A Imprisonment with prison labor for two years, for 12 years, for Defendant C, for three years and six months, and for Defendant D.

[criminal record] Defendant B was sentenced to four months of imprisonment for fraud and one year and eight months of imprisonment at the Incheon District Court on April 30, 2014, and completed the execution of the sentence at the Heung prison on July 30, 2015. Defendant D was sentenced to eight months of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (EM players) at the Suwon District Court on March 18, 2015 and terminated the execution of the sentence on the same day after the detention was revoked on April 28, 2015. Defendant E was sentenced to six months of imprisonment for a violation of the Act on the Punishment, etc. of Acts, such as sexual traffic brokerage, etc. at the Incheon District Court on May 30, 2014 and completed the execution of the sentence on September 6, 2014.

[2] Based on the facts found by the evidence duly adopted and investigated by the court, the facts charged were modified to the extent that it does not infringe the defendants' right to defense.

1. The Defendants’ operational corporation and the Defendants’ status corporation F (hereinafter “F”) are corporations established around July 12, 2016 for the purpose of providing online platform services for the so-called P2P (P2P to the Peer; hereinafter “P2P”) lending in the form of linking large number of investors through online, and corporations incorporated on September 23, 2016 for the purpose of lending business related to P2P loans.

F shall disclose information necessary to determine whether to grant a loan, such as credit rating, purpose of loan, and collateral ability of a particular borrower on the Internet homepage, as an investment product, and individual investors who are members of the company as a member of the company will determine whether to make an investment and the amount of investment by reporting information stated in the investment product.

Since then, G, which is a P2P-linked loan business, is entrusted by F with the management of the investment funds, G, which is a P2P-linked loan business, borrows funds from investors who decided to invest in a specific P2P product from the lender and subsequently lend it to the borrower.