Defendant

A Imprisonment for eight months, and Defendant B shall be punished by a fine of 3,000,000 won.

Defendant

B The above fine.

Punishment of the crime

[Criminal Power] On June 8, 201, Defendant A was sentenced to a suspended sentence of three years of imprisonment for fraud at the Jeonju District Court on the last day of June, 201, and the said judgment became final and conclusive on the 16th day of the same month.

【Criminal Facts】

Defendant

A is the representative of H Farming Association in the Jeon-gu Seoul Special Self-Governing Province G (hereinafter referred to as "fisheries company I") and Defendant B is a person who engages in construction business under the trade name of "K" in the Jung-gu Seoul Special Metropolitan CityJ in the Jeon-gu Special Metropolitan City.

Defendant

A submitted an application for a subsidy of KRW 51 million (including KRW 16.5 million for national expenses, KRW 16.5 million for military expenses, KRW 18 million for self-responsibility, and KRW 18.0 million for national expenses) in his/her name, and submitted an application for a subsidy with the content that, around July 19, 2010, A submitted an application for a subsidy to carry out a “L business application (L livestock farming facility project)” in his/her name to the Jeju-gun Agriculture and Forestry Livestock Administration and the Jeju-gun Office. On December 30, 2010, A requested a subsidy of KRW 33 million for the subsidy as specified.

However, in fact, Defendant A did not have the intention or ability to bear all of KRW 18 million with the subsidies to the maximum extent possible, and was thought to submit a completion report as if he did so in a way that he did not bear the expenses.

On October 27, 2010, Defendant A entrusted Defendant B with construction of KRW 38 million, and around December 2010, Defendant B offered to Defendant B with a proposal to the effect that “I would make false deposit details as if I had borne self-payment, and would receive subsidies as construction cost for the above facility business.” On December 27, 2010, the Defendants made details of false deposit of KRW 13 million by paying money using Defendant A’s agricultural bank account.

Since then, Defendant B received delegation from Defendant A in accordance with the above public offering, and around January 10, 2010, Defendant B required KRW 51 million as total construction cost in accordance with the above public offering.