South Korea is set to implement an 'independent forfeiture system' that allows the government to seize criminal proceeds even if the perpetrator has died or fled abroad.
On August 20, the National Assembly approved an amendment to the Act on the Regulation of Criminal Proceeds Concealment. The new system will take effect one year after the law is promulgated.
Previously, the current law required a criminal indictment and a guilty verdict from a court before forfeiture could occur. This created significant challenges in recovering hidden criminal proceeds when the perpetrator was deceased, had fled, or could not be identified.
The amendment aims to close these legal loopholes. Prosecutors will now be able to file a forfeiture request with the court separately from criminal proceedings, even in cases where charges are difficult to bring.
The independent forfeiture and confiscation will focus on serious crimes that threaten public safety and national security. Key offenses include voice phishing, illegal online gambling, drug crimes, and sexual exploitation of children and adolescents, as well as digital sex crimes.
Additionally, crimes that undermine constitutional order, such as treason, foreign exchange violations, rebellion, and bribery or embezzlement committed in the course of official duties, will also be included. In cases related to constitutional order crimes, independent forfeiture and confiscation can occur even if the statute of limitations has expired.
Under the amendment, forfeiture and confiscation orders will be issued by the relevant court or the court where the forfeited property is located, and parties will have the right to appeal immediately.
This legal change is expected to significantly enhance South Korea's ability to respond to transnational crime by allowing direct targeting of criminal proceeds, regardless of the status of the perpetrator. Furthermore, the restitution of recovered assets to victims is anticipated to contribute to the practical recovery of losses for victims of economic crimes.
With the introduction of this system, South Korea will align its legal framework with international standards recommended by the United Nations Convention Against Corruption (UNCAC) and the Financial Action Task Force (FATF), similar to major developed countries like the United States, the United Kingdom, Germany, and Switzerland.
Justice Minister Jeong Seung-ho stated, "The introduction of the independent forfeiture system has established a legal foundation for thoroughly tracking and recovering hidden criminal proceeds. We will continue to refine the criminal proceeds recovery system to protect the public and contribute to victim recovery efforts."
* This article has been translated by AI.
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