A defendant shall be punished by imprisonment for two years.

Punishment of the crime

The defendant is the representative director of D Co., Ltd.

On June 23, 2010, the Defendant borrowed funds necessary for the construction of a factory from the Victim Bank Co., Ltd. (hereinafter referred to as the “victim Bank”) to the Victim Bank regarding E and F land owned by the said D Co., Ltd., the Defendant created, respectively, the third-class collateral security (the third-class collateral security) with a maximum debt amount of KRW 2.916 billion, as to E and F land owned by the said D Co., Ltd.

In addition, the Defendant, on the same day, agreed to the victim bank to set up a priority collective security right, such as a collective security right on the first-class collective security right on each of the above lands, as a joint security on the first-class collective security right on November 30, 2009, with the maximum debt amount of 1.988 billion won on each of the above lands, when a factory building (1,272 square meters on each of the above E-ground, total floor area of 1,483.47 square meters and 1,068 square meters on each of the above F-ground four factories, and 1,068 square meters on each of the above factories (hereinafter “instant factory building”).

Therefore, if the building of this case is completed and the registration of preservation of ownership has been made pursuant to the above agreement, the defendant had the duty to set the priority-mortgage, such as the right to collateral created on each land, in the future of the injured bank.

Nevertheless, around September 23, 2011, the Defendant borrowed KRW 500 million from the above Industrial Bank of Korea at the branch of the Gunposi Industrial Bank of Korea located in Suwon-si, 522, Suwon District Court, through G certified judicial scrivener, set up the first priority collateral security (hereinafter “instant collateral security”) causing 600 million to the maximum debt amount for the factory building of this case to be the Industrial Bank of Korea through G certified judicial scrivener at the Suwon District Court registry office.

Accordingly, the Defendant had the above Industrial Bank of Korea KRW 600 million.