Sentencing guidelines will be strengthened so courts can impose up to life imprisonment for securities crimes such as manipulating stock prices.
The Supreme Court Sentencing Commission said on the 31st that it held a plenary meeting on the 30th and finalized new sentencing guidelines for money laundering crimes, revised sentencing guidelines for securities and financial crimes and gambling and game-related crimes. The new guidelines will apply to crimes indicted on or after July 1.
Under the new guidelines, for crimes that undermine fairness in the capital market—such as use of undisclosed material information, price manipulation, and unfair trading—when the illicit gains or avoided losses are at least 5 billion won but less than 30 billion won, the sentencing range was expanded from 5–9 years (base) and 7–11 years (aggravated) to 5–10 years and 7–13 years, respectively.
When the illicit gains or avoided losses are at least 30 billion won, the ranges were raised from 7–11 years (base) and 9–15 years (aggravated) to 7–12 years and 9–19 years. If there are many special aggravating factors, the upper limit of the recommended range can be specially adjusted by up to half. In cases of particularly serious culpability, special adjustment in the aggravated zone allows selection of up to life imprisonment within the statutory range.
For crimes undermining fairness in the capital market, the "leniency program" (sentence reduction for cooperating offenders) for voluntary reporting will be reflected as a special mitigating factor, the same as self-surrender.
For drafting or disclosing false financial statements and false entries in audit reports, the statutory maximum was raised from up to 5 years to up to 10 years, so a separate category was created and the range (base 1–3 years) was raised.
If criminal proceeds, etc., are concealed or disguised, imprisonment of 6 months to 1 year and 6 months is recommended as the base. If subject to aggravation, imprisonment of 10 months to 3 years is possible.
If assets are spirited overseas, penalties are increased by amount. If the amount spirited away is at least 5 billion won, imprisonment of 6 to 10 years is recommended as the base; if at least 500 million won but less than 5 billion won, 3 to 7 years is recommended as the base.
When the predicate crime for money laundering—such as voice phishing, bribery, or drug crimes—causes considerable and serious harm, it is set as a general aggravating factor so that heavier sentences can be imposed.
The commission also raised the ranges for gambling and game-related crimes. For unlicensed or quasi-casino businesses engaged in illegal operations, such as hold'em pubs, the range was raised to base imprisonment of 10 months to 2 years, and 1 year 6 months to 4 years when aggravated. Special aggravating factors apply when gambling and game-related crimes target minors or allow a substantial number of minors to participate.
Sentencing guidelines related to consignment deposit, which have sparked social controversy—such as "secret consignment deposit" that ignores the victim's position—were also revised. A consignment deposit is a system in which money is deposited with the court so a victim can receive it later. But there has been criticism over cases where defendants, regardless of the victim's intent, sought only sentence reductions by making a "surprise consignment deposit" and then received leniency.
First, the phrase "including consignment deposit" will be deleted from all victim-recovery-related factors across all crime groups. The commission explained, "To dispel the misunderstanding that a consignment deposit equals victim recovery," and added, "We revised the definition so courts can carefully consider the victim's intent to receive and the defendant's intent to waive the right to reclaim when determining whether recovery occurred through a consignment deposit."
Sentencing guidelines are a reference for frontline judges when they rule. They are not mandatory, but if a judge departs from them, the reasons must be stated in the written judgment.