Defendants shall be punished by a fine of KRW 4,000,000.

In the event that the Defendants did not pay the above fine, each of them is 100.

Punishment of the crime

Defendant

C On April 21, 2016, the Seoul Central District Court sentenced a suspended sentence of two years on July 29, 2016, for a violation of the Act on Fraud and Health Functional Foods.

Defendant

C around January 5, 2015, a person who reported the business of functional health foods sales and sells functional health foods under the trade name "H" in Article 611 of the Gangseo-gu Seoul Metropolitan Building A, Gangseo-gu, Seoul. Defendant A, along with Defendant B, is in charge of accounting affairs while operating the functional health foods selling company under the trade name "J" on the fifth floor of the Y-gu, Daegu-gu I building. Defendant B reported its business under its own name and is the "chief of office" in charge of selling functional health foods.

No one shall make any false or exaggerated labeling or advertising, such as labeling or advertising, with respect to the name, raw materials, manufacturing methods, nutrients, ingredients, methods of use, quality, and tracking and management of records of functional health foods, which have efficacy or effects in preventing and treating diseases, or which may mislead or confuse them as medicine.

Nevertheless, in selling “K”, the Defendants supplied the above functional health foods to Defendant A and Defendant B for KRW 1.80,00 per set (2 copies, 2 months). Defendant A and Defendant B conspired to sell the above functional health foods to Defendant A and Defendant B for a false and exaggerated advertisement as if the above functional health foods have efficacy for the prevention and treatment of diseases. Defendant A and Defendant B conspired to sell the above functional health foods for KRW 6.80,00 per set on the basis of Defendant C’s publicity.

1. Defendant C in collusion with Defendant A and B, and around February 9, 2015 and February 11, 2015, at the “J” business site located on the fifth floor of the Daegu-gu International Building, Daegu-gu, Daegu-gu, and around February 11, 2015, the Defendant directly visited the Defendant or visited L who is an employee of the Defendant Company, thereby allowing the primary customer to visit the said facilities.