Defendants are not guilty.

1. Defendant A is the representative director of the (ju) E established for the purpose of manufacturing and selling semiconductor-related development equipment and ancillary equipment, and Defendant B was the president of the above company.

The Defendants conspired to the effect that, around January 2013, at the office of the president of the (State) EE, the Defendants made a false statement to the victim G of the (State)F, “to pay the cost of semiconductor-related equipment on the high seas.”

However, in fact, the Defendants’ operating company did not reach 16.2 billion won in total as of December 31, 2012, and the total debt amount rapidly increased to 17 billion won in March 31, 2013, which was later than three months, and even if the loans are borrowed from financial institutions, the amount of the loan amount exceeded 17 billion won, and the application for the commencement of corporate rehabilitation procedures was made on April 30, 2013 and applied for rehabilitation to the court around May of the same year. Thus, even if the parts were processed by the victims, the Defendants did not have the intent or ability to pay the amount normally.

As such, the Defendants: (a) by deceiving the victim; and (b) had the victim process the product amounting to KRW 19,836,600 from January 2, 2013 to April 30, 2013; and (c) had the victim process the product amounting to KRW 19,836,60 in total on six occasions, such as the list of crimes in attached Table.

2. Defendants and defense counsel’s assertion

A. The instant case is merely a matter of civil settlement in a continuous commercial transaction relationship between the companies, and cannot be recognized as a criminal intent to acquire money from the Defendants.

B. In addition, Defendant B started to work in E from February 25, 2013, and was not in the position of deception at the time specified in the facts charged.

3. Determination

A. According to the evidence duly admitted and examined by this court, the following facts can be acknowledged.

E was traded with F from September 201, and was supplied with semiconductor-related equipment parts from F, it was settled later.

E is in arrears with the payment of the F from April 2012.