Defendant

A shall be punished by imprisonment with prison labor for four months, and by a fine of three million won.

Defendant

B The above fine shall not be paid.

Punishment of the crime

[criminal power] On January 30, 2013, Defendant A was sentenced to a suspended sentence of one year for a crime of occupational breach of trust at the Seoul Central District Court, and the above judgment was finalized on February 7, 2013. On January 24, 2014, Seoul High Court sentenced Defendant A to a suspended sentence of three years for two years for a crime of violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Misappropriation). The above judgment was finalized on February 4, 2014.

【Criminal Facts】

Defendant

A From December 2005, a person who was in charge of the management, disposal, and enforcement of the property owned by the above clan as the president of the E clan from around December 2005, and Defendant B, from around 2003, worked as a general secretary of the above clan clan and was in charge of the management, disposal, and enforcement of the property owned by the above clan. There was a duty to preserve the clan property and manage it with due care so as not to infringe upon the interests of each victim clan.

According to the rules of the clan, the clan property should be preserved and disposed of by the resolution of the general meeting, so the lending of the clan property must be subject to the resolution of the general meeting and the sufficient security for the loan shall be set up.

Nevertheless, on August 2006, the Defendants decided to grant KRW 300 million to G with the establishment of the right to collateral without undergoing a sufficient examination of the collateral in order to promote the interests of G in the mutually unclaimed restaurant in Jongno-gu Seoul, Jongno-gu without undergoing a resolution of the general meeting.

According to the above decision, Defendant B was established with the right to collateral security from G on September 4, 2006, and remitted each of the above real estate amounting to KRW 150 million on September 7, 2006 and September 28, 2006 to G, but the above real estate was merely transmission line, and the market price is less than KRW 300 million, and there was no possibility of actual transaction, and therefore, the difference between the market price and loans amounting to KRW 300 million is the difference between the market price of the above real estate and loans amounting to KRW 30 million.