A. 1) The Plaintiff Foundation is a non-profit incorporated foundation established to facilitate the export of venture businesses and small and medium enterprises and support their overseas expansion, etc., and is prior to the amendment by the Administrator of the Small and Medium Business Administration of the former Budget and Management of Subsidies Act (amended by Act No. 10898, Jul. 25, 2011; hereinafter “former Subsidy Act”).

(2) Plaintiff B is the chief director of the Plaintiff Foundation, who has the power of representation.

3) Defendant C served at the Plaintiff Foundation from January 9, 2009 to July 2, 2009, and served as the chairperson of the Plaintiff Foundation from January 22, 2009 to the time of retirement. Defendant D served as the head of the Plaintiff Foundation’s management planning headquarters from March 1, 2008 to April 13, 2009. (b) The Plaintiff Foundation submitted a written request for the proposal of the E-Building Project (hereinafter “E”) to the Administrator of the Small and Medium Business Administration and obtained the approval from the Administrator of the Small and Medium Business Administration on September 19, 2008, accompanied by the detailed implementation plan of the instant project. The total budget required under the detailed implementation plan is KRW 70 million, and the budget required for each item is as follows:

Items Items Budget (wons)

1. The cost of building up a database of 50,000,000 for the development of the service cost software: 100,000,000 novels of 150,000,000; and

2. The network sector 280,000,000 server sector 242,00,000,000

3. Information strategies formulation cost 50,000,000 - 772,000,000 for each type of business of this case - 2) The Plaintiff Foundation requested the Administrator of the Small and Medium Business Administration to revise the subsidy budget for 2008 in order to efficiently implement the business of this case. As a result, on October 30, 2008, the Plaintiff Foundation received notification of approval by the Administrator of the Small and Medium Business Administration to change the project budget of this case to KRW 830,000,000. 3)