1. Fraud is a crime established by deceiving another person to make a mistake by inducing a dispositive act, thereby receiving property or making profits from property by inducing a dispositive act. It must be objectively determined in light of the specific circumstances at the time of the act, such as deception, mistake, and act of property disposal. Whether a certain act constitutes deception that causes a mistake to another person, and whether such deception and act of property disposal are related to a person.

In a case where the Defendant’s act of disposal of the victim’s property or the Defendant’s act of disposal was conducted under close relation with the failure or performance of a business that the Defendant promoted, the existence of the relationship with the victim and the Defendant should not be determined simply on the basis of the Defendant’s financial power or credit status, but rather on the basis of the relationship between the victim and the Defendant, the victim’s awareness and involvement in the relevant business, the specific developments leading up to the victim’s disposal of property in relation to the business, the possibility of success of the business, and the victim’s experience and occupation (see, e.g., Supreme Court Decision 2011Do829, Oct. 13, 201).