Defendants are not guilty.

1. A summary of the facts charged (hereinafter “H mutual savings bank”) has increased net losses due to overdue loans, etc., and the soundness of assets has deteriorated due to the aggravation of asset quality, and as such, it has prepared and publicly announced false financial statements from around 2008 in order to avoid sanctions against the Financial Supervisory Service and expand the amount of receipt, deeming that it is a superior mutual savings bank.

A. Defendant A1) The representative director of H Mutual Savings Bank (from August 2008 to November 2009) related to the 39th external audit of Defendant A1) classified the asset soundness according to the asset soundness classification standards set forth by the Financial Supervisory Service in preparation for the audit by B Accounting Corporation, an external auditor, at first time on July 2009. The facts are as follows: (a) the amount to be accumulated as the allowance for bad debts is KRW 50.29 billion; and (b) the ratio of capital adequacy ratio that reflects the allowance for bad debts (hereinafter “BISD equity ratio”).

(1) In order to calculate the credit ratio below 21.38%, the aforementioned BISD’s equity capital ratio is higher, and to calculate the credit ratio below the above fixed ratio below 8%, the allowances for bad debts are below 40.2 billion won, and the allowances for bad debts is below 40.47.56 million won, and the allowances for bad debts is below 8,000 won, and as if the net income per month reaches 10.725 billion won, the said allowances for bad debts were falsely prepared 39 financial statements, such as income statement. B accounting firm conducted external audits on the 39th financial statements of H mutual savings banks from July 209 to July 22, 2009. At the time, the Defendant, as a general manager of the external audit team, prepared an audit report, general audit and inspection work at the audit site, and prepared an audit and inspection work at the audit site.

The certified public accountants J in charge of the accounts for loans as audit team members at the time shall asset soundness of the Financial Supervisory Service for 12,894 loan borrowers.