Defendants are not guilty. The summary of the judgment against the Defendants is publicly announced.

1. On August 5, 2005, Defendant A was sentenced to a fine of KRW 3 million for fraud, etc. at the Seoul Central District Court on three occasions, and was sentenced to a five-year imprisonment for fraud, etc. at the Suwon District Court on October 24, 2012, and currently pending in the appellate trial. Defendant B was sentenced to a fine of KRW 1.2 million at the Seoul Central District Court on September 20, 201 and was sentenced to a two-time criminal records for fraud.

The Defendants, around July 8, 201, purchased the victim E’s land and buildings on the land of the Dowon-dong, Jung-gu, Incheon Metropolitan City for the purpose of purchasing KRW 170 million from the purchase price to the victim E (hereinafter “instant real estate”) in the vehicle of Defendant A parked on the street prior to the Dowon-dong, Jung-gu, Jung-gu, Incheon. In order to obtain a loan from Defendant B as security of the instant real estate, KRW 160 million from the purchase price would be substituted by the Defendant B’s succession of the secured debt of the right to collateral security established on the instant real estate and KRW 20 million from the deposit repayment obligation of the lease deposit, and the remainder of KRW 10 million from the loan will be paid as the above loan, and the victim concluded a sales contract to sell the instant real estate to Defendant B on the said condition.

However, the defendants did not have the intention or ability to succeed to existing debts even if they received the above real estate from the victim as collateral, and only the remaining money excluding the remaining money of KRW 10 million out of the loan was considered.

As a result, the Defendants conspired to make the victim establish a collateral on the same day with the maximum debt amount of KRW 52 million, the debtor, the debtor B, and the Dowon Credit Union on the same day, and received a remittance of KRW 40 million from the Dowon Credit Union to the account in the name of the defendant B.