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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

 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.
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 4069, Dec. 31, 1988; Act No. 5505, Jan. 13, 1998; Act No. 6429, Mar. 28, 2001; Act No. 6746, Dec. 5, 2002; Act No. 7311, Dec. 31, 2004; Act No. 8635, Aug. 3, 2007>
1. The term "financial institution" means any of the following:
(a) The Bank of Korea, Financial Supervisory Service, and banks as prescribed by the Banking Act and other Acts;
(b) Deleted; <by Act No. 5503, Jan. 13, 1998>
(c) Investment traders, investment brokers, collective investment business entities, trust business entities, finance security companies and merchant banks under the Financial Investment Services and Capital Markets Act;
(d) Mutual savings banks and the federation thereof as prescribed by the Mutual Savings Banks Act;
(e) Cooperatives and the federation thereof as prescribed by the Agricultural Cooperatives Act;
(f) Fisheries cooperatives and the federation thereof as prescribed by the Fisheries Cooperatives Act;
(g) Deleted; <by Act No. 6746, Dec. 5, 2002>
(h) Credit unions and the federation thereof as prescribed by the Credit Unions Act;
(i) Community credit cooperatives and the federation thereof as prescribed by the Community Credit Cooperatives Act;
(j) throguh (l) Deleted; <by Act No. 8635, Aug. 3, 2007>
(m) Insurers as prescribed by the Insurance Business Act;
(n) Credit Guarantee Fund as prescribed by the Credit Guarantee Fund Act;
(o) Korea Technology Credit Guarantee Fund as prescribed by the Korea Technology Credit Guarantee Fund Act;
(p) 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 "savings" means to deposit, pay or trust in any financial institution, or to receive or purchase from such financial institutions those falling under 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 the financial institutions deal with, and other similar matters as prescribed by Presidential Decree.
 Article 3 (Aggravated Punishment of Specific Property Crime)
(1) Any person who commits crimes as prescribed in Article 347, 350, 351 (limited to the habitual crime as prescribed in Articles 347 and 350), 355 or 356 of the Criminal Act, shall, if the value of the goods or profits on property which he gains or has another person gain (hereinafter referred to as an "amount of profit") is five hundred million won or more, be punished additionally as follows: <Amended by Act No. 4292, Dec. 31, 1990>
1. If the amount of profit is five billion won or more, he shall be punished by imprisonment for lifetime 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, he shall be punished by imprisonment for a definite term of three or more years;
3. Deleted. <by Act No. 4292, Dec. 31, 1990>
(2) In cases as referred to in paragraph (1), a fine equivalent to the amount of profit or less may be imposed concurrently.
 Article 4 (Crime of Property Moving to Foreign Country)
(1) Any person who, in violation of Acts and subordinate 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 for a definite term of one or more years, or a fine equivalent to from two to ten times the value of the object of such criminal act.
(2) In cases as referred to in paragraph (1), if the value of the object of the criminal act (hereinafter referred to as an "hoarding amount"), is five hundred million won or more, the punishment shall be aggravated as follows: <Amended by Act No. 4292, Dec. 31, 1990>
1. If the hoarding amount is five billion won or more, he shall be punished by imprisonment for life or not less than ten years;
2. If the hoarding amount is not less than five hundred million won but less than five billion won, he shall be punished by imprisonment for a definite term of five or more years;
3. Deleted. <by Act No. 4292, Dec. 31, 1990>
(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 a representative of a juristic person, or an agent, serviceman or other employee of a juristic person or an individual, commits any acts referred to in paragraphs (1) through (3) in connection with the affairs of the juristic person or an individual, the fines as referred to in paragraph (1) shall also be imposed on the juristic person or an individual, in addition to the respective punishment of the offender: Provided, That this shall not apply in cases where the juristic person or an individual is not negligent in paying close attention to and supervising the relevant work in order to prevent such acts. <Amended by Act No. 9646, May 8, 2009>
 Article 5 (Crime of Acceptance of Property)
(1) If any officer or employee of a financial institution accepts, demands or promises any money or other benefit, in connection with his duties, he shall be punished by imprisonment for not more than five years, or a suspension of qualification for not more than ten years.
(2) If any officer or employee of a financial institution receives any unlawful solicitation in connection with his duties, and makes any money or other benefits given to a third person, or demands or promises to be done so, he shall be punished by the penalty as referred to in paragraph (1).
(3) If any officer or employee of a financial institution accepts, demands or promises any money or other benefits in connection with a mediation of matters belonging to the duties of an officer or employee of a subordinate financial institution or other financial institution, taking advantage of his status, he 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 or other profit accepted, demanded or promised (hereinafter referred to as an "accepted amount"), is 30 million won or more, the punishment shall be aggravated as follows: <Amended by Act No. 4292, Dec. 31, 1990; Act No. 8444, May 17, 2007>
1. When the accepted amount is 100 million won or more, he shall be punished by life imprisonment or by imprisonment with prison labor for not less than ten years;
2. When the accepted amount is 50 million won or more but less than 100 million won, he shall be punished by imprisonment with prison labor for seven years or longer; and
3. When the accepted amount is 30 million won or more but less than 50 million won, he shall be punished by imprisonment with prison labor for five years or longer.
<Former subparagraphs 1 and 2 prior to the amendment by Act No. 8444 on May 17, 2007 because invalid by decision of unconstitutionality made by the Constitutional Court on April 27, 2006>
(5) In cases referred to in paragraphs (1) through (4), he shall be concurrently punished by fines, which are not less than two times but not more than 5 times the accepted amount. <Newly Inserted by Act No. 9170, Dec. 26, 2008>
 Article 6 (Crime of Giving of Property, etc.)
(1) Any person who promises, gives or expresses his intention to give, the money or other profits as prescribed in Article 5, shall be punished by imprisonment 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).
 Article 7 (Crime of Acceptance of Property through Mediation)
Any person who accepts, demands or promises any money or other profit in connection with a mediation of matters belonging to the duties of an officer or employee of a financial institution, 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 for not more than five years, or a fine not exceeding fifty million won.
 Article 8 (Crime of Private Financial Mediation, etc.)
If an officer or employee of a financial institution makes a loan of money, guarantee or acceptance of obligation, or mediates it, taking advantage of his status, on his own account or on account of a third person other than the financial institution to which he belongs, in his own interest or in the interest of a third person other than the financial institution to which he belongs, he shall be punished by imprisonment for not more than seven years, or a fine not exceeding seventy million won.
 Article 9 (Crime of Savings-related Unfair Act)
(1) If a person who makes or brokers any savings, accepts any money or other benefits, or makes them offered to a third person regardless of the nominal form, in connection with such savings, from an officer or employee of a financial institution, other than interest, premium, insurance money, dividend or commission as prescribed by Acts and subordinate statutes, or the agreements or other corresponding rules of the financial institution, he shall be punished by imprisonment for not more than five years, or a fine not exceeding fifty million won.
(2) If a person who makes the 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 institution, in connection with such savings, or if a person who brokers any savings, obtains any loan, etc. from a financial institution in connection with the savings, or has a third person with no relation with such savings, obtain any loan, etc., he shall be punished by the penalty as referred to in paragraph (1).
(3) If an officer or employee of a financial institution offers any money or other benefits or loan, etc. as referred to in paragraph (1) or (2), he shall be punished by the penalty as referred to in paragraph (1) or (2).
(4) In the cases referred to in paragraphs (1), (2) and (3), the imprisonment and fine may be imposed concurrently.
(5) If an officer or employee of a financial institution commits any act as referred to in paragraph (3) in connection with the business of the financial institution to which he belongs, the fines as referred to in the same paragraph shall be imposed on the financial institution to which he belongs, in addition to a punishment of the offender; Provided, That this shall not apply in cases where the financial institution to which he belongs is not negligent in paying close attention to and supervising the relevant work in order to prevent such acts. <Amended by Act No. 9646, May 8, 2009>
 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, 6, 7 and 9 (1) and (3), any money 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 impossible to confiscate the object, the value thereof shall be collected additionally.
 Article 11 (Aggravated Punishment of Unauthorized Short-Term Finance Business)
(1) Any person who 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) shall, if the amount of the interest, discount, receipts, commission and other fees (hereinafter referred to as a "fee amount") gained by the business, is annually one hundred million won or more, be punished additionally as follows: <Amended by Act No. 5503, Jan. 13, 1998: Act No. 8635, Aug. 3, 2007>
1. If the fee amount is one billion won or more a year, he shall be punished by imprisonment for a definite term of three or more years;
2. If the fee amount is not less than one hundred million won and less than one billion won a year, he shall be punished by imprisonment for a definite term of one or more years.
(2) In the case as referred to in paragraph (1), a fine amounting to not less than 10/100 of the fee amount but less than the fee amount, shall be imposed concurrently.
 Article 12 (Liability, etc. for Report)
(1) If an officer or employee of a financial institution knows the fact that a person under his control commits the offense as prescribed by this Act, he shall report it, without delay, to the head of the financial institution to which he belongs, or to the head of the section in charge of the inspection affairs.
(2) If the head of a financial institution, any officer or employee who is engaged in the duty of inspection, or any person who is engaged in the supervisory duties at the supervisory organization, knows the fact in the course of carrying out his duties, that an officer or employee of a financial institution has committed any offense as prescribed by this Act in connection with his duties, he shall inform it without delay to the criminal 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), has a relationship by blood or marriage with the principal offender, the 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.
 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 under Article 3, 4 (2) (including attempted offense), 5 (4) or 8, shall not be employed during the following period, by any financial institution, any institution to which the State or local government contributes wholly or partly in the capital, and any institution which receives any contribution and assistance from the State or local government, and any enterprise having a close relation with the convicted offense: Provided, That this shall not apply in cases where he obtains the approval of the Minister of the Ministry of Justice as prescribed by Presidential Decree: <Amended by Act No. 9646, May 8, 2009>
1. Five years after the execution of imprisonment sentence is completed, or non-execution becomes final;
2. Two years after the period of the suspension of execution stay of imprisonment sentence is completed;
3. Period of the suspension of imposition of the imprisonment sentence.
(2) Any person as referred to in paragraph (1), or any enterprise in which a person as referred to in paragraph (1) works as a representative or officer, may not obtain any permission, authorization, license, registration, designation, etc., 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 in cases where the Minister of the Ministry of Justice approves it as prescribed by Presidential Decree. <Amended by Act No. 9646, May 8, 2009>
(3) In cases of paragraph (1), the scope of the institution the capital of which is invested wholly or partially by the State or local government, the institution which receives any contribution and assistance of the State or local government, and the enterprise having a close relation with the convicted offense, shall be determined by Presidential Decree.
(4) If there is any person who violates the provisions of paragraph (1) or (2), the Minister of the Ministry of Justice shall demand a dismissal of such offender or a revocation of his permission, etc., of the head of the institution or enterprise which employs the offender, or the head of the administrative agency which has granted the permission, etc. <Amended by Act No. 9646, May 8, 2009>
(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 for not more than one year, or a fine not exceeding five million won.
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) (Transitional Measures concerning to Dispositions) At the time of the entry into force of this Act, authorization or other actions taken by administrative agencies, or various reports or other actions submitted to administrative agencies under the previous provisions, shall be deemed as actions taken by or submitted to administrative agencies under this Act.
(3) 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.)
[Enforcement date of this Act shall be Mar. 1, 2002 pursuant to the Presidential Decree No. 17519, Feb. 25, 2002]
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.