Defendants are not guilty.

1. Defendant A is a real estate consulting business operator, Defendant B is a corporation C (hereinafter “C”) auditor.

On October 5, 2015, the Defendants awarded a successful bid of KRW 1.75 billion in the name of C with D land, ground factory buildings, and machinery and apparatus in a factory (hereinafter “instant machinery and apparatus”) at the time of public order, and sold the instant machinery and apparatus to E in the amount of KRW 120 million on October 30, 2015 in order to prepare the successful bid price.

In addition, in order to raise the remainder of the insufficient bid price, the above land and above-ground factory buildings, including the instant machinery and apparatus sold to E, were offered as security to obtain a loan of KRW 1 billion from the victim F Cooperatives.

On November 11, 2015, the Defendants, at the victim’s office located in Kimcheon-si G, sent the same attitude that the head of the credit team, even though having already sold the instant machinery and equipment, would provide a security for the entire factory property, and prepared a loan application with the said land and ground factory buildings and the instant machinery and equipment as security, and a collateral guarantee certificate.

As a result, the Defendants conspired to deception the victim, and received on December 8, 2015, one billion won from the injured party to the F Association account in the name of C under the name of a loan by mortgage over a factory foundation.

2. Determination

A. In the sale and purchase of real estate, where it is evident in light of the empirical rule that the seller would not notify the buyer of any specific circumstance related to the sale and purchase, thereby bringing about obstacles to the validity of the sale and the performance of obligations arising from the sale and purchase and resulting in danger that the purchaser would not secure rights to the subject-matter of the sale and purchase, without notifying the purchaser of such circumstance, and that the purchaser would not enter into the sales contract or would not pay the purchase price if he/she was notified of such circumstance.