Defendant shall be punished by a fine of KRW 5,000,000.

When the defendant does not pay the above fine, 100,000 won.

Punishment of the crime

The Defendant is a person who has worked as the head of the association of the Jung-gu Seoul Metropolitan Government Housing Reconstruction Project Association (hereinafter referred to as the “Association”) from December 2, 2012 to December 2016.

In the first time, C Co., Ltd. (hereinafter “City Co., Ltd.”), a contractor for the said project, paid directors’ expenses to its members free of charge, and the Defendant et al. agreed to deduct the directors’ expenses to be paid free of charge from the construction expenses, instead of paying directors’ expenses to its members from the Si Co., Ltd. (hereinafter “City Co., Ltd.”).

Although executive officers of a union undergo prior resolution at the general meeting of the union members with respect to the lending of funds, method, interest rate, and method of repayment, the Defendant entered into a monetary loan agreement with the Si Corporation without obtaining a resolution at the general meeting. Under the above agreement with the Si Corporation, the Defendant borrowed KRW 230,000,000 from the Si Corporation on April 27, 2015, as the director expenses of the union members, to the effect that “it shall be borrowed as without interest until the next day after the expiration of the occupancy designation period, but if the principal and interest are not repaid up until then, the outstanding amount shall be paid interest in accordance with the overdue interest rate for the household loan of the D Bank.” In addition, the Defendant entered into a monetary loan agreement with the Si Corporation by borrowing KRW 2,950,00,000 from the Si Corporation by November 30, 2015 as shown in the attached list of crimes.

Accordingly, the defendant borrowed funds as an executive of a union without a resolution of the general meeting of partners on the lending of funds, the method, interest rate, and repayment method.

Summary of Evidence

1. Partial statement of the defendant;

1. Investigation report (to attach a copy of passbook of Do bank which has been transferred as director expenses);

1. A copy of the investigation report (a copy of the monetary loan for consumption);

1. Investigation Report B, Reconstruction Association, and Public Notice;