You may need a consultation if
- A few months after you left, your former company accused you of occupational embezzlement
- The company is taking issue with you depositing part of the payments collected from clients late
- You used a corporate card for both business and personal purposes
- The company wants you to sign a statement admitting embezzlement along with your resignation letter
- You were reported for taking inventory and materials that were going to be thrown away
- You took part of the sales proceeds in place of unpaid wages
Relevant Laws
Criminal Act (형법) Article 355(1) (Embezzlement)
A person who holds another's property and embezzles it or refuses to return it is punished by up to 5 years' imprisonment or a fine of up to KRW 15 million.
Criminal Act Article 356 (Occupational Embezzlement and Breach of Trust)
Embezzling property held in the course of one's work is punished by up to 10 years' imprisonment or a fine of up to KRW 30 million. The statute of limitations is 10 years (Criminal Procedure Act Article 249(1)3).
Act on the Aggravated Punishment of Specific Economic Crimes (특정경제범죄 가중처벌 등에 관한 법률) Article 3
If the gain from embezzlement is KRW 500 million or more but less than KRW 5 billion, the punishment is imprisonment for a fixed term of 3 years or more; if it is KRW 5 billion or more, life imprisonment or imprisonment of 5 years or more.
Statutes are summarized. The official Korean text is available at the Korea Law Information Center (law.go.kr).
Breaking the company's figure down by transaction
The amount in the complaint often mixes money actually spent on business, provisional payments the company knew about and allowed, and amounts settled later. The first task is to split bank transfers, corporate card charges and cash collections into individual transactions and match each to where it was spent and whether it was approved.
A smaller embezzlement amount changes the decision and sentence, and whether it exceeds KRW 500 million changes the applicable law itself.
Were you the custodian, and did you mean to treat it as your own?
Occupational embezzlement (업무상횡령) requires that a person who held and managed money or goods for the company disposed of them as if they were their own. If you had no transfer authority or only carried out your superior's instructions, you can dispute whether you were a custodian or had intent.
Saying you meant to put it back later is not enough on its own, but if there are materials suggesting you were allowed to use it, such as the company's settlement practice or an agreement to deduct it from your pay, there is room to dispute. Taking company money because of unpaid wages can also raise embezzlement issues, so it is safer to claim wages separately.
Don't rush into signing admissions or settlement agreements
Sometimes a company demands a signed statement or confirmation admitting embezzlement before filing a complaint. If you sign before the amount is sorted out, that document is used like a confession in the investigation, so sign only after checking the amount and wording.
If there are parts you admit, repayment weighs heavily in the decision. However, embezzlement is a crime where the investigation continues even after a settlement, so the settlement agreement should set out both the amount to be repaid and a statement that the company does not want punishment.
Factors That Affect the Outcome and Sentence
Factors that work against you
- · Siphoned off money many times over a long period
- · Altered the books or created false supporting documents
- · Large losses with no recovery
- · A previous record for the same offense
Factors that work in your favor
- · Materials showing business use or approval
- · Company practice and settlement records
- · Returned or repaid the money voluntarily
- · Little personal gain
- · No criminal record
How Jisan Law's Criminal Law Center Responds
- 1
Consultation with the managing partner
We check the period and amount at issue in the complaint or the materials the company sent.
- 2
Transaction-by-transaction breakdown
We make a table sorting transfers, card charges and collections into business use, approved spending and personal use.
- 3
Mock questioning and sitting in
We practice with likely questions about the flow of funds and go into the interview room with you.
- 4
Written opinion and repayment approach
For disputed amounts, we submit a written opinion with supporting evidence; for amounts you admit, we set the approach to repayment and settlement.
Lawyers handling these cases
Hansol Kim Managing Partner
Former prosecutor at the Incheon District Prosecutors' Office, the Ansan Branch of the Suwon District Prosecutors' Office and the Hongseong Branch of the Daejeon District Prosecutors' Office
View profile →
Bonwoo Koo Managing Partner
Economic criminal cases such as Capital Markets Act violations, investment fraud, embezzlement and breach of trust
View profile →
Frequently asked questions
I left the company a long time ago. Can they still file a complaint now?
Regardless of when you left, a complaint can be filed within the statute of limitations, which is 10 years for occupational embezzlement. The older the matter, the more often the records from that time remain only with the company, so we also consider asking investigators to check the accounting records.
If I repay everything, will the complaint be withdrawn?
Even if the company withdraws the complaint, occupational embezzlement is a crime where the investigation and trial can continue. However, full repayment and a settlement weigh heavily when deciding the outcome, such as a suspended indictment (기소유예) or a fine.
I handled it because the CEO told me to, but I'm the only one accused.
If you only carried out instructions and gained nothing personally, you can dispute intent or the intent of unlawful appropriation (불법영득의사). Instruction messages, approval records and materials showing where the money actually went are important.