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Commercial Lease and Change of Use in Korea: Can the Lease Be Terminated If Business Operations Are Not Permitted?
A tenant may sign a commercial lease intending to operate a restaurant, café, convenience store, academy, or other specific business, only to later discover that the premises cannot legally be used for that purpose. This may occur because the building’s registered use does not permit the intended business, the required change of use cannot be approved, or separate business licensing requirements cannot be satisfied. In such cases, the landlord is not automatically liable simply because the change of use is unsuccessful. Whether the tenant may terminate the lease, recover the security deposit, or claim damages depends on factors such as the agreed purpose of the lease, the reason the intended business cannot operate, any contractual allocation of responsibility for permits and change-of-use procedures, and the representations made by the landlord before the lease was signed. Contents When a Change of Use Is Required What to Check Before Signing a Commercial Lease Landlord Liability When a Change of Use Is Not Possible Lease Termination and Return of the Security Deposit Damages for Interior and Business Preparation Costs Recommended Commercial Lease Clauses Frequently Asked Questions Key Takeaways on Commercial Leases and Change of Use 1. When Is a Change of Use Required for Commercial Premises? If the current registered use of a building differs from the tenant’s intended use, it is necessary to determine whether a change-of-use procedure is required under the Korean Building Act. Article 19 of the Building Act requires a building whose use is changed to comply with the building standards applicable to the intended new use. Depending on the type of change, approval, reporting, or an application to amend the building register may be required. [Article 19 of the Building Act – Change of Use] However, a change of use under the Building Act and a business-specific license or registration are separate legal issues. Even if the registered building use can be changed, the premises may still fail to satisfy requirements applicable to a restaurant, academy, or other regulated business. A prospective tenant should therefore confirm not only the current use shown on the building register but also whether the intended business can legally operate at the premises. 2. What Should Be Checked Before Signing a Commercial Lease? Before signing a commercial lease, the tenant should verify the registered use of the premises, whether the intended business can operate there, and who will bear responsibility for any change of use or licensing process. 🔹Key Checks Before Signing a Commercial Lease Item What to Check Building Register Current registered use of the premises Intended Business The specific business to be operated Change of Use Whether the required change can legally be made Building Standards Parking, fire safety, structural, and other requirements Business Licenses Whether permits, registrations, or reports required for the business are available Lease Agreement Who is responsible for permits, change of use, and related costs Special Clauses What happens if the tenant cannot obtain the required approval or operate the intended business Where a tenant is leasing premises for a specific business, it is generally preferable to state that purpose expressly rather than describing the premises only as a “commercial unit” or “store.” The purpose stated in the agreement may become an important factor if a dispute later arises over whether the premises were suitable for the intended use. 3. Is the Landlord Liable If the Change of Use Is Not Possible? If the premises cannot be used for the purpose agreed under the lease, the landlord’s contractual obligation to enable the tenant to use and benefit from the premises may become an issue. Article 623 of the Korean Civil Act requires a landlord to deliver the leased property and maintain it in a condition necessary for the tenant’s use and enjoyment during the lease term. [Article 623 of the Civil Act – Obligations of the Lessor] In Supreme Court Decision 2021Da202309, dated April 29, 2021, the lease expressly stated that the premises would be used as a convenience store, but issues relating to the building’s registered use interfered with normal business operations. The Supreme Court held that the condition in which leased premises must be provided should be determined in light of the agreed purpose and terms of the lease, and that the landlord’s obligation to maintain the premises in a usable condition does not automatically disappear merely because the landlord was unaware of the relevant defect. [Supreme Court Decision 2021Da202309, April 29, 2021] However, the landlord is not automatically liable whenever a change of use is denied. Relevant factors may include: the business purpose stated in the lease; whether the landlord knew the tenant’s intended business; whether the landlord represented that the business could operate at the premises; whether the problem arises from the building itself; and whether responsibility for permits or change-of-use procedures was allocated to a particular party. The central issue is whether the premises were leased for a specifically agreed business purpose and why that purpose became impossible to achieve. 4. Can the Lease Be Terminated If the Change of Use Is Not Permitted? If the inability to change the building use prevents the tenant from carrying out the business contemplated by the lease, termination of the lease may be considered. Where the tenant has already taken possession and used the premises, however, Korean law may treat the issue as termination with prospective effect rather than cancellation that retroactively unwinds the entire contractual relationship. In Supreme Court Decision 93Da61321, dated November 22, 1994, the tenant had taken possession of the premises but could not achieve the purpose of the lease because a legal restriction prevented the necessary change of use. The Supreme Court considered the continuing nature of the lease relationship and addressed the matter as one of termination rather than retroactive cancellation. [Supreme Court Decision 93Da61321, November 22, 1994] If the lease is validly terminated, the tenant may also seek the return of the lease security deposit upon returning the premises. Disputes may nevertheless arise over unpaid rent, restoration costs, or other amounts the landlord claims should be deducted from the deposit. 5. Can the Tenant Claim Interior and Business Preparation Costs as Damages? Where the landlord has breached a contractual obligation and the required elements for liability are satisfied, the tenant may consider claiming damages for losses such as interior construction costs. Article 390 of the Civil Act provides for damages where a party fails to perform its contractual obligations in accordance with the terms of the contract. [Article 390 of the Civil Act – Damages for Non-performance] Potential losses in a commercial lease dispute may include: interior construction costs; fixtures and equipment; demolition and restoration expenses; and expenses actually incurred in preparing permits or business registrations. However, not every expense incurred by the tenant will automatically be recoverable. The tenant must generally establish the connection between the landlord’s breach and the claimed loss, as well as the amount actually incurred. Construction agreements, tax invoices, bank transfer records, receipts, and similar documentation may therefore become important evidence. Claims for anticipated profits or lost business revenue generally require additional proof and should be considered separately from actual out-of-pocket expenses. 6. What Clauses Should Be Included in a Commercial Lease? Where the premises are being leased for a specific business, the lease should clearly address what happens if the required change of use or business license cannot be obtained. Relevant provisions may address: the specific business to be operated; whether a change of use is required; which party will handle the change-of-use procedure; allocation of related costs; the landlord’s obligation to provide documents or cooperation; termination rights if approvals are not obtained within a specified period; return of the deposit or other payments; and treatment of interior construction and restoration obligations. In particular, a general provision stating that “all permits and licenses are the tenant’s responsibility” may not adequately distinguish between regulatory issues relating to the tenant’s individual business and legal restrictions arising from the building itself. Where the ability to operate the intended business remains uncertain, the parties may consider expressly addressing termination and payment-return arrangements if the necessary approvals cannot be obtained. 7. Frequently Asked Questions Q1. If the lease says the premises will be used as a restaurant, must restaurant operations necessarily be permitted? The stated business purpose is an important factor, but it does not by itself determine liability. It is also necessary to consider whether the landlord knew the intended use, why the business cannot legally operate, and how the lease allocated responsibility for regulatory approvals. Q2. Is the landlord free from liability if the landlord did not know that the change of use was impossible? Not necessarily. A landlord’s lack of knowledge does not automatically eliminate the obligation to maintain the leased premises in a condition suitable for the agreed use. Whether damages may also be claimed requires a separate review of the requirements for contractual liability. Q3. What happens if neither the landlord nor the tenant is responsible for the inability to operate the business? If the contractual purpose becomes impossible to achieve for reasons attributable to neither party, Korean rules on risk allocation in bilateral contracts may become relevant. The result will depend on why the business became impossible and on the specific terms of the lease. Q4. What should a tenant do if interior construction has already been completed but the business license cannot be obtained? Before incurring additional expenses, the tenant should determine the exact reason the license cannot be issued and whether the problem can be corrected. The tenant should also preserve the building register, lease agreement, licensing documents, interior construction agreements, invoices, receipts, and communications with the landlord before assessing termination, deposit recovery, or damages. 8. Commercial Lease and Change of Use: Key Takeaways In a Korean commercial lease dispute involving a change of use, the registered use of the building is only one part of the analysis. The business purpose agreed between the landlord and tenant is also critical. If the parties entered into the lease for a specific business but a problem inherent in the building prevents that business from operating, issues such as lease termination, return of the security deposit, and damages may arise. However, the landlord is not automatically liable simply because a change of use cannot be completed. The lease agreement, special provisions, building register, reason for the licensing failure, representations made before signing, and records of actual expenditure should be reviewed together.
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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.
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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.
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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
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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.
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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.
