A defendant shall be punished by imprisonment for not less than eight months.

However, the execution of the above punishment shall be suspended for two years from the date this judgment became final and conclusive.

Punishment of the crime

[Criminal Power] On August 10, 2017, the Defendant was sentenced to three years of imprisonment with prison labor for a violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) at the Busan High Court, and the said judgment became final and conclusive on October 24, 2017.

[Basic Facts] The Defendant is the actual operator of the “Co., Ltd.” (hereinafter “C”) on the Nam-gu Seoul Metropolitan Government B and II, and was appointed as the intra-company director on October 13, 2014, and served as the representative director from November 24, 2016.

C around October 14, 2014, the former representative director D (Death on June 23, 2015) borrowed KRW 240 million from the victim E (hereinafter “victim E”) and completed the registration of the establishment of a mortgage over the maximum debt amount of KRW 312 million,00,000,000,000,000,000,000,000,000,000,000,000,000,000 won, which is the victim E (hereinafter “instant land”).

After January 28, 2015, D applied for additional loans to the victim E in order to newly build business facilities and urban-type residential housing (hereinafter “the instant aggregate building”) on the instant land, and the victim E was required to set up additional collateral security on the said land and immediately after the completion of the instant aggregate building in the future, the victim E was required to set up the first collateral security as the victim E on the said aggregate building.

D accepted the above victim E’s demand, and first of all, upon receiving additional loans of KRW 1.2 billion on the same day, the victim E completed the registration of creation of a mortgage over the maximum debt amount of KRW 1.56 billion with the victim E as the right to collateral security, and later agreed to set up a first priority collateral security for the instant aggregate building in the future.

【Criminal Facts】

The Defendant, as a substantive operator of C, was aware of all of the terms of the instant additional loan agreement between D and the victim E, and thus, may cause other creditors to impair the value of the security by completing the registration of establishment of the first class priority in the instant aggregate building in accordance with the agreement.