Defendant

A shall be punished by imprisonment with prison labor for six months and by imprisonment for four months.

However, this decision is delivered to the Defendants.

Punishment of the crime

[Criminal Power] Defendant A was sentenced to eight months of imprisonment for fraud at the Ulsan District Court on November 23, 2017, and the said judgment became final and conclusive on May 3, 2018.

【Criminal Facts】

Defendant

A is a person who operated C Co., Ltd., a steel market cutting company, and Defendant B was a person who worked in the above company as an accounting member.

Defendant

A around July 1, 2013, around July 1, 2013, the victim called "A shall supply the scrap metal generated in the course of cutting steel plates from the above stock company at least 50 tons each month to the victim at least 40 tons of scrap metal." On the condition that the defendant A supplies 50 tons of scrap metal to the victim every month, A was paid the advance payment of KRW 100 million, and if the defendant A is unable to comply with this, a scrap metal contract with the content that the victim arbitrarily disposes of the scrap metal.

However, Defendant A’s failure to perform the above contractual terms is likely to be subject to compulsory execution, who is demanded to return KRW 100 million by the victim, and thus, Defendant B proposed to establish a false collective security right with respect to the above holding party. Defendant B consented thereto. On January 9, 2014, Defendant B created a collateral security right of KRW B and the maximum debt amount of KRW 30 million against the above holding party.

As a result, the Defendants conspired to avoid compulsory execution, thereby evading compulsory execution by bearing false debt by setting up a right to collateral security on the part of the Defendants.

Summary of Evidence

1. Legal statement of witness D, and part of witness F’s legal statement;

1. Each prosecutor's interrogation protocol against the Defendants

1. Each part of the police interrogation protocol against the Defendants (including each D substitute part)

1. A scrap metal contract, settlement statement, construction machine register, application for registration of mortgage, automobile mortgage contract, B corporation’s certificate of seal impression C;

1. As a result of replies to investigation cooperation, investigation reports ( search by the Employment and Labor Office), average wages and retirement allowances calculation statements, and retirement allowances calculation reports;