SOUTH KOREA Law and Practice Contributed by: Soo Bong Jung, Jinwook Song, Jinwon Choi and Jiyoung Sohn, Bae, Kim & Lee LLC
can be requested and obtained by the investigators during a dawn raid. Interviews The investigative authorities may request interviews with any person believed to possess relevant informa - tion. Compliance with such request is voluntary, but a refusal to attend a voluntary interview can result in an arrest warrant if the individual becomes a suspect during the investigation. 2.4 Use of Technology in Investigations There are no public cases of Korean enforcement authorities directly using AI in white-collar investiga - tions. However, it is widely assumed that big data ana - lytics are already being applied to financial transac - tion tracing and digital forensics. No comprehensive statutory framework regulates AI use by investigators, though legislative debates are underway. Authorities may take into account the results of corporate inter - nal investigations, provided they satisfy admissibil - ity standards. If AI is involved, its reliability, fairness and accuracy must be verified before findings can be relied upon. 2.5 Internal Investigations In Korea, while there is no legal obligation to conduct internal investigations into suspected criminal activi - ties, proactive measures to prevent and address mis - conduct are acknowledged by investigative authori - ties and the courts. Such actions can significantly influence the scope and course of an investigation, as well as the final sentencing. 2.6 Prosecution Traditionally, the PO has had exclusive authority to decide whether to bring criminal charges against any individual or corporate entity, regardless of which gov - ernmental agency initiated the investigation. While no formal rule or guideline governs such decision, the PO considers various factors, such as the gravity of the charges, the harm caused, intent, the involvement of other potential suspects, and actions taken after the crime. Recently, discussions have emerged about granting the police the authority to make final decisions on
certain criminal cases, aiming to adjust the scope of prosecutorial powers. 2.7 Deferred Prosecution The PO has complete discretion to decide whether to file an indictment against a suspect or company. There is no alternative mechanism such as a deferred pros - ecution or non-prosecution agreements, to conclu - sively settle a criminal investigation outside of a trial. 3. White-Collar Offences 3.1 Criminal Company Law and Corporate Fraud As explained in 1.5 Corporate Liability and Personal Liability , under Korean laws, corporate entities may not be subject to criminal prosecution unless there are specific “joint penal provisions” providing for the imposition of criminal fines against corporate entities. However, no joint penal provision exists for corporate fraud. Under the MRFTA, a company may be subject to a criminal fine of up to KRW200 million if any of its executives or employees are found to have violated MRFTA provisions related to cartel activities or other unfair market practices. Under the FBPA, if a company’s executives or employ - ees promise or provide a bribe to a foreign govern - ment official in connection with such official’s duties, the company may be subject to a criminal fine of either KRW1 billion or twice the total profits if those profits exceed KRW500 million, whichever is higher. Under the Anti-Graft Act, a company may be subject to a criminal fine of up to KRW30 million if any of its executives or employees offer, promise or provide benefits in excess of KRW1 million in a single instance or in excess of KRW3 million per year in aggregate to a domestic government official, regardless of whether such bribery was in relation to the relevant official’s duties.
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