When your company says it will file an embezzlement complaint

Without knowing what the company is claiming and on what basis, you can neither admit nor rebut anything. Sort things out in the order below.

• Ask the company to give you in writing the period, the list of transactions and the amounts it is disputing
• Do not sign a pledge or confirmation right away; get a copy of the wording
• Download your own bank account and card statements for that period
• Gather materials you legitimately hold, such as approval records and messages with instructions from your superiors
• If you have unpaid salary or severance, list it separately

If you start by apologising when you speak to or meet someone from the company, it may be taken as admitting everything. Even if there is something to admit, first pin down which transactions are meant before saying anything.

Taking large amounts of company materials without permission to use as evidence can become another dispute. Start with materials you legitimately held for your work, and for accounting records that only the company has, ask for them to be produced during the investigation.

Break the amount the company claims into a table by transaction, and next to each, note what it was actually used for and the supporting evidence. Once business expenses, advances the company knew about and allowed, amounts already settled and amounts used personally are separated, it becomes clear what to dispute and what to admit. If the company relies on an internal audit report, also check what materials it was calculated from and whether any settlement records were left out.

Occupational embezzlement (업무상횡령) is punishable by imprisonment of up to 10 years or a fine of up to 30 million won (Criminal Act (형법) Article 356), and if the amount gained is 500 million won or more, the Act on the Aggravated Punishment of Specific Economic Crimes (특정경제범죄법) applies and the penalty becomes much heavier. So how the amount is calculated ties directly to the level of punishment.

If there is an amount you admit, repaying early helps the outcome. However, sending whatever the company names before the amount is settled, or making instalment promises you cannot keep, leaves disputes for later.

The settlement agreement should include the amount repaid, how it is paid, a statement that the company does not want you punished, and that no further civil claims will be made. Occupational embezzlement is an offense where the investigation can continue even if the complaint is withdrawn, so the aim is to have the non-punishment wording taken into account in the outcome.

Sometimes a company withholds salary or severance on the grounds of the embezzled money. Unpaid wages can be dealt with through separate procedures such as a petition to the Ministry of Employment and Labor, so keep this separate from the embezzlement case. Conversely, taking company money first because of unpaid wages can itself become an embezzlement issue. When combining severance settlement and repayment of embezzled money in one agreement, state each amount separately.

A managing partner reviews the company's claims transaction by transaction and looks at the wording of any pledge or settlement agreement with you. If a complaint is filed, we practise likely questions about the flow of funds with you, attend the questioning, and submit a written opinion with supporting evidence for the amounts in dispute. If the company has contacted you, message us through the chat on this page before you sign anything.