A defendant shall be punished by imprisonment for a term of one year and two months.

Punishment of the crime

On September 24, 2015, the Defendant was sentenced to imprisonment with prison labor and six months at the Changwon District Court for fraud, etc. and the said judgment has become final and conclusive on the 25th of the same month.

The Korea Credit Guarantee Fund is a non-profit special corporation ( quasi-government agency) established under the Technology Credit Guarantee Fund Act in order to guarantee the liabilities of enterprises which lack security capacity with government contributions, etc. to facilitate financing to enterprises. The E-Commerce (B2B) loan system is a system established for the purpose of reducing the financial difficulties of selling enterprises by reducing the risk of sales enterprises due to credit transactions in accordance with the government's policies to improve the bill system. If a purchasing enterprise purchases goods, etc. from a purchasing enterprise (sub-agency) by the Korea Technology Credit Guarantee Fund or a financial institution which has received a guarantee from the Korea Technology Credit Guarantee Fund or the Korea Credit Guarantee Fund, on the basis of transaction documents, such as tax invoices received through an electronic commerce brokerage within the lending limit under this guarantee certificate, and a purchasing enterprise is a loan system in which a purchasing enterprise redeems them to financial institutions.

The system of loans for corporate purchase funds where a purchasing enterprise applies for a loan to a financial institution, a credit guarantee institution, such as the Korea Credit Guarantee Fund, shall set a limit on loans to the financial institution through credit assessment, etc. for the company, guarantee 80% to 85% of the limit, and if a purchasing enterprise fails to repay a loan to a financial institution, a credit guarantee institution shall make a subrogated repayment using public funds within the scope of the guarantee and the remaining 15% to 20% is responsible for the financial institution.

When the operating funds of the above company are insufficient on April 2012 as the representative director (ju) who manufactures automobile parts, etc., the Defendant obtained a loan guarantee amount equivalent to 300 million won from the Korea Technology Credit Guarantee Fund in the name of the above corporation.