On July 5, 2017, the Defendant was sentenced to imprisonment with prison labor for the violation of the Labor Standards Act at the Busan District Court and two years of suspended execution, and on April 27, 2018, the judgment became final and conclusive.

The Defendant, as the representative of the “C” located in the Busan Seo-gu B, Busan, is an employer who runs the new launch manufacturing business using 15 full-time workers.

When a worker dies or retires, the employer shall pay the wages, compensations, and other money and valuables within fourteen days after the cause for such payment occurred.

Provided, That the date of payment may be extended by an agreement between the parties if special circumstances exist.

Nevertheless, the Defendant, from February 1, 2017 to April 18, 2017, worked as an employee under the foregoing “C”, and did not pay KRW 1,866,181 to retired workers D in March 2017, and did not pay KRW 12,236,349, total amount of wages of four workers within 14 days from the date of retirement, which is the date of the occurrence of the cause for payment, as described in the attached crime list.

From January 23, 2017 to March 6, 2017, the Defendant: (a) worked as an employee under the foregoing “C”; and (b) did not pay KRW 2,165,182 of the wages of 13 workers in total, including KRW 32,431,171, January 2017; (c) February 1, 2017; and (d) March 281, 2017; and (d) did not pay KRW 2,165,182 of the wages of 13 workers in total, as shown in the attached Table 2 of the crime committed; and (e) did not pay KRW 32,431,830 of the wages of 13 workers in total, as of March 2, 2017, within 14 days from the date on which the cause for the payment occurred, without an agreement between the parties on the extension of the

The Defendant operated a new factory (mutual name: F) from November 2015 to September 2016.

On November 2015, the Defendant operated a new factory with F's trade name at the first office of the victim H located in Busan G in the Seocho-gu, Busan, and the victim supplied the contact with F.