Defendants shall be punished by a fine of KRW 10,000,000.

Defendant

If A does not pay the above fine, it shall be 100.

Punishment of the crime

Defendant

B Co., Ltd. is a corporation established for the purpose of manufacturing ship engine parts, and Defendant A is the representative director of the above corporation.

1. Defendant A

(a) No principal contractor shall determine the subcontract consideration by reducing the unit price at a uniform rate without any justifiable reasons to the subcontractor;

Nevertheless, on March 1, 2015, the Defendant entered into a basic purchase agreement in 2015 with F Co., Ltd., a subcontractor, with the production unit price for bed flass and presses, compared to the production unit price in 2014, 7% of the production unit price in 2014 and 10% of the production unit price in 70m or more, with the content that the Defendant reduces the production unit price for bed flass and presses at the window E of Changwon-si.

Accordingly, the Defendant paid 297,957,648 won which is less than the amount applied to the previous unit price by reducing the unit price at a uniform rate without any justifiable reason.

(b) When a prime contractor reduces the subcontract consideration for a subcontract, he/she shall not specify the conditions, etc. to reduce the subcontract consideration and shall not reduce it for any unreasonable reason, such as the cancellation of order from the person requesting cooperation or the other party to the transaction or change in the economic situation, without specifying any conditions, etc.

(1) The Defendant: (a) entrusted Company B’s office located in the window E from July 2012 to May 2013, 2013 to Company H with the production of a Vietnam display and presses; (b) at KRW 765,573,784, the LINE QC system operated by the Defendants, as well as LINE QC system, intended to place the public prosecutor’s staff employed by the Defendant on the part of the subcontractor in order to reduce the defect rate of products, thereby allowing the Defendant to inspect whether the defect occurred in the manufacturing process.

751,573,754 won after deducting 14,000,000 won as personnel expenses shall be paid for unreasonable reasons.