Anti-Corruption Investigation System andCurrent Issues of Korea
November 2014

Speaker
Senior Prosecutor Jin Soo LEE
1997. Passed the Korean Bar Exam
2000. Seoul Southern DPO
2005. Seoul Central DPO
2008. Supreme Prosecutor’s OfficeAnti-Corruption Dep.
Planning & Coordination Dep.

2011. U.C. Berkeley, Visiting Scholar
2013. The Office of the President
2014. Senior Prosecutor, Seoul Central DPO- 30 -

Legal System
Civil Law System
Korea, German, Japan, France
Active role of Judges in determining the facts
Inquisitorial system, written argument
Common Law System
England, The United States of America
Jury system
Adversarial system, oral argument

Legal System
Civic Participation in Criminal Trials Act

To expand people’s judicial right of participation
Consist of 7 to 9 jurors
No binding force
Advisory effect- 31 -

The Number of Lawyers

Total number of Lawyers : 23,538

Prosecutors : 1,953 (Female : 505 )Judges : 2,717 (Female : 751 )Attorneys : 15,504

New Prosecutors- 32 -

How to be a lawyer
Korean Bar Examination

Legal Research and Training Institute (2 years)
Abolition in 2018

Law School

From 2009, 25 Law Schools
Exam for the Bar
1,500 Lawyers each year

Organization of Prosecutors’OfficeSupreme Public Prosecutors’ OfficeSeoul HPPO

Taejon HPPO

Taegu HPPO

Pusan HPPO

Kwangju HPPO

Seoul DPPO

Taejon DPPO

Taegu DPPO

Pusan DPPO

Kwangju DPPO

TongbuMokpo
Changhung
SunchonHaenam

Dongbu
Nambu
Pukbu
Seobu
Uijongbu
Inchon DPPO
PuchonSuwon DPPO

Hongsong
KongjuNonsanChonanChoungju DPPO

AndongKyongju
KimchonSangjuUisongYongdok

Chungju
ChechonYoungdong

Changwon DPPO
ChinjuTongyong
MilyangKochang
Ulsan DPPO

Chunjoo DPPO
KunsanChongup
NamwonCheju DPPOSongnam
Yoju
Pyungtaek

Supreme Public Prosecutors’ Office

Chunchon DPPOHigh Public Prosecutors’ OfficeKanhnung
Wonju
SokchoYongwol

District Public Prosecutors’ Office
Branch office- 33 -

Two types of investigation conducted byprosecutors:
1. Supplementarypolice act as the primary investigators
2. Independent
public prosecutors initiate and conduct
investigations- on politician, high-ranking public official- large-scale and complex economic crimes

1. Investigation (conducted by police or prosecutor)
2. Arrest / search and seizure- basically, warrant issued by judge is required- exception
 Flagrant offender arrest (on the spot, red handed) Emergency arrest

3. Detention
 Detention period - Police : 10 days , Prosecutor : 20 days

4. Prosecution / Non-Prosecution
5. Trial and Sentencing- 34 -

Anti-Corruption Investigation
Anti-Corruption Investigation
Corruption that erodes fundamentals of a society’s law
Related to public interests / Victims are many unspecified people

Target Crime
Corruption crimes of Government official, Politician
Corporate corruption, Financial crimes, Securities crimes
High-tech crime, Hiding assets abroad

Anti-Corruption Investigation
Features of Anti-Corruption Investigation
Big Social Influence
Huge impact on the law-abiding spirit and trust toward law
enforcement agencies

VIPs (high-profile officials, owner of big companies) InvestigatedStrong resistance, delicate preparation & tightened security needed

Investigation Professionalism Required
Skills and high-tech investigation techniques that overwhelm thoseinvestigated- 35 -

Anti-Corruption Investigation
Light
Maintain the public interest by combating corruptionthat undermines a country’s social order(High-ranking public officials’ corruption, Big companies’ corruption)

Shade
Concerns over political neutrality, fairness, and unfair &unreasonable investigation (Due to its huge social impact)

Changes to the Anti-Corruption System
Role of Central Investigation Department in SPO
SPO directly investigated Important Cases until 2013
Power-related corruption cases in 1960~80s, Political corruption casesin 1990s, and Corporate-related political corruption cases in 2000s

Cases that DPOs have limitation to deal with
Controversies over DPO’s overlooked and weak investigation- Park Jong Chul’s torture and death case (’87)

Controversies over fair investigation due to local influence- Park Yeon Cha case (’09)
Controversies over slow investigation of President’s relatives,
key figures of political and corporate fields- Hanbo corruption scandal (’97), Kim Hyun Chul’s (president’s son) corruption

case (’97), Lee Yong Ho Gate scandal (’02), Presidential campaign fundscandal (’03), Hyundai Motor’s embezzlement & negligence of duty case (’06),
Busan Savings Bank scandal (’11)- 36 -

Changes to the Anti-Corruption System
History of Central Investigation Department
1960s : Investigation Bureau System
1st~4th divisions under Investigation Bureau

1970s : Special Investigation Department System
1st~4th divisions under Special Investigation Department

1980s : Central Investigation Department System
1st~4th divisions under Central Investigation Department

1990s ~ 2000s : Central Investigation Department System
Newly adopted of Office of Investigation Planning (’94), Computer
Investigation Division (’00), Special Investigation Support Division (’01)

2013 : Central Investigation Department of SPO AbolishedControversy over political neutrality and fairness

Changes to the Anti-Corruption System
Redesign of the Anti-Corruption Investigation System
Streamlining Special Investigation System of Prosecution
Redesigned the system according to the will of the people

Securing politicalneutrality & fairness

Building Capacity
against Corruption

Protection of
Human rights

Newly Established Anti-Corruption Departmentthat controls and supports special investigation- 37 -

Anti-Corruption Department of SPO
Anti-Corruption Organization

Prosecutor General
Deputy Prosecutor General
Director General of ACD
Chief Officer of Investigation Planning

Investigation Control Division

Investigation Support Division

Anti-Corruption Department of SPO
Chief Officer of Anti-Corruption Planning
Planning∙Coordination of Special Investigation tasks
In-depth analysis and research on social phenomena
Pursue structural and chronic corruptionEx) Sunken ferry Sewol accident- 38 -

Anti-Corruption Department of SPO
Chief Officer of Anti-Corruption Planning
Mokpo Branch of Gwangju DPO :Investigation on direct problems ofsinking, including overloading andpassenger rescue
Incheon DPO : ① Investigation on
corruption of Semo Group (the operatorof Sewol, and its affiliates)② Investigation on corruption of Korea
Shipping Association, Korea Shipowners’
Association and Korea Ship Safety
Technology Authority, which supervise
passenger-ship safety
Busan DPO : Investigation on corruption of
Korean Register of Shipping responsible
for ship safety test
Ulsan∙Changwon∙Jeju∙Suncheon∙Pohang∙Gunsan∙Masan, etc. : Investigation on
corruption in shipping industry

Anti-Corruption Department of SPO
Chief Officer of Anti-Corruption Planning
Assign and Manage Crime Information
When relevant agencies report corruption to SPO,
the Chief Officer registers, assigns and manages the crime information-Board of Audit & Inspection of Korea : Crime information disclosed during
the inspection of public servants and organizations-Anti-Corruption & Civil Rights Commission : Crime information found in theprocess of dealing with civil petition for grievance- Financial Services Commission : Crime information found in the process offinancial supervision, including stock manipulation and insider trading- National Tax Service : Crime information about tax evasion disclosed during tax
investigation- Fair Trade Commission : Crime information on unfair trading practices- 39 -

Anti-Corruption Department of SPO
Investigation Control Division
Supervise Special Investigation Cases Conducted by DPOs
Supervise investigation activities from a nationwide point-of-view

Anti-Corruption Department of SPO
Investigation Control DivisionCollect information on special investigation cases
nationwide & manage the statistics
Control special investigation cases conducted by DPOs, manage
statistics & operate investigation data management system- 40 -

Anti-Corruption Department of SPO
Investigation Support Division
Support for accounting analysis, money tracing
More sophisticated/specialized crimes as the size of economy
expands and financial products are developed
47 experts on accounting analysis & money laundering investigation(including 12 C.P.A.s) can be dispatched from SPOs to DPOs

Recent Important Support cases in 2013

- Nuclear power plant corruption case
- Recovery of underpaid forfeit by former president Chun
- CJ Group slush fund case
- Dong Yang Group‘s fraudulent CP issuance case
- Hyosung Group’s tax evasion caseAnti-Corruption Department of SPO
Investigation Support Division
Training of prosecutors & investigators on accounting
analysis/money laundering investigation
Training courses for prosecutors on corporate accounting- Three-month training course, targeting 24 prosecutors- Training on accounting knowledge necessary for accounting (financial, tax & costaccounting) analysis investigation- Training on accounting analysis (analysis of embezzlement with prepayments andfictional labor costs) & money laundering investigation techniques

Training courses for investigators on accounting analysis∙money
laundering investigation- Six-month training, targeting 35 investigators- Acquire public certificate (financial manager) after training on accounting analysis- Promote capacity on money laundering investigation (Theory & practicaltechniques training for 9 weeks, actual practice for 43 weeks)- 41 -

Anti-Corruption Department of SPO
Investigation Support Division
Criminal Asset Recovery“Crime does not Pay”
Ex. Recovery of underpaid forfeit by former president Chun
- ACD established criminal asset recovery team & organized the recovery measures- ’13. 6. Investigated 330 people in total, raided 90 places and secured property worth
USD 166 mil. (real estate and artworks)- ’13. 9. Mr. Chun announced a payment plan to pay the underpaid forfeit worth
USD 163 mil.
- ’14. 5. USD 94 mil. (44% among the total forfeit USD 215 mil.) was paid

Anti-Corruption Department of SPO
Investigation Support Division
Cooperation with relevant agencies
Board of Audit and Inspection of Korea
Fair Trade Commission
Ministry of Defense
National Tax Service ∙ Korea Customs Service
National Intelligence Service
Anti-Corruption & Civil Rights Commission
Financial Services Commission
Financial Intelligence Unit

- 42 -

Anti-Corruption Department of SPO
Investigation Support Division
Cooperation Network for International Investigation
Essential to investigation of recently growing offshore crimes
Set up a practical network for investigative cooperation with US ∙Singapore ∙ China ∙ Switzerland, etc.
- In ’13. 11, the director visited the US Department of Justice∙Internal Revenue
Service to discuss mutual cooperation on how to share information- In ’14. 4, a Swiss federal prosecutor visited the ACD to discuss how to deal withthe seized bank account on the charge of money laundering

Customized Task Force Teams
Nuclear Power Plant Corruption TF Team (Eastern Busan DPO)
Organized Nuclear Power Plant Corruption TF Team (’13. 5.)
Customized TF team to eliminate concerns over nuclear power plant safety

Intensive investigation in a short period of time
In 100 days, 43 were detained & 97 were indicted
As of ’14. 5, 72 were detained & 153 were indicted

ACD of SPO, Control Tower of Investigation
Comprehensive Investigation on corruption of nuclear power plant,
including fake test record, accepting bribery- 43 -Customized Task Force Teams
Securities Crime TF Team (Southern Seoul DPO)
Organized Securities Crime TF Team in Seoul Central DPO (’13. 5.)
Consist of various agencies (Korea Exchange ∙ Financial Supervisory Service ∙Financial Services Commission ∙ National Tax Service ∙ Korea Deposit Insurance
Corporation ∙ Korean Prosecution Service)“Fast Track System” - Dramatic decrease in period

Normalize capital market with good cooperation system
As of ’14. 2, 66 were detained, 97 were indicted
Recovery of illicit proceeds of USD 23 mil.
Taxation on irregularity-related asset of USD 176 mil. by NTS

Transferred to Seoul Southern DPO (’14. 2.)
Seoul Southern DPO is located at Yeouido stock street (FSS andKorea Exchange)

Digital Evidence
ComputerHard Drive

Digital Storage Devices

Mobile Devices- 44 -

Admissibility of Digital Evidence

Authenticity of evidence

Integrity of evidence

Reliability of evidence

Legality of procedure

Organization of National Digital Forensics Center

Prosecutor General
Deputy Prosecutor
GeneralChief of NDFC
Site: 39,094㎡,Building: 7,934㎡(6 Floor Levels, 1 Underground Level)

Forensic
Science
Division

Digital Forensic
Division

DNA Forensic
Division- 45 -

Cybercrime
Investigation
Department

Organization of Digital Forensics Division

Digital Forensics
Division(42)Planning
SectionInvestigation
Support
SectionResearchAnd
Development
SectionAdministration Team

Computer Forensic Team

Digital Forensic Network
Team

Human Resources
Development TeamDB Forensic Team

Digital Forensic
Laboratory

Mobile Storage
Forensic TeamCounter Anti-forensic
Team

Computer Forensics
Computer Forensic Team

Confiscation
SearchEvidence
Analysis

Recovering
Data• Confiscating and searching computer systems(HDD, portable storage medium, etc)

• Analyzing evidence such as files, cash, log files
recorded on digital storage medium such as PCs,
portable storage media, CCTVs, etc• Recovering deleted data on digital storage
medium- 46 -

DB Forensics
DB Forensic Team

Confiscation
SearchEvidence
Analysis• Confiscating and searching masselectronic system (Accounting DB,
electronic authorization, emails, etc)

• Analyzing Accounting DB, electronic
authorizations, emails, etc.

Mobile Forensics
Mobile Storage Forensic Team

Analyzing Evidence and Recovering Data

• Extract and analyze evidence saved on cell
phones or smart phones such as text
message records, contact list, photos, videos,voice recordings, internet access record, etc- 47 -

Digital Forensics Laboratory

Confiscation
SearchEvidence
Analysis• Support confiscation search(Unlock information protection function,
extract password files, etc)
• Unlock Login Password• Decipher File Password• Unlock Digital Rights Management for
Company Documents Passwords• Unlock USBs protected with Passwords• Cope with Anti-forensics

Technology• Techniques on dealing with Information

Consultation

protective solutions and locked products

Digital investigation team main businessTraining Individual team• Digital Forensics curriculum development
Educationand operation (Basic course, Advanced
course and continuing education)• Digital Investigation relative regulationand making manual
Research and • Digital Forensics qualification systemdevelopment • Tool qualification system research• Digital Forensics related researchand development- 48 -

Spirit of Anti Corruption Prosecutor
Spirit of Special Investigation Prosecutor
Prosecution Service should make ‘huge criminals’ ’nervous’
Huge criminals are figures with political power and money
who oppress the weak

Korean Prosecutors have fought against such huge criminals
Continuous efforts are needed to regain public trust

Outstanding capacity & great sense of mission
Special Investigation Prosecutors need excellent legal
knowledge, leadership, a sense of duty, capacity to evaluate
evidence & understanding of social phenomena

Thank you

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