Defendant

A Imprisonment with prison labor of two years and six months and fine of 670,000,000 won, and Defendant B shall be punished by a fine of 20,000,000 won.

Punishment of the crime

On October 26, 2011, Defendant B was sentenced to imprisonment with prison labor of two years and six months and fines of KRW 1,350,000,000 for the violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (tax) in Suwon District Court of Suwon District on October 26, 201, and the said judgment became final and conclusive on April 12, 2012.

1. Defendant B and Defendant B received a proposal from F to request the head of B to seek a branch office that operates a secondhand shop on June 2010, and recommended Defendant A to become the head of B. Defendant A accepted the proposal and completed the business registration on June 3, 2010 with the location of the place of business as G, G, 2, and H as “H”.

On July 8, 2010, Defendant A, according to the direction of Defendant B, prepared a tax invoice of KRW 162,006,000 in supply price in the “H” office, and issued each tax invoice of KRW 118,950,000 in supply price on July 14, 2010, as if the supply price of KRW 80,058,40 in supply price was supplied, including one tax invoice of KRW 361,014,40 in supply price.

Accordingly, the Defendants conspired with F and issued a tax invoice without supplying goods or services under the Value-Added Tax Act.

2. Around December 2010, Defendant A received a proposal from F to offer monthly pay and earnings if he/she is able to trade in the name of “H” in the name of “H.” and accepted it.

On January 3, 2011, the Defendant, according to F’s instructions, prepared and issued a tax invoice of KRW 6,639,681,770 as shown in the annexed Table 1 from around that time to April 25, 2011, as the supply price of goods equivalent to KRW 183,830,40,00 in supply price to the Dispute Settlement Council, although there was no supply of goods or services, and prepared and issued a tax invoice of KRW 6,639,681,770 as shown in the annexed Table 1.

Accordingly, the defendant, in collusion with F, is goods or goods under the Value-Added Tax Act for profit.