Fraud Charges Under Korean Law: How You Could Become a Convict Overnight
What Are the Legal Requirements for Fraud Under Korean Law?
Fraud under Korean law is defined by Article 347 of the Criminal Act, and all four of the following elements must be satisfied for a fraud charge to be established.
- Deceptive act — deceiving the other party (including not only affirmative lies but also omissions that conceal facts)
- Mistake and disposition of property — the deception causes the other party to fall into a mistaken belief and dispose of property
- Causation — a causal relationship must exist between the deceptive act and the disposition of property
- Intent to defraud — the intent to obtain property or a proprietary benefit through the deceptive act
Simply failing to repay money does not, by itself, satisfy the legal requirements for fraud.
The key question is whether the person lacked the intention or ability to repay at the time of the transaction.
What Is the Process, From Investigation to Trial?
Whether the legal requirements for fraud are met is typically determined through the following process.
- 1) Filing a criminal complaint — the investigation begins when the victim files a complaint
- 2) Questioning of the parties — the circumstances of the transaction, use of funds, and ability to repay are examined
- 3) Gathering evidence — contracts, text messages, and account records are used to prove intent
- 4) Referral to the prosecution and indictment decision — the key issue is whether intent to defraud is recognized
- 5) Trial proceedings — the court makes a final determination on whether the legal requirements for fraud are met
Because the circumstances surrounding the transaction and the flow of funds at the time largely determine the outcome, anyone who has been accused should respond carefully from the very beginning.
A Real Case: How the Elements of Fraud Were Assessed
[Case We Handled]
Mr. B, a small business owner, borrowed money from an acquaintance because he urgently needed business funds, but was unable to repay it after a sudden drop in sales and was accused of fraud.
With the help of Decent Law Firm, however, he was able to demonstrate — through his business ledgers, records of legitimate transactions, and evidence of efforts to repay at the time of borrowing — that he never had the intent to defraud, and the case ultimately ended in a non-indictment decision.
As this shows, if intent to defraud cannot be established, the matter remains a civil default and does not become subject to criminal punishment.
The Role of Defense Counsel, and Why You Should Work With Decent
Cases involving disputes over the legal requirements for fraud call for the following professional response.
- Legal analysis of the circumstances of the transaction and the flow of funds
- Gathering objective evidence to prove the absence of intent to defraud
- Developing a statement strategy for each stage of the investigation
Drawing on its experience handling numerous fraud cases, Decent Law Firm closely analyzes each client's transaction history and builds a systematic defense strategy from the early stages of the investigation through trial.
We stand by our clients from beginning to end, so that those wrongly accused of fraud are not unfairly disadvantaged.
Whether the legal requirements for fraud are met can vary greatly depending on the facts and how the evidence is interpreted.
If you have already been accused or are facing an investigation, we recommend consulting with an attorney experienced in criminal cases rather than trying to assess the situation on your own.
Decent is always ready to provide prompt, accurate legal advice and help you find the best direction for your specific situation.
