[Defendant B] Imprisonment with prison labor for two years

[Defendant C]

[Attachment] Defendant B was sentenced to six months of imprisonment for fraud at the Incheon District Court on April 7, 2011, and the said judgment became final and conclusive on March 29, 2012.

(1) Defendant A purchased “18,543 square meters of the instant land” (hereinafter “instant land”) owned by the Korea clan on December 16, 2009 (hereinafter “the instant clan”) for KRW 2.3 billion, Defendant A paid the down payment of KRW 200 million around that time, but was not paid any remainder until the agreed period. Accordingly, Defendant A received notification of cancellation of the sales contract from the instant clan around June 24, 2010.

【Contents of Criminal Conduct】

1. The Defendants: (a) around 14:00 on September 30, 2010, at a memorial station near the Seosansan Winter Winter Branch, the Defendants: (b) demanded the president of the instant clan to loan KRW 1.85 billion to Defendant C, etc. with the debtor secured the instant land; and (c) if so, the Defendants would first pay the remainder of KRW 1.65 billion out of the remainder of KRW 2.1 billion with the said money, and pay the remainder of KRW 450 million up to December 31, 2010. To secure this, the Defendants would set the third priority collective security right over the Defendant’s land and building worth KRW 2.0 billion in the market value in the instant clan.”

However, the Defendants did not have the intent or ability to pay the balance KRW 500 million even if they were to borrow the instant land as collateral. Moreover, the Defendant’s land and buildings owned by the Defendant C are merely KRW 1 billion at the market price. However, upon cancelling the existing collateral security, the Defendants did not have the intent or ability to set up the third priority collateral security to the instant clan.

Nevertheless, the Defendants conspired to induce M and let the victim clan of this case agree to the establishment of the right to collateral security on October 28, 2010, thereby excluding KRW 1.85 billion from the Suwonsan M&I as collateral and deliver the land to the victim clan as part of intermediate payment.