A defendant shall be punished by imprisonment for six months.

However, the execution of the above punishment shall be suspended for one year from the date this judgment becomes final and conclusive.

Punishment of the crime

[Criminal Justice] On October 11, 2011, the Defendant was sentenced to two years of suspension of the execution of imprisonment with prison labor for fraud at the Daegu District Court on August 18, 201 and the said judgment became final and conclusive on October 18, 201.

【Criminal Facts】

1. Around December 2009, the Defendant had no intent or ability to pay the principal and interest on the agreed date, insofar as the Defendant’s obligation to a financial institution and an individual debtor exceeds KRW 110 million, but did not have any particular property, and thus, did not make any profit even if the Defendant borrowed or invested money from another person or invested in futures options.

Nevertheless, the Defendant did not have any risk of principal loss since the Defendant made an investment solely with interest on operating funds to the victim C, so he acted as if he were to repay principal and interest after one year.

Around December 4, 2009, the Defendant, at a multilateral point where it is impossible to know the trade name located in Daegu Suwon-gu D, the Defendant borrowed KRW 30 million to the Defendant’s bank account in the name of the Defendant, on the ground that “The Defendant is making an investment only in the interest of KRW 70 million for operating funds, as he/she intends to properly operate the futures option product that is currently investing in the office.” As such, there is no risk of principal loss because he/she makes an investment only in the interest of KRW 70 million for operating funds. The Defendant made a false statement that “The principal shall be paid interest of KRW 1 million every month, and the principal shall be repaid after one year.” The Defendant, who believed the statement, received KRW 30 million from the victim to the national bank account in the name of the Defendant.”

2. The Defendant, around October 2010, invested funds of approximately KRW 60 million in futures option, thereby incurring losses to the principal amounting to KRW 40 million. In order to reach a meeting, the Defendant had a liability of KRW 150 million with additional money, while there was no particular property, and thus, the Defendant did not have any intent or ability to repay the principal and interest on the agreed date so long as he/she did not make profits even if he/she borrowed or invested money from another person or made an investment in futures option.

Nevertheless, it is not appropriate.