Defendants are not guilty.

1. The summary of the facts charged in the instant case [Attachment fact] (tentative name), the regional housing association promotion committee of the housing association (hereinafter “promotion committee”) is an organization established for the purpose of establishing a regional housing association under the Housing Act in order to promote the new construction of a collective housing by developing a lot of land, such as Ulsan D, which is an ordinary residential area, and E was appointed as the representative of the above promotion committee on May 21, 2014.

Defendant

A was appointed as a director at the inaugural general meeting of the above promotion committee around November 24, 2014, and Defendant B was appointed as an auditor of the promotion committee on the same day.

On June 23, 2014, a promotion committee entered into a contract on behalf of the F Co., Ltd. with the authority required for the promotion of new construction projects of multi-family housing and the sale of multi-family housing units. Accordingly, F Co., Ltd. upon performing some duties around September 2014. On November 17, 2014, upon cancelling the agreement on the above agency contract, it received KRW 680,000,000 from the said promotion committee’s association as an advance for its duties.

On the other hand, on November 4, 2014, G of F Company F established H (hereinafter “H”) for the purpose of housing construction project, etc. on or around November 4, 2014. On November 17, 2014, the term “business agency contract” (hereinafter “business agency contract”) was concluded between the Promotion Committee and the committee of promoters. The main contents of the above business agency contract were “H performs all duties related to the implementation and liquidation of the association by acting for the Promotion Committee,” and receive from the association the payment of KRW 8,680,000 for business agency expenses (excluding KRW 1,00,000 for each household, and value added tax). However, the association’s establishment authorization was 50% at the time of approval of the business plan, 30% at the time of approval of the business plan, and 20% at the time of the association’s liquidation.”

According to the rules of the victim's association, since the above agency contract constitutes "a contract that imposes a burden on the members, other than the matters stipulated in the budget," the victim's association's member's general meeting is subject to resolution.