A defendant shall be punished by imprisonment for two years.

Criminal facts

1. On June 23, 2017, B Co., Ltd. (hereinafter referred to as “B”) is a corporation established for the purpose of providing online platform services, etc. for lending so-called P2P (P2P to Peer; hereinafter “P2P”) that connects multiple investors through online, and C Co., Ltd (hereinafter referred to as “C”) is a corporation established for the purpose of credit business (hereinafter referred to as “P2P connected credit business”) related to P2P loans around July 19, 2017.

B After receiving a business plan, revenue and expenditure analysis table, field photographs, etc. of a specific real estate development project from a specific borrower to examine the profitability of the development project concerned, the security value of the real estate concerned, possibility of collecting loans, etc., and if deemed appropriate, the information necessary to determine the credit rating, purpose of loans, and collateral ability of the specific borrower on the online platform shall be disclosed as an investment product, and individual investors subscribed to B as a member shall determine whether to make an investment and the amount of investment.

Since then, C conducting P2P-linked Credit Business is entrusted by B with the management of investments, etc., and lends funds received from investors who decided to make investments in certain P2P goods to the relevant borrower, and if the borrower redeems the principal and interest, it shall be allocated to the said investor.

2. A P2P lending product that specific criminal facts B disclosed to a P2P lending online platform is posted after examining the business plan, land analysis table, on-site photograph, etc. concerning a specific real estate development project submitted by a specific borrower in advance and determining that the project is appropriate, and the use of the investment fund is specified as a loan necessary for a development project of a specific real estate, and the borrower is also specified as the name of the owner or the trade name of the city construction.