[Exclusive] More Money, Higher Fines... Supreme Court to Discuss 'Differential Fine System'

Current Fine System's Punishment Effects Vary Greatly, Fines Imposed Based on 'Daily Income'... Controversies Expected Over Income Assessment and More

[Asia Economy Reporter Baek Kyunghwan] A plan to impose fines proportionate to property or income is being discussed. The intention is to impose heavier fines on the wealthy even for the same crime. Although this issue has already been implemented in some European countries and has been discussed domestically for decades, it has not been publicly debated. It has been confirmed that the Supreme Court, which was previously negative about the differentiated fine system, has started legal review on the 'income-proportionate fine system,' an issue reignited last year by Lee Jae-myung, the Democratic Party presidential candidate.

According to the legal community on the 4th, the Supreme Court’s Court Administration Office will begin research as early as this month on system improvements and practical response measures for determining appropriate fines. This reflects the logic that the punitive effect varies according to the offender's property and income level, aiming to address criticisms that fines are light for the wealthy and heavy for the poor.

Fines are a criminal sanction used in practice and are among the most important systems in judicial practice. They are penalties that require offenders to pay a certain amount of money to the state, lighter than imprisonment or disqualification but heavier than detention.

However, as the economy grows and income disparity widens, criticisms have been raised against the current fine system that sets only a total amount. High-income offenders can easily pay fines and remain free, while 30,000 to 40,000 people annually fail to pay fines and choose to serve time in prison, so-called 'paying with their bodies.'

To find an appropriate fine system, the Court Administration Office will discuss a property-proportionate fine system such as the day-fine system. Unlike the current total fine system, the day-fine system imposes fines linked to the offender’s 'daily income.' The number of fine days is set according to the severity of the crime, and then a daily fine amount is imposed considering the offender’s economic capacity, with the total fine determined by multiplying the fine days by the daily fine amount. For example, if a person who stole bread is sentenced to 5 fine days and their income is confirmed to be 100,000 won per day, the total fine is finalized at 500,000 won. Even with the same number of fine days, the final fine amount increases with higher income.

The Court Administration Office plans to assess the social impact and challenges that judicial institutions must address if a differentiated fine system is introduced, to evaluate its feasibility. In 2020, the Court Administration Office expressed a negative stance on the day-fine system proposed by Democratic Party lawmaker Lee Tan-hee, stating that 'accurate assessment of the defendant’s economic capacity, a prerequisite for introducing the day-fine system, may not be practically easy.'

Specifically, research will be conducted on all property-proportionate fines, including the day-fine system. This process will also discuss linking fines to imprisonment, adjusting for inflation, and resetting sentencing guidelines. Improvements related to ancillary issues such as detention in labor camps, probation systems, and alternative service orders related to fine calculation will also be reviewed. In particular, for the day-fine system, aspects such as target crimes, number of fine days and daily fine amounts, property investigation methods, post-adjustment systems, and fine payment methods will all be examined.

Overseas legislative cases are also part of the discussion. Some European countries like Finland and Denmark have focused on the purpose of the day-fine system to impose higher fines on the wealthy in a differentiated manner. In Germany, the day-fine system is stipulated in various laws including the Criminal Code, Criminal Procedure Code, and Judicial Enforcement Act, where fines are calculated in days and the daily fine amount is determined by the court considering personal and economic circumstances. Since July 4, 2009, the maximum fine amount has significantly increased from 5,000 euros to 30,000 euros.

On the other hand, the UK received positive evaluations during pilot operations but abolished the system after failing to gain public consensus following actual implementation. In countries like the US and Japan, discussions remain limited because accurate investigation of offenders’ economic circumstances is difficult and sentencing already somewhat considers offenders’ financial capacity.

Accordingly, the Court Administration Office plans to preemptively discuss issues within the courts arising from the introduction of a differentiated fine system. This includes the court’s workload increase due to the day-fine system, harmonization with existing criminal fine regulations and practical standards, and property investigation methods, all to be preceded by preliminary research.

The legal community anticipates intensified controversy if the differentiated fine system is seriously discussed. There are concerns that if conditions such as how to assess individual property and income are not met, inequality may worsen. Additionally, there is worry about an increase in appeals due to disputes over the calculation of daily fine amounts. A lawyer in Seocho-dong stated, "Trials that would have ended with simple fines may now be prolonged due to additional investigations such as verifying personal property," adding, "Ultimately, this administrative burden will affect not only the accused but also the general public awaiting subsequent trials," he said.

This content was produced with the assistance of AI translation services.