The court strengthened the recommended sentencing range so that a maximum life sentence can be imposed for securities crimes such as using nonpublic information for transaction or price rigging.
The Supreme Court Sentencing Commission said on the 10th that it held its 142nd meeting on the 7th to review proposed revisions to the sentencing guidelines for securities and financial crimes and for gambling and game-related crimes.
The Sentencing Commission raised the recommended sentencing range for "crimes undermining the fairness of the capital market" among securities crimes (use of nonpublic material information, price rigging, unfair transaction).
When the criminal proceeds or avoided losses are at least 5 billion won but less than 30 billion won, the ranges, previously 5–9 years (base) and 7–11 years (aggravated), were each expanded to 5–10 years and 7–13 years.
When the proceeds are at least 30 billion won, the upper end of the recommendations will be raised from 7–11 years (base) and 9–15 years (aggravated) to 7–12 years and 9–19 years. If there are two or more special aggravating factors, such as causing a significant adverse impact on the market or using particularly egregious methods, a maximum life sentence can be selected.
On this, the Sentencing Commission said, "With the expansion of the capital market, crimes that commit unfair transaction in an organized and large-scale manner are increasing," and noted, "A public consensus has formed in favor of strict sentencing for this, so we revised the ranges."
Also, while the current guidelines allow sentence reductions "when most of the criminal proceeds were not consumed," going forward, the criteria will be changed so that sentences can be reduced only when criminal proceeds have been confiscated or collected, or when a penalty surcharge has been paid.
Next, in "crimes undermining the fairness of the capital market," the "leniency program" (system for reducing punishment for cooperators with law enforcement) under the Financial Investment Services and Capital Markets Act, which grants relief for voluntary reporting, will be reflected as a special mitigating factor and a key positive consideration, as with voluntary surrender.
The Sentencing Commission decided to maintain the current recommended standards for financial crimes.
However, regarding the crime of brokerage bribery in which a financial institution's officer or employee receives money or valuables related to duties, whereas previously sentences were lowered only when money or benefits were returned "before the start of the investigation," going forward, mitigation can be reflected when all benefits are returned even afterward.
In addition, when an officer or employee works at a financial institution but does not perform financial-related duties, that circumstance will be additionally reflected as a special mitigating factor in the criteria for suspended sentences, lowering the recommended sentencing range for brokerage bribery.
Meanwhile, sentences will generally be increased for gambling and game-related crimes such as unlicensed or pseudo-casino operations and online sports betting. For operations like holdem pubs categorized as pseudo-casinos, the recommended range was raised from the current 8 months to 1 year and 6 months in prison to 10 months to 2 years. The minimum recommended sentence for online horse racing and Sports Toto was also raised from 8 months to 10 months.
The Sentencing Commission said, "The social harm caused by online gambling sites, which are easy to access and highly addictive, is severe, and there is a need for strong punishment."
The Sentencing Commission plans to finalize the new sentencing guidelines in March next year after a public hearing and consultations with related agencies.