A. The Defendant’s status and duties were changed from July 21, 2005 to July 29, 2013 to “F of a stock company” (the name of the company was changed to “F” on July 29, 2013, and “H of a stock company” on July 8, 2015, respectively; hereinafter referred to as “F”), the representative director, and the largest shareholder (10.6% of the equity ratio in July 201, 2010), who is the representative director of F and its affiliated companies, for the purpose of research and development of cell therapy using stem cells using stem cells, and cell processing and distribution business, etc. (the name of the company was changed to “F” on July 29, 2013 and “F” on July 8, 2015).

B. On June 2010, the Defendant: (a) decided to establish “A Co., Ltd. I” (the name of a company was changed to “J” on April 14, 2014; hereinafter “J”) that operates a forest processing business, such as the development and storage of stem cells, under the entrustment of F, in the local area of Japan; (b) and (c) transferred the Defendant’s funds to K, Japan, on June 21, 2010, transferred KRW 72,000,000 to K on June 28, 2010; and (c) became the largest shareholder of J, acquiring KRW 800,000 per share of J shares, with the ratio of KRW 90,000,000.00.

C. The primary facts charged [Violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Misappropriation of trust) by the high-priced purchase of J shares] is to be well organized by F to conduct research, development, production, and sale of the stem cell therapy, so it is appropriate to establish a specialized accounting firm or an officially recognized company through lawful procedures in order to raise awareness that F is an internal trading and investment for the benefit of an individual in case where F makes an investment in the case where F is the largest shareholder and the defendant is the representative director, and it is reasonable to establish a J mainly engaged in the forest processing business, such as the operation of the J's business and profit-making structure, in the case where F is entrusted by F, and it is bound that the business and profit-making structure of the J would depend on F. F.