Defendant

A A shall be punished by a fine of 6 million won, and Defendant B shall be punished by a fine of 1.5 million won.

The above fines are imposed by the Defendants.

Punishment of the crime

Defendant

B was sentenced to one year and eight months by imprisonment at the Daegu District Court on September 26, 2013, and the said judgment was finalized on August 25, 2014.

The Defendants appoint a representative director as G on August 28, 2013 in order to promote a project to build a 284-household apartment house with the public sale of the F land and buildings under construction in the Jeju-do Seopo-si, Seopo-do, and a person who establishes and operates the H Co., Ltd. with capital of KRW 100 million (hereinafter referred to as the “H”).

1. The Defendants conspired to use the method to return KRW 200 million to O&D Co., Ltd. on the date following the most paid-in share capital by lending KRW 200 million from O&D in order to increase H’s capital in KRW 300 million, along with representative directors G, since it is possible to register a housing construction project with the corporate capital of KRW 300 million or more.

A. The Defendants in violation of the Commercial Act, in collusion with the representative director G, shall receive KRW 200 million transfer from the above corporation Asung C&D to the account in the name of H in the Daegu Suwon-gu, 4-393 on October 4, 2013, and receive a certificate of the balance of the share capital payment from the Daegu bank, in consultation with the representative director G, and issued the certificate of the payment of the share capital from the Daegu bank.

7. It returned KRW 200 million to Osung C&D Co., Ltd.

Accordingly, the defendants would make the payment of KRW 200 million in collusion with the representative director G.

B. On October 4, 2013, the Defendants conspired with G to make an application for registration of change at the JAD office located in Daegu Suwon-gu, Daegu-gu. Around October 4, 2013. The JAD shall submit the modified application document to the public official in charge of registration along with the certificate of payment balance of shares issued, and shall cause the public official in charge of being aware of the fact to complete registration of change by stating the “30,000 shares” in the total number of shares issued in the commercial register of H, and “30,000,000 won” in the total amount of capital.