[News Space=Reporter seungwon lee] The Supreme Court Sentencing Commission has significantly strengthened sentencing guidelines for securities crimes such as the use of undisclosed important information and price manipulation, recommending up to life imprisonment depending on the amount of criminal gain.

This measure reflects public opinion demanding stricter punishment for the recent increase in organized and large-scale unfair trade crimes that undermine the fairness of the capital market. The court gradually increased sentences for crimes with criminal profits exceeding 5 billion won. Specifically, for crimes involving large amounts exceeding 30 billion won, the recommended maximum sentence was increased from 12 years to 19 years. Furthermore, the court raised the recommended sentencing standard to allow for life imprisonment when special aggravating factors are applied.

For crimes with profits exceeding 5 billion won but less than 30 billion won, the recommended sentences were increased from 5 to 9 years for basic offenses and 7 to 11 years for increased penalties to 5 to 10 years and 7 to 13 years, respectively. For crimes with profits exceeding 30 billion won, the recommended sentence limits were increased from 7 to 11 years for basic offenses and 9 to 15 years for increased penalties to 7 to 12 years for basic offenses and 9 to 19 years for increased penalties. 

If two or more special aggravating factors are included, the recommended sentencing range can be increased by 50%, potentially resulting in a maximum sentence of life imprisonment. The leniency system, a system that reduces sentences for cooperation in investigations and trials, is now clearly reflected as a special mitigating factor.

The scope of general mitigation for cases where "the majority of the proceeds of crime were not consumed or retained" has been narrowed. The mitigation grounds for financial crimes involving bribery by financial institution employees and executives related to their duties have also been supplemented.

At a press conference marking his 100th day in office last October, President Lee Jae-myung declared his strong commitment, stating, "Stock manipulation and fraudulent disclosure will be punished severely, to the point of ruin." The Supreme Court's Sentencing Commission's decision, in line with this statement, is seen as a measure to strengthen the penalties for securities crimes.

Existing penalties for domestic stock manipulation and other unfair securities trading crimes have been criticized as "lenient" due to issues such as low sentences and failure to enforce fines. As of 2020, over 40% of securities fraud offenders received suspended sentences, indicating low public trust in the severity of punishment.

Recently, large-scale stock manipulation cases have been intensively investigated by the Supreme Prosecutors' Office and financial authorities, leading to a significant increase in the number of indictments and arrests related to financial crimes, as well as the amount of forfeitures imposed. In 2023, the number of indictments related to financial crimes is expected to increase by approximately 57% compared to 2020, and the amount of forfeitures imposed is expected to increase by 4.5 times.

In countries like the United States and China, stock manipulation crimes are subject to extremely harsh penalties. Executives involved in the Enron scandal in the United States were sentenced to up to 24 years in prison for accounting fraud and stock price manipulation, and Chinese financial authorities have imposed hefty fines, approaching 1 trillion won. In particular, China's Beibadao Group was fined approximately 962.5 billion won for stock price manipulation using borrowed-name accounts, and those involved were permanently banned from trading in the stock market.

This revision of the Supreme Court's Sentencing Commission is an attempt to bring domestic securities crime punishment standards closer to global standards, and it shows the will to prevent recurrence and restore public trust through strict punishment of unfair trade crimes that pursue large profits.