A defendant shall be punished by imprisonment for not less than one year and six months.

Punishment of the crime

On March 2009, the Defendant established E, a construction company, at Bluna around 2009, and changed the trade name of the said company to F around June 2009.

On April 2009, G, a construction company in Brazil, was awarded a new construction of H school of USD 20,977,037 with the construction cost of KRW 20,977,037 ($ 18.5 billion) from the Bluruenian government. On June 2009, G entered into a joint agreement with E to perform the said construction on the condition that the construction bears both a deposit and various insurance premiums.

In order to execute the above construction works ordered by the Bluennn Government, the Corporation deposited cash equivalent to 10% of the construction amount with the deposit for the execution of the construction works, or submitted it with the guarantee of bank payment that guarantees the payment of the above amount, and the Defendant ordered the construction works for the above H secondary schools under the condition that the above construction works bear both the deposit for the performance and various insurance premiums.

In order to execute the above construction, Defendant 1 should deposit 2,097,703 Blue US$10% of the above construction amount with the deposit for the construction project, and there was a lack of funds to secure the payment of the above amount, and there was a need to guarantee the payment of the bank. However, Defendant 2 did not have to carry out construction in Blue as a newly incorporated corporation established in 2009, and G was difficult to obtain a bank payment guarantee for the deposit for the construction project from the bank due to the aggravation of the financial situation, such as filing a lawsuit against subcontractor due to failure to pay the construction amount.

The Defendant borrowed approximately KRW 130 million from G executives to pay USD 298,000 ( approximately KRW 26,830,000,000) as the compensation insurance premium for the employees of the insurance company due to the shortage of funds necessary for the above contracts of construction. The Defendant borrowed approximately KRW 130,000,000 from G executives, and part of the intermediate payment according to G’s fiscal aggravation.