A defendant shall be punished by imprisonment for one year.

Punishment of the crime

The Defendant, from around December 2, 2010 to February 2015, operated “D” (hereinafter “D”), an advertising planning agency, and the Victim E Co., Ltd. (hereinafter “victim”) is a company that provides services, such as planning of advertising media and purchasing advertising media, to an advertising planning agency, such as “D.”

On April 2014, the Defendant, at the Defendant’s office shop located in Gangnam-gu Seoul Metropolitan Government F, made a false statement to the Defendant Company G employees of the Victim Company “H (the total advertising price of KRW 440 million) to pay KRW 352 million (80 million), which is 120 days after the termination of the contract period or 150 days after the end of the contract period, by exposing the advertisement to the following NA,” and written an application for advertisement with the Victim Company as above.

However, at the time, “D” did not have the intent or ability to pay the service payment to the victim company, even if the company and the defendant received the cumulative amount of the company's and the defendant's liabilities from H to a hundred million won, due to the occurrence of outstanding amounts and new orders from the principal customer.

Nevertheless, the Defendant: (a) by deceiving the victim company as above; and (b) from April 28, 2014 to October 2, 2012 of the same year, the Defendant provided the victim company with H advertising services; (c) did not pay KRW 264 million out of the price; and (d) did not acquire the pecuniary benefits equivalent to the said amount.

[D] Around January 2014, it was a situation in which it was impossible to normally operate its liabilities exceeding KRW 250 million.

Nevertheless, the defendant did not notify the victim company of such circumstances and made the victim company post an advertisement as if he/she would normally pay the advertisement price, and then paid 75% of the advertising price received from the advertiser to pay the company operating expenses and the principal and interest of the loan.