[DISCLAIMER : THIS IS AN UNOFFICIAL TRANSLATION AND PROVIDED FOR REFERENCE ONLY]

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1 - 1-1 [DISCLAIMER : THIS IS AN UNOFFICIAL TRANSLATION AND PROVIDED FOR REFERENCE ONLY] The Proceeds of Crime Act Article 1 (Declaration of Purpose) It is the purpose of this Act to contribute to the maintenance of sound social order by eliminating, from the root, economic factors that induce predicate offenses, through stipulating provisions that conceal criminal proceeds with the purpose of disguising the obtainment of criminal proceeds relating to predicate offenses or inducing predicate offenses, disguising illegally obtained properties as legal ones; and by stipulating provisions about forfeiture and confiscation of criminal proceeds relating to predicate offenses. Article 2 (Definitions) Definitions of terms used in this Act shall be as follows: 1. "Predicate offenses" are crimes stipulated in the Appendix (hereinafter, referred to as "Serious Offenses") and in (2) B that have been committed for the purpose of obtaining improper property gains. In this case, when serious offenses & offenses stipulated in subparagraph 2 B and other crimes meet the requisites of Article 40 of the Criminal Code, those crimes are also included in predicate offenses; and for the case when a foreigner commits criminal activities outside of the Republic of Korea, these shall also be included as predicate offenses, provided that the commission of these criminal activities in the Republic of Korea are deemed as serious offenses or offenses stipulated in subparagraph 2 B and these criminal activities fall under crimes according to the laws of the actual place. 2. "Criminal proceeds" fall under each of the followings: A. Properties resulting from criminal activities of serious offenses or as compensation for such criminal activities. B. Funds or properties relating to Article 25 (1) subparagraph 3 of the Prevention of Prostitution Act, Article 5 (2) and/or Article 6 (applies only to the attempted crimes of Article 5 (2)) of the Punishment of Violence Act, Article 3 (1) of the Act on Combating Bribery of Foreign Public

2 - 2-2 Officials in International Business Transactions, and Article 4 of the Act on the Aggravated Punishment of Certain Economic Crimes 3. "Properties derived from criminal proceeds" are properties acquired as the fruit of criminal proceeds, properties acquired as returns on criminal proceeds and properties acquired as returns on these properties and properties acquired from the possession or disposal of criminal proceeds. 4. "Criminal proceeds" include criminal proceeds, properties derived from criminal proceeds and intermixed properties of these properties and properties other than these properties. Article 3 (Concealment and Disguise of Criminal Proceeds & Etc.) (1) Persons falling under each of the followings shall be subjected to imprisonment of five years or less or a fine of 30 million won or less: 1. Persons disguising the obtainment or disposal of criminal proceeds & etc. 2. Persons disguising the source of origination of criminal proceeds. 3. Persons concealing criminal proceeds & etc. for the purpose of inducing predicate offenses or disguising illegally obtained properties as legal ones. (2) Persons with attempted crime of (1) shall be punished. (3) Persons preparing or plotting schemes with the purpose of committing crimes described in (1) shall be subjected to imprisonment of two years or less or a fine of 10 million won or less. Article 4 (Receiving of Criminal Proceeds) Persons knowingly receiving criminal proceeds & etc. shall be subjected to imprisonment of three years or less or a fine of 20 million won or less. However, this is not the case for persons receiving criminal proceeds provided in the fulfillment of legal obligations or receiving criminal proceeds &etc. provided in the fulfillment of financial obligations of a contract, who, at the time of striking the contract (limited only to a contract under which a creditor is to provide substantial property benefit), did not know that the fulfillment of the financial obligations of the contract was based on criminal proceeds and etc. Article 5 (Report by the Financial Institutions)

3 - 3-3 (1) When employees of the financial institutions under Article 2 subparagraph 1 of the Financial Transaction Reports Act (hereinafter referred to as, the "Financial Institutions ") find out the fact that properties received in relation to financial transactions under Article 2 subparagraph 2 are criminal proceeds & etc. or the customers conducting financial transactions are committing criminal activities under Article 3, those employees shall report, without delay, these to a competent law enforcement agency despite of other legal provisions. (2) When employees of the financial institutions are to file/had filed a report under (1), they shall not divulge such fact to the customers of the financial transactions relating to the report or to related persons. (3) Persons violating (1) or (2) shall be subjected to imprisonment of two years or less or a fine of 10 million won or less. Article 6 (Double Imposition of Imprisonment and a Fine) Persons committing crimes under Articles 3, 4 or Article 5 (3) shall be subjected to both imprisonment and a fine. Article 7 (Provisions for legal entities) When the representatives of legal entities, the agents or the management or other employees of legal entities or principals are in violation of Article 3 through Article 5 in their business, penalties under each applicable Acts shall also be imposed on those legal entities or principals, in addition to the punishment of the actual offenders. Article 8 (Forfeiture of Criminal Proceeds & etc.) (1) Each of the following properties can be forfeited: 1. Criminal proceeds 2. Properties derived from criminal proceeds 3. Criminal proceeds & etc. relating to criminal activities of Article 3 or 4 4. Properties originating from criminal activities of Article 3 or 4 or received as compensation for such criminal activities.

4 Properties acquired as the fruit of properties stipulated in subparagraph 3 or 4, properties acquired as a return on such properties, or properties acquired from possession or disposal of such properties. (2) In the case that properties which can be forfeited pursuant to (1) (hereinafter referred to as "Properties subjected to forfeiture") are intermixed with properties other than properties subjected to forfeiture, parts corresponding to the amount or the quantity of the properties subjected to forfeiture (applies only to the parts relating to the intermix) can be forfeited among the properties resulting from the intermix (hereinafter referred to as Intermixed Properties ), when forfeiting the properties subjected to forfeiture. (3) Despite (1), if properties referred to in the same paragraph are properties of the victims or properties obtained from possession or disposal of such properties of victims of criminal activities: which are stipulated in Chapter 38~41 of the Criminal Act, Article 5-2 (1) subparagraph 1 or 2 subparagraph 1 of the Act on the Aggravated Punishment, Etc. of Predicate Offenses, or a crime stipulated in Article 366, 368 or 370 of the Bankruptcy Act, those properties cannot be forfeited. In case parts of the properties referred to in (1) are properties of criminal victims, these parts also cannot be forfeited. Article 9 (Requisites of Forfeiture & etc.) (1) Forfeiture pursuant to the provisions of Article 8 (1) is limited to a case when properties subjected to forfeiture or intermixed properties do not belong to a person other than the criminal. However, in the case when a person other than the criminal obtains properties subjected to forfeiture or intermixed properties after knowing the crime (except for the case when properties subjected to forfeiture or intermixed properties are obtained according to the second sentence of Article 4), the properties subjected to forfeiture or intermixed properties can be forfeited from a person other than the criminal even when properties belong to the person other than the criminal. (2) In case when rights other than the superficies, mortgage, and others are forfeiting properties bound by superficies, mortgages, and other legal rights pursuant to Article 8 (1), those rights shall be continued to exist when a person other than the criminal obtains these rights before the occurrence of crime or obtains those rights unbeknownst the occurrence of crime.

5 - 5-5 Article 10 (Confiscation) (1) In the event that it is impossible to forfeit properties to be forfeited pursuant to Article 8 (1) or forfeiture of these properties is recognized as improper due to the nature of properties, state of the use, the existence of the right of a person other than the criminal on these properties or other circumstances, the corresponding value can be confiscated from the criminal. (2) Despite the provisions of (1), in case when properties in Article 8 (1) are properties of the criminal victims, the corresponding value cannot be confiscated from the criminal. Article 11 (Providing of Mutual Legal Assistance) When a foreign country requests for mutual legal assistance for execution of final judgment on forfeiture/confiscation or request for provisional measures for properties subjected to forfeiture/confiscation relating to a foreign criminal case on predicate offenses or activities which are stipulated as crimes under Article 3 or 4, mutual legal assistant corresponding to such request may be rendered, except for each of the followings: 1. In case when the commission of these activities in the Republic of Korea, relating to crime subjected to request for mutual legal assistance is not deemed as predicate offense or crime under Articles 3 or 4 based on the laws of the Republic of Korea; 2. In case when there is no guarantee of reciprocity regarding similar request of mutual legal assistance made by the Republic of Korea from the country requesting mutual legal assistance. 3. In case when such request falls under each of the subparagraph of Article 64 (1) of the Act on Special Cases Concerning the Prevention of Illegal Trafficking of Narcotics, Psychotrophic Substances, and Hemp. Article 12 (Mutatis Mutandis Application of the Act on Special Cases Concerning the Prevention of Illegal Trafficking of Narcotics, Psychotrophic Substances and Hemp) The provisions of Articles 19 through 63, Article 64 (2) and Articles 65 through 78 of the Act on Special Cases Concerning the Prevention of Illegal Trafficking of Narcotics, Psychotrophic Substances and Hemp shall apply mutatis mutandis to forfeiture, confiscation, and mutual legal assistance pursuant to this Act. Appendix

6 - 6-6 (1) (Date of Enforcement) This Act shall be in effect after 2 months from the date of its promulgation. (2) (Example of the application of concealment and receiving of criminal proceeds and etc.) The provisions of Articles 3 and 4 shall apply to criminal proceeds acquired before the enforcement of this Act in case when criminal activities stipulated in article 3 and 4 are committed after the enforcement of this Act. (3) (Revision to Other Acts) The Act on the Persons Performing the Duties of Judicial Police Officers and Scope of Their Duties shall be revised as follows: Article 6, subparagraph 14 shall be as follows: 14. For the persons stipulated under Article 5, subparagraph 19, following crimes are under the competence: A. Following violations occurring within the jurisdiction of the competent government offices: Violations of the Customs Duties Act, violations of the Foreign Trade Act, infringements of intellectual property rights relating to customs clearance of imported/exported goods, violations of the Foreign Exchange Transactions Act, relating to the illegal carriage of monetary instruments, precious metals or securities; violations of the Foreign Exchange Transactions Act relating to export/import transactions and the related service transactions; B. Violations of the Proceeds of Crime Act relating to crimes stipulated in A for those occurring within the jurisdictional areas of the competent government offices; and C. Within the jurisdiction of the competent government offices, crimes involving narcotics, psychotrophic substances and hemp occurring at airports, harbors, and bonded areas, where airplanes and ships moving in and out of the Republic of Korea.