The Credit Guarantee Fund established under the Credit Guarantee Fund Act is a non-profit special corporation ( quasi-governmental institution) with the aim of contributing to the balanced development of the national economy by guaranteeing the obligations of enterprises which lack security capacity by preparing the Fund (the Government and financial institutions as the basic fund) and facilitating the financing of enterprises. The corporate purchase fund lending system is a system that mitigates the financial difficulties of the delivery enterprises by reducing the risk of settlement of the delivery enterprises due to credit transaction. If a purchasing enterprise purchases goods, etc. from a delivery enterprise, the financial institution which received the credit Guarantee Fund's guarantee is immediately paying the purchase price to the delivery enterprise, and the purchasing enterprise is a lending system that

When a purchasing enterprise files an application for a loan for purchasing funds, the Korea Credit Guarantee Fund shall set the limit on loans through the purchase ratio of the enterprise, the other party to the purchase, credit assessment, etc., guarantee 80-95% of the limit, and the Korea Credit Guarantee Fund shall be responsible for the payment of public funds within the scope of the outstanding

As such, the requirements for loans to be guaranteed within a certain limit by the Korea Credit Guarantee Fund operating public funds upon entering into a guarantee agreement with a purchasing enterprise shall have a real transaction between the purchasing enterprise and the selling enterprise, and on the basis of the existence of the obligation of the purchasing enterprise to pay the purchase price incurred therefrom, the loans shall be directly paid to the other party to the transaction (sales enterprise). As such, in cases where individual payment method has become final and conclusive for the payment of the purchase price, such as filing an application for the purchase price without actual transaction, or issuing a promissory note as the purchase price

1. The defendant in violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) is to manufacture electronic machinery parts in the Republic of Korea, Gyeongnam-gun C.