Defendants shall be punished by a fine of four million won.

The Defendants did not pay the above fines.

Punishment of the crime

Defendant

A is the person who is the chairperson of the D Association Promotion Committee for the construction of an apartment (hereinafter referred to as the “instant apartment”) on the land outside the Yeongdeungpo-gu Seoul and outside the 29 lots, and Defendant B is the director of the said regional housing association promotion committee, and Defendant B is the representative director of the victim F Co., Ltd. who obtained approval for the construction project plan of the instant apartment, and the victim G is the owner of the instant apartment site outside the Heung-gu and the 15 lots of land and the I kindergarten building among the instant apartment site.

On November 30, 2016, Defendants entered into an agreement on transfer and takeover of business rights with F Co., Ltd. and the instant apartment construction execution business.

Article 2(1) of the above Business License Transfer and Acquisition Contract provides that "A (F representative E of the J Regional Housing Association) shall obtain a written confirmation and consent from the landowners within 30 days from the date of receipt of the down payment 500 million won after entering into a contract with B (the Chairperson A of the J Regional Housing Association Promotion Committee), and B shall actively cooperate with B. Pursuant to Article 2(2) of the B’s obligation, “The total transfer amount is 1.5 billion won, and the 100 million won out of the down payment is 1.5 billion won, and the 100 million won out of the down payment shall be paid on December 8, 2016, 201, and 100 million won shall be paid on February 10, 2017, the remainder shall be paid upon mutual agreement, and the remainder shall be paid at the time of receipt of the business approval.” Article 3(2) of the Agreement provides that “B shall not make payment on the date of receipt of the special agreement.”

Nevertheless, until April 5, 2017, the Defendants received the notification of cancellation of the contract from F Co., Ltd. as the Defendants failed to pay 120 million won out of the down payment and to pay the remainder down payment. Therefore, the Defendants cannot recruit association members for the instant apartment construction project, and further, without the consent of 100% of the props of the apartment land including the said G.