Part concerning Defendant A and B shall be reversed.

Defendant

A Imprisonment with prison labor for one year, and two years.

2. Determination

A. According to the facts charged by the lower judgment against Defendant B, prior to the judgment on Defendant B’s ex officio on the grounds for appeal, the lower court acknowledged that Defendant B made a false report on Defendant B’s performance of the subsidized project, and determined the sentence against Defendant B after applying Articles 42 subparag. 4 and 27 of the former Subsidy Management Act (amended by Act No. 13931, Jan. 28, 2016; hereinafter the same).

In doing so, Article 42 of the former Subsidy Management Act provides, “A person who falls under any of the following subparagraphs shall be punished by a fine not exceeding 10,000 won,” and the judgment of the court below against Defendant B is erroneous in the misapprehension of legal principle, and it is obvious that this affected the conclusion of the judgment, so the judgment of the court below cannot be maintained any more.

B. The crime of this case in determining the grounds for appeal by Defendant A is an unfavorable sentencing factor against Defendant A, in the following cases: (a) Defendant A acquired government subsidies by fraudulent means or wrongfully consumed and embezzled government subsidies for the purpose unrelated to the project task; (b) the nature of the crime is very bad; (c) the total government subsidies that Defendant A acquired by deception or embezzled in collusion exceeds KRW 450 million; and (d) the damage recovery from the crime of this case was not performed properly.

However, Defendant A led to the confession and reflect of each of the crimes in this case, and Defendant A deposited KRW 50 million at the court below for the Korea Industrial Technology Evaluation Institute, and deposited KRW 65 million at the court below.