Defendants shall be punished by a fine of KRW 5,000,000.

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

Punishment of the crime

Defendant

A served as the secretariat of an incorporated association E (hereinafter referred to as “E organization”) located in Thai City from March 2007 to March 201, 201, and was in charge of the application, execution and settlement of subsidies, and contractual duties with the performance team related to the event. Defendant B took overall charge of the relevant duties as the chairperson of the E organization from June 2009 to June 201.

1. The Defendants’ co-principal embezzlement

A. From July 24, 2009 to August 22, 2009, the Defendants were granted 30 million won subsidies from Thai City to E organization accounts (Agricultural Cooperatives G) on June 30, 2009, and deposited them to Defendant B’s account on July 8, 2009. The above subsidies are strictly limited and specifically limited funds, and some of the subsidies were paid to E Association’s six branches (I, J, K, L, M, and N) under the E organization to use for contractual work with the performance team and, in the event of opening and closing of the performance team directly conducted by E organization, the aforementioned subsidies were paid to the Association as a result of the performance to return the specific amount of the subsidies from the beginning to the performance team under the condition that the subsidies were to be paid to the first part of the performance team under the condition that the operation expenses of the performance team would be refunded to the Association for the first time in the event of the performance.

1 In accordance with the above public offering, the Defendants invited a “P” performance team to make a joint arrangement by inviting a public performance hall that is being directly contracted by E organizations.