A defendant shall be punished by imprisonment for not less than eight months.

Punishment of the crime

The Defendant is a real operator of an agricultural company C Co., Ltd. (hereinafter “Defendant Co., Ltd.”) which is an imported livestock products distributor.

On February 2013, the Defendant was unable to repay the amount equivalent to KRW 60 million due to D’s bankruptcy, which is an imported livestock product distribution company established and operated in around 201, and was decided to authorize the repayment plan around June 25, 2014 after filing an application for personal rehabilitation with the Incheon District Court. On October 29, 2013, the Defendant established the Defendant Company under the name of the Defendant’s living together with the Defendant, and began to operate the imported livestock products sales business after receiving a loan of KRW 50 million from the Korea Credit Guarantee Fund.

While the Defendant, while running the Defendant Company, extended a total of KRW 195 million from the previous North Korea Bank and the Industrial Bank of Korea, and used and continued to operate the business as business funds, such as lending card loans and bonds. However, the management situation becomes worse due to the occurrence of losses exceeding KRW 7 million per month from October 2014, while the outstanding claim against the Defendant Company’s customers was unlikely to recover due to bad credit, making it difficult for the Defendant Company to pay the sales price of livestock products in an ordinary manner.

The Defendant provided a group of livestock products as if they were to pay the entire amount of the supplied goods to new customers, and then partly paid the amount of the supplied goods to the existing business entity at a price lower than the supply price. The remaining livestock products also disposed of at a price lower than the supply price, and partly repays the amount of the supplied goods to the existing business entity and the amount of supplied goods to the new business entity as the disposal price, or uses them as pension purchase funds, and again receives livestock products from other livestock product suppliers, and part of the existing price of supplied goods as the disposal price.