Defendant shall be punished by a fine of KRW 15 million.

If the defendant does not pay the above fine, 50,000 won.

Punishment of the crime

On October 25, 2012, the Defendant was sentenced to a suspended sentence of two years for a violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission at the Seoul Northern District Court (hereinafter “Seoul Northern District Court”), which became final and conclusive on November 2, 2012.

The Defendant is a (State)B management director primarily established for advertising agency business, in collusion with C representative director of the foregoing corporation, D, business directors D, E, F, audit G, Busan Branch President H, Gwangju Branch President I, agencies J, K, and regular members L, etc.;

1. Fact: (a) A corporation established for the purpose of the business of installing LCS monitors for advertising in an apartment elevator on December 5, 2005 is in the situation of continuous operation expenses without profit; (b) its own investment alone is difficult to operate the corporation; (c) even if an investment is made, it does not have the ability to rapidly increase sales within a short period by using investment funds; (d) even if an investment is made from investors in the above corporation with a short-term investment fund, it is inevitable to take the method of continuously repaying the principal and interest of existing investors within a short period by using investment funds attracting subordinated investors in the above corporation; (e) as long as a new investor is not induced, it is anticipated that the fixed high-rate investment fund will not be paid, and (e) there is no intent or ability to pay the agreed high-rate interest rate to investors, and (e) from the above corporation office located in the Gangnam-gu Seoul Metropolitan Government MM building on December 5, 2005 to the victim's apartment trading company, one million and one hundred (1500,00,00,000 won per week.