Defendant

A is a director of E Co., Ltd. (hereinafter referred to as “E”) whose business purpose is housing construction business, etc., and Defendant B is a representative director of E, respectively, and is registered in the corporate register.

The Defendants came to know through H that G, which operated the F Co., Ltd. (hereinafter referred to as “F”), intended to take over a business entity for more than five years since its establishment in order to promote the urban redevelopment project, and agreed to transfer the management right of F Co., Ltd. I (hereinafter referred to as “I”) operated by the Defendants to G.

On October 18, 2008, Defendant A entered into a “business operator’s transfer agreement” with G, in the presence of the JJ of the accounting firm affiliated with the said accounting firm, at the office of Indial Accounting firm located in Young-gu Seoul Metropolitan City, Yeongdeungpo-gu.

From July 29, 2009 to December 29, 2009, the Defendants, while serving as F, received 15 million won and 22,293,800 won in total as well as 22,293,800 won in total of the amount of delinquent taxes and the expenses for certified judicial scrivener in Daejeon-gu apartment located in Daejeon-gu, Daejeon, which was held by I, from G. G changed the trade name of I on January 4, 2010 to E.

Since then, around May 3, 2010, the Defendants came to be able to obtain significant profits from the relevant officetel sales business, such as securing funds to take over the Ktel in the name of Seongdong-gu Seoul Metropolitan Government, and until that time, G did not enter into a transfer of shares issued by E (I prior to the change of trade name). On June 22, 2010, the Defendants opened a meeting of E for the reason that Defendant A’s wife M and Defendant B et al., “G embezzled public funds of the company,” etc. while excluding G, who is a substantial controlling shareholder, without going through legitimate convening procedures in the E office located in Jung-gu Seoul Metropolitan Government, Jung-gu, Seoul.