A and C shall be punished by a fine of KRW 5,000,000, and Defendant B shall be punished by a fine of KRW 3,000,00.

The Defendants respectively.

Defendant

C has been working as the principal of H, a victim of the Sinjin-si from January 25, 2013 to March 20, 2015, while working as the principal of H, the victim of the Sinjin-si. From March 17, 2010, Defendant B has been working as the standing director of the said H, and has been engaged in the duties of credit, credit, deduction, etc. of H, rice processing complex. Defendant A has been working as the principal of H rice processing complex in the Sinjin-si from May 25, 2012 to September 16, 2014 and has been engaged in the duties of managing and supervising H rice processing complex.

1. The Defendants’ co-principal duties are occupational duties to appropriately manage H-owned assets, such as: (a) the Defendants are subject to resolution by the board of directors in order to pay goods to a third party without compensation to the said third party under the pretext of incentives for promoting smooth business, such as sales and supply of goods handled in the rules of the said H; and (b) the Defendants need not provide goods owned by the H without compensation to the third party without a resolution

Nevertheless, on May 27, 2014, the Defendants violated the occupational duty that should not be paid rice owned by H to another person without the resolution of the board of directors when the Defendants did not compile a budget for grant, etc. because they had good business performance of H, and paid 16 tons of rice at a cost equivalent to 29.6 million won of the market price of H owned by the business entity to K without compensation; in order to conceal the fact that she offered 16 tons of rice free of charge to K, the Defendants invited she to process 16 tons of rice paid to K with an injury to cover the fact that she offered 16 tons of rice free of charge (non-surveyed loss). On or around the 28th of the same month, the Defendants issued to the above K with 16 tons of rice free of charge and supplied 160 million tons of rice free of charge to K to avoid such violation, and conducted a quarterly investigation on June 21, 2014.