On April 18, 2014, the Defendant was sentenced to a suspended sentence of two years in the Seoul Western District Court for criminal fraud. On April 26, 2014, the said judgment became final and conclusive.

On January 10, 2013, the Defendant concluded a sales contract with the victim to sell 77,00,000 won of shares in the instant forest (hereinafter “the shares in the instant forest”) out of 7,141 square meters in Suwon-si, Suwon-si, Suwon-si, Seoul, to the victim C at the Uigu, Inc., Ltd., 5 stories of 8,000,000 Do 16,000 Do 16,000.

The Defendant previously agreed to settle the amount of KRW 75 million paid by the victim as the price for the instant forest in return for the documents required for the registration of ownership transfer on the date of the contract, and to exchange the remainder of KRW 2 million in return for the documents required for the registration of ownership transfer on the date of the contract, in the Nam-ju City, where the Defendant had previously had the victim transferred ownership

In accordance with the agreement, the Defendant received the remainder of KRW 2 million from the victim immediately, and at the same time, there was a duty to perform the procedure for ownership transfer registration without setting the right to collateral on the forest shares in this case.

On February 5, 2013, the Defendant provided the instant forest as joint collateral to a rooftop and agricultural cooperative. On February 5, 2013, the Suwon District Court’s registry office issued a registration of creation of superficies with respect to the instant forest as “the maximum claim amount of KRW 4550 million,” “debtor Co., Ltd., Ltd.,” “Lirobest,” “flusium and agricultural cooperative,” and “the duration of the establishment of neighboring mortgage registration, 30 years from February 5, 2013,” and “a superficies creation registration and agricultural cooperative,” respectively.

As a result, the Defendant has divided the secured debt amount corresponding to the secured debt amount corresponding to the secured debt amount of this case among the secured debt amount corresponding to the secured debt amount corresponding to the secured debt amount of this case among the secured debt amount by the value of the real estate provided as joint collateral.