CONTEMPORARY MEASURES FOR EFFECTIVE INTERNATIONAL
COOPERATION IN THE FIGHT AGAINST CORRUPTION– International Cooperation for Anti-Corruption: South Korean Practices –Han-Kyun KIM *– Contents –I. Introduction: UNCAC and UNODC’s Action Against Corruption
II. Legal Measures for International Cooperation
III. Anti-Corruption Investigation System & Practice in Korea
IV. Asset Recovery Law & System in Korea
V. Cooperation in Anti-Corruption Investigation: Korean Cases

Corruption is a complex social, political and economic phenomenon that affects all
countries. Corruption undermines democratic institutions, slows economic
development and contributes to governmental instability. Corruption attacks thefoundation of democratic institutions by distorting electoral processes, perverting therule of law and creating bureaucratic quagmires whose only reason for existing is thesoliciting of bribes. Economic development is stunted because foreign direct
investment is discouraged and small businesses within the country often find it
impossible to overcome the "start-up costs" required because of corruption.1
Global attitudes towards corruption have changed dramatically. Where once bribery,corruption and illicit financial flows were often considered part of the cost of doing
business, today corruption is widely — and rightly — understood as criminal andcorrosive. … The United Nations Convention against Corruption provides acomprehensive platform for governments, non-governmental organizations, civilsociety, and individual citizens. Through prevention, criminalization, international
cooperation and assets recovery, the Convention advances global progress toward
ending corruption.2

I.

INTRODUCTION: UNCAC & UNODC’S ACTION AGAINST CORRUPTIONThe UN Office on Drugs and Crime (hereinafter referred to as UNODC) promotesinternational cooperation in crime prevention and criminal justice, as the convergence of drugs,
crime, corruption and terrorism is ever more threatening global security. As for the issue of
corruption, the UNODC works directly with governments, international organizations, other
United Nations entities and civil society to develop and implement programmes for countering
corruption.3*

Research Fellow, Korean Institute of Criminology.
http://www.unodc.org/unodc/en/corruption/index.html?ref=menuside
2
Message from UN Secretary-General, Ban Ki-moon on International Anti-Corruption Day (9 December 2015).
3
UNODC, UNODC Annual Report 2014 (2014) pp.10-11.
1

A.

Open-ended Intergovernmental Working Group on Prevention
In November 2009, the Conference of the States Parties to the United Nations Convention
against Corruption4 (hereinafter referred to as UNCAC) stressed the importance of implementing
articles 5-14 of the UNCAC to prevent and fight corruption. So the Conference decided to establish
an interim open-ended intergovernmental working group5, to advise and assist the Conference in
the implementation of its mandate on the prevention of corruption.6 The working group should
perform the following functions:(a)Assist the Conference in developing and accumulating knowledge in the area of
prevention of corruption;(b)

Facilitate the exchange of information and experience among States on preventive
measures and practices;(c)

Facilitate the collection, dissemination and promotion of best practices in theprevention of corruption;(d)Assist the Conference in encouraging cooperation among all stakeholders and sectorsof society in order to prevent corruption.

At its meeting in August 2011, the Working Group recommended that, at its future meetings,
it should continue to focus on the following topics:(a)

Implementation of article 12 [Private Sector] of the UNCAC, including the use of
public-private partnerships;(b)

Conflicts of interest, reporting acts of corruption and asset declarations, particularly inthe context of articles 7 [Public Sector], 8 [Codes of Conduct for Public Officials], 9[Public procurement and management of public finances] of the UNCAC.

It was also decided that, in advance of each meeting of the Working Group, States parties
should be invited to share their experiences in implementing the provisions under consideration,
preferably by using the self-assessment checklist and including, where possible, successes,

4

In its resolution 55/61 of 4 December 2000, the General Assembly recognized that an effective international legal
instrument against corruption, independent of the United Nations Convention against Transnational Organized
Crime was desirable and decided to establish an ad hoc committee for the negotiation of such an instrument in
Vienna at the headquarters of the United Nations Office on Drugs and Crime. The Convention approved by the Ad
Hoc Committee was adopted by the General Assembly by resolution 58/4 of 31 October 2003. In accordance witharticle 68 (1) of resolution 58/4, the United Nations Convention against Corruption entered into force on 14
December 2005. A Conference of the States Parties is established to review implementation and facilitate activities
required by the Convention. (http://www.unodc.org/unodc/en/treaties/CAC/index.html)
5
United Nations Convention against Corruption, Art.63 para.7.
6
Conference of the States Parties to the United Nations Convention against Corruption, “Preventive measures”,
Resolution 3/2 (2009)challenges, technical assistance needs, and lessons learned in implementation.7 In response to this,the UNODC Secretariat prepared a note,8 which was circulated for comments by State parties tothe UNCAC. Following receipt of comments, the Secretariat confirmed that the topics fordiscussion at the meetings of the Working Group would continue to be the implementation ofarticle 12 of the Convention, including the use of public-private partnerships, and the conflicts ofinterest, reporting acts of corruption and asset declarations, particularly in the context of articles 7- 9 of the Convention.
In October 2011, the Conference decided that the Working Group should continue its work
to advise and assist the Conference in the implementation of its mandate.9 In its resolution 4/3, theConference noted that many States parties had shared information on their initiatives and goodpractices on the topics considered by the Working Group at its meeting in August 2011, and urgedStates parties to continue to share with the Secretariat and other States parties new as well as
updated information on such initiatives and good practices.
B.

Open-ended Intergovernmental Expert Meetings to Enhance International
Cooperation
In October 2011, the Conference of the States Parties to the UNCAC decided to convene
open-ended intergovernmental expert meetings on international cooperation to advise and assist it
with respect to extradition and mutual legal assistance, and to convene one such meeting during
its fifth session and, prior to that, within existing resources, at least one intersessional meeting.10
In the same resolution, the Conference also decided that the expert meetings shall perform thefollowing functions:7(a)assist it in developing cumulative knowledge in the area of international cooperation;(b)

assist it in encouraging cooperation among relevant existing bilateral, regional andmultilateral initiatives and contribute to the implementation of the related provisionsof the Convention under the guidance of the Conference;(c)facilitate the exchange of experiences among States by identifying challenges anddisseminating information on good practices to be followed in order to strengthen
capacities at the national level;(d)build confidence and encourage cooperation between requesting and requested Statesby bringing together relevant competent authorities, anti-corruption bodies andpractitioners involved in mutual legal assistance and extradition;

Open-ended Intergovernmental Working Group on the Prevention of Corruption, Provisional agenda andannotations, CAC/COSP/WG.4/2012/1
8
Proposal for a possible multi-year work plan for the Open-Ended Intergovernmental Working Group on Prevention
for the period up to 2015 (CAC/COSP/2011/CRP.4)
9
Conference of the States Parties to the United Nations Convention against Corruption, Marrakech declaration on
the prevention of corruption, Resolution 4/3 (2011)10
Convening of open-ended intergovernmental expert meetings to enhance international cooperation, Resolution 4/2(2011)

(e)assist the Conference in identifying the capacity-building needs of States.

The Conference further called upon States parties and signatory States to designate a central
authority and, as appropriate, local authorities and other governmental experts, to participate in theexpert meetings.
C.

National Anti-Corruption Strategies
According to the article 5 of UNCAC, it is important to adopt “effective, coordinated anticorruption policies that promote the participation of society and reflect the principles of the ruleof law, proper management of public affairs and public property, integrity, transparency andaccountability. Responding to a request by the Conference of the States parties to identify anddisseminate good practices on the development of national anti-corruption strategies, and inaccordance with its responsibility to provide technical assistance to States parties to help themmeet their obligations under the UNCAC11, UNODC has developed “National Anti-Corruption
Strategies – A Practical Guide for Development and Implementation”.12
The Guide offers specific recommendations for countries considering drafting or revising anational anti-corruption strategy, drawing on practical experiences of UNCAC States parties andfocusing on how to engage all stakeholders in a meaningful and productive drafting process which
would culminate in a realistic, measurable and implementable strategy. Many of therecommendations contained in the Guide may also be relevant to countries that plan to meet their
obligations under article 5 without adopting a formal strategy document.
(a) Anti-corruption strategy development process

11•

POLITICAL, SOCIAL, ECONOMIC AND CULTURAL CONTEXT: States musttake into account their particular political, social, economic and cultural context when
designing anti-corruption strategies.

•

POLITICAL WILL: Committed political leadership, ideally from the highest levels of
the State, and broader political support to steer the overall process and mobilize
necessary resources, are necessary conditions of an effective anti-corruption strategy
development process.

•STAKEHOLDER INVOLVEMENT (INCLUSIVE PROCESS) AND OWNERSHIP:
Broad engagement of stakeholders builds ownership and helps to ensure acceptability
and effectiveness of strategies adopted. State institutions (executive, legislative andjudiciary) at the national and subnational levels, civil society organizations, private
sector, media, professional societies, trade and industry associations and labour unions,

Resolution 5/4 (2012)
UNODC, The United Nations Convention against Corruption National Anti-Corruption Strategies: A Practical
Guide for Development and Implementation (2015)12

academic institutions, youth and cultural organizations, can serve as important allies
and partners in the development of anti-corruption strategies and can reduce thevulnerability of the reform efforts to changes in political leadership.
•

CLEAR AND TRANSPARENT PROCESS: The process of developing strategies
needs to be clear and transparent from the outset.

•

COMMON VISION: A consensus should be built around a common vision andintended objectives of strategies.

•

STRENGTHENING COORDINATION: Anti-corruption strategies should focus on
enhancing inter- and intra-agency coordination during the development process as wellas the implementation and monitoring phases.

•

SOUND KNOWLEDGE BASE: Development, implementation and monitoring ofstrategies should be informed by sound diagnostics, needs and evidence of risk andvulnerability areas and gaps in anti-corruption policies and institutions.

•

SUSTAINABILITY AND INSTITUTIONALIZATION OF THE PROCESS:
Development of strategies should be institutionalized to ensure continued relevanceand timely modification of the anti-corruption strategies.

•

ALLOCATING AND MOBILIZING RESOURCES: Necessary resources should be
mobilized at the time of development of strategies to ensure effective implementationand monitoring of strategies.

•

PUBLIC COMMUNICATION AND ENGAGEMENT: Anti-corruption and national
planning authorities shall communicate and engage with the public regularly in orderto ensure public confidence and channel feedback for the effective implementation ofanti-corruption strategies.

(b) Anti-corruption strategy design and content•

RATIONALE CORE OBJECTIVES AND REALISTIC GOALS: Core objectives andgoals, and rationale for interventions should be defined based on national priorities,
and identified gaps and needs.

•

NATIONAL DEVELOPMENT STRATEGY/PRIORITIES AND BROADERCONTEXT: Anti-corruption strategies should be incorporated within broader national
development initiatives currently in focus and should take into accountinternational/regional obligations.

•

INTEGRATION WITH OTHER RELEVANT NATIONAL PROGRAMMES/REFORM AGENDAS: Anti-corruption strategies should take into account andestablish links with other relevant national strategies (e.g., judicial sector, publicadministration reform, open government, etc.) and should seek to form synergies withother agencies.
•

COMPREHENSIVE AND COORDINATED APPROACH: Anti-corruption
strategies should be organized under an overarching/holistic approach while taking
into account sector-specific needs.

•

CLEAR AND UNDERSTANDABLE DOCUMENT: Strategies have to be clear,concise and easily understood.

•

STRUCTURE AND DESIGN: While there is no simple formula for the proper design,
content or implementation of anti-corruption strategies, the UNCAC can be used as aframework for anti-corruption strategies, taking into account relevant data, particularneeds and national capacities.

•

PRIORITIZATION AND SEQUENCING: Strategies need to be realistic on what isachievable in the short, medium and long term, set clear priorities and sequence actions
based on priorities. Strategies could be designed with the aim of enhancing thecredibility of leadership and ensuring quick tangible results to strengthen the national
commitment to reform.

•

IMPLEMENTATION MECHANISM: It is imperative that strategies provide for an
implementation mechanism in the form of an action plan with clearly identified
responsibilities and timelines for implementation with focus on results. The agency
designated to coordinate implementation of strategies should be within high-levelgovernment agencies.

•

SUBNATIONAL IMPLEMENTATION: Where applicable, particular attention
should be paid to strategies’ implementation at the subnational and local levels.

•

INSTITUTIONAL AND FINANCIAL SUSTAINABILITY (NEEDS andCAPACITIES): Strategies should provide for their institutional and financial
sustainability and should take into account capacity for implementation.

(c) Anti-corruption strategy monitoring and evaluation•

INTEGRAL PART OF STRATEGY DESIGN: Monitoring and evaluation
mechanisms are an integral part of national anti-corruption strategies. Elements ofevaluation and data-collection systems should be built into strategies from the designphase.

•

INDICATORS WITH CLEAR BASELINES AND TARGETS: Measurable indicators,
with established baselines and tracking mechanisms, are needed to determine whether
targets are being achieved.

•

NEED FOR DATA-GENERATION TOOLS: Effective monitoring and evaluation
require reliable data that are generated based on multiple sources.

•

REGULAR REPORTING: Regular monitoring and reporting allow authorities togauge progress in implementation and achieving results in curbing corruption.

•

EVALUATION VS. PROGRAMME MANAGEMENT: It is important to distinguishbetween programme management monitoring (activities/outputs) as opposed toevaluation (outcomes/impact) and between implementation responsibilities as opposed
to monitoring and oversight responsibilities.

•RESPONSIBLE AUTHORITY: National body/bodies should be entrusted with the
responsibility for monitoring, implementation and regular reporting and be provided
with sustainable institutional and financial support. An independent evaluation should
ensure accurate monitoring and reporting at regular intervals.

D.

Stolen Asset Recovery Assistance
The Stolen Asset Recovery Initiative (hereinafter referred to as StAR) is a partnership
between the World Bank Group and the UNODC that supports international efforts to end safe
havens for corrupt funds. StAR works with developing countries and financial centers to preventthe laundering of the proceeds of corruption and to facilitate more systematic and timely return ofstolen assets.13 StAR's work is built on four key pillars of empowerment, partnership, innovationand international standards.14
Firstly, StAR helps countries establish the legal tools and institutions required to recover theproceeds of corruption. It helps them develop the specific skills needed to pursue asset recovery
cases, through sharing knowledge and information, and providing hands-on training in asset
tracing and international cooperation on legal matters. StAR helps countries apply these tools andskills by facilitating contacts between jurisdictions in support of asset recovery cases.
Secondly, StAR works with and helps bring together governments, regulatory authorities,
donor agencies, financial institutions, and civil society organizations from both financial centersand developing countries, fostering collective responsibility and action for the deterrence,
detection and recovery of stolen assets.
Thirdly, StAR generates knowledge on the legal and technical tools used to recover theproceeds of corruption, promoting the sharing of global best practices.
Lastly, StAR advocates for the strengthening and effective implementation of Chapter 5 of
the UNCAC and other international standards to detect, deter and recover the proceeds ofcorruption. Working with global forums such as the Conference of States Parties to the UNCAC
13
14

http://star.worldbank.org/star
http://www.unodc.org/unodc/en/corruption/StAR.html

and its asset recovery working group, the Financial Action Task Force, and other multinational
bodies, StAR fosters collective global public action and helps countries implement agreed
standards.
II. LEGAL MEASURES FOR INTERNATIONAL COOPERATIONThe United Nations Convention against Corruption (UNCAC) is the only legally binding
universal anti-corruption instrument. The Convention's far-reaching approach and the mandatory
character of many of its provisions make it a unique tool for developing a comprehensive response
to a global problem.15
With ratification by 178 States parties (as of December 2015) 16 , the Convention has
established opposition to corruption as a global norm and made the elimination of corruption a
global aspiration. States parties to the Convention must undertake effective measures to prevent
corruption17 , criminalize corrupt acts and ensure effective law enforcement18, cooperate with other15

http://www.unodc.org/unodc/en/corruption/index.html?ref=menuside
http://www.unodc.org/unodc/en/treaties/CAC/signatories.html
17Article 7. Public sector
Article 8. Codes of conduct for public officials
Article 9. Public procurement and management of public finances
Article 10. Public reporting
Article 11. Measures relating to the judiciary and prosecution services
Article 12. Private sector
Article 13. Participation of society
Article 14. Measures to prevent money-laundering
18
Article 15. Bribery of national public officials
Article 16. Bribery of foreign public officials and officials of public international organizations
Article 17. Embezzlement, misappropriation or other diversion of property by a public official
Article 18. Trading in influence
Article 19. Abuse of functions
Article 20. Illicit enrichment
Article 21. Bribery in the private sector
Article 22. Embezzlement of property in the private sector
Article 23. Laundering of proceeds of crime
Article 24. Concealment
Article 25. Obstruction of justice
Article 26. Liability of legal persons
Article 27. Participation and attempt
Article 28. Knowledge, intent and purpose
Article 29. Statute of limitations
Article 30. Prosecution, adjudication and sanctions
Article 31. Freezing, seizure and confiscation
Article 32. Protection of witnesses, experts and victims
Article 33. Protection of reporting persons
Article 34. Consequences of acts of corruption
Article 35. Compensation for damage
Article 36. Specialized authorities
Article 37. Cooperation with law enforcement authorities
Article 38. Cooperation between national authorities
16

States parties in enforcing anti-corruption laws19 and assist one another in the return of assets
obtained through corruption.20
Moreover, in addition to calling for effective action in each of these specific areas, article 5
imposes the more general requirements that each State party: (a) develop and implement ormaintain effective, coordinated anti-corruption policies; (b) establish and promote effective
practices aimed at the prevention of corruption; and (c) periodically evaluate relevant legal
instruments and administrative measures with a view to determining their adequacy to prevent andfight corruption. Furthermore, under article 6, each State party is required to ensure the existenceof a body or bodies, as appropriate, that prevent corruption by implementing the policies referred
to in article 5 and, where appropriate, overseeing and coordinating the implementation of thosepolicies. Thus, one of the most important obligations of States parties under the Convention, andto which they are to be held accountable under the Mechanism for the Review of Implementationof the Convention established under article 63, is ensuring that their anti-corruption policies are
effective, coordinated and regularly assessed.21
The UNCAC covers five main areas: prevention, criminalization and law enforcement
measures, international cooperation, asset recovery, and technical assistance and informationexchange. The UNCAC covers many different forms of corruption, such as trading in influence,
abuse of power, and various acts of corruption in the private sector. A further significant
development was the inclusion of a specific chapter of the Convention dealing with the recovery
of assets, a major concern for countries that pursue the assets of former leaders and other officials
accused or found to have engaged in corruption. The rapidly growing number of States that havebecome parties to the Convention is further proof of its universal nature and reach.

Article 39. Cooperation between national authorities and the private sector
Article 40. Bank secrecy
Article 41. Criminal record
Article 42. Jurisdiction
19
Article 43. International cooperation
Article 44. Extradition
Article 45. Transfer of sentenced persons
Article 46. Mutual legal assistance
Article 47. Transfer of criminal proceedings
Article 48. Law enforcement cooperation
Article 49. Joint investigations
Article 50. Special investigative techniques
20
Article 51. General provision
Article 52. Prevention and detection of transfers
Article 53. Measures for direct recovery of property
Article 54. Mechanisms for recovery of property through international cooperation in confiscation
Article 55. International cooperation for purposes of confiscation
Article 56. Special cooperation
Article 57. Return and disposal of assets
Article 58. Financial intelligence unit
21
UNODC, The United Nations Convention against Corruption National Anti-Corruption Strategies: A Practical
Guide for Development and Implementation (2015), p.1.

A.

Prevention
Corruption can be prosecuted after the fact, but first and foremost, it requires prevention. An
entire chapter of the Convention is dedicated to prevention, with measures directed at both the
public and private sectors. These include model preventive policies, such as the establishment of
anticorruption bodies and enhanced transparency in the financing of election campaigns andpolitical parties. States must endeavour to ensure that their public services are subject to safeguards
that promote efficiency, transparency and recruitment based on merit. Once recruited, public
servants should be subject to codes of conduct, requirements for financial and other disclosures,
and appropriate disciplinary measures. Transparency and accountability in matters of publicfinance must also be promoted, and specific requirements are established for the prevention ofcorruption, in the particularly critical areas of the public sector, such as the judiciary and public
procurement. Those who use public services must expect a high standard of conduct from their
public servants. Preventing public corruption also requires an effort from all members of society
at large. For these reasons, the Convention calls on countries to promote actively the involvementof non-governmental and community-based organizations, as well as other elements of civilsociety, and to raise public awareness of corruption and what can be done about it. Article 5 of theConvention enjoins each State Party to establish and promote effective practices aimed at theprevention of corruption.22
B.

Criminalization
The Convention requires countries to establish criminal and other offences to cover a wide
range of acts of corruption, if these are not already crimes under domestic law. In some cases,
States are legally obliged to establish offences; in other cases, in order to take into accountdifferences in domestic law, they are required to consider doing so. The Convention goes beyond
previous instruments of this kind, criminalizing not only basic forms of corruption such as bribery
and the embezzlement of public funds, but also trading in influence and the concealment andlaundering of the proceeds of corruption. Offences committed in support of corruption, including
money-laundering and obstructing justice, are also dealt with. Convention offences also deal withthe problematic area of private-sector corruption.23
C.

International Cooperation
Countries agreed to cooperate with one another in every aspect of the fight against
corruption, including prevention, investigation, and the prosecution of offenders. Countries arebound by the Convention to render specific forms of mutual legal assistance in gathering andtransferring evidence for use in court, to extradite offenders. Countries are also required toundertake measures which will support the tracing, freezing, seizure and confiscation of theproceeds of corruption.24

22

UNODC, Legislative guide for the implementation of the United Nations Convention against Corruption, Second
Revised Edition (2012) p.2.
23
UNODC, Legislative guide for the implementation of the United Nations Convention against Corruption, Second
Revised Edition (2012) p.2.
24
UNODC, Legislative guide for the implementation of the United Nations Convention against Corruption, Second
Revised Edition (2012) p.2.

D.

Asset Recovery
In a major breakthrough, countries agreed on asset-recovery, which is stated explicitly as afundamental principle of the Convention. This is a particularly important issue for many
developing countries where high-level corruption has plundered the national wealth, and where
resources are badly needed for reconstruction and the rehabilitation of societies under new
governments. Reaching agreement on this chapter has involved intensive negotiations, as the needsof countries seeking the illicit assets had to be reconciled with the legal and procedural safeguardsof the countries whose assistance is sought.25
Several provisions specify how cooperation and assistance will be rendered. In particular, inthe case of embezzlement of public funds, the confiscated property would be returned to the state
requesting it; in the case of proceeds of any other offence covered by the Convention, the property
would be returned providing the proof of ownership or recognition of the damage caused to arequesting state; in all other cases, priority consideration would be given to the return ofconfiscated property to the requesting state, to the return of such property to the prior legitimate
owners or to compensation of the victims. Effective asset-recovery provisions will support theefforts of countries to redress the worst effects of corruption while sending at the same time, amessage to corrupt officials that there will be no place to hide their illicit assets. Accordingly,
article 51 provides for the return of assets to countries of origin as a fundamental principle of thisConvention. Article 43 obliges State parties to extend the widest possible cooperation to each otherin the investigation and prosecution of offences defined in the Convention. With regard to asset
recovery in particular, the article provides, inter alia, that "In matters of international cooperation,
whenever dual criminality is considered a requirement, it shall be deemed fulfilled irrespective ofwhether the laws of the requested State Party place the offence within the same category of offence
or denominate the offence by the same terminology as the requesting State Party, if the conduct
underlying the offence for which assistance is sought is a criminal offence under the laws of bothStates Parties".26
E.

Mechanism for the Review of Implementation of the UNCACThe Conference recalled article 63 of the UNCAC, especially paragraph 7, according towhich the Conference should establish, if it deemed it necessary, any appropriate mechanism orbody to assist in the effective implementation of the Convention.27 In the same resolution, theConference adopted, subject to the provisions of the present resolution, the terms of reference ofthe Mechanism for the Review of Implementation of the UNCAC28, and the draft guidelines forgovernmental experts and the secretariat in the conduct of country reviews and the draft blueprint
for country review reports, contained in the appendix to the annex, which will be finalized by the
Implementation Review Group.29

25

UNODC, Legislative guide for the implementation of the United Nations Convention against Corruption, Second
Revised Edition (2012) p. 3.
26
http://www.unodc.org/unodc/en/treaties/CAC/convention-highlights.html#Asset_recovery
27“Review mechanism”, Resolution 3/1 (2009)28
Annex, Resolution 3/1 (2009)29
http://www.unodc.org/unodc/en/treaties/CAC/IRG.html

The Conference recalled its decision30 by which the Group was charged with following up
and continuing the work undertaken previously by the Open-ended Intergovernmental Working
Group on Technical Assistance, and taking into account the fact that one of the goals of the
Mechanism is to help States parties to identify and substantiate specific needs for technicalassistance and to promote and facilitate the provision of technical assistance. 31 In the same
resolution, the Conference recalled in particular its endorsement 32 of country-led and countrybased, integrated and coordinated technical assistance programme delivery and its encouragement
to donors to accord high priority to technical assistance to implement the UNCAC. The Conference
also endorsed the guidelines for governmental experts and the secretariat in the conduct of country
reviews and the blueprint for country review reports as finalized by the Group at its first session
and the practice followed by the Group with regard to the procedural issues arising from thedrawing of lots.33
III. ANTI-CORRUPTION INVESTIGATION SYSTEM & PRACTICE IN KOREA
A.

Anti-Corruption Department of the Prosecutors’ Office in Korea
In 2013, the Central Investigation Department was replaced by the Anti-Corruption
Department to control and support special investigation, directed by the Prosecutor General at theSupreme Prosecutors' Office.34 (hereinafter referred to as SPO)The SPO consists of the Planning & Coordination Department, Office of Future Strategy &Vision, Judicial Policy Center, International Cooperation Center, Criminal Department, Violent
Crime Investigation Department, Narcotics & Organized Crime Investigation Department, Crime
Victim Rights Division, Public Security Department, Criminal Trial & Civil Litigation Department,
Forensic Science Investigation Department, Inspection Headquarters and Anti-Corruption
Department.
The Anti-Corruption Department finds the focal investigation areas and designates
investigation targets on the basis of structural corruption and causes of crimes discovered during
in-depth research and analysis on criminal phenomena which have been taking new dimensions
following the economic growth and social development. The Anti-Corruption Department
performs various tasks including direction, supervision, and coordination of special investigations
conducted by District Prosecutors' Offices, dealing with and management of cases transferred fromother agencies, support for special investigations such as accounting analysis and tracing funds,
30

Resolution 3/1 (2009)"Mechanism for the Review of Implementation of the United Nations Convention against Corruption",
Resolution 4/1(2011)32“Technical assistance to implement the United Nations Convention against Corruption” Resolution 3/4 (2009)33
http://www.unodc.org/unodc/en/treaties/CAC/IRG.html
34
The Prosecutors’ Office of Korea consists of the Supreme Prosecutor's Office, High Prosecutors’ Offices, District
and Branch Prosecutors’ Offices. The Supreme Prosecutor's Office stands at the top of organizational hierarchy, andits duties include directing and supervising investigation and operations of all other Prosecutors’ Offices across thecountry. The Supreme Prosecutor's Office directs and supervises investigation and operations of all other
Prosecutors’ Offices across the country. The Prosecutor General handles all affairs and directs all staff members of
the Prosecutors’ Offices.
31

asset recovery, research on investigation techniques, international cooperation on investigation,and collaboration with relevant institutions.35
The Narcotics & Organized Crime Investigation Department aims to protect the people fromhideous crimes ranging from gang-related violence to narcotics offenses, which greatly threaten
the lives and property of the public. In particular, this department proactively responds to changes
in the criminal environment, where narcotics-related crimes involve trespass of nationalboundaries, and methods of smuggling are increasingly diversifying. As part of these efforts, thedepartment is strengthening global partnership in investigation by holding a regular Anti-Drug
Liaison Officials’ Meeting for International Cooperation (ADLOMICO)36. This department also
supports projects for the elimination of drugs in ASEAN countries with the help from the ASEAN
Secretariat, and is leading the effort to adopt advanced investigative techniques, such as
information systems for investigation of narcotics crimes and Drug Signature Analysis
technique.37
B.

International and Regional Cooperation in Anti-Corruption Investigation
In Asia and around the world, criminals use increasingly more complex money laundering
methods to hide the origins of illegally obtained funds generated by their activities. Moneylaundering poses serious challenges to the economies and national security of nations. National
investigation and prosecution authorities understand that "following the money" — mapping theflow of illicit funds in order to recover them — is the most effective way to combat money
laundering. Doing so leads back to the money's source, potentially allowing it to be confiscatedand the illicit cash flows stopped. It is, however, an extremely difficult task: Less than 1% of illicit
financial flows around the globe are seized and frozen, according to a recent UNODC study.38
Law enforcement officials are often constrained by national borders and lack of cross-bordercooperation, unlike criminals who are not bound by jurisdictions or borders, and can move illegallyobtained money from country to country. To overcome this, Towards AsiaJust Programme39, a
35

http://www.spo.go.kr/eng/about/departments.jsp
The purpose of the ADOLOMICO is to share information about international drug trafficking organizations andtheir illicit trafficking activities and to establish the mechanism for regional cooperation to tackle drug crimes. Since
April 1989, the Supreme Prosecutors' Office has organized quarterly meetings of drug-related officials of several
embassies in Seoul with the purpose of strengthening international cooperation and facilitating exchange of
information on international drug crimes. The ADLOMICO has been excellent forum for sub-regional cooperation,in areas such as exchange of information on new trends of drug crimes and mutual legal assistance among themember countries. ADLOMICO has been highly praised for a model sub-regional cooperation mechanism by theUnited Nations. And Executive Director of the UNDCP has sent his encouraging message for the participants of
ADLOMICO each year. (http://www.spo.go.kr/eng/division/adlomico/about/adlomico.jsp)37
http://www.spo.go.kr/eng/about/departments.jsp
38
UNODC, Estimating illicit financial flows resulting from drug trafficking and other transnational organizedcrimes (2011) (http://www.unodc.org/documents/data-and-analysis/Studies/Illicit_financial_flows_2011_web.pdf)
39
Towards AsiaJust programme aims at establishing a cooperative legal network in Southeast Asian region toeffectively fight against international crime. Korean Institute of Criminology (KIC) has signed an MOU with the36

UNODC Regional Centre for East Asia and the Pacific for the development of the 『Towards AsiaJust』programme
in July 2009. As part of this project, KIC has conducted research on crime trends and criminal justice systems in thisregion and has provided financial assistance. More specifically, KIC’s research aimed at enhancing the level ofmutual legal assistance, achieving transnational organized justice. For more efficient and comprehensive research,sub-programme of the UNODC Regional Centre in East Asia and the Pacific, has worked to form
an Asset Recovery Inter-Agency Network for Asia and the Pacific (hereinafter referred to as
ARIN-AP), a regional network of prosecutors and law enforcement to promote the comprehensive
cross-border cooperation and Mutual Legal Assistance (hereinafter MLA) necessary to effectively
combat money laundering.
(a)Development of the ARIN-AP
The organizing meeting in 2012, organized by the UNODC, with support from the SPO of
the Republic of Korea and UNODC Vienna's Global Programme against Money Laundering,
Proceeds of Crime and the Financing of Terrorism (GPML), the meeting drew practitioners andscholars from Australia, China, Indonesia, Japan, New Zealand, the Republic of Korea, Singapore
and Thailand, as well as representatives from UNODC GPML and from the ARIN Secretariats
currently established in Europe (CARIN), South Africa (ARINSA) and South America (RRAG).
The Korean SPO offered to house the Secretariat of the future ARIN-AP and provide criticalsupport. An inter-agency regional network is essential to successfully forfeit assets from criminals.
That is why the Korean SPO would like to facilitate the creation of an ARIN-AP Secretariat.40 In
January 2013, the SPO set up an ARIN-AP webpage.41At the conclusion of the 2012 conference,
attendees were presented with Conclusions of the Expert meeting to develop Asset Recovery InterAgency Network in Asia and the Pacific. The report contains prerequisites, requirements,
expectations, suggestions and views raised by participants throughout the meetings in regards tothe establishment of ARIN-AP.42
In November 2013, the Inaugural General Meeting of the ARIN-AP was held at the SPO.
The Meeting attracted 21 countries from the Asia-Pacific region as well as 6 internationalorganizations including UNODC, World Bank, and CARIN. The SPO took the role of Secretariatof the ARIN-AP.
(b)

Overview of the ARIN-AP
The aim of ARIN-AP is to increase the effectiveness of members’ efforts in depriving
criminals of their illicit profits on a multi-agency basis by establishing itself as the center ofprofessionals’ network in tackling the proceeds of crime.

KIC periodically sent researchers to the UNODC Regional Centre for East Asia and the Pacific. Moreover, KIC has
participated in various workshops and meetings as part of the programme. As prosecutorial capacity building (PCB)
is one of the foremost priorities for the Towards AsiaJust programme, the SPO of the Republic of Korea and
UNODC hosted a high level prosecutors’ meeting in 2010, with the theme of the Role of Prosecutors Against
Proceeds of Crime and Financing of Terrorism, and KIC also participated in the meeting. Another prominent
workshop that KIC participated in was the UNODC-ITU’s Asia-Pacific Regional Workshop on Asset Recovery andFighting Cyber Crime in 2011.
(https://eng.kic.re.kr/modedg/contentsView.do?ucont_id=CTX001018&srch_menu_nix=74C47Qr4&srch_mu_site=
CDIDX00002&srch_mu_lang=CDIDX00023)
40
UNODC, “UNODC promotes Asia Pacific asset recovery inter-agency network”(https://www.unodc.org/southeastasiaandpacific/en/2012/12/arin-meeting/story.html)
41
http://www.arin-ap.org/main.do42
https://www.unodc.org/documents/southeastasiaandpacific//2012/12/arin/Conclusions.pdf

Seeking to meet its aims ARIN-AP focuses on the proceeds of all crimes, within theframework of international obligations, establishes itself as the center of expertise in all aspects oftackling the proceeds of crime, promotes the exchange of information and best practice, establishes
a network of contact points, forms a solid international network with other related organizations
such as UNODC and CARIN, researches and develops practices and systems of asset recovery,
facilitates and promotes training in all aspects of tackling the proceeds of crime, acts as an advisorygroup to other appropriate authorities, and cooperates with the private sector in achieving its
aims.43
IV. ASSET RECOVERY LAW & SYSTEM IN KOREAThe Republic of Korea regulates the act of disguising criminal proceeds as legitimately
acquired or concealing such proceeds (i.e. money laundering), and recovers assets based upon
relevant laws including the ‘Act on Regulation of Punishment on Criminal Proceeds Concealment’.
Korea also prevents criminals from concealing or disposing properties with a ‘preservation orderfor the purpose of confiscation’ allowing freezing of assets prior to conviction or indictment.
Korea has traced and confiscated criminal proceeds and exchanged relevant information withforeign countries pursuant to the ‘Act on International Mutual Legal Assistance in Criminal
Matters’. Currently, it has bilateral MLA treaties with 23 countries and acceded to the Council ofEurope Convention on Mutual Legal Assistance in Criminal Matters thereby forming a mutual
legal assistance network with 72 countries. In addition, Korea has enhanced international
cooperation in retrieving criminal proceeds by joining the United Nations Convention against
Corruption, OECD Convention on Combating Bribery of Foreign Public Officials in International
Business Transactions, Egmont Group and APG (Asia-Pacific Group on Money Laundering), andkept its efforts to adopt good models from other countries.
In Korea, many government authorities are taking part in the efforts of asset recovery. For
example, the SPO established ‘The Task Force on Money Laundering Investigation and Asset
Forfeiture’ for effective asset tracing and recovery in 2006, and expanded the TF into the ‘Criminal
Proceeds Confiscation Center’ in 2010. The SPO also created a criminal proceeds confiscation
unit in major prosecutors’ offices nationwide. Meanwhile, the International Criminal Affairs
Division of the Ministry of Justice manages laws related to asset recovery and supports
investigative authorities in mutual legal assistance with their counterparts in other countries. The
Korea Finance Intelligence Unit (KoFIU) provides investigators with specific financial records
such as STR and CTR and engages in international mutual legal assistance.
In general, Korea uses a formal assistance channel for mutual legal assistance. As to informal
assistance, the adequacy of a request is carefully reviewed case by case.
A.
(a)Act on Regulation and Punishment of Criminal Proceeds Concealment of 2014
The Purpose of the 2014 Act
The purpose of the 2014 Act is to contribute to the maintenance of a sound social order byregulating activities that disguise the acquisition of criminal proceeds related to specific crimes,
43

http://www.arin-ap.org/about/mission

conceal criminal proceeds for the purpose of encouraging specific crimes, or disguise such assets
as legitimately acquired, and by fundamentally eliminating economic factors that encourage
specific crimes through prescribing special cases regarding confiscation and collection ofequivalent value with regard to criminal proceeds related with specific crimes.
(b)

Criminal Proceeds
A person who disguises the acquisition or disposition of criminal proceeds44, disguises theorigin of criminal proceeds, or conceals criminal proceeds for the purpose of encouraging specificcrimes or disguising criminal proceeds as legitimately acquired shall be punished by imprisonment
with labour for not more than five years or by a fine not exceeding 30 million won. (Art.3)
A person who knowingly accepts the criminal proceeds, etc 45 shall be punished by
imprisonment with labour for not more than three years or a fine not exceeding 20 million won:
Provided, That this shall not apply to any person who accepted the criminal proceeds, etc.
presented as a performance of an obligations under statutes or any person who received thecriminal proceeds, etc. presented as a performance of an obligations under a contract (only limited
to a contract under which a creditor is to offer substantial property interest) not knowing that theperformance of such obligations would be performed with the criminal proceeds, etc. at the timeof signing the contract. (Art.4.)
When the representative of a corporation, or an agent or employee of, or any other person
employed by, a corporation or an individual commits an offence under Articles 3 through 5 inconnection with the business affairs of the corporation or individual, not only shall such offenderbe punished, but also the corporation or individual shall be punished by a fine under the relevant
provisions: Provided, That this shall not apply where such corporation or the individual has notbeen negligent in giving due attention and supervision concerning the relevant business affairs inorder to prevent such offense. (Art.7)(c)Confiscation of Criminal Proceeds
Criminal proceeds, any property derived from criminal proceeds46, criminal proceeds related
to the criminal acts prescribed in Article 3 or 4, and any property generated by the criminal acts
prescribed in Article 3 or 4, any property acquired in return for such criminal act, and any property
acquired as a fruit of or in compensation for any property prescribed in subparagraph 3 or 4, any
property acquired as compensation for these properties, or any other property acquired by thepossession or disposition of the property may be confiscated. (Art.8. para.1.)
Where the property that is subject to confiscation as prescribed in paragraph (1) (hereinafterreferred to as property subject to confiscation) is mixed with properties other than the property
44

Criminal proceed means property generated by committing serious crimes or acquired in return for such crimes orfunds or properties concerning any of the crimes prescribed in the 2014 Act. (Art.2.)
45
Criminal proceeds, etc. means criminal proceeds, property derived from criminal proceeds, and any other property
in which either one of the above properties is indistinguishably mixed with other kinds of property. (Art.2.)
46
Property derived from criminal proceeds means any property acquired as the fruit of criminal proceeds, property
acquired as compensation for criminal proceed, property acquired as compensation for the two above types ofproperty, and property acquired from the possession or disposition of criminal proceeds. (Art.2.)subject to confiscation and the said property should be confiscated, the equivalent of the value orquantity of the property subject to confiscation (within the limits of the part related to the mixture)from among the property generated by the mixture (hereinafter referred to as mixed property) may
be confiscated. (Art.8. para.2.)
The confiscation prescribed in Article 8 (1) shall be limited to cases where the property
subject to confiscation or mixed property does not belong to any person other than a criminal:
Provided, That where a person other than a criminal knowingly acquires the mentioned property
subject to confiscation or mixed property (excluding cases in which the acquisition of thementioned property subject to confiscation or mixed property falls under the proviso to Article 4)
after such crime has been committed, the mentioned property subject to confiscation or mixed
property may be confiscated even though it belongs to a person other than a criminal. (Art.9.
para.1.)
Where it is impracticable to confiscate the property under the provisions of Article 8 (1) or
where it is deemed inappropriate to confiscate the property in light of the nature of such property,
the conditions of its use, the existence of a right of any person other than the parties to the offense
to such property, or other circumstances, the monetary equivalent to the value of such property
may be collected from any of the parties to the offense. Where the property prescribed in Article
8 (1) is crime victim property, such collection shall not be made. (Art.10)
The collection of property subject to confiscation under the 2014 Act, which belongs to anindividual, corporation, or those with actual control over the corporation through management
control, financial relations, or participation in decision making, who have criminal responsibilities
for an accident causing a loss of multiple human lives, may be executed against the property
subject to confiscation that any person other than a criminal has knowingly acquired as well as theproperty which has been derived therefrom. (Article 10-2.)(d)

Disposition by Prosecutors for Execution of Confiscation and Collection
Where it is deemed necessary for the execution of confiscation and collection under this Act,
prosecutors may take any of the following dispositions within the necessary minimum range:
Provided, That in cases of the dispositions prescribed in subparagraphs 4 and 5 on any person otherthan a criminal, a warrant referred to in paragraph (3) shall be required demand for attendance ofinterested persons and hearing of their opinions; demand for a person who owns, possesses, or
retains documents or other articles to submit them; request for the provision of certain information
on financial transactions provided for in Article 7 (1) of the Act on Reporting and Using Specified
Financial Transaction Information; request for the provision of taxation information provided forin Article 81-13 of the Framework Act on National Taxes; request for the provision of informationor materials related to the details of financial transactions under Article 4 (1) of the Act on Real
Name Financial Transactions and Confidentiality; demand for public institutions or organizations
to reply to an inquiry of facts or to report on necessary matters. (Article 10-3. Para.1.)
In receipt of a request for the provision of information pursuant to paragraph (1), no
institution shall refuse to comply with such request on the basis of other Acts, except in caseshaving significant impacts on the security of the nation, such as military, diplomacy, and interKorean relations. (Article 10-3. Para.2.)
Where it is necessary for the execution of confiscation or collection pursuant to paragraph(1), prosecutors may conduct seizure, search, or verification in accordance with a warrant issued
by a judge of a district court at their request. (Article 10-3. Para.3.)(e)Implementation of Mutual Cooperation
When a foreign country has requested cooperation in relation to a foreign criminal caseagainst an act falling under specific crimes and the crimes referred to in Articles 3 and 4 of thisAct in the execution of a finally-binding adjudication of confiscation or collection of equivalentvalue or in the preservation of property for the purpose of confiscation or collection of equivalentvalue, mutual assistance may be provided except in any of the following cases (Art.11.)① Where activities related to the crimes that require mutual cooperation take place in the
Republic of Korea and such activities are not regarded as specific crimes or the crimes
referred to in Articles 3 and 4 of the statutes of the Republic of Korea;② Where there is no assurance of the requesting country providing assistance for similar
requests made by the Republic of Korea;③ Where it falls under any of the subparagraphs of Article 64 (1) of the Act on Special
Cases concerning the Prevention of Illegal Trafficking in Narcotics, etc.
B.

The Process of Seeking Restraint, Seizure and Confiscation
In order to seek the restraint, seizure and forfeiture/confiscation of criminal proceeds from
Korea, the following steps should be followed.
(a)Identification of the Asset
In order to recover the proceeds of corruption held within Korea, first identify whether therequest is formal or informal. It will be necessary to identify the relevant information explained in
the paragraph of Mutual Legal Assistance. In addition, a country requesting to take informal
procedures should specify reasons for such request. Then Korea will review the need for therequest carefully. In order to assist identifying assets in Korea, the following mechanisms areavailable:(b)Mutual Legal Assistance Request
A country may request mutual legal assistance in criminal matters based on the principle ofreciprocity even without a bilateral or multilateral treaty in force pursuant to the Act on
International Mutual Legal Assistance in Criminal Matters of Korea.
The mutual legal assistance that Korea can provide may differ by requesting state, but
generally speaking, Korea offers assistance for investigation into persons or objects, provision of
documents or records, collection of evidence, seizure/search or verification, transfer of objects (e.g.

evidence), hearing of statements, or taking measures to have witnesses testify in the requestingstate or cooperate on investigation.
The terms of each treaty and relevant laws such as the Act on International Mutual Legal
Assistance in Criminal Matters and the Act on Regulation of Punishment on Criminal Proceeds
Concealment provide the required information in a mutual legal assistance request. Generally, thefollowing information must be provided in a request seeking assistance from Korea.
① Government authorities in charge of investigation and legal proceedings related to therequest② Facts of crime for which assistance is requested③ Objectives and contents of the request④ Other matters required for mutual legal assistance
Korea receives letters of mutual legal assistance through diplomatic channels or by direct
mail. Once the request is received, the Ministry of Justice reviews the case, mainly with regard to
the requirement of dual criminality or necessity to assist. After that, the Ministry of Justice orders
the District Prosecutors' Office to proceed with mutual legal assistance, unless any supplementary
documents are required. The District Prosecutors' Office proceeds with mutual legal assistance andsends the results to the Ministry of Justice. The Ministry of Justice then reviews the results andsends a reply to the requesting country, unless any additional requests are made.
As the primary contact for mutual legal assistance from Korea, the International Criminal
Affairs Division in the Ministry of Justice works with the competent authority of the requestingstate as well as Korean prosecutors or law enforcement officials to successfully execute the request
for mutual legal assistance.
(c)Access to Database of the Property Registry System Managed by the Court
The Office of Court Administration operates the registry of real estate and vessels held in
Korea. The registry information is computerized so that anybody around the world can search andread the information online. Please refer to www.iros.go.kr. The registry provides informationsuch as stakeholders (e.g. owner, security holders, etc.) of real estate and vessels so as to help
identify and trace relevant properties.
(d)Egmont Requests
As a member of the Egmont Group47, Korea can exchange information with foreign FIUs
for criminal investigations. Korea also laid the foundation for information exchange between
KoFIU and foreign FIUs by enacting the ‘Financial Transaction Reports Act’. In response to the
Egmont requests by foreign FIUs, KoFIU can provide specific financial transaction records suchas STR and CTR and other relevant information, provided that the following requirements are met:47

http://www.egmontgroup.org/

① Specific financial transaction records provided to foreign FIUs shall not be used for otherpurpose than the one specified on the request;② The fact that specific financial transaction records have been provided shall be kept
confidential;③ Specific financial transaction records provided to foreign FIUs shall not be used for
criminal investigation or legal proceedings of foreign countries without prior consent of
the Commissioner of KoFIU.
C.

Confiscation of Property relating to Foreign Offences
When assets have been identified, Korea offers the following means of assistance to recover
the assets:(a)

Restraining, Freezing or Seizing Assets
The requesting state may request mutual legal assistance for seizure or preservation ofproperties for confiscation. The court orders seizure or preservation of properties in case the court
determines there are reasonable grounds to believe that the properties may be confiscated and suchorder is necessary to confiscate the properties, either upon request from the prosecutor or byauthority of the court, even before indictment. The seizure/preservation order for confiscation can
prevent disposal of such properties until the court decision on confiscation is rendered.
Therefore, seizure and preservation of properties for confiscation can be based on foreignarrest or charge, a suspicion/belief that a person has committed a foreign serious offense and holds
assets, or foreign orders and judgements. As for the enforcement of foreign orders and judgements,
various forms of orders and judgements (e.g. pecuniary, substitute value, etc.) may be executed;
however, the enforcement of orders or judgements not compatible with the Korean legal system
may be restricted. Generally final orders and judgements are considered appropriate.
The request for mutual legal assistance in seizure and preservation of properties forconfiscation should include the name of the suspect, charges, facts of crime, relevant laws
supporting confiscation, properties of which disposal is banned, rights, the name of the owner ofthe properties/rights, date of issuance, etc.
(b)

Confiscating Assets, Proceeds and/or Instrumentalities
To confiscate the proceeds and/or instrumentalities of a foreign offense through theenforcement of foreign orders and judgements, mutual legal assistance in criminal matters may besought.
The request for mutual legal assistance in confiscation should include the similar informationas specified in the previous paragraph. Upon request of the prosecutor based on foreign orders andjudgements, the Korean court decides on the execution and then the enforcement authorities(Penalty Enforcement Division of Prosecutors’ Offices) may execute the confiscation request for
the asset.

(c)Limitation
In accordance with Article 11 of the ‘Act on Regulation of Punishment on Criminal Proceeds
Concealment,’ mutual legal assistance for restraining, freezing, seizing or confiscating assets froma requesting state may be limited in any of the following cases:
Where activities related to the crimes that require mutual legal assistance take place in Korea
and such activities are not regarded as specific crimes subject to asset recovery, money launderingor receiving criminal proceeds according to the Korean laws:① Where there is no assurance of the requesting state providing assistance for similar
requests made by Korea;② Where the offense that requires mutual legal assistance is not punishable pursuant to the
Korean laws;③ Where the offense that requires mutual legal assistance is still in trial or has a final verdict
rendered, or the property for which mutual legal assistance is requested has been alreadyordered to be preserved for the purpose of confiscation or collection;④ Where the property relevant to the request for assistance in executing the final judgementon confiscation/collection or in preserving the property for confiscation/collection may
not be subject to the legal proceedings or preservation for confiscation/collection;⑤ Where a third party with reasons to be believed to have the ownership of the property
that requires mutual legal assistance for the execution of the final judgement on
confiscation or have the superficies, hypothec, or any other right on the property was notable to claim for his/her rights during the court proceedings for the reasons not
attributable to him/her;⑥ Where the court determines that confiscation/collection is not required.
D.

Disposal/Return of Assets
When a foreign country requests disposal or return of assets, the assets may be returned
based upon the Act on International Mutual Legal Assistance in Criminal Matters or the bilateraltreaty on international mutual legal assistance. The properties shall be disposed or returned in theways specified in the request or the agreement made between Korea and the requesting state.
However, mutual legal assistance in corruption crimes specified by the ‘Act on Special Cases
concerning the Confiscation and Return of Property Acquired through Corrupt Practices’ may not
be provided in any of the following cases.
① Where an act involved in the offence for which cooperation is requested was committed
in the territories of Korea and it is held that the act does not constitute a corruption
offense under the relevant acts of Korea;

② Where the requesting state has not made a guaranty to the extent that it will accept andrespond to a request for cooperation of the same kind if Korea makes such a request;③ Where the requesting state has not made a guaranty that the property subject to execution,etc. will be conveyed to the original owner of the property subject to execution, etc., thevictim of the offense or any other person who has a legitimate right;④ Other cases where the request for execution of the final judgement on confiscation/collection, or for preservation of property for the purpose of confiscation/collection may
not be made in accordance with Article 64(1) of the Act on Special Cases concerning thePrevention of Illegal Trafficking in Narcotics, etc.
The Act on Special Cases concerning the Confiscation and Return of Property Acquired
through Corrupt Practices prescribes that if it is the property of the victim of an offense but it isdeemed exceedingly difficult for the victim to recover damages because he/she is not able toexercise his/her right against the offender seeking return of the property or compensation for
his/her damages on the property, such property may be confiscated or an equivalent value thereof
may be collected. If the prosecutor keeps the property to be returned to the victim after
confiscation/collection, the prosecutor shall notify the victim thereof immediately, and the victim
shall request the return of the property. Then, the prosecutor shall decide on whether to return theproperty as early as possible and return the property upon decision without delay.
E.

Special Investigation Support Division of the SPO
In 2001, the Special Investigation Support Division was established to support tax, financeand computer-related investigation at the SPO. To respond to increasingly high-tech crimes, theDivision has Asset Tracing Team and Accounting Analysis Team, Criminal Assets Recovery
Team, Special Financial Transactions/Technology Leakage Team, and Coordination & External
Affairs Team.
(a)

Accounting analysis support system
The accounting analysis team supports accounting analysis investigation and finds chargesof embezzlement and breach of trust. In the pre-investigation stage, the team provides pre-analysis
of public data, press reports, and intelligence. It also assists the search and seizure process, andanalyses account data in the stage of investigation. At trial, special investigators of the teamprovide testimony and evidentiary reports.
(b)

Asset Tracing Support TeamThe asset tracing support team provides pre-analysis of financial transaction and supports
the creation of search and seizure warrants for special investigations of prosecutors. In the stageof executing search and seizure warrants, the team analyses transactions, extracts suspicious funds
and confirms the source of suspicious funds.

(c)Asset Recovery Center
In 2010, Korea joined the Financial Action Task Force on Money Laundering (FATF).48 The
asset recovery center is performing its tasks of detecting suspicious transactions and transactionsof large amounts of cash informed by the FIU, tracking money laundering, finding concealed crime
proceeds, requesting and executing preservation measures for forfeiture and collection, andtraining asset recovery experts.
V.

COOPERATION IN ANTI-CORRUPTION INVESTIGATION: KOREAN CASESOn Monday, November 9, 2015, Korean Minister of Justice Kim Hyun-Woong met with
U.S. Attorney General Loretta E. Lynch to finalize the return transfer of US $1.1 million of
forfeited assets to the Republic of Korea. The assets, forfeited in two U.S. civil forfeiture actions
settled in 2015, were linked to a corruption scheme organized by former Korean President Chun
Doo Hwan. As reported in the March 2015 Red Notice, a criminal court in Korea convicted Chunin 1997 of taking more than US $200 million in bribes during his presidency.49
According to the US Department of Justice (DOJ), the former president’s family members
and associates laundered profits from his public corruption scheme into the United States. The
forfeited assets recovered by the DOJ are just a fraction of the approximately US $212 million
Chun was ordered to pay in restitution. In 2013, the Anti-Corruption Division of the Korean SPO
and prosecutors from the DOJ’s Kleptocracy Asset Recovery Initiative launched investigations
into the potential laundering of bribery proceeds into the United States by Chun and his associates.
Kleptocracy prosecutors worked across federal agencies and with Korean law enforcement
48

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its
Member jurisdictions. The objectives of the FATF are to set standards and promote effective implementation of legal,
regulatory and operational measures for combating money laundering, terrorist financing and other related threats tothe integrity of the international financial system. The FATF is therefore a “policy-making body” which works togenerate the necessary political will to bring about national legislative and regulatory reforms in these areas. The
FATF has developed a series of Recommendations that are recognised as the international standard for combating ofmoney laundering and the financing of terrorism and proliferation of weapons of mass destruction. They form thebasis for a co-ordinated response to these threats to the integrity of the financial system and help ensure a level playing
field. First issued in 1990, the FATF Recommendations were revised in 1996, 2001, 2003 and most recently in 2012
to ensure that they remain up to date and relevant, and they are intended to be of universal application. The FATF
monitors the progress of its members in implementing necessary measures, reviews money laundering and terrorist
financing techniques and counter-measures, and promotes the adoption and implementation of appropriate measures
globally. In collaboration with other international stakeholders, the FATF works to identify national-levelvulnerabilities with the aim of protecting the international financial system from misuse.(http://www.fatf-gafi.org/)
49
Former South Korean President Chun Doo-hwan held office from 1980 to 1988. During that time, he had allegedly
amassed more than $200 million in bribes from large corporations such as Samsung, Hyundai and LG. Over time,
traces of the funds started to expose themselves following deeper investigations including boxes filled with cash, andmost recently, a house and other assets under his son’s name. That same son, Chun Jae-yong, admitted that he hadreceived large sums of money from his father. The former president was ordered in 1996 by South Korean courts topay back the $229 million he received illegally, but he had spread the money around so much in others’ bank accounts
and fake companies, that records showed he only had $300 to his name. The latest seized sum only represents a small
percentage of Chun’s bribe money, but South Korean prosecutors are still very actively pursuing the fund more than
30 years after the fact. (http://www.koreatimesus.com/us-returns-1-2-million-of-seized-assets-from-former-presidentto-s-korea/)agencies on the investigation. This marks the first instance of the United States returning laundered
money to South Korea since their Treaty on Mutual Legal Assistance in Criminal Matters cameinto force in 1997, as well as the first successful case in which the Korean Ministry of Justicerecovered assets of a high-profile public official hidden overseas.50
The new 2030 Agenda for Sustainable Development, our plan to end poverty andensure lives of dignity for all, recognizes the need to fight corruption in all its aspects
and calls for significant reductions in illicit financial flows as well as for the recovery
of stolen assets …. I call for united efforts to deliver a clear message around the worldthat firmly rejects corruption and embraces instead the principles of transparency,
accountability and good governance. This will benefit communities and countries,
helping to usher in a better future for all.51

50
51

http://www.lexology.com/library/detail.aspx?g=267a9284-b983-4320-aefb-c1ff3889060b
Message from UN Secretary-General, Ban Ki-moon on International Anti-Corruption Day (9 December 2015).