Defendants shall be punished by a fine of KRW 4,000,000.

In the event that the Defendants did not pay the above fine, the Defendants did not pay the fine.

Punishment of the crime

[Criminal Justice] On June 18, 2014, Defendant A was sentenced to 6 months of imprisonment for fraud and 2 years of suspended sentence at the Seoul Eastern District Court on June 26, 2014, and the said judgment became final and conclusive on March 24, 2015. Defendant B was sentenced to 1 year of imprisonment for habitual special larceny at the Seoul Northern District Court on March 24, 2015, and the said judgment became final and conclusive on May 19, 2015. Defendant B was sentenced to 4 months of imprisonment with prison labor and 2 years of suspended sentence for a violation of the Specialized Credit Finance Business Act at the Seoul Central District Court on June 5, 2014.

【Criminal Facts】

Although anyone is prohibited from lending the name of a credit card merchant to another person, the Defendants opened a credit card merchant under the name of Defendant A after filing for business registration, and conspired to divide profits equivalent to 1.5% to 2% of the settlement amount after lending a credit card terminal under the name of Defendant A to name D and E to make payments on an entertainment drinking house, etc.

1. Around November 2009, the Defendants via the “F” of the franchise store “F” lent F’s credit card terminals established in the name of Defendant A from the “F” registered in the name of the Defendant located in the first floor in Gangnam-gu Seoul, Seoul underground level to the name of the Defendant “F”, thereby allowing the payment of KRW 992,00 in the name of the drinking value of the drinking entertainment bars, etc. on January 9, 2010, as indicated in the attached Table (F) from the place of entertainment tavern, etc. to August 3, 2010, the Defendants made payment of KRW 18,998,000 in total, 15 times in the name of the credit card merchant, etc. under the name of F, as indicated in the attached Table (F).

As a result, the Defendants conspired with one name D and lent the name of credit card merchant to another.

2. On October 2009, the leased Defendants via the “H” of the franchise store “H” established in the name of the Defendant at “H” registered under the name of the Defendant in the Gangnam-gu Seoul Metropolitan Government I underground, and the F’s credit card device established in the name of the Defendant A is dry-in entertainment drinking bars to the name-based D, etc.