A defendant shall be punished by imprisonment for two years.

Criminal facts

The Defendant is a person operating D Co., Ltd. (hereinafter referred to as “D”) that manufactures e-mail (radio information recognition devices), etc. (hereinafter referred to as “F”) under 703 of Masan-si, Ansan-si, the Defendant, and the victim is the F Co., Ltd. (hereinafter referred to as “F”) that manufactures L CDs, TV parts, etc. in e-mail.

On July 2012, the Defendant made a false statement to G, the representative director of the victim’s office, “D operated by the Defendant at home, based on the outstanding technical capabilities, is 30,00 won per annum from a local government later. D, it is necessary to provide funds for the production of standard equipment and the development of new products. If F invests in D, the investment would be used to produce standard equipment and the development of new products. The production of standard equipment can be immediately entrusted, and the development of new products will require 30 days for new products.”

However, there was no other way to seek funds from the seven banks during the first half of 2012, including: (a) the Defendant was liable for a debt of approximately KRW 1.5 billion; (b) the Defendant was informed only from January 2012 to July 2012 that loans could not be granted from seven banks; (c) due to business difficulties, the Defendant was unable to pay approximately KRW 60 million of the D office’s rent and management expenses, and approximately KRW 40 million of the D office’s rent and management expenses were in arrears; and (d) on April 24, 2012, the Defendant was under the de facto crisis, such as receiving notification of the lease contract from the Gyeonggi Emphian, an incorporated foundation; and (d) the Defendant was urged to pay KRW 200,000 from the Plaintiff’s loan to the Plaintiff for the production and payment of new products and KRW 300,000,000,000 from the Plaintiff’s loan to the Plaintiff.