Defendants shall be punished by imprisonment for two years.

An applicant for compensation shall be dismissed.

Punishment of the crime

Defendant

A is the representative director of G corporation designated as the holder of the F in Gangwon-gun E, and Defendant B is the person registered as the holder of the above F's extraction right, and H is the former representative director of the victim D corporation who received the above F's excavation work.

On December 2, 2013, the Defendants issued a false statement to H stating that “F would have excavated a tunnel of 270 meters depth to F, and would have sold the mined rooftop to the rooftops located in China, because it would be California. At present, at the beginning of the mine only, the funds would be secured as soon as the investors in China would reduce the amount of funds. If the amount of KRW 100 million is lent to the existing construction business operators prior to the commencement of the construction work, the amount of construction cost per 1m of the tunnel (9450,000,000 won as of 270m) shall be set at KRW 3.5 million per 1m of the tunnel, and the construction cost will be paid within one month from the filing date of the claim.”

Around December 17, 2013, the Defendants continued to conclude a MO with the same purport at the victim’s office located in the Y I and the third floor of the Gyeongcheon-gun, Chungcheongnamcheon-gun, and entered into the said MO with the same purport. Around January 16, 2014, the Defendants entered into a construction contract with the same content at the victim’s office.

However, in fact, the Defendants did not have any property at the time, and was in fact unable to receive funding from investors in China before they mine a house, so even if they borrowed the settlement money and awarded the contract for the excavation work of a tunnel, the Defendants did not have any intent or ability to pay for the progress payment of the tunnel excavation work as agreed upon by the victims.

From December 23, 2013, the Defendants: (a) by deceiving the victims as such; (b) transferred KRW 70 million to the Agricultural Cooperative account in the name of G Co., Ltd. (J) with the loan borrowed from the victims; and (c) KRW 30 million to the Agricultural Cooperative account in the name of the said G (K) around January 20, 2014; and (d) from around December 23, 2013.