The Defendant operated D Co., Ltd. (hereinafter “C”) from July 1, 1999 to July 31, 2007, and operated F Co., Ltd. (hereinafter “F”) from August 22, 2007 to December 31, 2009.

On November 2007, the Defendant stated that “Around November 2007, the victim H in Seongdong-gu Seoul, the Defendant, at the I office operated by Seongdong-gu Seoul Metropolitan Government, “A bank with the credit extended in the name of a stock company I, opened a sub-credit with the foreign exchange bank, and, on the face of week, F, would import and sell the furniture from Vietnam using the above-mentioned L/C and settle the L/C price with the sales proceeds.”

However, in the course of operating D, the Defendant was subject to a tax assessment of approximately KRW 1.8 billion following a tax investigation on May 2006, and closed down D Company around July 31, 2007 due to business deterioration. In other words, the Defendant established F Company around August 22, 2007, but did not have the intent to use the L/C payment for the operation of F Company since it was difficult for F Company F Company F to issue a L/C due to the difficulty in managing F Company F’s credit from December 15, 2007 to February 22, 2008 because it was difficult for F Company F to collect the claim amount of KRW 170,000,000 from December 15, 2007, because it was difficult for F Company F to issue a L/C due to the intent to use the L/C payment for the sales proceeds, even if it was imported and sold using the above L/C’s credit.

Around January 18, 2008, the Defendant had the victim respectively issue a credit of USD 70,000 (J), US dollars 75,000 (K) with the credit extended in the name of the company I at the Sungdong-dong 2, Seongdong-gu, Seoul, at the 289-10 Es. 289-10, to the victim, and the Defendant is from the transaction partner in Vietnam using the above term credit.