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ILLEGAL CHECK CONTROL ACT

Act No. 645, Jul. 3, 1961

Amended by Act No. 1747, Feb. 26, 1966

Act No. 4587, Dec. 10, 1993

Act No. 10185, Mar. 24, 2010

 Article 1 (Purpose)
The purpose of this Act is to stabilize national economic life and secure the functions of checks, which are negotiable instruments, by controlling and punishing the issuance of illegal checks.
[This Article Wholly Amended by Act No. 10185, Mar. 24, 2010]
 Article 2 (Criminal Responsibility of Issuer of Illegal Checks)
(1) A person who issues or draws up any of the following illegal checks shall be punished by imprisonment for not more than five years or by a fine not exceeding ten times the face value of such check:
1. Checks issued in the name of a fictitious person;
2. Checks issued without a check contract with a financial institution (including postal offices; hereinafter the same shall apply) or issued after a measure of suspending transactions is taken by a financial institution;
3. Checks issued bearing a signature, or name and seal, different from those registered at a financial institution.
(2) Paragraph (1) shall also apply in cases where a person who has issued or drawn up a check fails to pay the check during the period of presentation due to the shortage of deposits, measures of suspending transactions, or cancellation or termination of a check contract.
(3) A person who commits an offense under paragraph (1) or (2) by negligence shall be punished by imprisonment without prison labor for not more than three years or by a fine not exceeding five times the face value of the check concerned.
(4) An offense under paragraph (2) or (3) shall not be prosecuted where the person who has issued or drawn up an illegal check withdraws such, or where the person holding the illegal check concerned manifestly objects to such prosecution even though the illegal check has not been withdrawn.
[This Article Wholly Amended by Act No. 10185, Mar. 24, 2010]
 Article 3 (Criminal Responsibility of Corporation, Organization, etc.)
(1) In cases under Article 2, when the issuer of an illegal check is a corporation or any other organization, a representative of the corporation or organization stated on the check or the person who has drawn up the check shall be punished, and the corporation or organization shall also be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or organization has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation.
(2) Where a proxy has issued a check, not only the principal but also the proxy shall be punished.
[This Article Wholly Amended by Act No. 10185, Mar. 24, 2010]
 Article 4 (Criminal Responsibility of False Reporter)
A person who falsely reports to a financial institution for the purposes of evading payment of the amount prescribed in a check or escaping from the measures of suspending transactions shall be punished by imprisonment for not more than ten years or by a fine not exceeding 200,000 won.
[This Article Wholly Amended by Act No. 10185, Mar. 24, 2010]
 Article 5 (Criminal Responsibility of Forgers or Counterfeiters)
A person who forges or counterfeits a check shall be punished by imprisonment for a limited term of not less than one year or by a fine not exceeding ten times the face value of the check.
[This Article Wholly Amended by Act No. 10185, Mar. 24, 2010]
 Article 6 (Special Cases concerning the Criminal Procedure Act)
Where a sentence of fine is pronounced under this Act, a judgement for provisional payment pursuant to Article 334 (1) of the Criminal Procedure Act shall be made, and the accused shall be held under detention, despite Article 331 of the Criminal Procedure Act, until the relevant fine is provisionally paid.
[This Article Wholly Amended by Act No. 10185, Mar. 24, 2010]
 Article 7 (Obligation to Report by Financial Institutions)
(1) When a person working for a financial institution detects a check stipulated in Article 2 (1) (including cases where an issuer is a corporation or any other organization) or Article 5 in the course of performing his/her duties, he/she shall report to an investigative agency within 48 hours, and when the person detects a check stipulated in Article 2 (2) (including cases where an issuer is a corporation or any other organization), he/she shall report to an investigative agency within 30 days.
(2) If the person fails to report under paragraph (1), he/she shall be punished by a fine not exceeding one million won.
[This Article Wholly Amended by Act No. 10185, Mar. 24, 2010]
ADDENDUM
This Act shall enter into force on September 1, 1961.
ADDENDUM<Act No. 1747, Feb. 26, 1966>
This Act shall enter into force on the 30th day following the date of its promulgation.
ADDENDUM<Act No. 4587, Dec. 10, 1993>
This Act shall enter into force on the date of its promulgation.
ADDENDUM<Act No. 10185, Mar. 24, 2010>
This Act shall enter into force on the date of its promulgation.