Defendant shall be punished by a fine of KRW 5,000,000.

When the defendant does not pay the above fine, 100,000 won.

Punishment of the crime

[Majority Opinion] On June 25, 2015, the Defendant was sentenced to two years and six months of imprisonment for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) at the Seoul High Court on the Aggravated Punishment, etc. of Specific Economic Crimes and the judgment became final and conclusive on November 27, 2015.

[Criminal facts] The defendant was a person who served as the representative director of E, Inc., a corporation in E in ethicty.

Where a resident makes a settlement with a nonresident by extinguishing or offsetting his/her bonds and obligations by means of offsetting, etc., he/she shall report to the Minister of Finance and Economy in advance.

Nevertheless, in 207, the Defendant was unable to pay the purchase price of parts to the Chinese business partner due to the aggravation of funds due to losses caused by KIK (Exchange hedge derivatives) and the suspension of transactions with major customers due to the global economic depression in around 2012, and thus, was unable to pay the purchase price of parts to the Chinese business partner. The Defendant was willing to set off the account payable to the business partner E, the account payable to the transaction partner, and the obligation of the transaction partner’s transfer of shares and convertible bonds owned by E (hereinafter “F”) to the transaction partner.

On November 19, 2012, the Defendant, without filing a report on November 19, 2012, set off the obligation of the above transaction parties, which acquired USD 64,411,361.19, and the total market price of the shares of F owned by Company E and bonds of USD 64,41,361.19 ($ 70,163,295,744 equivalent to the total market price of the shares and bonds owned by Company E) by the above transaction parties.

On December 28, 2012, the Defendant continued to set off, in the above manner, the obligation of the above transaction parties who acquired USD 10,791,687.72 (the equivalent of USD 11,574,085,079) in the aggregate of the total amount of the obligation, such as the price of goods, etc., to be paid to G company and 39 transaction parties, and the total amount of the bond converted to F owned by E Co., Ltd., and the bond and bond market price of F Co., Ltd., Ltd. (the equivalent of USD 11,574,085,079)

In this respect, the Defendant above.