Defendant shall be punished by imprisonment with prison labor for one year and six months, and by imprisonment for two years and six months with prison labor for the crime of No. 2 as stated in the judgment.

Punishment of the crime

On November 23, 2007, the defendant was sentenced to a 2-year suspended sentence of 3 years for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) in the Seoul Eastern District Court, and the judgment became final and conclusive on December 1, 2007.

1. The Defendant violated the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) has invested KRW 600 million in D, which was trying to take over C Co., Ltd. (hereinafter “C”), but was faced with a situation in which D could not recover KRW 600 million from the investment in the wind bound separately by D, and had the Defendant take over the management right from D in the name of E Co., Ltd. (hereinafter “E”), which was operated by E Co., Ltd. (hereinafter “E”), and had the investors take over the management right and let investors gain profits from the increase in the stock price by raising the share price.

On November 30, 2007, the Defendant, at the office of E Co., Ltd. located on the fourth floor of the Gangnam-gu Seoul FF building, concluded that “B is the friendship of the president of H Group I, and the representative of E associated with H group. E wishes to take over the said company by participating in the allocation of capital increase to a third party with a size of 16 billion won in the name of H group. If the Defendant borrowed KRW 1 billion, the Defendant would pay the principal and interest 10% until December 30, 2007, and the principal will be guaranteed.”

However, the Defendant did not have any particular income or property, and at the time, C had not been able to secure the principal of the victim even if the Defendant borrowed KRW 1 billion from the victim, and C had no ability to secure the principal even if it borrowed KRW 1 billion from the victim, since it was not easy to raise funds because the accumulated amount of KRW 60 billion for the last three years was in capital erosion. Even if it was raised through capital increase with capital increase, it was insufficient to cover the repayment of the debt amount exceeding 30 billion, such as corporate bonds 12 billion won at the time of maturity.

The defendant, from the victim, is a national bank account under E around November 8, 2007.