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ACT ON THE AGGRAVATED PUNISHMENT, ETC. OF SPECIFIC ECONOMIC CRIMES

Act No. 3693, Dec. 31, 1983

Amended by Act No. 4069, Dec. 31, 1988

Act No. 4292, Dec. 31, 1990

Act No. 5505, Jan. 13, 1998

Act No. 5503, Jan. 13, 1998

Act No. 6429, Mar. 28, 2001

Act No. 6746, Dec. 5, 2002

Act No. 7311, Dec. 31, 2004

Act No. 8444, May 17, 2007

Act No. 8635, Aug. 3, 2007

Act No. 9170, Dec. 26, 2008

Act No. 9646, May 8, 2009

Act No. 11304, Feb. 10, 2012

Act No. 13719, Jan. 6, 2016

Act No. 14122, Mar. 29, 2016

Act No. 14242, May 29, 2016

Act No. 15256, Dec. 19, 2017

 Article 1 (Purpose)
The purpose of this Act is to establish the economic order and to further contribute to the national economy development, by sanctioning an aggravated punishment against any specific economic offense in violation of sound national economic ethics, and by restricting the employment, etc. of the offender.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 14122, Mar. 29, 2016; Act No. 14242, May 29, 2016>
1. The term "financial company, etc." means any of the following:
(a) The Bank of Korea under the Bank of Korea Act, the Financial Supervisory Service under the Act on the Establishment, etc. of Financial Services Commission, and banks as prescribed by the Banking Act and other Acts;
(b) Investment traders, investment brokers, collective investment business entities, trust business entities, financial securities companies and merchant banks under the Financial Investment Services and Capital Markets Act;
(c) Mutual savings banks and the federation thereof as prescribed by the Mutual Savings Banks Act;
(d) Cooperatives and the Nonghyup Bank as prescribed by the Agricultural Cooperatives Act;
(e) Fisheries cooperatives and the Suhyup Bank as prescribed by the Fisheries Cooperatives Act;
(f) Credit unions and the federation thereof as prescribed by the Credit Unions Act;
(g) Community credit cooperatives and the federation thereof as prescribed by the Community Credit Cooperatives Act;
(h) Insurance business operators as prescribed by the Insurance Business Act;
(i) Credit Guarantee Fund as prescribed by the Credit Guarantee Fund Act;
(j) Korea Technology Finance Corporation as prescribed by the Korea Technology Finance Corporation Act;
(k) Other institutions carrying out the same or similar business of the institutions referred to in items (a) through (o), which are prescribed by Presidential Decree;
2. The term "saving" means an act to deposit, pay or give in trust in any financial company, etc., or an act to receive or purchase from such financial company, etc. any of the following items:
(a) Deposits, installment deposit, installments, fraternity dues, and trust property;
(b) Stocks, bonds, beneficiary certificates, bills, checks and obligation certificates;
(c) Insurance premiums;
(d) Other savings corresponding to those as referred to in items (a) through (c), which are prescribed by Presidential Decree;
3. The term "loan, etc." means a loan, guarantee or acceptance of obligation, payment, or discount of bonds or bills which financial companies, etc. deal with, and other similar matters as prescribed by Presidential Decree.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 3 (Aggravated Punishment for Specific Property Crime)
(1) Any person who commits crimes as prescribed in Article 347 (Fraud), Article 347-2 (Fraud by Use of Computer, etc.), 350 (Extortion), 350-2 (Special Extortion), 351 (limited to habitual offenders as prescribed in Articles 347, 347-2, 350, and 350-2), 355 (Embezzlement and Breach of Trust) or 356 (Occupational Embezzlement, Occupational Breach of Trust) of the Criminal Act shall be aggravatingly punished as follows if the value of the goods or profits on property which he/she gains or has another person gain (hereafter referred to as an "amount of profit" in this Article) is five hundred million won or more: <Amended by Act No. 13719, Jan. 6, 2016; Act No. 15256, Dec. 19, 2017>
1. If the amount of profit is five billion won or more: Imprisonment with labor for an indefinite term or not less than five years;
2. If the amount of profit is not less than five hundred million won but less than five billion won: Imprisonment with labor for a limited term of not less than three years.
(2) In cases as referred to in paragraph (1), a fine equivalent to the amount of profit or less may be imposed concurrently.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 4 (Crime of Property Moving to Foreign Country)
(1) Any person who, in violation of statutes, moves property belonging to the Republic of Korea or to any national of the Republic of Korea, to a foreign country, or hoards any property that should be introduced into the Republic of Korea by concealing or disposing of it in a foreign country shall be punished by imprisonment with labor for a limited term of not less than one year, or a fine equivalent to two to ten times the value of the object of such criminal act (hereafter referred to as an "hoarding amount" in this Article).
(2) In cases as referred to in paragraph (1), if the hoarding amount is five hundred million won or more, the punishment shall be aggravated as follows:
1. If the hoarding amount is five billion won or more: Imprisonment with labor for an indefinite term or for a term of not less than ten years;
2. If the hoarding amount is not less than five hundred million won but less than five billion won: Imprisonment with labor for a limited term of not less than five years.
(3) The attempt of a crime as referred to in paragraph (1) or (2) shall be punished by the penalty as prescribed for the principal crime.
(4) If the representative of a corporation, or an agent or employee of, or any other person employed, by a corporation or an individual commits an offense referred to in paragraphs (1) through (3) in connection with the business affairs of the corporation or individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under paragraph (1): Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such offense.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 5 (Crime of Acceptance of Property, etc.)
(1) If any executive or employee of a financial company, etc. accepts, demands or promises to receive any money and valuables or other benefits, in connection with his/her duties, he/she shall be punished by imprisonment with labor for not more than five years, or a suspension of qualification for not more than ten years.
(2) If any executive or employee of a financial company, etc. makes any money and valuables or other benefits given to a third person or demands or promises to do so in return for any unlawful solicitation in connection with his/her duties, he/she shall be punished by the penalty as referred to in paragraph (1).
(3) If any executive or employee of a financial company, etc. accepts, demands or promises to receive any money or other benefits in connection with an arrangement of matters belonging to the duties of an executive or employee of a subordinate financial company, etc. or other financial company, etc., taking advantage of his/her position, he/she shall be punished by the penalty as referred to in paragraph (1).
(4) In cases referred to in paragraphs (1) through (3), if the value of the money and valuables or other benefits accepted, demanded or promised to receive (hereafter referred to as an "accepted amount" in this Article) is 30 million won or more, punishment shall be aggravated as follows:
1. When the accepted amount is 100 million won or more: Imprisonment with labor for an indefinite term or for a term of not less than ten years;
2. When the accepted amount is 50 million won or more but less than 100 million won: Imprisonment with labor for a limited term of not less than seven years;
3. When the accepted amount is 30 million won or more but less than 50 million won: Imprisonment with labor for a limited term of not less than five years.
(5) In cases referred to in paragraphs (1) through (4), he/she shall be concurrently punished by fines, which are not less than two times but not more than five times the accepted amount.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 6 (Crime of Giving of Property, etc.)
(1) Any person who promises, gives or expresses his/her intention to give money and valuables or other benefits as prescribed in Article 5 shall be punished by imprisonment with labor for not more than five years, or by a fine not exceeding thirty million won.
(2) Any person who delivers any money to a third person with the intention of furnishing to the act as referred to in paragraph (1), or who has it delivered with the knowledge of the fact, shall be punished by the penalty as referred to in paragraph (1).
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 7 (Crime of Acceptance of Property through Arrangement)
Any person who accepts, demands or promises to receive any money and valuables or other benefits in connection with an arrangement of matters belonging to the duties of an executive or employee of a financial company, etc., or makes it offered to a third person, or demands or promises to make it offered to a third person, shall be punished by imprisonment with labor for not more than five years, or a fine not exceeding 50 million won.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 8 (Crime of Private Financial Arrangement, etc.)
If an executive or employee of a financial company, etc. makes a loan of money, guarantee or acceptance of obligation, or arranges it, taking advantage of his/her position, on his/her own account or on account of a third person other than the financial company, etc. to which he/she belongs, in his/her own interest or in the interest of a third person other than the financial company, etc. to which he/she belongs, he/she shall be punished by imprisonment with labor for not more than seven years, or a fine not exceeding 70 million won.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 9 (Crime of Savings-related Unfair Act)
(1) If a person who puts or brokers any savings accepts any money and valuables or other benefits, or makes them offered to a third person regardless of pretext thereof, in connection with such savings, from an executive or employee of a financial company, etc., other than interest, premium, insurance money, dividend or commission as prescribed by statutes, or agreements or other corresponding rules of the financial company, etc., he/she shall be punished by imprisonment with labor for not more than five years, or a fine not exceeding 50 million won.
(2) If a person who puts savings helps another person who brokers the savings or a person who has no connection with such savings obtain any loan, etc. from a financial company, etc., in connection with such savings, or if a person who brokers any savings obtains any loan, etc. from a financial company, etc. in connection with the savings, or has a third person with no relation to such savings obtain any loan, etc., he/she shall be punished by the same penalty as referred to in paragraph (1).
(3) If an executive or employee of a financial company, etc. offers any money and valuables or other benefits or loan, etc. as referred to in paragraph (1) or (2), he/she shall be punished by the same penalty as referred to in paragraph (1) or (2).
(4) In the cases referred to in paragraphs (1) through (3), imprisonment with labor and a fine may be imposed concurrently.
(5) If an executive or employee of a financial company, etc. commits any act as referred to in paragraph (3) in connection with duties of the financial company, etc. to which he/she belongs, not only shall such offender be punished, but also the financial company, etc. to which he/she belongs shall be punished by a fine under paragraph (3): Provided, That this shall not apply where the financial company, etc. to which he belongs has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offense.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 10 (Confiscation and Additional Collection)
(1) In cases as prescribed in Article 4 (1) through (3), the property which the offender hoards or intends to hoard, shall be confiscated.
(2) In cases as prescribed in Articles 5 through 7 and 9 (1) and (3), any money and valuables or other benefits which the offender or a third person with the knowledge of the fact has gained shall be confiscated.
(3) In cases as referred to in paragraph (1) or (2), if it is impracticable to confiscate the object, the value thereof shall be collected.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 11 (Aggravated Punishment of Unauthorized Short-Term Finance Business)
(1) If a person commits the offense as prescribed in subparagraph 22 of Article 444 of the Financial Investment Services and Capital Markets Act (limited to short-term finance service) and the amount of the interest, discount, receipts, and other fees (hereafter referred to as "amount of fees" in this Article) gained by the business is 100 million won or more a year, he/she shall be aggravatingly punished as follows:
1. If the amount of fees is one billion won or more a year: Imprisonment with labor for a limited term of not less than three years;
2. If the amount of fees is not less than 100 million won and less than one billion won a year: Imprisonment with labor for a limited term of not less than one year.
(2) In the case as referred to in paragraph (1), a fine amounting to not less than 10/100 of the amount of fees but less than the amount of fees shall be imposed concurrently.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 12 (Obligation to Report, etc.)
(1) If an executive or employee of a financial company, etc. knows the fact that a person under his control commits the offense as prescribed by this Act, he/she shall report it, without delay, to the head of the financial company, etc. to which he belongs, or to the head of the section in charge of the inspection affairs.
(2) If the head of a financial company, etc., any executive or employee who is engaged in the duty of audit or inspection, or any person who is engaged in the supervisory duties at a supervisory organization knows the fact in the course of performing his/her duties that an executive or employee of a financial company, etc. has committed any offense as prescribed by this Act in connection with his/her duties, he/she shall inform it without delay to an investigation agency.
(3) Any person who violates the provisions of paragraph (1) without any justifiable reason shall be punished by a fine not exceeding one million won.
(4) Any person who violates the provisions of paragraph (2) without any justifiable reason shall be punished by a fine not exceeding two million won.
(5) If a person who commits the offense as referred to in paragraph (3) or (4) is a relative of the principal offender, punishment may be reduced or exempted.
(6) The scope of the supervisory organization and those who are engaged in the supervisory duties as referred to in paragraph (2) shall be determined by Presidential Decree.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
 Article 13 Deleted. <by Act No. 9646, May 8, 2009>
 Article 14 (Restriction on Employment and Prohibition, etc. of Authorization and Permission for Specified Period)
(1) Any person who is convicted of a crime under Article 3, 4 (2) (including an attempted crime), 5 (4) or 8 shall not be employed during the following period, by any financial company, etc., any institution the capital of which is invested wholly or partially by the State or a local government, any institution which receives any contribution and assistance from the State or a local government, and any enterprise having a close relation with the convicted offense: Provided, That this shall not apply where he/she obtains approval of the Minister of Justice as prescribed by Presidential Decree:
1. Five years after the execution of imprisonment with labor is completed or non-execution becomes final;
2. Two years after the period of the suspension of execution of imprisonment with labor is completed;
3. Period of the suspension of sentence of imprisonment with labor.
(2) Any person as referred to in paragraph (1) or any enterprise in which the aforesaid person works as a representative or executive may not obtain any permission, authorization, license, registration, designation, etc., (hereafter referred to as “permission, etc.” in this Article) on government-licensed business prescribed by Presidential Decree, during the period as referred to in each subparagraph of paragraph (1): Provided, That this shall not apply where the Minister of Justice approves it as prescribed by Presidential Decree.
(3) In cases of paragraph (1), the scope of institutions the capital of which is invested wholly or partially by the State or a local government, institutions which receive any contribution and assistance from the State or a local government, and enterprises having a close relation with a convicted offense shall be determined by Presidential Decree.
(4) If any person violates the provisions of paragraph (1) or (2), the Minister of Justice shall demand the head of an institution or enterprise which employs the offender or the head of an administrative agency which has granted him/her permission, etc. to dismiss him/her or to revoke the permission, etc.
(5) The head of the institution or enterprise who receives the demand of dismissal under paragraph (4) shall comply with it without delay.
(6) Any person who violates the provisions of paragraph (1), (2), or (5) shall be punished by imprisonment with labor for not more than one year or a fine not exceeding five million won.
[This Article Wholly Amended by Act No.11304, Feb. 10, 2012]
ADDENDUM
This Act shall enter into force on January 1, 1984.
ADDENDA <Act No. 4069, Dec. 31, 1988>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1989. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDUM <Act No. 4292, Dec. 31, 1990>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 5503, Jan. 13, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 5505, Jan. 13, 1998>
(1) (Enforcement Date) This Act shall enter into force on April 1, 1998. (Proviso Omitted.)
(2) through (5) Omitted.
ADDENDA <Act No. 6429, Mar. 28, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date prescribed by Presidential Decree within the limit not exceeding 2 years from the promulgation date of this Act. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 6746, Dec. 5, 2002>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 7311, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Latter part Omitted.)
Articles 2 through 16 Omitted.
ADDENDUM <Act No. 8444, May 17, 2007>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDUM <Act No. 9170, Dec. 26, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 9646, May 8, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 11304, Feb. 10, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That Article 3 shall enter into force on March 2, 2012.
Article 2 (Transitional Measures against Financial Company, etc.)
Subparagraph 1 (d) of Article 2 shall be deemed as follows until March 1, 2012: (d) Cooperatives and the federation thereof as prescribed by the Agricultural Cooperatives Act
Article 3 Omitted.
ADDENDA <Act No. 13719, Jan. 6, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 14122, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14242, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on Dec. 1, 2016. (Proviso Omitted.)
Articles 2 through 22 Omitted.
ADDENDUM <Act No. 15256, Dec. 19, 2017>
This Act shall enter into force three months after the date of its promulgation.