Company Created as a Ghost Corporation to Hand Over 'Daepo Bank Account'... Fine of 3 Million Won Confirmed

[Asia Economy Reporter Heo Kyung-jun] The Supreme Court has ruled that establishing a shell corporation and handing over the corporate account to an organization distributing mule accounts constitutes the crime of 'False Entry in Official Electronic Records.' If publicly recorded information is falsely entered, the crime of false entry in official electronic records can be applied for punishment.

The Supreme Court's 3rd Division (Presiding Justice Noh Jung-hee) announced on the 12th that it upheld the lower court's ruling sentencing Mr. A to a fine of 3 million won in his appeal trial for charges of false entry in official electronic records.

Mr. A was prosecuted for seven instances starting from April 2015, where he caused false information to be recorded in the corporate registry system to create shell companies. He was also charged with creating accounts for these shell corporations and selling a total of 15 bankbooks and check cards.

During the trial, a key issue was whether making a fictitious capital payment for the purpose of committing a crime and completing the corporate registration constitutes false entry in official electronic records regarding capital matters.

The first trial found all of Mr. A's charges guilty and sentenced him to a fine of 5 million won, but in the second trial, some charges that had already been confirmed as guilty were dismissed, reducing the fine to 3 million won.

The Supreme Court also agreed with the second trial's judgment.

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