“Where Should Companies Confess?”… Fragmented Leniency System Causes Confusion [Chaotic Fair Trade Investigation] ④

Leniency Program: Self-Reporting for Immunity

Prosecution’s Integrated System of Investigation and Indictment

Immunity Guarantee… Strong Incentive for Confession

Confusion Over Application Process with Launch of SCIA

Need for Information-Sharing Guidelines Between Agencies

‘Leniency’ (self-reporting immunity program) is a system that exempts the first confessor among colluders from sanctions. When investigative agencies have the authority to decide whether to prosecute, it serves as the most powerful incentive. The prosecution has been operating criminal leniency through an “integrated structure” in which evidence is secured through direct investigation and a decision not to prosecute is made according to the contribution of the confessor.

On the 1st, the Supreme Prosecutors’ Office building, as seen through a sculpture at the Supreme Prosecutors’ Office in Seocho-gu, Seoul, appeared distorted as Chief Prosecutor Sim Woojung announced his resignation after only nine months in office. The Special Investigation Team on National Security Plans to investigate Chief Prosecutor Sim Woojung for abuse of authority and other charges after he immediately abandoned an appeal following former President Yoon Seokyoul’s cancellation of detention. 2025.07.01 Photo by Yoon Dongju

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However, with the launch of the Serious Crimes Investigation Agency (SCIA), the system will be reorganized so that investigations are handled by the SCIA, while indictments are handled by the Prosecution Office. In this structure, a confession must be made to the investigative agency (SCIA), but immunity can only be promised by the Prosecution Office, which has the authority to prosecute. If the judgment at the indictment stage differs despite cooperation with the investigative agency, the trust, which is the foundation of leniency, could be undermined.

There are clear differences in perspective between institutions over which agency should serve as the reception point for criminal leniency applications. The prosecution emphasizes that the essence of leniency lies in the exercise of criminal justice authority. The logic is that only the Prosecution Office, which has the ultimate authority to defer or decline prosecution, should serve as the point of contact so that companies can confess with confidence. They argue that it is legally problematic for an investigative agency without prosecutorial powers to promise immunity.

On the other hand, the SCIA, which will handle investigative operations, and some in the legal community prioritize the speed of investigations. Since leniency is not merely a voluntary surrender but also a process of obtaining crucial leads for compulsory investigations such as search and seizure, they argue that the investigative team must directly receive the confession to avoid missing the timing of the investigation. If the reception point is split, leniency information may not be shared in a timely manner between the two agencies unless there is close coordination, which could result in the investigation losing momentum.

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An attorney specializing in fair trade stated, “Since the Prosecution Office ultimately makes the decision on sentence reduction or non-prosecution, it appears to fall within their scope of work.” However, the attorney also noted, “If Company A is the first to report and cooperates, it is up to the SCIA to decide whether to refer the case without prosecution.” Another attorney said, “From the company’s perspective, the number of investigative agencies is not important. The top priority is having a guarantee of immunity upon confession.” The attorney added, “If there is no integrated leniency guideline or real-time information-sharing system that encompasses the SCIA, Prosecution Office, and the Fair Trade Commission, the effectiveness of the system will rapidly decline.”

This content was produced with the assistance of AI translation services.

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