Defendant

Kim Sung-won

Law Firm National Law Firm, Attorney Kim Su-seop

A defendant shall be punished by imprisonment for a year and a fine of KRW 1,500,000.

When the defendant fails to pay the above fine, the defendant shall be confined in a workhouse for a period calculated by converting 50,000 won into one day.

In order to order the provisional payment of an amount equivalent to the above fine.

1. Violation of the Control of Illegal Check Control Act; and

As the representative director of Nonindicted Co. 1, the Defendant, in the name of the said company, concluded a check agreement with the branch office of the Industrial Bank of Korea in the name of the said company from October 21, 1997, and had engaged in check transactions.

A. On May 11, 2006, the Defendant issued one check number (number 1 omitted), 1684 million won at face value, and one check number in the name of the above company to Nonindicted 3 via Nonindicted 2, who was the planning and management department in charge of the above company’s funds. After that, Nonindicted 3 supplemented the above payment date on November 25, 2008, the said payment date was changed to December 31, 2008 at the above Nonindicted 2’s request, and then again supplemented it to March 25, 2009, and then presented the payment of the above check number at the active service branch of one bank on the same day.

Nevertheless, on March 4, 2009, the Defendant reported the loss of the above number of shares at the Industrial Bank of Korea's Human Resources branch located in Ansan-dong 1488-35, Jeonyang-dong, Seoul, to the financial institution and reported it falsely to the financial institution.

Accordingly, the defendant made a false report to the financial institution in order to escape the suspension of payment or transaction.

B. Around August 2006, the Defendant, via Nonindicted 2, issued one check number (number 2 omitted), 100 million won at face value, and one check number in the name of the above company in blank. After that, Nonindicted 3 supplementeded the above payment date on November 25, 2008, it was changed to December 31, 2008 at the above Nonindicted 2’s request, and then supplemented again on March 25, 2009, and then presented the said check of the number of shares at active service branch on the same day.

Nevertheless, on March 4, 2009, the Defendant reported the loss of the above number of shares at the Industrial Bank of Korea's Human Resources branch located in Ansan-dong 1488-35, Jeonyang-dong, Seoul, to the financial institution and reported it falsely to the financial institution.

Accordingly, the defendant made a false report to the financial institution in order to escape the suspension of payment or transaction.

2. An accusation;

A. On February 25, 2009, the Defendant prepared a false statement on Nonindicted 2 and 7 with the intention to have Nonindicted 2 and 7 criminal punishment at the office of Nonindicted 10 law firm office of the Gu ( Address 1 omitted). The statement of the complaint was forged and sent five copies of the promissory note in the name of the representative director of the Nonindicted 1 company (hereinafter “instant promissory note”) (hereinafter “instant promissory note”), such as forging the Defendant’s corporate bank (bill No. 1 omitted), the representative director of the Nonindicted 2 and Nonindicted 7, in collusion with Nonindicted 1’s corporate director, for the purpose of having Nonindicted 2 and 7 pay criminal punishment. The statement of the complaint was forged by Nonindicted 7’s corporate bank (number No. 2 omitted), the face value, 59, 632, 676 won, and 400,000,000 won in exchange for Nonindicted 1 company’s payment of the promissory note in collusion with the Nonindicted 2 and the Nonindicted 7,007.

However, when there is a shortage of management funds, such as bill settlement funds, employee benefits, wage payment funds for the employees in the construction site, etc., the Defendant asked Nonindicted 2 or his employees who have been in charge of the management of Nonindicted Company 1 to lend funds to each other, and Nonindicted 2 provided the company management funds under the Defendant’s instruction at each time, and even if not so requested by the Defendant, the Defendant provided the funds from 4 billion to 5 billion won by either borrowing or discounting the funds by issuing the bill of exchange or bill of exchange, etc. and borrowing or discounting the funds from 4 billion to 5 billion won, and the Defendant was well aware of this fact.

In addition, even if Nonindicted 2 was unaware of the fact that he received discount or borrowed funds from Nonindicted 7 on December 208 through Nonindicted 2 and Nonindicted 7, 2008, Nonindicted 7 came to know that he had properly acquired the Promissory Notes in the name of the said company. Nonindicted 7 notified Nonindicted 7 of the certificate of transfer of obligation (certificate of transfer of progress payment that the said company received from its customer) delivered by Nonindicted 7 to the said company’s customer on the wind that he could not pay the money borrowed from Nonindicted 7 on the date of repayment, and the Defendant requested Nonindicted 7 to revoke the notice of transfer of obligation on behalf of Nonindicted 7 on December 2, 2008, which was issued at the time of the said company’s request by Nonindicted 7, which was well known that he received KRW 70 million from Nonindicted 7,000,000,000,000 from the said company’s transaction bank, and thus, the Defendant received KRW 170,507,700,000 from the said company’s advance payment.

Nevertheless, on February 25, 2009, the Defendant submitted a false complaint to the Ansan Police Station as above, and around the 26th day of the same month, the Defendant made a statement with the same content as the above complaint, thereby making the above Nonindicted 2 and Nonindicted 7, respectively.

B. On April 9, 2009, the Defendant drafted a false complaint with the aim of having Nonindicted Party 2 criminal punishment at the above Nonindicted Party 10 Law Firm Office, and with the intent of having Nonindicted Party 2 obtain criminal punishment. The Defendant stated that “Nonindicted Party 2, the Defendant complained against the Defendant, indicated “10,000,000” in the column of the check number number of the Bank of Korea (number 2 omitted) embezzled by the Defendant, and then, the Defendant’s representative director, Defendant 1, Co., Ltd., Ltd. (hereinafter “the issuer column”), stamped Nonindicted Party 1, who affixed the name plate to the issuer column, affixed a seal of Nonindicted Party 1, and affixed a seal on the check number (number 1 omitted), and then issued it to Nonindicted Party 3 by forging it in a way of stating “168,400,000” in the column of the check number number “the issuer column,” and the Defendant’s representative director Nonparty 1, who affixed the name plate to Nonindicted Party 1, who exercised the check.

However, the Defendant was also aware of the fact that Nonindicted 2, as in the above paragraph (1), borrowed money from or obtained at a discount from the Defendant’s company as collateral, whenever the management funds of the Defendant company are insufficient, such as bill settlement funds, while taking charge of the management of the Defendant company’s funds.

In addition, the Defendant, through Nonindicted 2 on May 11, 2006, issued the check number (number 1 omitted), face value 1684 million won, and the check number in the name of the Defendant in the name of the Defendant in the blank for the payment. Nonindicted 3 supplemented the above payment date on November 25, 2008, and then changed it on December 31, 2008 at Nonindicted 2’s request, changed it again on January 20, 2009, changed it again to March 25, 2009, and presented the said check number to active service branch on the same day.

Around August 2006, the Defendant, via Nonindicted 2, issued the check number (number 2 omitted), face value 100 million won, and the number of shares in the name of the Defendant in blank, to Nonindicted 3 via Nonindicted 2, and Nonindicted 3 supplemented the above payment date on November 25, 2008, but changed it on December 31, 2008 at Nonindicted 2’s request, changed it on January 20, 2009, and then supplemented it on March 25, 2009, then presented one bank’s payment of the above number of shares at the active duty branch on the same day.

In addition, even if Nonindicted 2 was unable to know Nonindicted 3 of the fact that he received discount or borrowed funds by issuing the above check of the number of shares, Nonindicted 2 and Nonindicted 3, through Nonindicted 2 and Nonindicted 3 on March 2009, explained about the situation where Nonindicted 3 possessed the above check of the number of shares, and Nonindicted 2 borrowed money to Nonindicted 3 for the purpose of securing the Defendant’s funds, and delivered Nonindicted 2 a double of the above number of shares to Nonindicted 3, and Nonindicted 3 was well aware that Nonindicted 3 properly acquired two of the above number of shares of the Defendant’s funds, he submitted a written accusation to the public service center of the Gyeyang Police Station around April 9, 2009, and subsequently rejected Nonindicted 2.

3. Violation of the Labor Standards Act.

The Defendant, as the representative director of Nonindicted Company 1 located in Ansan-si ( Address 2 omitted), was an employer who runs the manufacturing business (water supply and sewerage, and refined wastewater treatment equipment), employing 15 full-time workers;

The above workplace worked as an employee from January 29, 2001 to December 31, 2008, and did not pay 20,166,640 won of retirement allowances of Nonindicted 2 retired from office within 14 days from the time when the cause for the payment occurred without any agreement on the extension of the due date between the parties concerned.

1. Partial statement of the defendant;

1. Each testimony of Nonindicted 7, 2, and 3

1. Each protocol concerning the examination of the suspect against the defendant, non-indicted 2, and 7 of the prosecution

1. The prosecutor's office and the police's statement regarding Nonindicted 4

1. Nonindicted 2’s written petition

1. A copy of each check’s accident report;

1. Each complaint;

1. A written calculation of average wages and retirement allowances;

1. Article applicable to criminal facts;

Article 156 of each Criminal Code (Selection of Imprisonment with Labor), Article 4 of each Illegal Check Control Act (Selection of Imprisonment with Labor), Articles 109(1) and 36 of the Labor Standards Act (Selection of Fine)

1. Aggravation for concurrent crimes;

Article 37 (former part), Article 38 (1) 2 and 3, and Article 50 of the Criminal Act

1. Detention in a workhouse;

Articles 70 and 69(2) of the Criminal Act

1. Order of provisional payment;

Article 334(1) of the Criminal Procedure Act

It is so decided as per Disposition for the above reasons.

Judges High Hun-Ba