Korea Doubled the Maximum Sentence for Fraud: What Changed on 23 December 2025

On 23 December 2025 the maximum sentence for fraud in Korea doubled. A Criminal Act amendment (Act No. 21231) raised the statutory maximum from 10 years' imprisonment or a 20 million won fine to 20 years' imprisonment or a 50 million won fine. The amendment took effect on the day it was promulgated, so there was no transition period.

Two related misunderstandings are common in consultations: that the change took effect on a different date, and that every money-related offence became heavier at the same time. Neither is correct. The table below sets out precisely what moved.

What changed and what did not

The offences that moved with fraud

The same amendment raised computer-use fraud and quasi-fraud by the same amount. Computer-use fraud covers cases where, instead of deceiving a person, the offender obtains a benefit by feeding false information or an unauthorised command into an information processing device, or by entering information without authority. Quasi-fraud covers cases where the offender exploits a minor's lack of judgement, or another person's mental or physical impairment, to obtain property.

Where any of these offences is committed habitually, the penalty may be increased by up to one half (art. 351). Because the base penalty rose, the aggravated ceiling rose with it. Attempts remain punishable (art. 352).

The offences that did not move

Extortion remains at up to 10 years or a fine up to 20 million won. Embezzlement and breach of trust remain at up to 5 years or a fine up to 15 million won. The amendment reached only the fraud family. That matters in practice, because a complaint over money is often framed as fraud and embezzlement together, and the gap in sentencing exposure between the two has now widened considerably.

Five hundred million won was already a separate statute

Where the gain is 500 million won or more, the Criminal Act is displaced by article 3 of the Act on the Aggravated Punishment of Specific Economic Crimes: 3 years or more for gains between 500 million and under 5 billion won, and life imprisonment or 5 years or more at 5 billion won and above. That provision was not touched. The practical effect of the December 2025 amendment is therefore concentrated in fraud cases below 500 million won, which is the size of most matters that reach consultation. Quasi-fraud falls outside the specific economic crimes statute entirely, so the amended penalty applies whatever the amount.

Which law applies to which conduct

Punishment follows the law in force at the time of the act (Criminal Act art. 1(1)). Conduct up to 22 December 2025 is governed by the old maximum; conduct from 23 December 2025 by the new one.

Where payments were received from the same complainant both before and after the amendment and the conduct is treated as a single continuing offence, the law in force at the time of the last act can apply to the whole (Supreme Court, 9 April 2009, 2009Do321). Cases that straddle the effective date therefore need to be analysed transaction by transaction rather than by the date of the complaint.

Limitation periods and fines did not change

Limitation periods are set by reference to the maximum penalty. Offences carrying a maximum of 10 years or more have a 10-year limitation period (Criminal Procedure Act art. 249(1)3), and fraud was already in that bracket before the amendment because its ceiling was exactly 10 years. Cases under the specific economic crimes statute involving 5 billion won or more, where life imprisonment is available, carry 15 years (art. 249(1)2). No limitation period was extended by this amendment.

A fine also remains available in principle, because the statutory provision still offers imprisonment or a fine. Whether a fine, a suspended sentence, or immediate imprisonment is imposed depends on the usual factors: the amount, the number of victims, restitution, age, and prior record. A suspended sentence is available only where the court imposes three years or less (Criminal Act art. 62(1)), so the raised ceiling affects the range within which a court must work rather than guaranteeing any particular outcome.

What this means in practice

For foreign nationals, the amount at stake and the date of each transfer now matter more than they did before December 2025. So does the question of whether the conduct is characterised as fraud, as computer-use fraud, or as embezzlement or breach of trust, because the three now carry very different ceilings.

If you have received a complaint or a summons, the charging document, the transfer records, and the dates of each payment have to be reviewed before any statement is given. Contact Taeshin Law Firm for a confidential consultation in English.