Defendants are not guilty. The summary of the judgment against the Defendants is publicly announced.

1. Summary of the facts charged

A. On January 28, 2004, Jeonju-si established F in Yansan-gu, Jeonju-si, and constructed facilities for the convenience of residents equipped with sports facilities, such as the tennishead, and incidental facilities, such as raina, for the promotion of health and welfare of E residents. On July 27, 2010, the original name of the F Resident Support Council comprised of E residents, including E, is the “L Resident Support Council” (hereinafter referred to as “Support Council for Residents” among the documents attached to “the letter of complaint” of evidence record 1, the term of entrustment of the Convention was from July 27, 2010 to July 26, 2013, and the period may be renewed (Article 4 of the Convention, evidence record No. 2161).

2) On October 1, 2010, G, the chairperson of the Residents Support Consultative Council, received investment of KRW 250,000,000,000 in E public funds, KRW 120,000,000 in total, and KRW 175,000,000 in funds of E residents including the Defendants, and distributed shares according to the investment amount by raising capital of KRW 500,000,00 in capital for the purpose of re-entrusted operation of convenience and convenience facilities for residents from the body of consultation for residents support, and received 41% of the common shares of E residents including the Defendants, and received 24% of the shares of the residents including the Defendants, and 35% of the shares of H in the external investors. The representative director as G, director, etc. was established as I (hereinafter “I”).

3) On November 2, 2010, the Resident Support Council enacted the Articles of Incorporation, and re-entrusted I with the management and operation of the Resident Support Council by stipulating I for the operation of the Resident Support Facilities as the business of the Resident Support Council, and “I (profit-making corporations) without fixing a deadline” (Article 4 subparag. 5 and the above “Evidence No. 6”). Accordingly, I invested funds, thereby operating the Resident Support Facilities by additionally installing facilities, such as raina, or maintaining and repairing the facilities.

4) However, there is a difference between the parties.