Defendant

A shall be punished by imprisonment with prison labor for four months and by imprisonment for six months.

However, from the date this judgment became final and conclusive, the Defendants.

Punishment of the crime

[Judgment of the court below] Defendant A is a person who has served as the representative director of the (State)C (hereinafter “instant company”) and Defendant B is a person who served as the representative director of the instant company as Defendant A’s South-North and in-house director of the instant company.

Defendant A filed an application for the commencement of rehabilitation with the Seoul Central District Court on April 2014 of the same month, and around November 25 of the same year, according to the decision of the rehabilitation case No. 2014hap85 of the above court around November 25, 2014, the rehabilitation procedure of the instant company from around November 25, 2014, which was the date of the decision to discontinue rehabilitation, until April 30, 2015, which was the date of the decision to discontinue rehabilitation.

According to the above rehabilitation plan, the company of this case should pay off its bonds in installments by 2024, so the wages of some workers including the Defendants were reduced.

【Criminal Facts】

The Defendants conspired to list Defendant B’s wife D and Vice Minister E’s wife as a false employee and received wages from the aforementioned false employees in collusion with each other for personal use by Defendant B and E.

From July 2015, the Defendants remitted KRW 1,966,030 to the accounts registered as false employees in the office of the instant company located in Seo-gu Incheon Metropolitan City as benefits, and used Defendant B’s daily living expenses, etc., as well as remitted KRW 109,575,640 to May 3, 2018. The Defendants remitted KRW 109,575,640 to the accounts in the name of D and F from that time to May 3, 2018, and then used the Defendants’ family members and E for the personal purpose or for the daily living expenses.

As a result, the Defendants conspired and embezzled KRW 109,575,640, while keeping the funds owned by the instant company for business purposes.

Summary of Evidence

1. Defendants’ legal statement

1. The police statement of H;

1. Investigation reports (in cases of complainants, submission of details of deposits and withdrawals in C in 2017) and details of financial transactions;

1. Submission of reference materials and details of passbook transactions;