Defendant shall be punished by a fine of five million won.

If the defendant does not pay the above fine, KRW 100,000.

Punishment of the crime

[criminal power] On April 15, 2016, the Defendant was sentenced to two years of imprisonment with prison labor for a violation of the Act on the Regulation of Fraud and Unauthorized Fund-Raising Business, at the Changwon District Court, and three years of suspended execution, which became final and conclusive on July 11, 2016.

【Criminal Facts】

1. Fraud;

A. On December 30, 2014, at around 14:00 on December 30, 2014, the Defendant made a false statement to the victim E office operated by D, Inc., a window C, Changwon-si, that “The Defendant would pay KRW 50 million at the rate of 5% per annum (60%) per annum if he/she would make an investment as a fund for the business of E, a corporation, and pay it together with the principal after three months.”

However, the facts are that F Co., Ltd. established around February 2014 by the Defendant was a company established in order to raise funds to invest in the F Co., Ltd. as above F Co., Ltd. on or around February 8, 2014 and approved the use of G Co., Ltd. on condition that G Co., Ltd. will pay interest of KRW 5 billion on the monthly interest of KRW 1.9 billion to H Co., Ltd., the immediately preceding company, and used G Co., Ltd.’s factory until July 2014, and there was no source of use of the above factory due to the failure to pay the interest accrued until July 2014 after the use of G Co., Ltd., Ltd., and established around the above F Co., Ltd., Ltd., which was the company, did not exempt investors from the timely repayment of the principal and interest on the short-term investment, as it did not have any capacity to pay the principal and interest on the short-term investment to investors. Accordingly, E Co., Ltd., established around the above F Co., Ltd., without explanation, Ltd.