Defendants shall be punished by a fine of KRW 10,000,000.

In the event that the Defendants did not pay the above fine, 50.

Punishment of the crime

Defendant

A is the representative director of a company that manufactures and sells (main) cosmetics and dry-type, etc. in the 8th floor of the F Building in Seoul Special Metropolitan City, and Defendant B is the president of the company that actually operates the company before Defendant A.

1. On November 8, 2010, the Defendants, in violation of the Act on the Regulation of Conducting Fund-Raising Business without Permission, explained as follows: “The Defendants would sell cosmetics to a large number of unspecified persons, such as victims H, and distribute profits by paying KRW 170,000 per week for 17-18 weeks to pay the principal and KRW 120,000 per week when investing KRW 10,000 per week.”

The Defendants received KRW 10,00,000 from the victim on the same day as investment money, and received KRW 32,4530,000 from 54 investors in total from September 15, 2010 to December 8, 2010 as indicated in the attached list of crimes, including the receipt of KRW 10,000 as investment money.

As a result, Defendants conspired to raise funds from many and unspecified persons without obtaining authorization, permission, registration, or reporting pursuant to Acts and subordinate statutes, and agreed to pay the total amount of the investment or an amount exceeding the amount of the investment in the future and received the investment.

2. The Defendants made a false statement to the victim H as stated in paragraph 1 at the time and place.

However, even if the above company sells cosmetics, it is impossible to create high profits, and eventually, the return of the principal and interest of the investment (one hundred and twenty percent of the principal by paying 700,000 won per share for 17-18 weeks) agreed to investors is bound to depend on the investment funds of new investors and re-investmenters, and even if it receives money from investors as the investment funds of cosmetics sales business after a certain period expires, the principal shall be paid.