Defendants are not guilty.

1. The Defendants were to jointly operate the FF farming association corporation (hereinafter “corporation”) located in Songpa-gu Seoul building 423, and Defendant A was to be in charge of attracting investment, Defendant B was to be in charge of foreign trade affairs, and the Defendants did not have any special record despite the establishment of a corporation, and the Defendants were unable to raise funds for the issuance of credit necessary for foreign trade, etc., which led to the occurrence of a situation in which G and H, a couple, set up a collateral on real estate in the name of the victim I, who is his own child, and raised funds to use funds necessary for the corporation’s business affairs.

around December 23, 2014, the Defendants made a false statement to G and H on the part of the office of the said corporation that “I would issue a letter of credit on the high seas, and would pay the profits of KRW 4 million through agricultural products or raw materials trade to KRW 5 million each month from the date of December 2015,” and that is, around January 15, 2015 from G and H, the Defendants paid KRW 195,00,000 in the name of the said corporation to G and H around January 15, 2015, after having set up a maximum amount of KRW 195,00,000 in the name of the said corporation on an apartment of KRW 608,00 in the name of the victim I, the said collateral was transferred to K again on January 22, 2015, and paid KRW 150,000,000 in the name of the said corporation.

However, in fact, the Defendants failed to obtain a loan from the third party at the level of KRW 20 million from the Corporation’s acquisition fund of KRW 20 million. In order for the Defendants to pay the proceeds promised to G and H, the corporations should be able to make profits through import and sale more than twice a month. However, the corporations that the Defendants acquired from around 2010 did not have actually paid profits through trade. In this case, there was a situation where the Defendants should pay interest equivalent to KRW 420,000 per month when borrowing funds for the issuance of the credit from K, and therefore, they promised to receive the victim I apartment as collateral.