Nominee Ownership of Real Estate in Korea: Non-Prosecution Success Case Under the Real Estate Real Name Act
Case Overview
- Client Information
- Individual / Suspect
- Case Details
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The client was a young adult in his early twenties who had only recently begun his professional and independent life through a small business venture when he unexpectedly became involved in a criminal investigation.
The client’s parents had suffered financial losses amounting to several billion KRW after being victimized by a business partner involved in fraud and embezzlement.
As part of the recovery process, the parties agreed that a piece of real estate owned by the offender would be transferred as payment in lieu of cash compensation. However, both parents were unable to obtain financing due to credit-related issues at the time.
As a result, the parents asked the client, who was eligible for a mortgage loan, to temporarily hold title to the property in his name. Unable to ignore his parents’ urgent circumstances, the client agreed to act as the nominal titleholder.
During the registration process, however, the judicial scrivener reported the legal basis of the transfer as a “sale” instead of the actual arrangement involving debt settlement through property transfer. Consequently, the client became subject to a criminal investigation for alleged violations of the Korean Real Estate Real Name Act and the Act on Special Measures for the Registration of Real Estate.
Decent's Strategy
Decent Law Firm emphasized that this nominee ownership arrangement was fundamentally different from the types of conduct typically prohibited under the Real Estate Real Name Act, such as tax evasion, speculation, or concealment of assets. Relevant case law and legal principles were presented to support this distinction.
✔ Providing Detailed Context and Circumstances
The firm systematically organized and explained the parents’ victimization in the underlying fraud case, as well as the unavoidable financing limitations that led to the temporary title arrangement. These circumstances were fully reflected in the attorney opinion submitted to the prosecution.
✔ Establishing Lack of Intent Regarding False Registration
Decent demonstrated that the client had delegated the entire registration process to the judicial scrivener and had no meaningful involvement in deciding how the registration cause would be recorded. This was critical in arguing the absence of criminal intent.
✔ Highlighting Remorse and Corrective Measures
The client had no prior criminal history and became involved only in a passive and limited manner while attempting to assist his parents. Decent also emphasized that immediate corrective actions had been initiated, including procedures to transfer the property title back to the actual beneficial owners.
Results & Significance
The prosecutor fully accepted Decent’s arguments and issued a suspension of indictment (non-prosecution disposition) for both alleged offenses under the Real Estate Real Name Act and the Act on Special Measures for the Registration of Real Estate.
▶ What Is a Suspension of Indictment?
Under Korean criminal procedure, a suspension of indictment means that although the allegations may technically be acknowledged, the prosecutor decides not to formally prosecute the suspect after considering factors such as age, background, motive, surrounding circumstances, and post-incident conduct.
Importantly, this outcome allows the matter to be resolved without a criminal conviction or criminal record.
▶ Why Early Legal Intervention Matters in Real Estate Nominee Cases
In Korea, many people become involved in nominee ownership arrangements without fully understanding the criminal implications under real estate registration laws.
By the time they receive contact from investigators, they often realize too late that they are already being treated as criminal suspects. In these situations, the legal outcome can vary dramatically depending on how the facts are explained, structured, and presented to the prosecution.
A carefully prepared legal strategy can make the difference between formal criminal punishment and a favorable non-prosecution outcome.
If you are under investigation in Korea regarding nominee ownership of real estate, false registration issues, or alleged violations of the Real Estate Real Name Act, obtaining legal counsel at the earliest stage is critical.
Decent Law Firm’s Criminal Defense Team provides strategic representation tailored to complex real estate and financial crime matters involving both Korean nationals and foreign clients.
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