The Defendant is a non-profit childcare facility in Songpa-gu Seoul Metropolitan Government that operates the D Child Care Center.

The founder and operator of a child-care center shall not collect child-care fees, etc. by fraud or other improper means, and the special activities expenses shall be used for personnel expenses for special activities instructors, special activities textbooks, and the purchase expenses for school districts in accordance with the guidelines for the "child-care project guidance" of each year published by the Ministry of Health and Welfare, and shall calculate the amount received, actual expenses, and the remaining amount by guardian and notify the child-care center operation

From January 2010, the Defendant, from the above child care center, provided education for special activities to the guardians of child care victims through an external company related to special activities, such as English and music, and received 50,000 to 150,000 won for special activities per person, and requested the Defendant to provide a written consent for special activities to the effect that the expenses for instructors, teaching materials, and teaching equipment will be paid.

However, the defendant entered into a contract with special activities companies to pay only 20% or 50% of the special activity expenses received from the victims as the monthly tuition fees, teaching materials expenses, and the remaining special activity expenses were to be used at will or as the general operation expenses of the childcare center.

Nevertheless, the Defendant, as described above, did not settle the special activity expenses and did not notify the victims of the fact that the Defendant is expected to use the special activity expenses at all, and received the amount in excess of the agreed amount to be paid as education expenses from the guardians in the special activity enterprise. On January 1, 2010, the Defendant received 63,000 won from the victims E, a guardian of the child care center at the above day from March 2013, including the receipt of 63,00 won as special activity expenses from the victims E, as stated in the attached list I (the total amount received) from the victims.