[criminal records] On April 15, 2016, the Defendant was sentenced to imprisonment with labor for a violation of the Act on the Promotion of Game Industry at the Jeonju District Court, and the judgment was finalized on September 1, 2016.

[2] Defendant 1, as the representative of “D” in Kim Jong-si, was operating an electronic commerce business, where approximately 50 computers were installed from April 2014 to September 2015 on the 3rd floor in Yansan-gu, Seoul Special Metropolitan City, and illegally traded Nan Game money (hereinafter “Aib”), from around April 2014 to around September 2015.

No person shall evade a tax by fraud or other improper means.

Nevertheless, the Defendant had registered the said D as a simplified taxable person and did not change it at all, and did not prepare a book that enables tax calculation and imposition, and had the details of the sale and the income from the said game money transaction using the borrowed name account in the name of the wife and the mother, and reported the sale and income to 0 won or failed to report it to 0 won.

1. The evasion of value added taxes;

A. The Defendant in the taxable period of 2014 sold Native Game money equivalent to KRW 4,474,979,645 in total during the taxable period of value added tax in 2014 (from January 1, 2014 to December 31, 2014), but reported sales as zero won after concealing such prior income. Accordingly, the Defendant evaded value added KRW 44,679,541.

B. The Defendant in the taxable period of 2015 sold Nice Game money equivalent to KRW 3,672,714,669 in total during the taxable period (from January 1, 2015 to December 31, 2015) in 2015, but did not report value added tax until July 25, 2016, and subsequently evaded value added tax 36,653,414.

2. Evasion of comprehensive income tax;

A. The Defendant in the taxable period of 2014 is during the taxable period of 2014 (from January 1, 2014 to December 31, 2014), as described in the foregoing 1-A.