A defendant shall be punished by imprisonment for not less than eight months.

However, the execution of the above sentence shall be suspended for a period of two years from the date this judgment becomes final and conclusive.

Punishment of the crime

The Defendant was the representative director of D Co., Ltd. (hereinafter “D”), which is a game water production, development and distribution company, and the Defendant had difficulties in raising the company's financing due to the delay of classification and review of rating of the game water developed by the said D.

Therefore, the Defendant agreed that D will take part in F’s capital increase of KRW 5 billion around August 2012, and that D will return the above amount of capital increase in the form of investment again from F, using the credit of F Co., Ltd. (hereinafter “F”), which is a listed company run by E, for the purpose of raising funds for D’s operation, by using the credit of F (hereinafter “F”).

Although the Defendant participated in F’s capital increase in KRW 4.9 billion, such as investing KRW 1.5 billion in G in the name of G on September 2012, the rating review continued to be delayed, and the amount equivalent to the above capital increase as agreed from F was not refunded in the form of investment. In the course of investment, the Defendant paid the principal and interest of the existing obligation to prevent a return, and thus, did not have any intent or ability to repay the said amount even after borrowing additional money from another person.

Nevertheless, on October 11, 2012, the Defendant: (a) at “I” coffee shop at the entrance of the Seocho-gu Seoul Seocho-gu Seoul H market; and (b) at the victim L introduced by J and K, “D is urgently needed.”

The term “a loan of KRW 100 million shall be repaid until April 3, 2013, and interest shall be paid KRW 50 million.”

As above, Defendant 1 issued KRW 100,000 to the Korean bank account (Account Number: M) with the name of Defendant at the seat, from the victim’s false statement to the victim.

Summary of Evidence

1. Partial statement of the defendant;

1. Each protocol of examination of the suspect by the prosecution against the defendant, K, and J (including L/L)

1. Copy of the loan certificate, copy of the passbook of deposits, details of securities on new shares and deposit transactions;

1. Investigative Report (Submission of Data and Related Interviews with regard to the participation of suspect AF in capital increase) and investigation report (the result of execution of a warrant of search and seizure).