Calculators & Self-ChecksProsecution Request Estimator
Unauthorized fundraising (raising investment money with promises of principal or high returns): statutory penalty and likely requested sentence
The statutory penalty for Unauthorized fundraising (raising investment money with promises of principal or high returns) and the likely handling of the case depending on your circumstances. The results are for reference only.
- Statutory penalty
- Up to 5 years in prison or a fine of up to KRW 50 million
- Legal basis
- Act on the Regulation of Unauthorized Fundraising, Articles 6(1) and 3
- Category
- Finance · Act on the Regulation of Unauthorized Fundraising
Calculate with your own circumstances
What the handling steps mean
- Detention considered · Detention (구속): being held in custody during the investigation and trial under a court warrant when there is a risk of fleeing or destroying evidence
- Formal trial · Formal trial (구공판): the prosecutor asks the court for a trial, and you stand before a judge in a courtroom
- Summary fine · Summary indictment (약식기소): a procedure in which a fine is set on the documents, without a trial in a courtroom
- Suspension of indictment possible · Suspension of indictment (기소유예): the wrongdoing is recognized, but the prosecutor takes various circumstances into account and closes the case without sending it to trial
- Referral to the Family Court possible · Domestic or juvenile protection case: instead of criminal punishment, the Family Court imposes protective dispositions such as counseling, a no-contact order or community service
Handling standards at a glance
Listed from heaviest to lightest. The actual decision depends on the results of the investigation and your circumstances.
Detention considered
- Likely requested sentence
- 2 to 3 years in prison
The representative of a fraudulent business, an executive of a business that raised KRW 2 billion or more, or an upper-level recruiter who gained KRW 200 million or more, among others, may be considered for detention.
Formal trial (prison sentence requested)
- Likely requested sentence
- 2 years or more in prison
Formal trial (prison sentence requested)
- Likely requested sentence
- 1 year 6 months or more in prison
Summary fine
- Likely fine
- KRW 20 million or more
The standard is KRW 20 million or more, about 30% of the amount raised (within the statutory maximum).
Summary fine
- Likely fine
- KRW 10 million or more
The standard is KRW 10 million or more, about 10% of the amount raised (within the statutory maximum).
Notes
- If investors were deceived, fraud may also be at issue, which can make the case much heavier.
Frequently asked questions
- Unauthorized fundraising (raising investment money with promises of principal or high returns): what is the statutory penalty?
- Legal basis: Act on the Regulation of Unauthorized Fundraising, Articles 6(1) and 3. Statutory penalty: Up to 5 years in prison or a fine of up to KRW 50 million.
- Unauthorized fundraising (raising investment money with promises of principal or high returns): how is the case usually handled?
- Depending on the circumstances, it may be handled as follows: Detention considered, Formal trial (prison sentence requested), Summary fine. Enter your circumstances in the calculator above to see which one applies.
Other crimes in the same category
- Forging or altering access media
- Smuggling imports (importing without declaration or declaring different goods)
- Importing or exporting prohibited goods (smuggling)
- Acquiring, transferring, transporting or storing smuggled goods
- Concealing or disguising criminal proceeds
- Receiving criminal proceeds
- Financial transactions in another person's name for illegal purposes, or arranging them
- Unregistered foreign exchange business (hwanchigi, etc.)
This is only an estimate based on how investigative agencies usually handle cases. The actual decision and request depend on the facts of the case, such as a settlement, prior convictions and how the crime happened, and on the judgment of the prosecutor in charge; the final sentence is decided by the court. If you are about to be questioned, do not rely on this result alone and talk to a lawyer first.
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