On January 25, 2008, the Defendant was sentenced to two years of imprisonment for fraud at the Seoul Southern District Court, and the said judgment became final and conclusive on February 2, 2008.

Around June 2005, the Defendant: (a) borrowed money from several persons to acquire D’s property or income; and (b) borrowed money from a limited partnership company F, and had already been liable to pay KRW 100 million; (c) even if having taken over E from the victim, the Defendant did not have the intent or ability to pay KRW 300 million for the acquisition price of the company to the victim; (d) made a false statement to the victim that “the parent would have provided support to KRW 2 billion; (e) would have paid KRW 300 million for the acquisition price of the company; and (e) would have paid KRW 300,000,000 for the acquisition price of the company by transfer of the company; and (e) even after having taken over the company from the victim on July 12, 2005, the Defendant acquired pecuniary profits equivalent to the acquisition price of the company, by failing to pay KRW 300,000,

Summary of Evidence

1. The defendant's partial statement in the second protocol of trial;

1. Legal statement of witness D;

1. Examination protocol of the accused by the prosecution (including the DNA statement section);

1. A suspect interrogation protocol of G to the prosecution (including D's statement section);

1. Statement by the prosecution concerning D;

1. Police suspect interrogation protocol of the accused (including DNA statements);

1. Each police suspect interrogation protocol regarding G (including the part concerning D's statement in the second protocol and H's statement in the third protocol);

1. Statement made to D by the police;

1. A complaint, each memorandum of understanding, a business transfer and takeover contract, a statement of execution, a certified transcript of corporate register, each of promissory notes, a written statement of performance, written consent, a written confirmation of the transfer progress of a corporation E, a written confirmation of a contract, a written confirmation, a written confirmation, a written confirmation, a written confirmation, a management status by store, a head office inventory TAOL, a copy of a promissory note, a written agreement, a joint management agreement, and a stock change.