[criminal records] On January 22, 2015, the Defendant was sentenced to a suspended sentence of one year for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes by the Seoul Western District Court on June 2, 2015, and the judgment became final and conclusive on January 30, 2015. On September 28, 2016, the Seoul Western District Court sentenced the Defendant to three years of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) and the judgment became final and conclusive on August 23, 2017.

[Criminal facts] The Defendant had been engaged in child clothes wholesale and retail business from about 30 years ago with the trade name "B".

In that end, from spring spring in 2012, the defendant supplied a finished product of clothing to C operated by the defendant.

D Around June 25, 2013, D filed a lawsuit claiming payment of approximately KRW 7777 billion against C, a corporation, claiming payment of KRW 1.672 billion, among the supply of the goods of clothing in winter in 2012, and KRW 895 million among the supply of the goods of spring in 2013, and the supply and inventory management of each agency have not been carried out smoothly since D received only KRW 1.672 million from D on May 9, 2013.

Since then, the supply of clothing finished products from the suppliers continued to accumulate the price that has not been paid even after being supplied with the goods. Around January 2014, approximately KRW 5.45 billion for the claim group of eight suppliers, approximately KRW 1.15 billion for the unpaid price to E, approximately KRW 1.15 billion for the unpaid price to F, approximately KRW 370,000,000 for G, and approximately KRW 490,000 for the unpaid price to H, and KRW 6.6 billion for the unpaid bill issued from January 2013 to June 2013, the Defendant’s provisional seizure was anticipated to keep the agent’s funds only for the sale price. < Amended by Act No. 11734, Dec. 12, 2013>