Embezzlement Case Involving Approximately KRW 5.2 Billion; Prosecutor Sought Five Years' Imprisonment | Suspended Sentence for Embezzlement

While working for the company for an extended period and handling the receipt and disbursement of funds, the client came under investigation on suspicion of using company funds for personal stock investments.

The client was accused of embezzling approximately KRW 5.256 billion in company funds on 17 occasions over approximately one and a half months. Because the amount embezzled exceeded KRW 5 billion, this was a serious criminal case to which the Act on the Aggravated Punishment of Specific Economic Crimes applied.

MEGA X Law Firm represented the client and responded to the matter from the initial stage of the investigation, and continued to present a consistent defense during the criminal trial after the client was indicted. Even though the prosecutor sought five years' imprisonment and the possibility of an actual prison sentence was high due to the substantial amount embezzled, we actively presented the defense with the goal of obtaining a suspended sentence.

Repeated Embezzlement
This case involved a serious offense subject to the Act on the Aggravated Punishment of Specific Economic Crimes because the amount embezzled exceeded KRW 5 billion, carrying a statutory sentence of life imprisonment or imprisonment for not less than 5 years. Unfavorable sentencing factors existed because the embezzlement was repeated on multiple occasions and company funds were used for personal stock investments. Accordingly, the key issue was whether an actual prison sentence could be avoided by thoroughly organizing the circumstances surrounding the offense and favorable mitigating circumstances from the investigation stage, and by actively demonstrating during the trial the client's sincere remorse, the injured company's wish not to have the client punished, and the fact that the client had no prior criminal record.

1. Establishment of a Consistent Defense Strategy from the Investigation Stage

From the investigation stage, counsel assisted the client by reviewing the circumstances surrounding the offense and relevant materials, and established a defense strategy of acknowledging the offense while actively demonstrating favorable sentencing factors. Counsel continued to present a consistent defense throughout the subsequent trial proceedings.

2. Emphasis on the Injured Company's Wish Not to Have the Client Punished

In substantial property-crime cases, the victim's wishes constitute an important sentencing factor. Counsel ultimately reached a settlement with the injured company at the first-instance trial and emphasized that the company did not wish to have the client punished, arguing that there was little need to impose an actual prison sentence on the client.

3. Active Presentation of the Client's Status as a First-Time Offender and Personal Circumstances

Counsel comprehensively presented various sentencing factors, including the fact that the client was a first-time offender with no prior criminal punishment before this case, as well as the client's age, family circumstances, and circumstances after the offense. Through these submissions, counsel actively demonstrated the need for discretionary mitigation and a suspended sentence despite the very high statutory sentencing range applicable to the case.

Although the court pointed out that the amount embezzled was substantial and that the injured company had suffered enormous losses, it considered the client's acknowledgment of the offense and remorse, the injured company's wish not to have the client punished, and the client's status as a first-time offender as favorable circumstances.

As a result, despite the prosecutor's request for five years' imprisonment, the client was sentenced to 2 years and 6 months' imprisonment, suspended for 4 years, and was able to avoid an actual prison sentence.

When the amount embezzled is KRW 5 billion or more under the Act on the Aggravated Punishment of Specific Economic Crimes, the statutory sentence is extremely severe, creating a substantial risk of an actual prison sentence. This case is significant because, despite the unfavorable circumstances of a substantial embezzlement amounting to approximately KRW 5.2 billion and repeated offenses, MEGA X maintained a consistent defense strategy from the investigation stage through trial and actively demonstrated favorable sentencing factors, thereby securing a suspended sentence.

In particular, this case demonstrates that, especially in serious economic-crime matters, it is important to respond to the case with the assistance of counsel from the earliest stage of the investigation and to systematically prepare sentencing materials.

Suspended Sentence