The defendant is not guilty. The summary of the judgment against the defendant shall be published.

1. The Defendant is the representative director of C, a victimized company with the purpose of real estate sale and investment.

The defendant, as the representative director of a victimized company, shall work solely for the benefit of the company in faithfully performing his/her duties for the sake of the company in accordance with statutes and the articles of incorporation, and shall not arbitrarily dispose of the property of the victimized company, such as establishing

Nevertheless, on March 27, 2014, the Defendant, in violation of his duties, set up a collateral security right of KRW 120,000,000 for the first floor of the E building owned by D without a resolution of the board of directors and convening a general meeting of shareholders on March 27, 2014 (hereinafter “instant collateral security right”) against D, thereby obtaining pecuniary benefits equivalent to the same amount from D, and suffered loss from the victimized company.

2. In the judgment of the crime of breach of trust, the term “when a property damage is inflicted” includes not only a case where a real loss is inflicted, but also a case where a risk of actual loss of property has been caused, but also a case where a risk of such loss has not been caused.

Therefore, in a case where a juristic act whose representative is a juristic person’s name has no legal effect, it cannot be said that any damage to the juristic person has occurred or is likely to occur, barring any special circumstances, and the act of the representative does not constitute a crime of breach of trust, and where the representative director, etc. exercises his power of representation for the purpose of promoting his own or a third party’s interest, not for the company’s interest, if the other party knew or could have known

(Supreme Court Decision 2012Do2142 Decided May 24, 2012). On the other hand, the representative of the company guarantees his/her personal obligation.