The Defendant established a corporation for the purpose of producing fertilizers, such as the “Packing facilities,” etc. around March 30, 2005, as an actual operator of the Korea Agricultural Company D Co., Ltd (E, the representative of which was the name, died on August 16, 2013, and thereafter, the representative of F) located in Gyeongnam Development Group C, and produced fertilizers in the second floor factory from around March 30, 2006.

On the other hand, around April 15, 2009, the Ministry of Agriculture and Fisheries conducted a project for supporting the extension of organic fertilizers (total project cost of KRW 942 million, KRW 300 million, KRW 174 million, and KRW 468 million, and KRW 400 million, respectively) in order to produce organic compost by producing mushroom by-products from mushroom farming households within the development-gun pursuant to the Ordinance on the Management of Subsidies for the Development-gun (No. 1777) and resolve the shortage of compost by-products from mushroom farming within the development-gun, and to establish the environmentally-friendly circular farming law, "the project for supporting the extension of organic fertilizers production facilities (total project cost of KRW 942 million, KRW 300,000,000, KRW 174,000,000,000 and KRW 468,000,000,000,000,000).

On April 29, 2009, the Defendant knew that subsidies were granted in relation to the above programs for supporting the extension of production facilities of organic fertilizers, and submitted a subsidy program for the existing facilities on or around April 29, 2009, but it was known that this program was an extension project of the fertilizer production facilities implemented after April 2009, and thus, it would not receive a large amount of subsidies from the above existing facilities.