On May 25, 2012, the Defendant entered into a mutual agreement on the conduct and payment guarantee transaction agreement and foreign exchange transaction agreement with the victim Gyeongnam Co., Ltd. to establish a credit necessary for the receipt of a special lecture at around 317 at a Hawon-si, Changwon-si, an Eup-si, an Eup-Myeon, and a Gyeongwon-si, the Defendant: “The Defendant shall transfer to the bank the obligations owed to the bank in connection with the transaction, and interest, discount fees, fees, delayed compensation, other expenses incidental thereto, etc. which are incidental thereto,” “The Defendant shall not use goods for purposes other than delivery, shipment, processing, and sale, or offer them as security; and there is no other act detrimental to the rights of the bank”; “in the event of selling goods, the amount of goods, delivery and receipt method of the price, etc., the Defendant shall obtain prior consent from the bank after the receipt of the price for the goods, and if he receives the price for the securities, etc., then the credit was opened at around 1985.”

The Defendant imported the total amount of KRW 568,234,296 from D, a Chinese steel company, from November 10, 2015 to December 22, 2015. Around that time, the Defendant received customs clearance through Busan Customs, and then received delivery of the imported goods. As such, the Defendant was not able to use the goods for purposes other than the storage, transportation, shipment, processing, and sale, or provide them as security to a third party. In the event of selling goods, the Defendant was obligated to obtain prior consent from the Bank regarding the amount of the goods, delivery of the goods, and method of receiving the goods, and was obligated not to perform any act detrimental to the rights of the Bank.

The Defendant violated the above duties and thereby, from December 4, 2015 to December 28, 2015.