A defendant shall be punished by imprisonment for not more than ten months.

Punishment of the crime

The Credit Guarantee Fund operates the Electronic Commerce Guarantee System B2B (Inter-corporates) in order to revitalize the uncertainty of the collection price of non-face-to-face transactions made online, and to enhance transparency in corporate financial transactions. The System is operated in the form of corporate purchase fund loans based on the real commercial transactions, the purchasing companies wishing to borrow corporate purchase funds enter the electronic purchase contract into the online market (MP) and the selling companies send the above transaction information to the Credit Guarantee Fund's stores upon the submission of the electronic sales contract, and the Credit Guarantee Fund re-transfer the transaction information to the bank.

Since then, the bank shall directly remit the loan to the account of the selling company within the limit guaranteed by the Korea Credit Guarantee Fund, and the purchasing company shall operate the purchase company in the form of repaying the price of the goods within the period of six months to one year.

Around November 2013, the Defendant established and operated (ju) E for the purpose of selling computer parts and household appliances in Yongsan-gu Seoul Metropolitan City’s 1st floor D, Yongsan-gu, Seoul, and made a credit guarantee agreement with the Korea Credit Guarantee Fund from September 2014 and used B2B guarantee system after entering into a loan agreement with the F Bank. The Defendant was paying the purchase price by directly remitting the purchase price to the F Bank’s loan to the F Bank’s account using the loan scheme.

As such, the Defendant settled the price of the goods purchased from a trader using the electronic commerce guarantee system, the Defendant sold his own products and repaid the F Bank loans with the sales proceeds, and the financial situation worsens due to poor sales performance and civil litigation loss.