Serious Crime Investigation Agency, Prosecution Agency Clash Over Authority to Receive Leniency Applications: "Investigative Act" vs. "Prosecutors Should Decide"

Serious Crime Investigation Agency: "All are investigative acts"
Prosecution Agency: "Directly tied to criminal penalties... Prosecutors must decide"
Serious Crime Investigation Agency counters: "Investigative agencies receive applications in Australia and Canada, too"

The Serious Crime Investigation Agency and the Prosecution Agency clashed over which agency has the authority to receive applications for leniency, a system that reduces penalties for companies that voluntarily report cartel cases. The Serious Crime Investigation Agency maintains that the process should be handled by an investigative agency, since receiving applications and assigning provisional rankings are investigative acts. The Prosecution Agency, by contrast, believes prosecutors, as the holders of prosecutorial authority, should make the decision because the system is directly tied to criminal penalties.

The Major Crimes Investigation Agency began full operations on the 16th, just two weeks after its launch. President Lee Jaemyung approved the appointment of Kim Jiyong, nominee to become the agency’s inaugural chief, on the 15th. No longer a nominee, Kim avoided reporters on his first day at work on the 16th. 2026.10.16 Photo by Kim Hyunmin

On the 27th, the Serious Crime Investigation Agency issued a statement saying, "Submitting a leniency application provides a lead for an investigation." It added, "Receiving relevant documents, reviewing the facts, assigning provisional rankings, and deciding whether to launch an investigation are all investigative acts."

The agency explained that Article 247 of the Criminal Procedure Act, which establishes the principle of discretionary prosecution, provides a basis only for the final decision not to prosecute; it does not grant the Prosecution Agency exclusive authority to receive reports of crimes. It also cited the amended Criminal Procedure Act, which stipulates that investigative agencies receive reports of criminal acts, including complaints, accusations, and voluntary surrenders.

The agency also disputed the argument that the Prosecution Agency should handle leniency applications in South Korea because the U.S. Department of Justice's Antitrust Division receives them. The Serious Crime Investigation Agency said, "The U.S. Department of Justice's Antitrust Division both investigates and prosecutes criminal cartels, so its role cannot be applied directly in South Korea, where investigation and prosecution are separated."

It went on to explain that in Canada and Australia, where investigation and prosecution are also separate, investigative agencies receive leniency applications before prosecutors decide whether to grant penalty reductions. Accordingly, the agency maintains that having the Serious Crime Investigation Agency receive applications and assign provisional rankings, while the Prosecution Agency handles final prosecution decisions and requests for reduced sentences, is consistent with the principle of separating investigation and prosecution.

The Prosecution Agency, by contrast, maintains that prosecutors, as the holders of prosecutorial authority, should decide whether to receive applications and grant penalty reductions, since leniency is linked to criminal penalties.

In response to concerns that changing the agency responsible for receiving applications could make it harder for companies to predict outcomes, the Serious Crime Investigation Agency said, "This concerns objectively verifying the time an application is first received and its provisional ranking, and ensuring consistency in final criminal penalties. We plan to consult closely with the Prosecution Agency." It added that it had "not considered at all" the option of independently determining whether the requirements for a penalty reduction are met and deciding whether to refer a case to prosecutors.

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