All appeals by the Defendants and the Prosecutor are dismissed.

Summary of Grounds for Appeal

As long as 110,00 shares of J Co., Ltd. (hereinafter “J”) kept as security by the Defendants in common, the Defendants renounced or lost the security right to the said shares, and in fact, the said shares were kept for a considerable period after being invested in the F Co., Ltd. (hereinafter “F”) in kind. Thus, the Defendants returned the said shares to I later.

Even if the defendants pretended to make an investment in kind, it cannot be said that the defendants are.

Therefore, the judgment of the court below that found this part of the facts charged guilty is erroneous in misconception of facts.

Defendant

Since Defendant A’s assertion is not in the position prescribed in Article 622(1) of the Commercial Act at the time of the investment in kind of shares, it cannot be the subject of the crime of inducement of payment under Article 628(1) of the Commercial Act. Defendant B did not participate in the crime of violation of the Commercial Act.

Therefore, the judgment of the court below which found Defendant A guilty of violating the Commercial Act among the facts charged in this case is erroneous in the misunderstanding of facts.

The punishment imposed by the court below on the Defendants (the fine of eight million won) is too unreasonable.

According to the evidence of fraud against the Defendants among the facts charged in the case of this case, it is sufficient to recognize that the J and F operated by Defendant A had capital potential, and even if the Defendants acquired the management right from the victim due to the lack of cash, etc., they did not have any intent or ability to pay 1.5 billion won or to guarantee 7 billion won for new shares, it is sufficient to recognize that the Defendants did not have any intent or ability to guarantee the management right of F. However, the judgment of the court below that acquitted the Defendants of fraud among the facts charged in the case of this case is erroneous in the misunderstanding of Facts Act.

The facts charged of this case.