Prosecutors: "Crimes Will Definitely Have Consequences"... Strict Crackdown on Large-Scale Economic Crimes Policy

Major Shift to 'Victim-Centered' Investigation and Trial... Opportunity for Victim Testimony in Warrant Review
Collection of Sentencing Data Such as 'Victim Bankruptcy and Family Breakdown'... Focus on Imposing Severe Sentences

Shin Bong-su, Head of the Anti-Corruption Division at the Supreme Prosecutors' Office, is giving a briefing on "Strict Response to Large-Scale Economic Crimes Targeting Ordinary Citizens" on the morning of the 21st at the Supreme Prosecutors' Office press room in Seocho-gu, Seoul.
[Image source=Yonhap News]

[Asia Economy Reporter Heo Kyung-jun] The prosecution has decided to take strong action against large-scale economic crimes that cause harm to young people and ordinary citizens. From now on, all investigations and trials will be conducted with a ‘victim-centered’ approach. During pre-trial detention hearings, the right of victims to participate will be guaranteed, and severe sentences will be sought in accordance with the gravity of the crime. Victims’ rights to testify in court will also be fully ensured. If the sentencing is deemed insufficient, appeals will be actively pursued. Illegally obtained criminal proceeds will be thoroughly tracked to confiscate profits gained from crimes, and maximum support will be provided to ensure swift recovery of damages.

On the 21st, the Supreme Prosecutors’ Office announced that it instructed local prosecution offices to establish the legal principle that ‘crime does not pay’ and to prevent harm to the public livelihood. The prosecution judged that some criminals have been given excessively light sentences or that criminal proceeds have not been properly confiscated, leading to the spread of large-scale economic crimes.

First, during investigations, victim-centered sentencing data will be collected, including ▲leadership roles among accomplices ▲distribution of profits ▲scale of criminal proceeds ▲whether concealment was intentional ▲whether damages have been restored ▲and victim impacts such as bankruptcy or family breakdown. In the detention review process, before requesting an arrest warrant, a system for direct victim interviews will be utilized to actively provide victims with opportunities to testify about their damages, thereby substantially guaranteeing their constitutional right to testify in court.

During trials, additional verified damages and aggravating sentencing factors will be collected and submitted. If the defendant submits a settlement agreement, its authenticity will be examined to determine whether the agreement was obtained through deception, ensuring substantive compensation for damages and guaranteeing victims’ rights to testify during court proceedings.

A representative from the Supreme Prosecutors’ Office stated, "Until now, when investigating large-scale economic crimes, the prosecution’s approach focused on meeting detention requirements and may have overlooked victims. However, from now on, the focus will shift to a victim-centered approach, actively reflecting victim cases in investigations and trials."

Recently, much harsher sentences have been handed down for large-scale economic offenders targeting ordinary citizens. Mr. A, CEO of a cryptocurrency exchange, deceived victims by guaranteeing a 300% return on cryptocurrency investments, embezzling 2.8765 trillion KRW from 52,219 victims. He was sentenced to 22 years in prison in the first trial and is currently undergoing an appeal trial.

Also, Mr. B, CEO of an investment company, deceived 28,000 victims by promising high returns on cryptocurrency investments, embezzling a total of 280 billion KRW and cryptocurrency worth 36.3 billion KRW, and received a confirmed 17-year prison sentence. Kim Jae-hyun, CEO of Optimus Asset Management, who collected approximately 1.19 trillion KRW from 3,200 victims under the pretense of investing in confirmed public institution sales bonds, recently received a confirmed 40-year prison sentence.

The Seoul Southern District Prosecutors’ Office Financial Securities Crime Joint Investigation Team (Chief Dan Sung-han) conducted a raid yesterday at 15 locations across seven domestic exchanges, including Upbit, seizing transaction records and related materials concerning the collapse of the Korean virtual asset Luna (LUNC).

Meanwhile, the prosecution also announced plans to strictly respond to deposit fraud crimes that hurt ordinary citizens, generally conducting investigations with detention based on the extent of the damage. Yesterday, President Yoon Suk-yeol also instructed, "Strongly crack down on deposit fraud that harms ordinary citizens through rigorous investigations and punishments, and coordinate with the Ministry of the Interior and Safety to form a dedicated police task force for deposit fraud crimes."

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