Defendant

A Imprisonment with prison labor of one year and six months, and Defendant B shall be punished by imprisonment with prison labor of one year.

Punishment of the crime

1. The Defendants’ identity and Defendant A is a person who, on December 1, 201, established a company E in the Yeonsu-gu Incheon Metropolitan Government D Building 706, established a company for the business of manufacturing explosion-preventive devices (the closure of business on December 31, 2013) (the closure of business on December 31, 201) and a person who established G in the Yeonsu-gu Incheon Metropolitan City F 305 on December 4, 2013.

Defendant

B is a person who was engaged in the above E company and G in partnership with A as the head of the above E company and the inside director of G Co., Ltd. (from December 4, 2013 to May 19, 2014) while operating the above E company and G in partnership with A.

2. On December 2012, the Defendants pretended to be an enterprise normally operated by E companies by issuing false tax invoices under the name of E companies, and conspired to obtain loans from E companies in the name of E companies and to apply for various subsidies administered by the Small and Medium Business Administration.

Fraudulent Small and Medium Business Corporation has provided policy funds to improve the quality of small and medium enterprises that will serve as an industrial foundation in the Republic of Korea and enhance international competition.

On January 4, 2013, at the above E company office, the Defendants drafted an application for a loan of funds for small and medium enterprises to KRW 100 million for the policy funds for small and medium enterprises. The Defendants stated in the business plan that the annual sales of E company amount to KRW 180 million, and that A had been in charge of the production process supervision, and technical operations in H company at H company’s ship engineer, I company, and then submitted the above loan application and the business plan to the K company’s website. On January 29 through January 31, 2013, the Defendants explained the above business plan to K as stated in the business plan, and that the sales of the E company in 2012 were KRW 160 million, and that A/S contracts were concluded from 2013 to 200 million annually.

In fact, all sales of the E company in 2012 issue false tax invoices.