Defendant

A A shall be punished by a fine of KRW 3,000,000, and by a fine of KRW 2,000,000,000, respectively.

Defendant .

Punishment of the crime

1. Defendant A is the chief director of a social welfare foundation established for the purpose of medical welfare projects, etc.

(a) Where it is intended to sell, donate, exchange, lease, provide security, or change the purpose of use of any basic property of a corporation with respect to the operation of social welfare business, the permission of the Mayor/Do Governor shall be obtained;

Nevertheless, around June 26, 2014, the Defendant terminated the amount of KRW 200 million deposited to a corporate bank as the fundamental property of the foregoing Association from the social welfare foundation B office located in Nam-gu Incheon Metropolitan City, and then used it as operating expenses related to the wages of employees without obtaining permission from the competent authorities.

(b) Any person who operates data not submitted social welfare programs shall be directed and supervised by a Mayor/Do Governor or the head of a Si/Gun/Gu with respect to the affairs under his/her jurisdiction and submit a report or related documents with respect to such affairs;

Nevertheless, from September 19, 2014 to October 7, 2014, the Defendant did not submit the “head of a Tong related to fundamental property”, “corporate basic status (property, liabilities)”, “list of the executives and auditors”, etc., which was requested by the office of the Association from around September 19, 2014 to the office of the Association, in the course of cross-inspection of social welfare foundation in 2014, which was conducted by the office of the Association

(c)

No social welfare foundation that uses profits for purposes other than the purpose of profit shall use profits generated from profit-making business for purposes other than the operation of social welfare facilities established by corporations or corporations.

Nevertheless, from April 2014 to July 2014, the Defendant used profits for purposes other than the operation of social welfare facilities established by a juristic person or a juristic person, such as the lease deposit of the said Association office to KRW 150 million, KRW 2,857,760, and KRW 19,500,000,000 for the purchase of medical appliances to be used to operate the hospital in the said building, and KRW 172,357,760,000 for the purchase of medical appliances to be used to operate the hospital in the said building.

2. The defendant B is a social welfare foundation.