A defendant shall be punished by imprisonment for one year.

Punishment of the crime

The Credit Guarantee Fund established under the Credit Guarantee Fund Act (the Government and financial institutions as the basic fund) guarantees the obligations of enterprises which lack security capacity by establishing the Fund, thereby facilitating the financing of enterprises and contributing to the balanced development of the national economy by establishing sound credit order through efficient management and operation of credit information.

The Credit Guarantee Fund is operating the B2B guarantee system in order to revitalize electronic commerce and enhance corporate transparency by removing the uncertainty of recovery of non-faced transactions made online.

BB Guarantee System of Electronic Commerce is operated in the form of loans for corporate purchase based on actual commercial transactions, which enters electronic purchase contract into an online market (MP) by a purchasing company that wishes to borrow a loan for corporate purchase, and a goods selling company (seller) submits an electronic sales contract and concludes a mutual transaction, MP will send the transaction information to the Korea Credit Guarantee Fund's stores, and the Korea Credit Guarantee Fund will send it again to the bank.

Since then the bank shall transfer the loan directly to the account of a seller of goods (seller) within the limit guaranteed by the Korea Credit Guarantee Fund, and the buyer of goods (seller) shall operate in the form of repaying the amount of goods within the period of six months to one year.

The defendant is the representative director of (ju) E established for the purpose of construction business located in Seoul Special Metropolitan City, Nowon-gu D.

On April 14, 2010, the Defendant provided a credit guarantee (F) from the Credit Guarantee Fund located in Mapo-gu Seoul Metropolitan Government 254-5 with a loan for corporate purchase (B2B purchase fund), the estimated loan amount of 320,000,000 won, the guaranteed amount of 304,00,000 won (the guaranteed rate of 95%).