The part against the Defendants is reversed.

All of the public prosecutions against the Defendants are dismissed.

A. The instant indictment against the Defendants by misunderstanding the legal principles is null and void in violation of the provisions of the Act, as a prosecution procedure was instituted without accusation by the Fair Trade Commission.

B. The publicity materials of this case do not constitute false or exaggerated advertisements.

(c)

The punishment of the lower court (each fine of KRW 4 million) is too unreasonable.

2. The instant facts charged against the Defendants regarding the Defendants’ assertion of misapprehension of the legal doctrine is an offense falling under Articles 17 subparag. 1 and 3 subparag. 1 of the former Act on Fair Labeling and Advertising (amended by Act No. 11050, Sept. 15, 201) and Article 71 of the former Monopoly Regulation and Fair Trade Act (amended by Act No. 11937, Jul. 16, 2013) is applicable mutatis mutandis under Article 16(3) of the same Act, and thus, a public prosecution may be instituted only upon an accusation by the Fair Trade Commission (see Supreme Court Decision 2014Do1090, Nov. 13, 2014). Accordingly, according to the records, the public prosecution against the Defendants constitutes a crime that violates the provisions of the Act and thus becomes invalid.

Nevertheless, the court below erred by misapprehending the legal principles on the indictment procedure, thereby adversely affecting the conclusion of the judgment, since it found the above facts charged guilty.

3. In conclusion, the Defendants’ appeal is with merit. Thus, without examining the Defendants’ factual misunderstanding and sentencing, the part of the judgment below against the Defendants among the lower judgment pursuant to Article 364(6) of the Criminal Procedure Act is reversed, and the judgment is again rendered following the pleadings.

[Grounds for another judgment]

1. The summary of the facts charged is that Defendant C is the representative director of the FF in the execution of the new apartment construction project in Gyeyang-gu, Yangwon-gun E-gun (hereinafter “instant apartment”) and Defendant A.