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LAWYERS
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PJoonhyung “June” Park
#Labor · Employment Disputes #Civil #Criminal #Administrative #IP Litigation #Divorce · Family
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PHokyun “Brad” Lim
#Labor · Employment Disputes #Corporate & Biz #Real Estate Disputes · Construction #VC · Financial Advisory #Cross-border · Dispute Resolution
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Sunghwan “Sean” Lim
#Civil #Criminal #Crypto #Cross-border · Dispute Resolution #Real Estate Disputes · Construction
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ADohun “Dean” Kim
#VC · Financial Advisory #Cross-border · Dispute Resolution #Civil #Rehabilitation · Bankruptcy #Criminal
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AGitae “Daniel” Nam
#Civil #Criminal #Crypto #Divorce · Family #Administrative #Labor · Employment Disputes
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AJiwon “Rosie” Jang
#Crypto #Civil #Criminal #Divorce · Family #Rehabilitation · Bankruptcy
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AMinsun “Haley” Kang
#Cross-border · Dispute Resolution #Entertainment #IP Litigation #Civil #Criminal #Administrative
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AYoungyoon ”Yoon” Kwak
#Criminal #Civil #Labor · Employment Disputes #Crypto #Cross-border · Dispute Resolution
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AJuye ”Elizabeth” Han
#Cross-border · Dispute Resolution #Crypto #VC · Financial Advisory #IP Litigation #Administrative
Blogs
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If You’re Curious About Debt Relief and Repayment Options for Crypto Loans, Read This Carefully
Why Crypto Loans Become Problematic in Rehabilitation and Bankruptcy Proceedings Crypto loans differ fundamentally from conventional personal loans or private lending, as the form of collateral and transaction pathways are often unclear or non-standard. In rehabilitation and bankruptcy practice, crypto loans typically fall into the following categories: Exchange-linked crypto loan products Private, peer-to-peer loans secured by crypto assets Loans provided through overseas crypto platforms Many debtors mistakenly assume that crypto-related debts do not need to be disclosed, or that overseas transactions fall outside Korean legal procedures. This assumption is highly risky. Once a debt is omitted, it may later be excluded from discharge and continue to survive. Moreover, if the integrity of the procedure is compromised, courts are more likely to dismiss the case or deny discharge. From the moment a debtor makes unilateral judgments, the case can begin to move in an unfavorable direction. How Crypto Loans Are Treated in Rehabilitation and Bankruptcy Whether a crypto loan is recognized as a valid debt depends on the legal structure of the loan and the flow of funds. Where crypto assets were provided as collateral, courts must assess whether the collateral arrangement can be legally recognized as a secured claim under the Debtor Rehabilitation and Bankruptcy Act (such as a rehabilitation secured claim or a separately satisfied claim). If the collateral structure is not legally valid, the debt is treated as a general rehabilitation claim or bankruptcy claim. In addition, the timing and method used to assess the market value of crypto assets are critical in determining the debtor’s asset pool. Price volatility and whether the crypto collateral has already been liquidated directly affect the feasibility of a rehabilitation repayment plan. In bankruptcy cases, further issues may arise, including: Whether repayments or collateral provided to specific creditors prior to filing are subject to avoidance actions under Articles 391–407 of the Debtor Rehabilitation and Bankruptcy Act Procedural complications in claim verification and distribution involving overseas creditors In practice, many debtors become worse off not because of the amount of debt itself, but because the handling of crypto loans is legally flawed. Key Issues That Must Be Addressed When You Have Crypto Loans The reason crypto loan transactions and borrowing relationships must never be concealed is straightforward. Courts determine whether to approve a rehabilitation plan or grant a discharge based on the accuracy and completeness of the debtor’s asset and creditor disclosures (Articles 147, 148, and 564(1)(3) of the Debtor Rehabilitation and Bankruptcy Act). Accordingly, full and accurate disclosure of all assets and liabilities is mandatory. When properly organized documentation is submitted, proceedings tend to progress in a stable and predictable manner. Conversely, if the initial approach is incorrect, corrective orders are repeatedly issued, the risk of dismissal increases, and both time and costs escalate unnecessarily. At this stage, the debtor’s response strategy—and whether professional guidance is involved—often determines the outcome. For many individuals losing sleep over crypto loan issues, proper legal handling is the first step toward regaining stability. How Decent Law Firm Handles Rehabilitation and Bankruptcy Cases Involving Crypto Loans Decent Law Firm approaches crypto loan cases by first restructuring the underlying transaction framework to align with court standards. We develop tailored response strategies based on loan type—exchange-linked products, overseas platforms, or private lending—and adjust for crypto holdings, liquidation timing, and market volatility so these factors do not negatively affect the procedure. Our assistance goes far beyond administrative filing. We provide strategy-driven legal handling designed to proactively prevent dismissal or denial of discharge. Rather than concluding that “crypto loans make rehabilitation impossible,” we focus on how crypto loans must be handled to make rehabilitation or bankruptcy legally viable. If crypto-related debts and assets are not accurately identified and properly addressed, they can materially undermine plan approval or discharge decisions. For this reason, a structured and professional response from the earliest stage is essential. Having crypto loans does not make rehabilitation or bankruptcy impossible. However, improper handling can make it impossible. You do not need to carry that risk alone—Decent Law Firm provides the legal strategy and response needed to navigate crypto loan issues effectively.
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Is Crypto Referral Legal? Why Financial Authority Press Releases Are Not Enough
Following a recent press release by the Financial Services Commission (FSC), inquiries regarding the legality of crypto referral programs have increased significantly. Many businesses that use exchange referral codes for marketing, investment advisory services, or community operations are now concerned about potential violations of the Act on Reporting and Using Specified Financial Transaction Information (the “AML Act”). However, the legality of crypto referral programs cannot be determined solely based on an FSC press release. In practice, legal assessments must take into account the statutory provisions of the AML Act, relevant court decisions, and investigative standards applied by law enforcement authorities. The Meaning and Limitations of the FSC Press Release In its press release, the FSC suggested that certain referral structures could constitute brokerage or intermediary activities involving virtual asset exchanges. It is important to note, however, that this position reflects an administrative interpretation, not a binding judicial ruling or settled legal doctrine. When legal liability is at issue, courts ultimately determine—on a case-by-case basis—whether a specific referral structure satisfies the statutory elements of a regulated virtual asset service provider under the AML Act. Accordingly, it is legally inappropriate to conclude that all referral programs are unlawful based solely on regulatory commentary. The Core Legal Issue Under the AML Act Article 7 of the AML Act imposes reporting obligations on virtual asset service providers. The key question is whether a referral program goes beyond simple advertising or promotion and instead constitutes the business of brokering or intermediating the purchase, sale, or exchange of virtual assets. In making this determination, authorities focus not on the mere use of referral codes, but on substantive factors such as whether the operator intervenes in transaction structures, influences investment decisions, controls the flow of funds, or effectively forces users to use a specific exchange. Absent these elements, referral activities are generally viewed as marketing rather than brokerage. Guidance from Court Decisions and Investigative Practice Court rulings and multiple non-indictment decisions indicate a consistent approach: referral programs are often characterized as marketing arrangements provided by exchanges, carried out based on users’ voluntary choices. Where the operator does not execute trades, handle customer funds, or mandate the use of a specific exchange, it is difficult to classify such activities as regulated virtual asset services. In practice, investigative authorities tend to focus less on the existence of a referral program itself and more on whether it is combined with fraudulent conduct, unregistered business operations, or substantive involvement in investment decisions. Key Considerations for Crypto Referral Businesses That said, not all referral structures are risk-free. Legal concerns may arise where a business repeatedly promotes only a single exchange, excludes alternative options, or combines referral activities with investment guidance that materially affects users’ decisions. In such cases, the activity may be viewed as de facto brokerage or intermediation. Ultimately, the legality of a crypto referral program depends not on its label, but on whether the overall business structure can be legally justified under the AML Act. Businesses that currently operate referral programs—or are considering implementing them—should carefully assess their structure before regulatory or investigative issues arise. Decent Law Firm’s Digital Asset Team provides legal opinions on the compliance of crypto referral structures, evaluates AML Act risks, and assists clients in preparing for potential regulatory or investigative scrutiny. Crypto referrals are not simply a question of “legal or illegal,” but whether the structure can be clearly explained and defended under the law. If you require a legal review of your crypto referral business model, consulting experienced legal professionals at an early stage can be a critical step in risk management.
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If You Are Facing Potential Criminal Liability in a Voice Phishing Police Investigation, This Is Essential Reading
Treating a Voice Phishing Police Investigation as “Witness Questioning” May Already Be Too Late In voice phishing cases, a police investigation may begin either as a witness interview or, from the outset, as a suspect interrogation, depending on the circumstances. Once investigative authorities recognize the existence of criminal suspicion and commence an investigation, suspect status is established, and the rights of a suspect—including the right to remain silent—must be guaranteed (Supreme Court of Korea, June 24, 2010, Decision 2008Do12127). However, even if an investigation begins as a witness interview, the individual’s status may be converted to that of a suspect as allegations become more concrete during questioning. For this reason, careful and strategic action is required from the very early stages. At the initial stage, investigators typically focus on quickly structuring the case around key issues such as whether bank accounts were provided, whether the individual was involved in the delivery or collection of cash, how instructions were received, and whether any form of compensation was involved. Depending on the direction of the statements made at this stage, the assessment may shift toward viewing the individual as a minor participant, an aider and abettor, or a co-perpetrator. Why Saying “I Didn’t Know” Rarely Works in Voice Phishing Cases In voice phishing investigations, the core issue is not merely whether the individual subjectively recognized the crime, but whether they were aware of the possibility of criminal conduct and nonetheless accepted that risk. Even if a person claims they did not explicitly recognize the conduct as criminal, criminal liability may still be established where dolus eventualis (conditional intent) is found based on factors such as abnormal transaction structures, repeated involvement, or the existence of financial compensation. In practice, statements such as “I thought it was suspicious but followed instructions anyway” or “I didn’t know it was illegal” frequently become decisive issues during investigations. Courts have recognized conditional intent in such cases by comprehensively considering factors including the abnormality of the transaction structure, repeated participation, the existence of monetary compensation, the general social awareness of voice phishing schemes, and any prior experience with similar incidents (Changwon District Court, May 22, 2019, Decision 2019No606; Seoul Southern District Court, Oct. 28, 2020, Decision 2020GoDan3736). While claims of good faith may be emotionally understandable, entirely different standards apply in legal evaluation. The Most Critical Point in a Voice Phishing Police Investigation: Initial Response Making spontaneous statements without legal counsel during the early stage of an investigation, or submitting to mobile phone and messenger forensic analysis without preparation, carries significant risk. In particular, many cases follow the same pattern: after being told that “telling the truth will be fine,” individuals provide a full account of events, only to find that the issue later shifts to whether they qualify as an aider, abettor, or co-offender. Subsequent procedures often progress far more quickly than expected. Depending on the initial response, cases that could have ended in non-referral at the police stage may proceed to prosecutorial dispositions such as suspension of indictment, summary indictment, or even a full criminal trial. Each outcome carries distinct legal consequences, making it essential to carefully determine the direction of the case from the very beginning. A voice phishing police investigation is not a one-time questioning process; failure at the initial response stage often directly determines the final outcome. Why Legal Assistance from Decent Law Firm Is Essential in Voice Phishing Police Investigations Decent Law Firm does not merely organize post hoc explanations in voice phishing police investigations. Before suspect status is formally fixed, we analyze the structure of the case and legally design the scope and direction of statements. Not all acts of providing accounts or transferring funds result in identical criminal liability. Co-perpetration under Article 30 of the Criminal Act and aiding and abetting under Article 32 are distinguished based on the degree of joint intent and functional control over the execution of the crime (Incheon District Court, Nov. 26, 2015, Decisions 2015GoDan2502 and 2015GoDan2957 (consolidated)). Even in the case of aiding and abetting, conditional awareness or foreseeability of the principal offender’s crime is sufficient to establish liability (Changwon District Court, May 22, 2019, Decision 2019No606). Because these legal boundaries must be determined through case-specific analysis, professional legal review is essential from the earliest stage. If statements recorded in investigative records are not strategically managed, reversing their impact in later proceedings becomes extremely difficult. A voice phishing police investigation should never be taken lightly. If an investigation has already begun, attempting to explain everything alone is not the solution. A structured approach—starting with a careful review of the case framework—is required.
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The Legal Boundaries of Virtual Assets Through the Lens of the Bitcoin Whitepaper
The Bitcoin Whitepaper Is Not a “Manual,” but a Legal Benchmark Many people understand the Bitcoin whitepaper as nothing more than a technical document. In actual disputes or criminal investigations, however, the whitepaper functions not as a simple explanation, but as the starting point for legal judgment. The contents of a whitepaper serve as key evidence in determining how a project was structured, what assumptions underpinned its design, and what representations were made to users or investors. The assumption that “having a whitepaper makes a project lawful” is therefore highly dangerous. If, at an early stage, a project adopts or modifies the structure of Bitcoin without proper legal review, and the actual operational model differs from what was explained to investors, such conduct may be evaluated as deceptive. In particular, where a project promises principal protection or high returns while in practice paying earlier participants using funds from later investors—a so-called Ponzi scheme—fraud charges may be established (see Seoul High Court Decision, Aug. 7, 2020, Case No. 2020No596). From this point onward, the matter clearly exceeds the limits of what an individual or business can assess on its own. For those losing sleep over these concerns, meaningful solutions do not begin with technology, but with a legal perspective. Risks That Arise When the Whitepaper and Actual Operations Diverge Problems arise when elements that do not exist in the Bitcoin whitepaper are added during real-world business operations. Typical examples include discrepancies in profit-sharing methods, reward mechanisms, or the identity of the actual operator compared to what is described in the whitepaper. When technical explanations and business operations are not clearly separated—particularly where multi-level membership recruitment structures or principal-guarantee arrangements are involved—the structure may constitute violations of the Act on the Regulation of Conducting Fund-Raising Business Without Authorization or the Door-to-Door Sales Act. Furthermore, if high returns are promised to investors despite the absence of any realistic ability to generate such returns, fraud liability may arise. The extent to which discrepancies between a whitepaper and actual operations are legally tolerable is assessed from the standpoint of investor protection and transactional fairness. Legal liability is especially likely to arise in cases such as the following: The whitepaper describes a decentralized structure, but in reality a specific entity controls token issuance and distribution The technical development plan or business model stated in the whitepaper is false or lacks any realistic feasibility Investor returns are sourced not from genuine business revenue but from funds contributed by new investors Accordingly, without legal review at the whitepaper drafting or reference stage, projects may later face liabilities that are extremely difficult to manage or unwind. Issues That Become Critical During Investigations and Trials Investigative authorities and courts do not focus on the technical sophistication of a Bitcoin whitepaper. Instead, the following issues are central: Substance of fund flows: whether investor funds were used as described in the whitepaper, or diverted to pay returns to earlier investors Identification of responsible parties: who actually planned and operated the business, and whether the individual was merely an investor or a de facto operator Existence of return guarantees: whether principal protection or fixed returns were promised, and whether there was any actual capacity to honor such promises Simply asserting that a project “referred to the Bitcoin whitepaper” does not constitute a viable defense. The initial design of the structure and the manner in which it was presented to investors directly translate into legal responsibility. Beginning a response only at the investigation or trial stage is often already too late. In crypto-related fraud cases, the Act on the Aggravated Punishment of Specific Economic Crimes may apply. Where the amount obtained through deception exceeds KRW 5 billion, punishment may include life imprisonment or imprisonment for not less than five years. Where unauthorized fund-raising or multi-level marketing structures are combined with such conduct, enhanced penalties under multiple statutes may apply (see Suwon District Court Decision, Sept. 23, 2022, Case No. 2022No1558). For this reason, legal review by qualified professionals is essential from the business-structure design stage. Why Legal Interpretation of the Bitcoin Whitepaper Is Essential Ultimately, how a Bitcoin whitepaper should be interpreted, and how far it may be reflected in an actual business model, is a quintessential legal judgment. Decent Law Firm conducts an integrated review of: the original intent of the Bitcoin whitepaper the actual business and operational structure fundraising and reward mechanisms regulatory and investigative perspectives Through this approach, we provide not merely isolated advice, but consistent legal support that spans from structural design to dispute resolution and investigation response. Issues surrounding the Bitcoin whitepaper are not matters of technical debate—they are questions of legal liability. This is precisely where the involvement of professionals with substantial experience in virtual asset cases becomes indispensable.
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Minimizing Risks Related to Criminal Penalties, Fines, and Confiscation in Tax Evasion Cases
Transition Process Toward Criminal Exposure Most tax evasion cases begin at the stage of a tax audit. However, where a certain scale of underreporting and intentional misconduct is identified, the process commonly progresses from a tax audit to a criminal tax investigation conducted by specialized investigation units, and ultimately to a criminal referral to the prosecution. This is why matters initially expected to conclude with administrative penalties may later evolve into full criminal proceedings. In practice, many taxpayers fail to clearly distinguish between cases that may be resolved through administrative tax measures and those that carry genuine criminal exposure, resulting in missed opportunities for timely and appropriate strategic response. In particular, where deliberate concealment structures—such as false reporting, suppression of sales, or the use of nominee accounts or nominee corporations—are identified during the audit stage, criminal exposure should already be considered substantially realized. At this point, whether and how an early strategic response is made can significantly affect the likelihood of criminal prosecution, the possibility of non-prosecution, the scope of confiscation, and sentencing outcomes. Actual Criminal Penalties Applicable Upon a Finding of Tax Evasion Tax evasion constitutes a criminal offense under the Punishment of Tax Evaders Act. Where intentional tax evasion is established, liability extends beyond administrative sanctions and results in criminal responsibility. Under the Act, general tax evasion is punishable by imprisonment of up to two years or a fine of up to twice the amount of the evaded tax. Where the evaded tax amount exceeds KRW 300 million and represents at least 30% of the tax due, or exceeds KRW 500 million, enhanced penalties apply, including imprisonment of up to three years or a fine of up to three times the evaded tax. The applicable statutory framework and penalty levels vary depending on the amount of tax evaded. If the annual evaded tax amount ranges between KRW 500 million and KRW 1 billion, Article 8 of the Act on the Aggravated Punishment of Specific Crimes may apply, resulting in imprisonment of not less than three years and a fine of two to five times the evaded tax, imposed concurrently. If the annual evaded tax amount exceeds KRW 1 billion, the statute provides for life imprisonment or imprisonment for not less than five years, together with a fine of two to five times the evaded tax. In practice, decisions regarding detention and sentencing are influenced not only by the amount of tax evaded, but also by the degree of intent, repetition or habitual conduct, and whether the evasion involved systematic or organized concealment. Treating tax evasion solely as a financial issue involving penalties or additional taxes—while overlooking criminal exposure—can result in an unexpected and substantial risk of actual imprisonment. Confiscation and Tax Surcharges: Often More Burdensome Than Criminal Sentencing In tax evasion cases, confiscation and additional tax surcharges arise independently of imprisonment and criminal fines imposed by the criminal court. Confiscation in criminal proceedings serves as a property-based sanction designed to recover economic benefits obtained through unlawful conduct, while administrative tax procedures may impose additional taxes and surcharges under the Framework Act on National Taxes and related tax statutes. Key issues in calculating confiscation include identifying the true beneficiary of the income, determining the scope of concealed income, and assessing discrepancies between nominal ownership and substantive control, particularly in cases involving nominee structures. When compounded with tax surcharges, the overall financial burden may become irrecoverable, even where the custodial sentence itself is relatively limited. In practice, confiscation and additional tax liabilities often result in more severe consequences than criminal fines alone. How Decent Law Firm Handles Tax Evasion Cases as Criminal Matters Tax evasion cases must not be addressed by separating tax procedures from criminal defense. Because statements and materials submitted during audits and investigations directly affect criminal liability, Decent Law Firm formulates defense strategies from a criminal law perspective at the earliest stage. We focus on challenging the existence of criminal intent and limiting the scope of liability, with the objective of minimizing both sentencing exposure and confiscation risk. If notice of a criminal tax investigation has already been issued, or if allegations of concealment or false reporting have arisen during a tax audit, immediate action is critical. Once the appropriate response window has passed, the risks associated with criminal penalties and confiscation in tax evasion cases may become irreversible.
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A Legal Guide by a Pseudo-Investment Advisory Lawyer
The Decisive Difference Between Pseudo-Investment Advisory Business and Investment Advisory Business Many operators run paid “signal groups” or trading rooms on platforms such as KakaoTalk or Telegram relying solely on a pseudo-investment advisory business registration. However, in actual legal assessments, the most critical issue is individualization. A pseudo-investment advisory business provides non-personalized, general investment information to an unspecified audience through publications, broadcasts, or online postings. In contrast, an investment advisory business offers customized advice tailored to a specific individual’s investment profile, which requires formal registration with the Financial Services Commission. Following the 2024 amendment to the Capital Markets Act, structures in which operators receive compensation and directly exchange opinions with users online are increasingly likely to be classified as investment advisory services. Accordingly, responding to member questions in paid groups by specifying particular stocks or precise buy/sell timing carries a high risk of being deemed unregistered investment advisory activity, subject to criminal penalties. Key Prohibited Practices Operators Must Avoid In investigations and disputes, the following conduct most frequently becomes problematic: First, providing individualized investment advice. The moment an operator gives a member a tailored instruction such as “Do not average down on this stock,” it may constitute a violation of the prohibition on unregistered investment advisory services. Second, guaranteeing profits or covering losses. Statements such as “principal guaranteed” or “fixed monthly returns of 5%” may themselves violate the Capital Markets Act and can result in up to three years’ imprisonment or fines of up to KRW 100 million. Third, false or exaggerated advertising. Posting fabricated profit screenshots, impersonating investors, or claiming superiority over competitors without objective evidence may escalate into fraud charges. Mandatory Compliance Measures and Internal Controls When operating signal groups or investment-information services, the following points must be clearly disclosed on websites, notices, and pinned messages: No one-to-one consultations or asset management services are provided Investment losses are possible and responsibility rests solely with the investor The operator is a registered pseudo-investment advisory business, not a licensed financial investment company In addition, pseudo-investment advisory registrations must be renewed every five years. Failure to complete mandatory education or having a prior violation of financial laws may result in rejection of the registration. For virtual asset (cryptocurrency) signal groups, the Virtual Asset User Protection Act applies. Engaging in insider trading, market manipulation, or unfair trading practices may lead to severe criminal penalties, including imprisonment of one year or more. In particular, pump-and-dump schemes involving coordination with specific projects are currently under intensive regulatory scrutiny. Why Legal Support from Decent Law Firm Matters Decent’s virtual asset and financial regulation team goes beyond simple registration assistance, providing comprehensive management of legal risks across the entire business structure. Formation and operational advisory We design service structures, terms of use, and advertising language to ensure compliance within the scope of pseudo-investment advisory regulations. Criminal investigation defense We respond to allegations of unregistered advisory services, fraud, or unfair trading by developing legal arguments focused on the absence of conspiracy and fraudulent intent. Civil dispute representation We handle investor damage claims by structuring defenses based on the validity of limitation-of-liability clauses and comparative negligence principles. In an evolving regulatory environment, compliance must begin before issues arise, not after enforcement actions commence. If you are concerned about legal risks related to operating a pseudo-investment advisory business or signal group, we recommend consulting with a specialized lawyer for a proactive legal review.