Sanctions 2025

SOUTH KOREA Law and Practice Contributed by: Jeena Kim, Sodam Kim and Bochan Kim, Bae, Kim & Lee LLC

Criminal Enforcement Financial sanctions

• Serious violations (eg, providing, collecting, trans - porting, or holding funds or property in breach of anti-terrorism law, or inducing others to do so): (a) up to ten years’ imprisonment with labour; or (b) a fine of up to KRW100 million (Article 6). • Unauthorised financial transactions with designat - ed persons – if done knowingly without permission, or with permission obtained by deception: (a) up to three years’ imprisonment with labour; or (b) a fine of up to KRW30 million. These penal - ties also apply to the designated person who engages in such transactions without permis - sion (Article 6). • Joint penal provisions – under the Anti-Terrorism Act, criminal offences are generally subject to joint penal provisions. Accordingly, a company may also be held jointly liable for actions of its officers or employees taken in the course of their duties. 2.2.3 Civil Enforcement Action Although there have been no notable civil enforce - ment cases to date for violations of these sanctions or related export controls, the Korean government has been actively monitoring exporters of strategic and dual-use items for compliance. 2.2.4 Criminal Enforcement Action Major cases regarding Korea’s criminal enforcement against breaching the sanctions from 2022 to date are as follows: • Defendant A and company B exported parachutes for illumination flares and G14D cargo‑delivery par - achutes – both designated as strategic items under the relevant notification issued by MOTIE– without obtaining the required export licence for each ship - ment, and in some instances made false export declarations. Defendant A was imprisoned for one year and fined KRW20 million, with execution of the sentence suspended for two years. Company B was sentenced to pay a fine of KRW20 million (Suwon District Court Judgment dated 22 Septem - ber 2022 Case No 2021No4631). • Defendant A and company B exported high‑fre - quency amplifiers. Although they subsequently applied for a technical determination with the Korea Security Agency of Trade and Industry on 27 July 2018, and received confirmation that the

Criminal penalties prescribing imprisonment or fines related to financial sanctions are investigated by the police, and prosecuted by prosecutors in Korea (Arti - cle 6 of the Anti-Terrorism Act). Export controls Criminal penalties prescribing imprisonment or fines related to export control are investigated and pros - ecuted by prosecutors in Korea (Article 2, item 2 and Annex 2, item 5 ma of the Provisions on the Scope of Offences Subject to Prosecutor’s Initiation of Investi - gation; Articles 53, 53–2 and 54 of the Foreign Trade Act). 2.2.2 Breaching Sanctions Breaching export control-related sanctions could lead to criminal offences under the Foreign Trade Act, as follows. • Proliferation-related violations – exporting strategic items without the required licence for proliferation purposes is punishable by: (a) up to seven years’ imprisonment; or (b) a fine of up to five times the value of the ex - ported items (Article 53 (1)). • Other violations – not involving proliferation intent, including (i) breach of export/import restrictions imposed during war, disaster, etc, (ii) unlicensed export of strategic items, (iii) obtaining a licence through false statements or other unlawful means, and (iv) violating the conditions attached to an export licence, are punishable by: (a) up to five years’ imprisonment; or (b) a fine of up to three times the value of the items (Article 53 (2)). • Joint penal provisions – under the Foreign Trade Act, criminal offences are generally subject to joint penal provisions. Accordingly, a company may also be held jointly liable for actions of its officers or employees taken in the course of their duties (Article 57). Breaching financial sanctions could lead to criminal offences under the Anti-Terrorism Act. The following are examples.

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