Defendant

A Imprisonment of two years and six months and fine of 4,00,000,000 won, Defendant B’s imprisonment of three years and fine of 4,00,000,000 won.

Punishment of the crime

The Defendants, on June 16, 2005, sold to E Co., Ltd. (hereinafter “E”) 28 parcels of land, including 24,324 square meters of forest land in Osan City (hereinafter “the instant forest”) and 4 neighboring lots of land in the amount of KRW 58.5 billion, and subsequently revised a contract with the content of adjusting the price of the said neighboring four parcels of land in the subject matter of sale (excluding the said neighboring four parcels of land) at KRW 44.5 billion on December 2, 2006, the Defendants did not separately calculate the value of the forest trees planted in the instant forest and were subject to transactions, but conspired to evade capital gains by reporting some of the purchase price as forest income in the name of forest trees.

Accordingly, around July 28, 2006, the Defendants prepared a sales contract on July 28, 2005 stating the false statement that the total purchase price of the instant forest is KRW 32.5 billion and KRW 44.5 billion in the land price. On the other hand, the Defendants reported the portion of KRW 12 billion in the forest income as forest income and deducted necessary expenses, etc., and filed a report on the transfer income tax that sold the instant forest in KRW 32.5 billion in the Seoul Gangnam District Tax Office on July 27, 201, after the cancellation of designation as the land transaction permission area for the said forest.

As a result, the Defendants conspired to commit a fraudulent or other unlawful act to evade capital gains tax of KRW 2,771,439,497 equivalent to the difference of KRW 12 billion in the real purchase price of KRW 44.5 billion and the land price of KRW 32.5 billion which was reported falsely.

Summary of Evidence

1. Defendants’ respective legal statements

1. Some statements made by the Defendants in the suspect interrogation protocol of each prosecutor about the Defendants

1. Partial statement of witness G in the court (limited to the defendant A);

1. Part of the prosecutor's statement concerning G in the prosecutor's protocol;

1. Three copies in the Abook, one copy of the particulars of the calculation of capital gains tax, one copy of the real estate sales contract ( June 22, 2005) and one copy of the real estate sales contract, and a notary public of December 8, 2006, respectively.