[criminal power] On August 14, 2014, the Defendant was sentenced to four years of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement) at the Seoul Central District Court on June 11, 2015, and the said judgment became final and conclusive on June 11, 2015. On August 26, 2015, the same court was sentenced to eight months of imprisonment for fraud and the said judgment became final and conclusive on January 1, 2016.

【Criminal Facts】

The Defendant is a real operator of E Co., Ltd. (hereinafter referred to as “E”).

On June 17, 2013, the Defendant drafted a business agreement with the Victim F Co., Ltd. (hereinafter “F”) on the content that the Defendant cooperates with F to participate in F’s 30 billion won capital increase with F’s capital increase for capital increase with F, and in return, the Defendant would receive KRW 1.8 billion for the payment of the F’s fee.

However, as a result of the joint and several debt of KRW 1.8 billion borne by H Co., Ltd. (hereinafter “H”), F created a joint and several surety contract with the content that “E acquires the F’s joint and several debt of KRW 1.8 billion between the Defendant and F, and at the same time, F will prepare a certificate of deposit equivalent to KRW 1.8 billion for securing the E’s joint and several debt of KRW 1.8 billion and offer it as security to H, which is a creditor.” On July 24, 2013, H representative director I, E representative director J, FF director K of the H, and F Financial Director K of the H, and “E will provide KRW 1.8 billion to the E’s certificate of deposit in order to bear the joint and several debt of KRW 1.8 billion for H and to secure the performance of the joint and several debt.”

On August 2013, the Defendant did not comply with the initial arrangement to resolve the burden of the E’s joint and several liability after submitting an accounting audit and a semi-annual review report. As such, the Defendant provided F to H due to nonperformance of F’s obligation to resolve the F’s joint and several liability.