A Imprisonment with labor for one year, Defendant B shall be punished by a fine of KRW 20 million, and Defendant C corporation shall be punished by a fine of KRW 30 million.

Defendant

A on November 19, 2012, the Daegu High Court sentenced two years and six months to imprisonment for the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Embezzlement), etc., and the judgment was finalized on February 14, 2013.

[B] Crimes related to the Stock Company]

1. From March 30, 1992 to August 24, 2009, Defendant A served as the president of the C&C (hereinafter “C”) located in the Daegu Seo-gu Seo-gu, Daegu, and was in charge of the final decision-making and enforcement of major policies on the management of C&C, including personnel affairs, accounts, and funds, of C&C. The Defendant was a person who is the representative of N&N Co., Ltd. (hereinafter “N”) (hereinafter “N”) in Daegu-gu, Seo-gu, and is the representative of the C&C (hereinafter “N”).

In case where the sales of goods or services under the provisions of the Value-Added Tax Act are entered in the list of total tax invoices and submitted to the Government.

(1) Nevertheless, on April 25, 2007, the Defendant: (a) filed a preliminary return of value-added tax for the first half of the year 2007 via L in Seogu Tax Office, Daegu-gu, Daegu-gu, 3 497-5, Daegu-gu; (b) on April 25, 2007, the Defendant stated false entries in the list of the total tax invoice by buyer as if the Defendant supplied the 54,142,408 salary grade service.

From that time until April 25, 2009, the Defendant entered and submitted the list of total tax invoice by buyer as if he supplied goods or services equivalent to KRW 511,311,360 (tax amount of KRW 51,131,136) in total on 27 occasions, such as the list of crimes in attached Table (1).

(2) On April 25, 2007, the Defendant entered the scheduled return of value-added tax for the first period of January 2007 by L in Seogu Tax Office around 2007 in the list of total tax invoices by entering the list of total tax invoices in the list of total tax invoices as if he was supplied with transportation services equivalent to KRW 15,00,000, although there was no fact that he was supplied with transportation services from N.