A defendant shall be punished by imprisonment for two years.

However, the execution of the above sentence shall be suspended for three years from the date this judgment became final and conclusive.

Punishment of the crime

The Defendant, together with E, worked as a representative director of the Victim F Co., Ltd. (hereinafter “victim”) who wholesale and retail business of clothing goods from July 1, 2013 to February 12, 2014.

On August 12, 2013, the Defendant borrowed a loan of KRW 1 billion in the name of the damaged company from the Korea Development Bank.

As the representative director of the victimized company, the defendant has a duty to preserve and manage the above loans, which are the company's property, with the duty of due care as a good manager.

Therefore, in order to acquire new shares for consideration of another company's capital increase, it is necessary to fully review whether the company can generate profits through the actual inspection of financial status such as the company's capital, sales, and return on profit, so that it does not cause property damage to the affected company by accepting new shares.

G Co., Ltd. (hereinafter referred to as “G”) issuing new shares for the capital increase to be acquired by the Defendant was a non-permanent owner established on March 6, 2013, with a face value of KRW 500,000 per share, capital stock of KRW 70,000,000, and there was no sales until the time of the capital increase for consideration.

Therefore, the defendant could have sufficiently predicted the possibility of damage to the victimized company when acquiring new shares of 500 won per share with a face value of 20,000 won equivalent to that of 20 times the value.

Nevertheless, around August 13, 2013, the Defendant did not take such measures in violation of his duties at the Seoul Songpa-gu H and 402 office of the victimized company, and acquired KRW 500,000 per share price issued by G by participating in the increase of capital through the issuance of new shares in order to prepare a project investment fund, such as medical care and post facto cooking sources, which the Defendant actually operated by G, in violation of his duties, and acquired KRW 1 billion per share price of KRW 1 billion per share issued by G.

As a result, the defendant is together with G's profit from liquidity acquisition of cash equivalent to one billion won.