The Defendant is an operator of (State)D, which is a software developer, and (State)D is designated as a participating institution of national research and development projects equivalent to 12.5 billion won in the cost of management, supervision, and evaluation by the Korea Industrial Technology Evaluation Institute, which is an affiliated institution, with the authority delegated by the Ministry of Trade, Industry and Energy, and is subsidized by the Korea Industrial Technology Evaluation Institute of Industrial Technology from the aforesaid project.

The Defendant disbursed expenses for limited purposes, such as research equipment and research allowances, within the project cost limit, and, if he registers evidential documents, such as a tax invoice, in the online research expense management system (hereinafter referred to as the “RCR”) of the Korea Evaluation Institute of Industrial Technology, he/she was willing to receive the project cost by means of receiving false tax invoices, etc. by using the fact that the research funds are remitted immediately without a separate due diligence, and acquired them by fraud.

1. Violation of the Act on Fraudulent and Subsidy Management;

A. On March 5, 2013, the Defendant entered a processing statement and electronic tax invoice as if the costs of purchasing equipment, such as Nowon-gu, monitors, and PC main body, in connection with the purchase price of equipment, at the office of Geumcheon-gu Seoul Metropolitan Government (1302 (State D) on the basis of the fact that he/she had not been supplied goods equivalent to KRW 17,00,000,000 from G. However, the Defendant received KRW 17,00,000 from the Korea Evaluation Institute of Industrial Technology from the date of the transfer of project costs as the price of equipment from the Korea Evaluation Institute of Industrial Technology to May 20, 2014, including the Defendant received KRW 59,285,00 in total seven times in total as indicated in the attached Table I, as if he/she had been used for the purchase of equipment related to the said business, and received it from the victim by fraud or other unlawful means, at the same time, and received the subsidy from the victim by fraud or other unlawful means.

B. The Defendant related to research allowances is registered at the above office on April 10, 2013, and the fact is registered as a researcher belonging to the above company.