Judicial decisions in money laundering cases: the Influence of monetary compensation and sentencing guidelines in South Korea

Abstract

ABSTRACT This study investigates the impact of sentencing guideline factors on judges’ decisions regarding in/out and the length of imprisonment for individuals convicted of money laundering-related offenses in South Korea. Analyzing a dataset of 413 cases involving money mule activities from 2021, the research employs binary logistic regression and negative binomial regression models to establish an association between predictors and sentencing outcomes. The study found that defendants who provided monetary compensation to their victims were significantly more likely to be placed on probation than those who did not. Additionally, it was found that monetary compensation to victims had the most significant impact on the decisions regarding the length of imprisonment among the factors outlined in the sentencing guidelines. This finding serves as a warning sign for prospective job seekers, revealing the potentially dire ramifications of involvement in money laundering crimes.