2. Determination

A. The Defendant is the representative director of E Co., Ltd. (hereinafter “E”) established with the purpose of receiving “D” manufactured by C (hereinafter “C”) from around June 2010 to deliver the said goods to the closed-type welfare sunset of large enterprises.

On July 10, 2010, the Defendant entered into a service contract for the Ccorporate welfare sunset (hereinafter “instant contract”) with G Co., Ltd. (representative director H; hereinafter “victim Co., Ltd.”) established for the purpose of the integrated construction of information and communications services and systems in the E office located in Gangnam-gu Seoul, Seoul, with the total service cost of KRW 660 million (the service cost of KRW 60 million and value-added tax of KRW 60 million).

However, at the time, the Defendant had no economic ability to pay the employees’ benefits in the course of operating E, as well as the establishment and operation of the above company with no interest rate of KRW 10 million from all financial institutions and those who established and operated the above company, and thus, the Defendant could be paid the program development costs or service charges from C. However, since the Defendant’s debt to C is much more than the Defendant’s debt, it would be offset with the Defendant’s debt to C, so the victim did not have any intent or ability to pay the service charges to the victim company even if the Defendant performed the service for the C-corporate welfare foundation according to the instant contract.

Accordingly, the Defendant deceivings the victim company as above, and thereby, did not pay the above service cost despite having been provided with C’s business welfare foundation development services from July 201 to April 201, 201.