Defendant shall be punished by a fine of five million won.

If the defendant does not pay the above fine, KRW 100,000.

Punishment of the crime

The defendant is each representative director of B Co., Ltd. (hereinafter referred to as “B”) and C (hereinafter referred to as “C”) who is a household importing company.

1. The Defendant violated the Commercial Act, while operating B, borrowed the capital from E, the representative director of D (hereinafter “D”) who is a corporate representative director, in order to immediately withdraw it and pay it.

On March 31, 2014, the Defendant borrowed KRW 200 million from D and transferred it to the Defendant’s account, and then transferred the shares to B’s account, and issued a certificate of custody of shares payment. On April 2, 2014, the Defendant transferred KRW 200 million of the shares paid from the said bank to the account in the name of D.

B. On May 13, 2014, the Defendant borrowed KRW 100 million from E and transferred it to the Defendant’s account, and then transferred the shares to B’s account, and issued a certificate of custody of shares payment. On May 21, 2014, the Defendant withdrawn KRW 100 million deposited in the said bank, and then delivered the shares to E.

Accordingly, the defendant pretended to pay KRW 300 million of stock price B.

2. False entry, false entry, and electromagnetic records; and

A. On April 1, 2014, at the registry office of the Seoul Central District Court, the Defendant submitted to the registry office of the Seoul Central District Court an application form for capital increase to the effect that the total amount of KRW 200 million was deposited in B, such as a certificate of deposit of stock payment, etc., and made the above registry office enter false facts in the commercial registration information system, “the total number of shares issued by the Company B, KRW 160,000, KRW 800,000,000,” which is an official electronic record, on a commercial registration information system, and around that time, had the registry office keep the application form for capital increase in the company B, such as a certificate of deposit of stock payment, etc.

B. The Defendant around May 14, 2014, at the registry office of the Seoul Central District Court, shares of 100 million won against B as set forth in paragraph 1(b) above.