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BlogsUnregistered 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
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
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
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
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
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
