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"I only borrowed company money briefly and paid it back — is that still embezzlement?" Many people assume there is no problem as long as they repay company funds or company card charges later. However, occupational embezzlement is judged not by whether you repaid the money, but by the moment you used company funds for your own purposes. In this post, we explain when using company funds or a corporate card for personal purposes becomes occupational embezzlement, and how to respond.

[Table of Contents]

1. I used company money briefly and paid it back — is it really embezzlement?

2. When is occupational embezzlement established — the intent of unlawful acquisition

3. Are personal use of a corporate card and withdrawal of partnership funds embezzlement too?

4. Punishment for occupational embezzlement and the Act on Aggravated Punishment of Specific Economic Crimes

5. What to do if you are under investigation or charged

I used company money briefly and paid it back — is it really embezzlement?

The short answer is that it can indeed be embezzlement. Repaying the money afterward does not erase an embezzlement offense that has already been established. This is because embezzlement is completed at the very moment company money is used for another purpose at one's own discretion. Filling the amount back later may be considered favorably in sentencing, but it does not eliminate the crime itself.

When is occupational embezzlement established — the intent of unlawful acquisition

The core of embezzlement is the intent of unlawful acquisition — the intention to dispose of another's property as if it were one's own. The moment a person who keeps and manages company funds uses them for personal purposes, that intent is deemed to have been revealed and the crime is established. Therefore, the mere claim that "I intended to borrow it briefly and pay it back" does not necessarily mean the crime is not established. Whether the money is repaid later is not an element of the offense but a factor considered in sentencing.

Are personal use of a corporate card and withdrawal of partnership funds embezzlement too?

The same applies when you buy personal items with a corporate card. Even if the amount is small, if you used the funds for personal purposes knowing they were company money, occupational embezzlement may be at issue. Likewise, if one partner in a business partnership arbitrarily withdraws jointly managed funds for personal use, embezzlement may be established, because joint funds belong to all partners and no single partner has the authority to dispose of them at will.

Punishment for occupational embezzlement and the Act on Aggravated Punishment of Specific Economic Crimes

Simple embezzlement (Criminal Act Article 355(1)) is punishable by imprisonment of up to 5 years or a fine of up to KRW 15 million. In contrast, occupational embezzlement (Criminal Act Article 356), committed by someone entrusted with funds in the course of their work, is punished more heavily — up to 10 years' imprisonment or a fine of up to KRW 30 million. Furthermore, if the embezzled amount (the gain) is KRW 500 million or more, the Act on the Aggravated Punishment of Specific Economic Crimes applies, resulting in aggravated punishment, so particular caution is required.

What to do if you are under investigation or charged

If you have been charged with occupational embezzlement, it is most important to first organize the company's accounting records and your own record of how the funds were used. The key issue is whether the disputed spending was related to company business from the outset. If you can show that the expenditure was connected to company operations, there is room to deny the intent of unlawful acquisition — that is, the intent to embezzle. However, since how you organize the materials and frame your statements greatly affects the outcome, we recommend getting help from a criminal defense attorney before your investigation begins.

Cheongchul Law Firm is here to help

In occupational embezzlement cases, the outcome depends not on "I paid it back, so it's fine," but on how you prove "whether the spending was related to company business from the very beginning." At Cheongchul Law Firm, attorneys with backgrounds at the prosecution and major law firms design accounting analysis and statement strategies with you from the earliest stage to achieve the best possible result. If you are facing an investigation over the use of company funds or a corporate card, please contact Cheongchul Law Firm.

This post is provided for general legal information and does not constitute legal advice on any specific matter. The outcome of each case may vary depending on its specific facts, so please consult an attorney.