Defendants shall be punished by imprisonment for eight months.

However, from the date of the conclusion of the judgment, the Defendants are above two years from the date of the judgment.

Punishment of the crime

On July 17, 2015, Defendant A was sentenced to imprisonment with prison labor for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) in the Busan District Court on July 17, 2015 and the above judgment was finalized on October 19, 2015.

Criminal facts

Defendant

B is a director of corporation E, and Defendant A is a director of corporation F.

On May 2013, the Defendants: (a) extended the repayment period of KRW 330 million borrowed from the National Bank through the B2B purchase loan system; and (b) extended the repayment period from the National Bank to the Busan Bank to the Busan Bank; (c) repaid the existing loans to the National Bank; and (d) paid the loans to the Busan Bank from the Busan Bank through false transactions with the warning plant facility corporation; and (c) agreed to receive a credit guarantee certificate for the B2B purchase loan from the Korea Credit Guarantee Fund, although the Defendant did not plan to purchase the goods, etc. from the warning plant facility corporation, the Defendants agreed to obtain the credit guarantee certificate for the B2B purchase loan from the Korea Credit Guarantee Fund.

Defendant

B On May 11, 2015, at the Busan Credit Guarantee Fund located in Busan located in Busan located in Busan located in Busan located in Busan located in order to actually purchase goods, etc., and issued a credit guarantee certificate, B entered into a credit guarantee agreement as “the principal amount of credit guarantee KRW 280,500,000,000,000 for the credit guarantee period from May 11, 2015 to May 10, 2016, and submitted a credit guarantee agreement to G employees of the Credit Guarantee Fund.”

However, as discussed earlier, the Defendants did not think of purchasing actual goods from the warning plant facility corporation, and if the Busan Bank submitted transaction documents, such as false tax invoice, to the Busan Bank, and paid the sales proceeds to the account in the name of the warning plant facility corporation, the Defendant A immediately issued the false sales proceeds under the name of E.