Defendants shall be punished by a fine of KRW 5,000,000.

The Defendants did not pay each of the above fines.

Punishment of the crime

Defendant

A served as the president of the Association, an incorporated association (hereinafter referred to as “F”), the members of which consist of companies manufacturing and selling E from May 201 to February 2015, and Defendant B served as a general secretary of the Association from March 201 to April 2012, and from May 201 to February 2015, Defendant B served as a general secretary of the Association.

The Korean Federation of Small and Medium Business provides F with a government subsidy to cover part of the expenses incurred by companies participating in overseas exhibitions through F in order to support the increase in exports of member companies, and F carries out the business of receiving government subsidies from the Korea Federation of Small and Medium Business and paying out the expenses incurred in overseas exhibitions and allocating government subsidies to members participating in overseas exhibitions.

Therefore, F in receipt of the above subsidy must manage the subsidy in good faith and clearly separate it from other exhibition expenses or association operation expenses by establishing a separate account, and in the case of converting the items of subsidy used to be notified to the Korea Federation of Small and Medium Business, it is subject to strict prior approval if it is subject to prior consultation with the Korea Federation of Small and Medium Business or conversion of items into items. In particular, the additional subsidy paid after the completion of overseas exhibitions and the ex post facto payment should be paid to the member participating in

Nevertheless, as the above Association operating expenses are insufficient, the Defendants solicited not to divide the additional subsidies from the Korea Federation of Small and Medium Business to the members, but to use them as operating expenses of the Association.

1. From March 22, 2011 to the 26th day of the same month, the F participated in 50 companies affiliated with the said Association, receiving government subsidies from the Korea Federation of Small and Medium Business in relation to G exhibitions held in the German Green Promotion Fund.

The Defendants completed the G exhibition in July 201 at the end of July 2012.