Defendants are not guilty.

1. The summary of the facts charged is the person who served as the president of the partnership from August 22, 2012 to February 28, 2016 in the “F Housing Redevelopment and Improvement Project Association” (hereinafter “the instant partnership”) located in Yongsan-gu Seoul Metropolitan Government, and Defendant B is a person who served as the president of the partnership from March 1, 2016 from the instant partnership to the present date.

No executive officer of an association shall promote business at will without a resolution of the general meeting comprised of its members with respect to borrowing of funds, method of such borrowing, interest rate, and method of repayment.

Nevertheless, on January 7, 2015, Defendant A borrowed KRW 23,582,172 on 45 occasions from four members, including members G, etc. to February 26, 2016 and did not undergo a resolution at a general meeting. On March 8, 2016, Defendant B borrowed KRW 500,000,000 from H (one pre-name: I) in relation to the improvement project of the instant association from the above office of the instant association, on condition that the funds for the future operation of the association will be settled at interest without interest rate of 6% per annum from G, and borrowed KRW 50,000,000 from March 26, 2016 to March 26, 2016, Defendant B did not undergo a resolution at the general meeting, including: (ii) in the case of borrowing KRW 500,500,000 on the condition that the funds for operation of the association will be normally secured from the above office of the instant association.

As a result, the Defendants arbitrarily promoted the project without going through the resolution of the general meeting on the lending of funds, the method, interest rate, and the repayment method as an executive of the instant association.

2. Determination

A. The Defendants and the defense counsel asserted in civil litigation against the instant partnership were performing services by concluding a contract for the establishment promotion of the partnership for the development and improvement project of F-Housing Redevelopment, the telegraph of the instant partnership, and the specialized management and management services of the rearrangement project.