A shall be punished by imprisonment with prison labor for three and a half years, and by imprisonment for two years, respectively.

However, as to Defendant B, this shall not apply.

[Criminal Power] Defendant B was sentenced to a suspended sentence of ten months for violating the Illegal Check Control Act at the Suwon District Court on September 14, 2009, and the said judgment became final and conclusive on September 22, 2009.

【Criminal Facts】

Defendant

A has established E Co., Ltd. (hereinafter referred to as “E”) and F Co., Ltd. (hereinafter referred to as “F”), each of which was the Chairperson, and Defendant B is a professional manager who is a representative director of E.

E’s active property, such as real estate, bonds, etc., owned on November 2007, is KRW 5,714,48,660, and KRW 6,264,234,747, such as loans and the obligation for the payment of goods, etc., were 6,264,234,747, but around July 2008, active property has decreased by approximately KRW 200,000,000,000, including KRW 2.8 billion, but the negative property has deteriorated financial structure, such as KRW 9,076,210,570.

In addition, E's debt ratio reached 459.66% as of the end of 2007 year, the amount of short-term loan operation fund increased to 7.4 billion won, and the monthly salary of employees did not timely increase. This was the main reason why the profit has not been improved even if sales were made due to the low increase in the sales price of the common afforestation product compared to the increase in the prices of raw materials such as canned light and buttts.

Since the Defendants continued to discuss the financial structure of the E company due to the aggravation of the company in the office of the president or the representative director, and the wording of the E company, such as loans to improve the financial structure and the separate total sales contract, etc., the Defendants knew that the E company had no intent or ability to make timely settlement of promissory notes, even if they purchased fishery products, etc. from the victims continuously due to the aggravation of the E’s financial structure and the difficulty of improving the business

Nevertheless, the Defendants are the defendants.