Defendants shall be punished by imprisonment for six months.

However, it is against the Defendants for one year from the date when this judgment became final and conclusive.

Punishment of the crime

Defendant

A is the representative director of Seoul Special Metropolitan City, Nowon-gu D Building and E Co., Ltd. (hereinafter referred to as “E”), and Defendant B is the inside director of E.

The Defendants, while promoting the work to sell E to F, were in need of a majority share, used the funds of G Co., Ltd. (hereinafter referred to as “G”) operated by them, and were willing to procure a majority share by obtaining shares by the method of pretending the payment of capital increase for consideration.

1. Concerning the issuance of new shares on August 22, 2015 (referring to August 25, 2015; 300,000 common shares)

A. On August 5, 2015, Defendants in violation of the Commercial Act passed a resolution at the board of directors for capital increase of 300,000 won per share of ordinary shares (500 won per share) with a third party allocation method at the above E office. Around August 7, 2015, Defendants in violation of the Commercial Act announced the issuance of new shares to H newspapers.

The Defendants, around 15:54 on August 21, 2015, withdrawn KRW 147,00,000 from the post office account (I) in G’s name and deposited KRW 150,000 (including KRW 3,000,000 for Defendant A’s individual funds) in the name of G employee K in the form of capital increase, and received a certificate of deposit balance from the said bank around 16:14 on the same day.

Then, around August 25, 2015, the Defendants withdrawn the full amount of KRW 150,000,000 from the post office account in the name of E on August 25, 2015, and deposited KRW 147,700,000 after deducting the registration cost of KRW 2,30,000 from the registration cost of around 11:25 on the same day.

As a result, the Defendants conspired to make the payment of the share price.

B. The Defendants, such as public electronic records, are recorded in the registry of the Seoul Central District Court in Seocho-gu Seoul District Court on August 25, 2015, and the facts are written in the registry of the Seoul Central District Court on March 14, 2015, and the E’s total amount of KRW 150 million, such as the statement in paragraph 1(a), was paid in advance. However, the above registry official who is aware of the fact, is a public official of the above registry office at issue on August 22, 2015, whose total amount of KRW 300,000 per share was accepted at around 510,000 won and whose total amount of E’s capital was 60,000 won.