Defendant

Park Ho-young

Law Firm Taeyang, Attorney Kim Jong-soo

1. The defendant shall be punished by imprisonment with prison labor for one year and three months and by a fine of three billion won, and by imprisonment with prison labor for the crimes listed in the table (2) Nos. 1, 2, and 3 as set forth in the judgment of the court below, and by imprisonment with prison labor for the crimes listed in the table (2) Nos. 3 and 4 as set forth in the judgment of the court below, two years and six months and by a fine of four billion won

2. If the defendant fails to pay the above fine, the defendant shall be confined in a workhouse for the period calculated by converting the amount of one hundred million won into one day.

3. The number of days of detention before the sentence of this judgment shall be included in the above imprisonment with prison labor for the crimes in attached Tables 1, 2 and 3 (2) as shown in the 85 days of detention before the sentence of this judgment.

4. An order to pay an amount equivalent to the above fine to the accused;

On June 29, 2006, the Defendant was sentenced to a suspended sentence of two years for a violation of the Punishment of Tax Evaders Act by the Seoul Northern District Court on the one-year period of imprisonment with prison labor for the violation of the Punishment of Tax Evaders Act, and the said judgment became final and conclusive on January 6, 2007, and is currently in the suspension of execution, and was actually operating Nonindicted Co. 3 and 16. The Defendant purchased and distributed non-data in an aesthetic manner and distributed them to the Customer; and then, he was willing to evade value-added tax by false means

1. In collusion with Nonindicted 17 and Nonindicted 18 and 19, the actual operator of the said Nonindicted Co. 2, the representative director, in the name of Nonindicted Co. 2, in collusion with Nonindicted Co. 2, and the sales tax invoice to be issued to Nonindicted Co. 5, etc., was requested by the said Nonindicted Co. 2 to permit the said Nonindicted Co. 2 to be issued by entering the name of said Nonindicted Co. 2 in the name of the said transaction partner. On November 2005, the sales tax invoice to be issued to the said transaction partner was authorized by requesting the said Nonindicted Co. 17 to allow the said Nonindicted Co. 2 to issue the said non-indicted Co. 2’s seal impression, corporate passbook, and seal was transferred from the said Nonindicted Co. 2 Co. 2

On or around January 31, 2006, the office of the above non-indicted 3 corporation located in Yangju-si (number omitted), while the defendant provided 1,502,400,000 won via non-data at the Gangwon branch of the non-indicted 20 corporation, the above non-indicted 2 corporation entered the false sales tax invoice in the name of the above non-indicted 2 corporation, which stated that the above non-indicted 20 corporation supplied 1,502,40,000 won via the above non-data at the Gangwon branch of the non-indicted 20 corporation, and delivered it to the non-indicted 21 who actually runs the above non-indicted 20 corporation branch of the Gangwon-dong branch of the non-indicted 20 corporation, and issued the false sales tax invoice in the name of the above non-indicted 2 corporation from January 31, 206 to March 31, 2006, each of the supply points stated in the annexed list (1).

2.If a list of total tax invoices by seller is not entered and submitted to the Government without being supplied with any goods or services under the Value-Added Tax Act, the list shall not be submitted to the Government:

A. Notwithstanding the fact that there was no supply of goods or services at the office of Nonindicted Co. 16 located at the rate of 15 on October 25, 2005 (number omitted), and from Nonindicted Co. 22, the said list of total tax invoices shall be entered into the serial number column of the list of total tax invoices by list by list by list: “12”, “(registration number 1 omitted)”, “Nonindicted Co. 22”, “2”, “2”, “2” in the purchase column, and “8,297,138,182” in the supply price column by list by list by list by list by list by list

B. On April 25, 2006, although there was no fact that Nonindicted Co. 3 was supplied goods or services from Nonindicted Co. 2’s office located in Sam-dong (number omitted), the list of the total tax invoice by customer was entered into the serial number column of the total tax invoice by customer was entered into the “1”, “(registration number 2 omitted), “Nonindicted Co. 2”, “4” in the purchase column, “4,” and “4,548,273,635” in the supply price column, and then submitted the above list by customer to the government.

C. For profit, the above non-indicted 3 corporation office on July 25, 2006 received no supply of goods or services from the non-indicted 2 corporation, the serial number column of the list of the total tax invoice by customer is as follows: "1", "(registration number 2 omitted)", "non-indicted 2 corporation", "in the purchase column", "4", "in the purchase column," "9,940,580,071", and submitted the list of the total tax invoice by customer to the government;

3. Intending to evade the value-added tax by fraud or other unlawful means, such as filing a final return of value-added tax, on the basis of the list of total tax invoices entered in false purchase tax invoices as described in paragraph (2);

On April 25, 2006, the above non-indicted 3's office reported the tax amount for the first period of January 2006, and the above paragraph 2-A. 2 of the above-mentioned paragraph (2) [the clause 1 of the indictment appears to be a clerical error in Paragraph 2 of the above-mentioned paragraph] as stated in the list of the total tax invoice by customer was actually purchased from the above non-indicted 2 corporation as if he purchased the oil equivalent to the total amount of KRW 4,548,273,635, and reported the above amount as purchase amount. On July 25, 2006, by entering the report deadline into a fraudulent or other unlawful manner, the value-added tax of KRW 5,528,472,955 was evaded by fraud or other unlawful means, as stated in the list of crimes (2) as well as by the list of crimes (2).

1. Defendant's legal statement;

1. Each protocol of examination of the suspect against the defendant (including Nonindicted 5 in the third and fifth protocol) (including the part concerning Nonindicted 5 in the third and fifth protocol);

1. Copy of each protocol concerning the examination of suspect by the prosecution against Nonindicted 18 (1) and Nonindicted 23 (2) (3)

1. A written statement prepared by Nonindicted 4

1. Investigation reports (Attachment of Non-Indicted 3 Co. 3, 16 Co., Ltd., 2 Co., Ltd., Non-Indicted 1 Co., Ltd., and Non-Indicted 1 Co., Ltd.’s summary statement), investigation reports (amount of issuance and delivery of Defendant’s false tax invoices), investigation reports (Attachment of Defendant’s Certificate of Non-Indicted 22 Co., Ltd and Non-Indicted 16 Co., Ltd.’s report), investigation reports (Attachment of Non-Indicted 3 Co., Ltd.’s value added report

1. The accusation, the investigation report (a copy of the accusation of Nonindicted Co. 22 and the accusation of Nonindicted Co. 2 and attachment of investigation records)

1. Previous convictions in judgment: Criminal history records, inquiry and report appended to judgment;

1. Article relevant to the facts constituting an offense and the selection of punishment;

Article 11-2 (1) 1 of the Punishment of Tax Evaders Act, Article 30 of the Criminal Act (a) and Article 11-2 (4) 3 (a) of the Punishment of Specific Crimes Act (or Article 8-2 (1) of the Punishment of Tax Evaders Act and Article 11-2 (2) of the Punishment of Tax Evaders Act and submitted to the Government by falsely entering a list of total tax invoices at the time of the sale of goods or services; a prosecutor was indicted by applying Article 8-2 (1) 1 and (2) of the Act on the Aggravated Punishment, etc. of Specific Crimes; however, the above provisions were newly established on December 29, 2005 and were enforced three months after the Act was promulgated in accordance with the Addenda, the Punishment of Tax Evaders Act shall apply to the crime at the time of the act in accordance with Article 1 of the Criminal Act. This is within the same facts charged and there is no concern about substantial disadvantage to the defendant's defense; Article 8-2 (1) 2 and (2) of the Punishment of Tax Evaders Act and Article 13-2 of the Punishment of Tax Evaders Act.

1. Handling concurrent crimes;

The latter part of Articles 37 and 39(1) of the Criminal Act / Articles 39(1) of the Criminal Act / each crime of the judgment excluding the crime of violation of the Act on the Aggravated Punishment, etc. of Specific Crimes

1. Mitigation for ex post concurrent crimes;

The latter part of Article 39(1) and Article 55(1)3 of the Criminal Act (limited to imprisonment and imprisonment shall be mitigated in consideration of equity between cases where a judgment is rendered and where a judgment is rendered concurrently with a crime for which a final judgment has become final and conclusive)

1. Aggravation for concurrent crimes;

○ Articles 37 (former part), 38 (1) 2, 50, and the proviso of Article 42 of the Criminal Act [aggravating concurrent crimes with imprisonment as provided for in the Act on the Aggravated Punishment, etc. of Specific Crimes (tax) on the Aggravated Punishment, etc. of Tax Evasion (tax) of 2007 with respect to imprisonment]

○ Article 4(1) of the Punishment of Tax Evaders Act [In addition to the fines, each fine for violation of the Act on the Aggravated Punishment, etc. of Specific Crimes (Delivery, etc. of False Tax Invoice) and the Act on the Aggravated Punishment, etc. of Specific Crimes (Tax)

1. Discretionary mitigation;

Articles 53, 55(1)3, and 6 of the Criminal Act (The following circumstances considered in favor of the reasons for sentencing):

1. Determination of fines;

Section 2-b(b) of the holding, Section 2-c(b) of the holding, Section 2-C(2) of the holding, Section 1-2 of the attached list of crimes (2), Section 3 of the judgment, Section 3 of the judgment, Section 1-50 million won, Section 2 of the attached list of crimes (2) and Section 3 and Section 4 of the attached list of crimes (2) of the judgment, respectively, shall be determined as a fine of KRW 4.1 billion, and all of them shall be determined as a fine of KRW 7.1 billion (=5 billion + KRW 1 billion + KRW 1.5 billion + KRW 4.1 billion).

1. Detention in a workhouse;

Articles 70 and 69(2) of the Criminal Act

1. Inclusion of days of detention in detention;

Article 57 of the Criminal Act

1. Order of provisional payment;

Article 334(1) of the Criminal Procedure Act

The Defendant supplied non-data and distributed them to customers in a large amount. The Defendant issued a tax invoice of 6.6 billion won in total to the customer while distributing them. Despite the absence of the supply of the oil, the tax authorities submitted a list of total supply values of 22.8 billion won to the tax invoice by false seller, and caused a big loss to the National Treasury by evading taxes of 5.5 billion won in total as stated in the judgment using such methods. Furthermore, even after being sentenced to a two-year suspended sentence due to a previous crime in the holding, the Defendant committed a crime of violating the Act on the Aggravated Punishment, etc. of Specific Crimes (tax) under the Value-Added Tax Act (tax), even after being sentenced to a two-year suspended sentence due to a crime in the holding, even after the Defendant’s assertion was sentenced to a two-year suspended sentence of imprisonment, the Defendant’s profits from the above crime have become less than 80 million won, and it appears that the execution of each of the instant crime was likely to result in the occurrence of the Defendant’s delinquency in his business, and that the Defendant’s previous crime and the Defendant’s financial status of each of this case should be sentenced.

It is so decided as per Disposition for the above reasons.

[Attachment Form 5]

Judges Ma-Un (Presiding Judge)