the money was for business capital, but he disappeared just before the wedding. The investigation revealed that he had already taken money from several other victims in different regions using the same scheme, and his deliberate deception was recognized, leading to his indictment for fraud. As this case shows, the outcome of a marriage fraud case often depends on how thoroughly the repeated scheme and the flow of funds can be uncovered. The Role of a Lawyer, and Why You Should Work With Decent Marriage fraud cases call for the following professional approach. Analyzing phone records, messages, and account data to substantiate the intent to deceive. Developing a statement strategy tailored to the client's position, whether victim or suspect. Reviewing whether to pursue a criminal complaint and a civil claim for damages in parallel. Decent Law Firm has extensive experience handling property crime cases, closely analyzing each client's situation and building a systematic strategy from the complaint-preparation stage through investigation and trial. We stand by clients who are exhausted, financially and emotionally, by marriage fraud, working to ensure they are not disadvantaged from beginning to end. If you have already suffered harm or been accused, we recommend consulting a lawyer experienced in property crime rather than making decisions on your own. Decent Law Firm is always ready to provide prompt, accurate legal consultation to help you find the best direction for your situation.
2026-07-28 -
Blogs Criminal
Legal Representation for Sex Crime Victims: Reporting Is Not the End
What Does Legal Representation for Sex Crime Victims Mean? Legal representation for sex crime victims refers to a system that allows survivors of sexual offenses to exercise their rights throughout the criminal process through an attorney. Support is available through the court-appointed victim attorney system under relevant statutes Attorneys accompany victims during police and prosecutor investigations, assist in gathering evidence, and support settlement and damages negotiations through the entire process Attorneys protect the victim's procedural rights and interests from unfair pressure or inducement by the offender's defense counsel In this way, legal representation for sex crime victims goes beyond simply accompanying the investigation — it provides substantive legal support that helps victims complete the process without suffering secondary harm. From Reporting to Trial: What Is the Process? Cases handled through victim legal representation generally proceed through the following steps. Filing a report and complaint - Reporting the incident and submitting a criminal complaint to the police Victim interview - Providing statements and evidence with the attorney present Investigation by authorities - Investigation of the offender, forensic examination of evidence, and witness questioning Case referral and indictment decision - After police referral, the prosecutor decides whether to indict or not Trial and claim for a restitution order - Participation in trial, criminal mediation, and, if requirements are met, a restitution order to help restore the victim's losses Since the consistency of initial statements and the preservation of evidence during this process critically affect the outcome of the case, it is essential to receive legal assistance as soon as possible after reporting. A Real Case: Legal Representation for a Sex Crime Victim [Case We Handled] Ms. B, a woman in her twenties, hesitated to report workplace sexual harassment and filed her complaint only after considerable time had passed. Although evidence was scarce by then, with Decent Law Firm's help she systematically organized circumstantial evidence and responded appropriately to secondary-harm-inducing questions during the investigation, ultimately leading to the offender's indictment. As this shows, the outcome of a sex crime victim representation case can vary greatly depending on the initial response and how well the evidence is organized. The Attorney's Role, and Why You Should Work With Decent Sex crime victim representation cases require a professional approach that includes the following. Preventing secondary harm and supporting psychological stability by accompanying the victim during investigations Strengthening the case through evidence collection and assistance with statements Developing follow-up strategies for settlement, damages, and criminal mediation Decent Law Firm has extensive experience handling numerous sex crime victim representation cases, closely analyzing each client's situation and building a systematic support strategy from the initial report through trial and compensation. We stand by clients from beginning to end so that those who are already psychologically vulnerable from the harm they suffered are not hurt again during the process. Sex crime victim representation is a type of case where, as time passes, securing evidence and responding effectively become increasingly difficult. If you have already suffered harm or are considering filing a report, we recommend consulting first with an attorney experienced in sex crime cases rather than deciding on your own. Decent Law Firm is always ready to provide prompt and accurate legal consultation to help you find the best direction for your situation.
2026-07-24
