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ACT ON SPECIAL CASES CONCERNING CONFISCATION AND RECOVERY OF STOLEN ASSETS

and Recovery of Stolen Assets.

Chapter I General Provisions

Article 1 (Purpose)

The purpose of this Act is to set forth special provisions regarding exceptional case to implement United Nations Convention Against Corruption efficiently, and confiscation and recovery of properties of corruption, thereby contributing to maintaining social order and promoting integrity and to preventing and combating corruption more efficiently and effectively, through eradication of economic factors that induces the offenses of corruption.

Article 2 (Definitions)

Definitions of terms used in this Act shall be as follows:

1. "Offenses of Corruption" mean offenses as referred to in the table of Addendum committed for the purpose of obtaining or making another person obtain physical and social benefits in an illegal way.

2. "Properties of Corruption" means criminal proceeds and properties derived from criminal proceeds.

a."Criminal proceeds" mean properties generated by any act that constitutes offences of corruption or properties received as a compensation for such an act. b. "Properties derived from criminal proceeds" mean properties generated from criminal proceeds, properties acquired as price of criminal proceeds and properties acquired as price of such properties, and any other properties that result from possession or disposition of criminal proceeds.

3. "Properties extorted from the victims of crime" mean any other properties that result from possession or disposition of criminal proceeds, or properties obtained from the victims of the crimes prescribed in Chapter XL of Embezzlement and Breach of Trust, Article 355, 356 and 359 of the Criminal Act among the crimes described in the table.

4. "Requesting party" means a country requesting to the Republic of Korea to execute final ruling for forfeiture or confiscation, or to take provisional measures for such forfeiture or confiscation regarding the criminal case constitution the offenses of corruption.

Chapter II. Forfeiture and Confiscation

Article 3(Forfeiture of Properties of Corruption) Properties of Corruption can be forfeited. Provided, That if the properties are forfeited pursuant to the other laws, the relevant provisions shall govern. In case where the properties subject to forfeiture under paragraph 1 are intermingled (hereinafter referred to as intermingled properties) with other properties, then part of the properties in the amount or volume corresponding to the properties subject to forfeiture can be forfeited. Article 4 (Requisites for Forfeiture)

Forfeiture pursuant to Article 3 of this Act shall be confined to cases where properties of corruption subject to forfeiture or intermingled properties do not belong to any third party other than the offender. However, in case a person other than the offender obtains properties of corruption subject to forfeiture or intermingled properties with the knowledge that the properties are criminal proceeds (except the cases that meet the conditions stipulated in Article 4 of the Proceeds of Crime Act), the properties of corruption or intermingled properties can be forfeited even if the properties belong to a person other than the offender.

If the properties of corruption or intermingled properties belong to any third party other than the offender who obtains the properties at an unjustifiably low price or no payment, even in case where a person other than the offender obtains the properties of corruption or intermingled properties with the knowledge that the properties are criminal proceeds, the whole or part of the properties can be forfeited.

Hereditary building rights, mortgage, or other rights established on properties forfeited pursuant to Article 3 of this Act shall be maintained if such rights are established by persons other than the offender before the occurrence of the crimes or if such rights are established by persons other than the offender after the occurrence of the crimes without the knowledge that the properties were criminal proceeds.

Article 5 (Confiscation)

In case where the properties of corruption criminal proceeds cannot be forfeited or in case forfeiture of properties is deemed improper due to the nature of the properties, the state of the use of such properties, rights of persons other than the offenders or other circumstances, then the value corresponding to the properties subject to forfeiture can be confiscated from the offender. Article 6 (Rule of Speciality)

When the properties prescribed in Article 3 fall under any of the following subparagraph as properties extorted from the victims of crimes shall be forfeited and confiscated.

1. When the right to demand compensation for damage or other right to request is deemed difficult to exercise against the offender concerning the recovery of damage caused by the crimes prescribed in Article 2, subparagraph 3

2. When disguising obtainment or disposal of properties extorted from the victims of crime, or concealing properties derived from crime

3. When received having knowledge of its nature Properties extorted from the victims of crime subject to forfeiture and confiscation shall be returned to the victim.

The requisites and procedures, etc., and other necessary provisions for the asset return shall be determined by the Presidential Decree. Article 7 (The Onus of Proof)

If the property which is acquired by the offender who committed the offense of corruption is an unjustifiably higher than the property which the offender was operating at a time when he committed the crime, or than the income which the offender earned on the basis of Act and subordinate statute, and if there exists a considerable probability to believe that the property which is acquired by the offender is a properties of corruption based on the reasonable grounds such as the amount of the illegal proceeds and the time of the acquisition of the properties, it is deemed that the properties of corruption obtained through the offenses of corruption have been used for the acquisition of the properties.

Chapter III. International Mutual Assistance

Article 8 (International Mutual Assistance)

Legal assistance can be rendered to a foreign country asking for assistance for offenses of corruption in such foreign country regarding criminal case constituting the offenses of corruption to execute final ruling for forfeiture or confiscation of criminal proceeds or to take provisional measures for such forfeiture or confiscation, and to return the related properties or corresponding value except for the following cases:

1. Cases where the activities that are the subject of such request were conducted in the Republic of Korea but do not constitute the offenses of corruption pursuant to the laws of the Republic of Korea;

2. Cases where there is no undertaking from the requesting country that it will reciprocate when the Republic of Korea makes a similar request;

3. Cases where there is no undertaking from the requesting country that it will return the executed properties, etc. to the original owner, victim of crime, or the person who has legitimate right.

4. Cases where such request falls under any of the conditions listed in the items of Article 64(1) of Act on Prevention of Illegal Trafficking of Narcotic Substances. Article 9 (Mutatis Mutandis Application of the Act on Special Cases Concerning the Prevention of Illegal Trafficking of Narcotic Substances)

The provisions of Articles 19 through 63, Article 64-2 and Articles 65 through 78 of Act on Prevention of Illegal Trafficking of Narcotic Substances shall apply mutatis mutandis to forfeiture, confiscation, and mutual legal assistance pursuant to this Act. Chapter IV. Rule of Specialty and Procedure of Recovery Article 10 (Request for Return)

The Minister of Justice shall, upon receiving the written request for the return of the executed assets, etc. from the requesting state, determine the return of the whole or part of the assets. Provided, That if the requesting state withdraws its request for the return or it is deemed particularly improper to recover the executed assets in order to protect the grave interests such as sovereignty, national security and order of the Republic of Korea, this shall not apply. The Minister of Justice shall, in case where he determines to return the whole or part of the executed assets, order the director of a district public prosecutors' office (hereinafter referred to as "director prosecutor") deemed to be considerable to take the necessary dispositions for the mutual assistance to execute final ruling for forfeiture or confiscation, and to preserve the executed assets, etc. for return.

The Minister of Justice shall, in case where the executed assets, etc. fall under any of the following subparagraph, order the director prosecutor to take the necessary disposition, and to preserve the whole or part of the executed assets, etc.

1. Case where there exists a necessity for determining matters concerning acceptance of request from the requesting state

2. Case where the request for the return from the requesting state is expected and it is deemed to be necessary.

Article 11 (Acceptance of Request for, and Sending of Materials of,) The acceptance of a request for the return, and the sending the executed assets, etc. to the requesting country shall be made by the Minister of Foreign Affairs: Provided, That if there is any urgent or special circumstances, the Minister of Justice may do it with the consent of the Minister of Foreign Affairs.

Article 12 (Action taken by Minister of Foreign Affairs) The Minister of Foreign Affairs shall, upon receiving a request for the return of the executed assets, etc. from a requesting country, send the written request for return of the assets to the Minister of Justice.

Article 13(Consultation with the Minister of Foreign Affairs and Trade)

If it is impossible to return under this Act, or if it is deemed reasonable not to return the assets, or if it is desirable to postpone returning of the assets, the Minister of Justice shall consult with the Minister of Foreign Affairs. Article 14 (Action taken by Director Prosecutor)

The director prosecutor who has received an order as provided in Article 10 (2), shall order any public prosecutor under his jurisdiction to collect materials necessary for the return of the executed assets, etc. or to take other necessary measures.

The director prosecutor who has received an order as provided in Article 10 (2), shall, upon the termination of the preservation of the executed assets, etc. for return, deliver the executed assets, etc. to the Minister of Justice without delay. Article 15 (Action taken by Minister of Justice)

When the Minister of Justice receives such executed assets, etc. as provided in Article 14, he shall send materials to the Minister of Foreign Affairs. The Minister of Justice may, upon sending materials under paragraph (1), request the Minister of Foreign Affairs to determine matters to be observed by the requesting country with respect to the use, return, maintenance of secret, etc. of such materials, and to demand from the requesting country a guarantee of the fulfillment thereof.

The Minister of Foreign Affairs and Trade shall, upon receiving the request as provided in paragraph (2) from the Minister of Justice, take any proper measures, and notify the results to the Minister of Justice. Article 16 (Request for the Asset Return)

The Minister of Justice may request a foreign country to execute final ruling for forfeiture or confiscation, or request a mutual assistance for the preservation of the assets for forfeiture or confiscation. In this case, he may request a foreign country to return the executed assets, etc. When the Minister of Justice requests the return of the executed assets, etc. under paragraph (1) to a foreign country, he shall send the written request to the Minister of Foreign Affairs: Provided, That if there is any urgent or special circumstances, he may send it directly to the foreign country with the consent of the Minister of Foreign Affairs.

Article 17 (Consultation with the Minister of Foreign Affairs and Trade)

The Minister of Foreign Affairs shall, upon receiving the written request for the return of the assets under Article 16 from the Minister of Justice, send it to the foreign country: Provided, That if it is deemed unnecessary to make a request for the returning of the assets in view of diplomatic relations, he shall consult with the Minister of Justice about it.

Article 18 (Return of Executed Assets, etc.)

The return of the executed assets, etc. from a foreign country shall be made by the Minister of Foreign Affairs.

The Minister of Foreign Affairs and Trade shall deliver the executed assets, etc. returned from a foreign country to the Minister of Justice. Article 19 ( Disposition of the Executed Assets, etc.) If the executed assets, etc. which have been delivered from a foreign country are things other than money, the Minister of Justice may order a public prosecutor to realize or to collect such assets.

Notwithstanding the provision of paragraph (1), when it is evident that there exists no person who buys the properties for the reason of the price of the executed assets returned from a foreign country, or its economic value is unjustifiably low, or when it is evident that there exists no person who buys the property even if the property is sold, the executed assets, etc. may be abandoned. A public prosecutor shall, where deemed to be necessary to request a mutual assistance to a foreign country for the sales of the executed assets, etc. send a written request for sale to the Minister of Justice, and if there is a proper reason, the Minister of Justice shall send the written request for sale to the Minister of Foreign Affairs.

Chapter IV. Supplementary Provision

Article 2 (Mutatis Mutandis Application of the Criminal Procedure Act, etc.)

The provisions of Criminal Procedure Act shall apply mutatis mutandis to the execution of forfeiture, confiscation, and disposition as far as there are not contrary to the nature thereof.

Article 11 of Public Prosecutor's Office Act shall apply to the disposition of the executed assets prescribed in Article 19 of this Act. Article 21(Going through Prosecutor General)

Any order to the director of public prosecutors' office, etc. by the Minister of Justice under the provisions of this Act or any recommendation, report or documents forwarding to the Minister of Justice by the director of public prosecutors' office, the head of branch office, or public prosecutors shall go through the Prosecutor General. ADDENDA

This Act shall enter into force on the date when 'United Nations Convention Against Corruption goes into effect in Korea

ADDENDUM

Offenses of Corruption (regarding Article 2 subparagraph 1)

1. Offenses prescribed in Article 129 through 133 of Criminal Act a. Part II, Chapter XXXIV, Crimes Against Credit, Business and Auction b. Offense of Article 315 among Crimes Concerning the Duties of Public Officials of Part II, Chapter VII,

c. Offenses of Articles 355 through 357 and Article 359 among Crimes of Embezzlement and Breach of Trust of Part II, Chapter XL.

2. Offenses of Article 129 through 132 of Criminal Act under the provisions of crimes concerning the duties of public officials prescribed in the laws other than Criminal Act.

3. Offense of Article 2 through 3 of Act On The Aggravated Punishment, etc. Of Specific Crimes

4. Offenses of Article 5 through 9 of Act On The Aggravated Punishment, etc. Of Specific Economic Crimes

5. Offenses of Article 3(1) of Act on Bribery in the International Business Transaction

6. Offenses of Article 99 through 100 of National Referendum Act

7. Offenses of Article 230 through 233, and Article 235 of Public Official Election Act

8. Offenses of Article 45 of Political Fund Act

9. Offenses of Article 50 of Aanti-Corruption Act

10. Offenses of Article 33 and Article 109 through 111 of Attorney-At-Law Act

11. Offenses of Article 93 and 94 of Act on the Procedure of Limitation of the Liability of the Ship Owner

12. Offenses of Article 630 through 631 and Article 634 (2) of Commercial Act

13. Offenses of Article 19 of Act On External Audit Of Stock Companies

14. Offenses of Article 645 through 646 and Article 655 through 656 of Debtor Rehabilitation And Bankruptcy Act

15. Offenses of Article 26 through 28 of Bicycle And Motorboat Racing Act

16. Offenses of Article 53 through 54 of Korea Horse Racing Association Act 17.Offenses of Article 19(1) and Article 66(1)9 of Monopoly Regulation And Fair Trade Act

18. Offenses of Article 38(2) and Article 95 and Article 95(2) of Framework Act On The Construction Industry

19. Offenses of Article 64 (2)4 of Higher Education Act 20.Offenses of Article 22(3) and Article 53(1) of CERTIFIED PUBLIC ACCOUNTANT ACT

21. Offenses of Article 48 through Article 50 of National Sports Promotion Act

22. Offenses of Article 9 and Article 107 of Labor Standards Act

23. Offenses of Article 48(3)1 and Article 70(1)5 of Financial Holding Companies Act

24. Offenses of Article 201 and Article 203 of Insurance Business Act

25. Offenses of Article 59 and 60 of Shipowners Mutual Protection and Indemnity Insurance Act

26. Offenses of Article 30-2 and Article 99(2) subparagraph 3of Credit Cooperation Act

27. Offenses of Article 48 through Article 49 of Compensation For Oil Pollution Damage Guarantee Act

28. Offenses of Article 21 and Article 66(2) of Banking Act

29. Offenses of Article 25 and 27 of Act on the Bull Fighting