Defendant

A shall be punished by a fine of KRW 5 million, and Defendant B shall be punished by a fine of KRW 10 million.

The above fines are imposed by the Defendants.

Punishment of the crime

1. On December 23, 2016, Defendant A was sentenced to five months of imprisonment for a crime of fraud, etc. at the District Court of Jung-gu on December 23, 2016, and the said judgment became final and conclusive on December 31, 2016.

A. The Defendant in violation of the Commercial Act is a person who served as the representative director of C Co., Ltd. from May 2015 to June 2015.

On May 15, 2015, the Defendant deposited KRW 300,000,000 borrowed from F to F in the bank account in the name of F Company’s new shares 240,000 and issued a certificate of balance from the said bank in order to pretend that the Defendant did not intend to pay KRW 300,000,000 of the company’s incorporation capital at a branch office of E Bank in Seocho-gu Seoul, Seoul, as if he were paid as the stock price of the company’s acquisition shares.

On May 16, 2015, the Defendant: (a) withdrawn the said amount of KRW 300,000,000 from the said bank; and (b) made the act of pretending the payment of shares of the said company.

B. On May 21, 2015, the Defendant entered false records, such as public electronic records, at the registration office of Namyang District Court located in 514, Manyang-si, Namyang-si, Namyang-si, Namyang-si, Namyang-si, the Seoul District Court: (a) had a certified judicial scrivener G who knew of such fact, prepare an application document for the establishment of the said company and submit it to the said registration office.

Accordingly, the registry official who is not aware of such fact entered the total amount of 60,000 shares issued in the electronic records identical to the registry of the corporation at 300,000,000 won.

In this respect, the defendant made a false report to a public official, and made him record false facts in electronic records identical to the original copy of the fair deed.

(c)

The Defendant, at the time, at the time, and place specified in the foregoing Paragraph (b), had the electronic records identical to the register of a stock company, which recorded false facts, be kept and exercised.

2. Defendant B

A. From March 25, 2015, the Defendant violated the Commercial Act, the Defendant Company H.