The Defendant, as the representative director of Gangnam-gu Seoul and the second floor H Co., Ltd. (hereinafter referred to as “H”), was working as the head of the I organization J (I organization K plant).

1. Where a State agency in violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) intends to enter into a contract, it may enter into a contract by means of general competitive bidding in principle, but limited competition, designated competitive bidding, and free contract only in exceptional cases (Article 7 of the Act on Contracts to Which the State is a Party), and where a corporation established by a special Act, such as an I organization established by L, etc., directly produces goods or a service contract

[2] Article 26(1)8(c) of the former Enforcement Decree of the Act on Contracts to Which the State Is a Party (wholly amended by Presidential Decree No. 22282, Jul. 21, 2010); Article 7(1)8(c) of the Enforcement Decree of the Act on Contracts to which the State is a Party (wholly amended by Presidential Decree No. 22282, Jul. 21, 2010); Article 7(2) of the Enforcement Decree of the Act on Contracts to which the State is a Party (wholly amended by Presidential Decree No. 22282, Jul. 21, 2010), partially amended Enforcement Decree of the Act on Contracts to Which the State is a Party, and converting the subject of a negotiated contract into limited competition; in particular, even if a private contract was abolished by a special law such as an I organization, it was possible to enter into a contract by reducing the free contract amount by phases within the scope of the previous free contract amount (see Article 7(1)8) of the former Enforcement Decree of the Act.